STOCK MARKET WATCH, Monday, December 12, 2011

[Hugin]

Last edited Mon Dec 12, 2011, 04:59 PM - Edit history (4)

A new day, a new DU. But, the SMW is mostly the same.

[font size=3]STOCK MARKET WATCH, Monday May 16, 2011[/font]

AT THE CLOSING BELL ON May 15, 2011

[font color=red]
Dow 12,595.75 -100.17 (-0.80%)
Nasdaq 2,828.47 -34.57 (-1.22%)
S&P 500 1,337.77 -10.88 (-0.81%)
10-Yr Bond... 3.16 -0.01 (-0.35%)
30-Year Bond 4.30 -0.01 (-0.16%)
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[font size=2]Market Conditions During Trading Hours[/font]


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[font color=blue][font size=2]Euro, Yen, Loonie, Silver and Gold
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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font][center]

Economic Calendar [link:cbs.marketwatch.com/tools/marketsummary/default.asp?siteid=mktw|Marketwatch Data] Bloomberg Economic News [link:finance.yahoo.com/|Yahoo! Finance] [link:finance.google.com/finance|Google Finance] [link:banktracker.investigativereportingworkshop.org/banks/|Bank Tracker] [link:banktracker.investigativereportingworkshop.org/credit-unions/|Credit Union Tracker] Daily Job Cuts
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font][center]

The Big Picture Financial Sense Calculated Risk Naked Capitalism Credit Writedowns [link:delong.typepad.com/sdj|Brad DeLong] Bonddad [link:atrios.blogspot.com/|Atrios] goldmansachs666 The Stand-Up Economist
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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font][center]

[link:legitgov.org/action.html|LegitGov] Open Government Earmark Database [link:usaspending.gov/|USA spending.gov]
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[font color=black][font size=2]Handy Links - Videos:[/font][/font][center]

" target="_blank"> The Coming Collapse of the Middle Class Charlie Rose talks with Roubini Charlie Rose talks with Krugman William Black: This Economic Disaster Bill Moyers with Kevin Drum and David Corn
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[div align="center"][font color=black]Bush Administration Officials Convicted = 2
Names: David Safavian, James Fondren
Dishonorable Mention: former House majority leader, Tom DeLay

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

Financial Sector Officials Convicted since 1/20/09 = [/font][font color=red]12[/font]


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********** Funny Comic Goes Here *********
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[font size=3][font color=red]This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.[/font][/font]

[dixiegrrrrl]

1. Good test run. You comfortable doing this????

I always wondered why it was in not the Economy group in the first place.

[Hugin]

3. Me?

No, I'm okay with it. Temporarily.

The SMW was started years ago when hardly anyone posted in the LBN. Primarily, as a way to draw interest and posts into the LBN. Ironic, eh? It stayed there due to tradition and access for the most part. With some of the features of DU3, ( subscriptions, groups, etc. ) I'll agree, it had become an anachronism for it to be there. OTOH, can't think of anything more LBN and affecting more American lives than The Economy. So, it's a paradox.

Let's hope it lives on here.

[bread_and_roses]

23. I think it belongs in LBN for the same reason that even NPR updates Market numbers all day

... and because "the Market" responds not only to "the economy" but also politics, war and peace, natural disasters, etc. As for "opinion and analysis," OPs of same were not allowed in "old" DU LBN either, but that criteria hardly applied to the responses, which in any LBN thread can range from fly-by K&Rs to dissertation-like posts full of links to analysis as well as "hard" news sources.

[Ghost Dog]

37. Yes. n/t

[zogofzorkon]

58. Yes it does. The move isolates and marginalizes.

[Roland99]

78. agreed

[dixiegrrrrl]

63. Quite a few members have alerady stated they like having it here..but...

Last edited Mon Dec 12, 2011, 04:06 PM - Edit history (1)

it could be cross posted in LBN to see if it fits the new LBN Statement of Purpose and/or is accepted there. Dunno how much the forum guidelines changes would affect that.


Notice: I forgot I had posted yesterday:
"SMW got locked out of LBNews jsut now.

View profile
"This discussion thread was locked by greyl (a host of the Latest Breaking News forum) on Sun Dec 11, 2011, 10:59 AM. It was locked for the following reason:

This discussion thread violates the Statement of Purpose for the Latest Breaking News forum. (Statement of Purpose: Post the latest news from mainstream news websites and blogs. Important news of national interest only. No analysis or opinion pieces. No duplicates. News stories must have been published within the last 12 hours. Use the published title of the story as the title of the discussion thread.)"
I suggested maybe posting SMW in this group.

link:
http://www.democraticunderground.com/111659#post4

[spotbird]

112. It will certainly be effective in limiting

views and participation. Some scary stuff is in here, we wouldn't want too many people to see it.

[Tansy_Gold]

114. About one half the average number of views today. n/t

[nc4bo]

118. Damn, took me 2 days to find this :S

[Tansy_Gold]

119. But we are glad you did

Tomorrow's is already up.

[hamerfan]

2. First rec!

Thanks again, Hugin.
I guess the Economy group is where we'll be. I hope most of the regulars find us and join in.
hamerfan

[Hugin]

4. First DU3 recce, too!

Good job!

[CatholicEdHead]

8. I hope so too

I first found SMW because it was in LBN. It will be much harder to find new viewers buried in Economy. I think it still belongs in LBN as it shows much prominent, relevant information to the economy and our day to day lives. It goes way beyond the numbers of the day.

[Ruby the Liberal]

5. Looks great!

You guys need help mapping anything?

[DemReadingDU]

6. Rec#4

Thanks for starting this thread!

oops, spelling

[Ghost Dog]

7. Testing charts

Market Conditions During Trading Hours


Euro, Yen, Loonie, Silver and Gold


Looks ok.

[westerebus]

10. Looks great!

Wunderbar!!

[dixiegrrrrl]

49. So glad you got the charts back up!

I really missed them.

[westerebus]

9. thanks

I have no idea how I found this. back to ;urking. spell check on aisle 6 please...

[InkAddict]

11. Wow, this is like back to the future. It's already Monday somewhere, I guess - LOL!

A warm thank you and hello again - new place/new and continuing DU friends. It's almost 2012 - The year that was and the next to be, Hope for the best, plan for the worst, if possible, is usually a good plan - Auld Lang Syne DU2.

[Hugin]

12. Thank you for your wisdom, IA.

And Happy Holidays.

[amandabeech]

13. Thank you, thank you, thank you, thank you all . . .

for keeping SMW going!!!

This is one of the first things I read every weekday morning.

From a long time lurker and occasional poster.

[Fuddnik]

14. I'm glad we've got a spot, anyway.

Thanks for starting it.

[Hugin]

15. "All I ask is a stout Tub and a star to sail her by."

Diogenes may have said this.

[Po_d Mainiac]

28. Make sure that tub ain't the one Buffett bathed in.

[Demeter]

60. Don't you mean Norquist, as in drown a government in?

What did Buffett do in the bath? Has he ever taken one in the market?

[dixiegrrrrl]

65. Lol..I was thinking of Pres. Taft's tub.

[Po_d Mainiac]

69. Buffett is Buffett

Buffett’s Idea

Buffett conceived of the investment while in the bathtub yesterday morning and had his assistant contact Moynihan’s for the banker’s private number,


http://www.businessweek.com/news/2011-08-25/bofa-buying-credibility-with-buffett-5-billion-investment.html

[Hugin]

16. Thanks so much for all of the recces, everyone.

I'll be back tomorrow to work on the template a little more. Together, the SMW shall stay!

[Tansy_Gold]

24. I will not be reccing. . . . . . . .anything.

I dislike the lack of confidentiality on this new DU. Transparency is one thing, but here I feel as if I have been forbidden to wear clothes and there is a DU webcam on me at all times. There used to be a thing called a secret ballot; I feel now as if that right has been stripped from the Constitution.

I also think we have lost our safe haven here.

SMW and WEE have been loaded with controversy for as long as I've been hanging out, and I'm sure long before that, too. I think many of us regulars remember when the WEE thread was locked one Friday night because some of the editorials posted were critical of Barack Obama, and it took an act of God (one of the DU owners) to get it unlocked.

Group hosts, by the way, are apparently appointed for life. The head host of a group has unilateral authority over all other hosts. Any host can lock a thread and does not need to explain why.




Tansy Gold, who does not want power because she does not want to be even tempted to exercise it

[dixiegrrrrl]

48. Tansy, I want to address your concerns.

The group hosts' job is to keep the topic on track.
That's it.
True, threads CAN be locked by the host(s), but I personally cannot see why that has to be for "no reason given",
the only valid reason would be if the thread were clearly not meeting the statement of purpose of the group,
in which case it would make sense to ask the poster to delete/edit it themselves.
If some one here posted something "objectionable" to others in the group,
the mechanism to handle that is for the other member(s) to hit the alert button.
then the issue is voted on by a random jury of 6 from all of DU.


Skinner wrote an outline of hosting, which I agree with, esp the last lines:
This Statement of Purpose provides guidance for what posts are appropriate to be posted in your forum or group. However, you are not a robot who must mindlessly enforce that Statement of Purpose to the letter. Instead, you are empowered to use your own best judgment -- consider the Statement of Purpose, but also consider the feelings of people who are using your forum or group. How do they want to use the group? What can you do to help make the visitors to that group feel welcome and happy?
It's okay to permit a little meta-discussion or off-topic stuff in any forum or group -- as long as it is good-natured, non-disruptive, and does not serve to overwhelm the group or distract from its primary purpose.

I hope you will consider a test drive of the group.

[Tansy_Gold]

68. I just want to make sure that everyone understands

Dixiegrrrrl is in charge of the Economy group. Period. Forever. There are no elections, there are no appeals, there are (essentially) no recalls.

This also holds true for any subsequent sub-hosts she chooses to appoint. She can rescind any such appointment at any time she wishes.

The posters have very little authority. Hosts have authority over all hosts under them (i.e., appointed by and/or after them).

I consider this far from "democratic."

This is not your doing, dixiegrrrrl, but it is the situation.

According to the rules as I read them, group hosts can give a reason for locking a thread, but they don't have to. In other words, they can lock a thread for no stated reason.

We posters currently have no mechanism to "ignore" anyone, and for some of us that was a lifesaver. Some of us already know others -- by name -- who we fear will be delighted to come and stir up trouble. Some of them were posters we had on "ignore" before but now can no longer do so.



I'm not sure what you mean by addressing my concerns. You are now, by your own eager choice, our overlord. That is a fact. How you -- or any other hosts -- perform in that position remains to be seen. I for one, however, do not trust absolute monarchs. Power corrupts, and absolute power corrupts absolutely. I don't think anyone knows this better than those of us who have watched the global economy these past few years.



Tansy Gold, by whatever name

[dixiegrrrrl]

70. The ignore feature is being programmed, will be here shortly.

Along with the hide thread.

Disruptive posters can be alerted on by any member of the community here,
the process for responding to that is very fast, I just now was a jury member, from alert to resolution took 3 minutes,as most of the jury times I have been on . Thus posters do decide on alerts.

Lastly, group members did vote on my volunteering to host.
the thread is here, it had to be shown to Skinner,
who required proof that group members wanted the person as a host.
http://www.democraticunderground.com/111620

there are several groups which are struggling in deciding on a host, btw. All in a rather loud democratic process.

[Loge23]

85. Good luck with all that, but...

I can see why this "feature" is - and will continue to be - controversial.
I see that your appointment (and vote) occured in th eearly AM hours of Sunday, according to the time stamp. Now I may be wrong but I think that regular posters of this thread, among whom I am not btw, are not active on this board at those hours. There may have been one or two ID's on your attached thread that I recognize from this thread, but there were none of the people that post the most on SMW (I am not one of the regular posters, btw), so I can understand TG's hesitation about this process.
I think the hallmark of the SMW thread is as a kind of "safehouse" for commentary on DU that may or may not be firmly on topic.
I believe that TG is dismayed (to say the least) that the atmosphere of community that may have once existed, and hopefully will continue, on the SMW is compromised by this new development of a "host" - not that I attempt to speak for TG, but I do so for myself.

[Tansy_Gold]

91. Thank you, Loge23, and you are not entirely incorrect

And I will speak out a bit more here than perhaps would normally be welcomed, but so be it. And if anyone wishes to correct my comments on their factuality, I would welcome that.

We who posted regularly in the week-day Stock Market Watch and week-end Week-End Economists threads did so, as you correctly pointed out, in what we considered a safe haven. We did not hesitate to call it that in public view. In that sense, we may have been a bit defiant of the DU PTB (Powers That Be, for the uninitiated). We were often and openly critical of the Obama Administration's policies, especially Treas. Secy. Geithner.

At one point on a late Friday evening many months ago, an over-zealous DU moderator locked the WEE thread after Demeter had posted it. The reason given was that the criticisms of the President were uncalled for and over the top. Because I'm in Arizona and was up late that night, I caught the lock and initiated a dialogue, eventually through my personal email, iirc, with the DU Admins, stating that the WEE thread was an established feature, that the comments critical of the President were in posted editorials, etc., etc., etc. The end result was that the thread was UNlocked, and we were all a bit surprised that such a thing was even possible and no one would remember it ever happening before (or since, to my knowledge). But we also felt it indicated a level of respect that DU had for us, for our attention to accuracy and our desire to seek the truth however painful it might be. We might be rogues, but we were honorable rogues.

Some of our members were, over the life of SMW on DU2, tombstoned. Some were tombstoned more than once. But we watched out for each other.

Many of us went through serious personal crises -- deaths of loved ones, legal entanglements, financial difficulties, family struggles, births, marriages. We've been there for each other, through thick and thin, good times and bad, with a lot of laughter and tears and hugs and -- just for you, Fuddnik -- s.

The shift to DU3 was not expected to be without glitches. But I think it was expected that SMW would still have its well earned and deserved place on LBN, and that WEE would take its usual niche in Editorials, and that other than the mechanics of the site, all would continue smoothly as in the past.

But what happened was that the experimental posting of SMW into DU3 LBN was not in fact a live version; it was an archived version of the template and thus was in violation of LBN "rules." As such, of course, SMW had ALWAYS been in violation of LBN rules (or at least an "always" based on my experience with it) but because of the nature of the news -- literally tracking the markets as they were happening -- the thread remained safe in LBN. The dry run posting should have, I thought, been treated as such and excused on those first few hours of DU3, but instead it was locked up tight.

We always had moderators in LBN, and we had posts and subthreads that got alerted on and removed. We lived with it, as we did all around DU. I don't think we expected any of that to change very much with the implementation of DU3.

But before we -- and I'm speaking only as "we" being the "regulars" of SMW and WEE -- had a chance to figure out where we'd landed and what we were going to do, Hugin had posted a quick SMW template, about as half-finished as the rest of DU3, here in the Economy group. I'm on my computer a lot during the day -- and the night -- and so I see a lot of what was going on. Before the NYC markets were really open and the dust of the move to the new site had settled, Dixiegrrrrl had been nominated by seven people to be the Chief #1 Host in the Economy Group and Hugin, bless his heart, had already ensconced us here.

There was little opportunity for input from the SMW regulars -- Ghost Dog, Hugin, Xchrom, Hotler, AnneD, Demeter (who almost single-handedly does WEE), DemReadingDU, bread_and_roses, Fuddnik, Roland99, Pale Blue Dot, PO'd Mainiac , and dozens more I'm forgetting as I compose this off the top of my head. The deal was signed, sealed, and delivered before we were even assembled. It was a very quick and efficient coup.

And the new DU rules do make the group host an overlord. Dixiegrrrrl has the power/authority to lock any thread, and she does not have to give a reason. Anyone else who wants to be a subordinate host must be appointed/approved by Dixiegrrrrl. Dixiegrrrrl can fire any subordinate host at any time. Unlike Forum hosts who can only serve for 90 days (rather like the old DU2 moderators), Dixiegrrrrl is our leader, whether we like her or not, for life. No more virtually anonymous and temporary moderators -- now we are face to face every day with the person who controls our DU life. That's a bit intimidating and disconcerting and constraining.

I'm not saying she's going to be a bad overlord, because I can't see into the future any better than any of the rest of you can. I'm not saying she's going to appoint a bunch of whip-cracking task masters to keep every post strictly on topic, blah blah blah. This is not a criticism -- it's a statement of fact: by the current rules of DU3 and my reading thereof, the DUer known as dixiegrrrrl is #1 Host of the Economy Group forever, or until she steps down, or there's an uprising of the Economy Group membership and she's forced out. We did not have an election in which all regular members of the group got to vote, and there will be no scheduled elections for a replacement. She got in there first and got approved.

What I am saying is that we who enjoyed our autonomy in WEE and SMW may be feeling a bit constrained and uncomfortable. Not only are we suddenly thrust into a whole new -- and perhaps subordinate -- "group" instead of still in the LBN and Editorials "forums," but we now have someone who personally and in perpetuity holds the whip.

I will tell you right now that I'm not comfortable here. Some of my discomfort comes from the nature of DU3, its lack of ignore and hide thread features, the public shaming/preening of the "who recced this thread" lists. I have no difficulty navigating through the site at all, though I do think it requires more clicks than the old one and I don't like some of the features. Nothing is ever going to be perfect, and I don't expect it to be.

I cannot speak for anyone but myself. I'm seeing a lot of things here that do not make me feel comfortable, and perhaps that feeling will wear off in time. I can't say. I am not the leader of the SMW or WEE group by any means, and I don't want to be and you can't make me, and I may in fact be the only one who doesn't fit in with the rest. It wouldn't be the first time.

But those who know me, and know my history on SMW, also know I have a rubber stamp.

[Ghost Dog]

98. Perhaps lobbying the rotating honchos at LBN and/or Admin could recover SMW posting rights there,

since the thread is all about the daily Latest economics news, rather thah being about economics as a science or a discipline.

And WEE ought to fit into "Good Reads" perfectly.

[dixiegrrrrl]

92. I did not want to ignore your thread.

The post I wrote volunteering to be a host was up, active, and open to all
until Skinner approved it just before noon today. People were free to comment on it all that time.
(Many of the other group hosts were approved on Sunday, btw.)

More importantly, and this got lost in the SMW thread today, SMW had been banned by LBN on Sunday,
it got locked, LBN will not let it in.
Here is the link to that info.
http://www.democraticunderground.com/111659#post4

I cannot see why having a host whose only job is to address off topic POSTS would "disrupt" or compromise SMW.
SMW is a "post" which people have asked to have in this group since LBN no longer allows it, it clearly fits the group's Statement of Purpose. A a host cannot block posts that fit a group's statement of purpose.

If a THREAD which is IN SMW is disruptive, it is not the group hosts job to do anything,
except, as member, perhaps alert on it, as any member of the group can/should do.
The alert function is handled by a jury selected from all over DU, has nothing to do with a group host function.

Concerns about the changes have been voiced a lot on DU these past few days, and most of them are being re-directed to Help and Meta Discussion.
I think over time people will see that group hosting has very little impact, esp. in this group.

[Tansy_Gold]

97. Once again, the SMW thread that was posted and locked was NOT a current SMW OP

It was a dummy template, and of course it would get locked as not following the rules for LBN

so far I haven't seen anything that says a current, fully formatted SMW doesn't belong in LBN. A dummy template from last May obviously doesn't belong. 13 December 2011? No one's tried that.

[dixiegrrrrl]

99. Now I gotcha.

Guess the group needs to decide where it should go, given that the lock was for a non-current template,
and
to decide who will be posting it.

[Ghost Dog]

79. Yes. Very revealing design-choices have been taken

and imposed at DU3, Tansy. But that's not dixieg's fault. I'm sure there could have been far worse chosen for the rôle (or even, none better, what do I know).

I'd suggested no such powers need to be assigned. But, sure, someone has to do housekeeping, and dg volunteered, as you point out, enthusiastically, and was approved by a majority of present quorum.

As for abuse of monarchical powers, there's always at least one good answer to that (as well as deploying plenty of Court Jesters): Decapitation: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x290129



Edit: Ah. Video moved to here (Max Keiser, "Decapitation mix&quot :

[Fuddnik]

50. If you're going to be running around the house nekkid

With a webcam, we want pics, or a live stream.

(I don't see any smilie bar so I can do the spank thingie).

[Tansy_Gold]

81. .

[spotbird]

113. How do you rec now?

I can't find it.

[Ghost Dog]

17. Egypt's economy worsens

... As holidaymakers head elsewhere, foreign reserves in Egypt have fallen from $36 billion at the beginning of the year to $20 billion.

By February, they are projected to fall to $15 billion, a level at which it will become difficult to pay for imports such as wheat, analysts say.

Egypt is the world's biggest wheat importer, buying about 10 million tonnes a year on international markets.

The army, which has a host of business interests, announced on December 1 it had lent the central bank $1 billion from its own funds to help shore up its finances.

"The economic vulnerability of the country is immense," a Western diplomat told AFP on condition of anonymity. "The government faces complicated choices." ...

/... http://www.middle-east-online.com/english/?id=49454

[xchrom]

51. Why Egypt's Economy Matters

http://www.theatlantic.com/international/archive/2011/12/why-egypts-economy-matters/249718/

The economy was an important cause of Egyptian President Hosni Mubarak's overthrow. The Mubarak regime failed to deal with poverty (20 percent of the population), unemployment (more than 10 percent), lack of opportunity for a bulging youth cohort (90 percent of the unemployed were between 15-24), inflation (about 12 percent in total consumer prices, with food higher), and widespread corruption.

Since Mubarak's departure, in February, the Egyptian economy has significantly worsened, with the military leaders failing to address the burgeoning issues.

GDP growth, which had averaged about 5 percent per year at end of the last decade, is likely to be little more than 1 percent, if that, in the current fiscal year. There is a looming currency crisis, as Egypt's reserves have declined from $36 billion at the beginning of the year to $22 billion in October, with a projection of $15 billion in January. Tourism, which traditionally accounts for one in seven jobs, is down by 35 percent. Rich Egyptians have taken their money elsewhere, and foreign direct investment has dried up as lawlessness and uncertainty have spooked business. The stock market index is down more than 40 percent.

Rates of poverty, inflation, and unemployment are higher today than they were at the time of Mubarak's downfall. Fully 44 percent of all Egyptians are categorized as extremely poor to near poor, according to some estimates. At a recent conference of leading Arab financial institutions, Joseph Torbey, chairman of World Union of Arab Banks, summarized the situation in Egypt by warning, "The Arab Spring will become a rough economic winter."

[dixiegrrrrl]

66. Wow...what a cool link.

Adding to my bookmarks, thanks.

[Ghost Dog]

80. You'll find lots of such sites at this news aggregator:

http://www.newsnow.co.uk/h/Business+&+Finance/Economy/International

[Ghost Dog]

18. European stocks back under pressure after summit

(Reuters) - The euro and European stocks fell on Monday as a landmark move toward deeper economic integration at last week's EU summit failed to convince investors its sovereign debt crisis would not continue to deepen.

German bund futures, seen as a safe haven for investors from the turmoil surrounding a number of highly-indebted euro zone governments, rose...

... The key FTSEurofirst 300 index was down 0.75 percent from Friday's close, and most of the region's other major markets also opened lower.

Bund futures were 20 ticks higher at 135.57, after opening lower. German 10-year yields were 1.4 basis points down at 2.088 percent.

/... http://in.reuters.com/article/2011/12/12/markets-global-idINDEE7BB06X20111212

[Pale Blue Dot]

19. Today's Report

Dec 12 14:00 Treasury Budget Nov -$139.0B -$139.5B -$150.4B

Read more: http://www.briefing.com/investor/calendars/economic/2011/12/12-16/#ixzz1gK0CTLW5

[Pale Blue Dot]

20. Oil falls below $99 ahead of OPEC meeting

SINGAPORE – Oil prices fell below $99 a barrel Monday in Asia as traders looked to this week's OPEC meeting for clues about the cartel's future crude output.

Benchmark crude for January delivery was down 79 cents to $98.62 a barrel in midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.07 to settle at $99.41 on Friday.

In London, Brent crude fell 70 cents at $107.92 on the ICE futures exchange.

The Organization of Petroleum Exporting Countries meets Wednesday in Vienna, and analysts will be closely watching whether the 12-nation group can agree on production policy. At OPEC's last meeting in June, members failed to reach consensus and output quotas were left unchanged.

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

[Pale Blue Dot]

21. U.S. Stock-Index Futures Drop as Germany Opposes Further ECB Bond Buying

U.S. equity futures dropped after Bundesbank President Jens Weidmann cooled speculation the European Central Bank will extend its role, highlighting disagreements among policy makers to solve Europe’s debt crisis.

Alcoa Inc. (AA) retreated in early New York trading, while Freeport-McMoRan Copper & Gold Inc. (FCX) fell in Germany as metal prices retreated in London. Goldman Sachs Group Inc. (GS) and Bank of America Corp. (BAC) declined in New York, following a selloff in European banking shares.

Standard & Poor’s 500 Index futures expiring in March fell 0.8 percent to 1,243.4 at 6:44 a.m. in New York after earlier sliding as much as 1.1 percent. Contracts on the Dow Jones Industrial Average expiring the same month decreased 78 points, or 0.6 percent, to 12,065.

“There are a lot of uncertainties at the moment and it’s very risky to jump into muddy water,” said Andreas Lipkow, an equity trader at MWB Fairtrade Wertpapierhandelsbank AG in Frankfurt. “The role of the ECB is not very clear. All investors want to wait and see how the economy in the U.S. is developing.”

http://www.bloomberg.com/news/2011-12-12/u-s-stock-index-futures-drop-as-germany-opposes-further-ecb-bond-buying.html

[Po_d Mainiac]

31. NYSE Technical Glitch Affects Bank of America, IBM, More.

http://blogs.wsj.com/marketbeat/2011/12/12/nyse-technical-glitch-affects-bank-of-america-ibm-more/?mod=yahoo_hs

Someone just broke the exchange...err I mean fucked it up real bad....err, nevermind.

[Demeter]

61. Does that tie in with today's downside?

They are starting to eat each other...just in time for Xmas!

[Pale Blue Dot]

22. Thank you, Hugin, for starting this thread

I hope the regulars can find it in here.

[Demeter]

25. Well, I found you all

and I have one comment to make about DU3--

It's ugly! UGLY UGLY UGLY! It has all the charm and visual appeal of barracks leftover from World War II when you've been evicted from a charming cottage in the Cotswolds with mod cons.

Kind of like the economy today, now that I think of it. I doubt that this will provide enough sustenance to keep the intellect alive...and I devoutly hope that it will get better, but I really doubt it.

Got Today's FUNNY COMIC RIGHT HERE!

[dixiegrrrrl]

67. Did you switch over to classic mode in "your account" tab?

I found that helped quite a bit for me.

[Demeter]

101. Still Ugly, but at least it covers the screen

Nothing personal, Dixie, but I tend to agree with Tansy. There's too much potential for abuse of power in this DU3, and not much means of redress. And to throw it into gear without all the pieces working, one has to wonder: why the hurry? The New Year would have been much more appropriate timing.

[dixiegrrrrl]

104. No worries, I am not taking it personally.

There is a forum for Hosts.
And in it, "abuse of power" issue is weighing heavy in the discussions,
people are clearly VERY anxious to avoid any perception of it.
Tho again, in most groups, like this one, the chances of addressing a post that does not meet our criteria is small.

I also just posted to Tansy's comment, upthread, on the timing of the SMW template over in LBN and suggested our group form a consensus about who is doing SMW and if they want it back over in LBN.
That of course is for someone else to take on. Are you interested if Tansy does not do it?

The concern about timing of transition and issues of process of DU 3 are best discussed in Meta Discussion forum,
I should think.
I know I posted over there about the eye blinding color contrast of the pages.

[Mira]

26. Thank you all for your tenacity to make SMW work

I don't post here - but I check in every morning

[Demeter]

27. Europe’s Deadly Transition From Social Democracy to Oligarchy MICHAEL HUDSON

http://www.philstockworld.com/2011/12/10/europe%E2%80%99s-deadly-transition-from-social-democracy-to-oligarchy/

(As first published in Frankfurter Allgemeine Zeitung)

The easiest way to understand Europe’s financial crisis is to look at the solutions being proposed to resolve it. They are a banker’s dream, a grab bag of giveaways that few voters would be likely to approve in a democratic referendum. Bank strategists learned not to risk submitting their plans to democratic vote after Icelanders twice refused in 2010-11 to approve their government’s capitulation to pay Britain and the Netherlands for losses run up by badly regulated Icelandic banks operating abroad. Lacking such a referendum, mass demonstrations were the only way for Greek voters to register their opposition to the €50 billion in privatization sell-offs demanded by the European Central Bank (ECB) in autumn 2011.

The problem is that Greece lacks the ready money to redeem its debts and pay the interest charges. The ECB is demanding that it sell off public assets – land, water and sewer systems, ports and other assets in the public domain, and also cut back pensions and other payments to its population. The bottom 99% understandably are angry to be informed that the wealthiest layer of the population is largely responsible for the budget shortfall by stashing away a reported €45 billion of funds stashed away in Swiss banks alone. The idea of normal wage-earners being obliged to forfeit their pensions to pay for tax evaders – and for the general un-taxing of wealth since the regime of the colonels – makes most people understandably angry. For the ECB, EU and IMF “troika” to say that whatever the wealthy take, steal or evade paying must be made up by the population at large is not a politically neutral position. It comes down hard on the side of wealth that has been unfairly taken.

A democratic tax policy would reinstate progressive taxation on income and property, and would enforce its collection – with penalties for evasion. Ever since the 19th century, democratic reformers have sought to free economies from waste, corruption and “unearned income.” But the ECB troika is imposing a regressive tax – one that can be imposed only by turning government policy-making over to a set of unelected technocrats.

To call the administrators of so anti-democratic a policy “technocrats” seems to be a cynical scientific-sounding euphemism for financial lobbyists or bureaucrats deemed suitably tunnel-visioned to act as useful idiots on behalf of their sponsors. Their ideology is the same austerity philosophy that the IMF imposed on Third World debtors from the 1960s through the 1980s. Claiming to stabilize the balance of payments while introducing free markets, these officials sold off export sectors and basic infrastructure to creditor-nation buyers. The effect was to drive austerity-ridden economies even deeper into debt – to foreign bankers and their own domestic oligarchies...

MORE GLOOMINESS AT LINK


REALITY CALLS URGENTLY TODAY...I WILL DO BETTER TOMORROW, GET BACK LATER TODAY IF I CAN...I SLEPT IN...BOTH CONCERTS WENT WELL, THE PAPERS DIDN'T, AND IT NEVER GOT ABOVE 19F YESTERDAY...

[dixiegrrrrl]

74. Thank you for posting this, I had it book marked to post and forgot to!

Glad you are here!
See you on the awake side.

[Hotler]

29. Morning everybody. Thank you Hugin. n/t

[westerebus]

30. Would someone one please be so kind

and wake up x chrome. SMW is not complete until its art critic shows up. Thank you in adavance.

[Tansy_Gold]

38. I did n/t

[Fuddnik]

52. He's busy fomenting revolution on LBN.

[Viva_La_Revolution]

32. Yay! I found you!

can't start the day without SMW

[Mojorabbit]

33. Yay, I found you !

I am having a bit of a time navigating the new digs. Thank you for continuing the SMW.

[Mojorabbit]

34. Pakistan trade deficit widens

Pakistan trade deficit widens
By Syed Fazl-e-Haider

KARACHI - Pakistan's trade deficit - the gap between exports and imports - widened by 55.5% last month compared with a year earlier, putting further pressure on the government is it seeks to pay back loans to the International Monetary Fund (IMF) secured during its earlier 2008 debt crisis.

The trade gap widened to US$2.17 billion in November, as exports fell to $1.55 billion from $1.72 billion a year earlier - and down 18.2% from the previous month - while imports grew to $3.72 billion from $3.12 billion. The deficit was $1.71 billion in October, according to the Federal Bureau of Statistics (FBS). For the first five months (July-November) of current fiscal year, it widened 36% to $9.06 billion from $6.6 billion in the same period last year.

Increased foreign inflows from home remittances failed to contain the current account deficit, which widened to $1.55 billion during the July-October period from $541 million a year earlier.
The outlook for the export sector is grim, with the European debt crisis crimping demand in that market even as gas shortages are holding back output and ruining delivery schedules in the important cotton industry - already hit by a violence and deteriorating law and order in Karachi, the country's largest city.

Further squeezing the country, its declining currency is raising the cost of its dollar-denominated debt as it prepares to repay an existing IMF loan early next year. Rising international oil prices are adding to the government's debt burden.
more at link
http://www.atimes.com/atimes/South_Asia/ML13Df02.html

[Loge23]

35. Change is opportunity

So now an opportunity exists for a talented techie to create another site for Progressive commentary and participation.
DU has been a terrific venue over the years and I applaud the effort. I suppose I am not exaggerating that the site was primarily sustained - and the 3rd generation funded - the contributions of it's participants. "Suppose?" Well, I can't be sure since no financial disclosure was ever posted. I never knew how they needed for each drive or how much of the contributions were funneled directly to the site maintenance. Since this little self-followed law of contributions guides all of my benevolence, I stopped contributing. Now, DU3 will offer memberships which, we're told, will effectively end the fund drives. Why would anyone pay to belong when others can post and view for free? Is it a commerce site or not? Just say so - I may actually want to "buy" rather than "give"!
The answer to that probably lies in the fact that this will eventually, and perhaps sooner than later, become a fee-based site. I don't begrudge the owners for going in that direction nor am I naive enough to think that this well-designed (well, DU2 anyway) and comprehensive web presence is cheap - I'm sure it is not.
But something is different today and it's not just the interface; opportunity is waiting.

[Ghost Dog]

36. Turkish Economy Booms

ISTANBUL—Turkey's central bank governor warned Monday that inflation was now his No.1 problem as data confirmed the economy expanded 8.2% in the third quarter, smashing economists' expectations and underscoring its reputation as Eurasia's rising tiger.

Monday's official growth figure, compared with the same period a year earlier, dramatically exceeded market forecasts of a 6.6% gain and followed an 8.8% expansion in the second quarter...

... The Bank has since moved to raise other interest rates as it battles rampant credit growth. Its growing concern over inflation—which rose sharply in recent months, driven by the Turkish Lira's 30% fall against the dollar—stands in contrast to the stance of many emerging markets, which have begun cutting interest rates to spur growth amid concerns over the deteriorating global outlook.

Speaking to reporters in London following the publication of the economic growth figures, Governor Erdem Basci said that inflation, which rose at its fastest pace for one and half years in November to hit an annual rate of 9.5%, was now the "number one problem" for the Turkish economy and that Ankara was ready to tighten policy further "if necessary." At the same time, he said he was confident the bank's decision in November to effectively double the overnight borrowing rate for commercial banks to 12.5% would be enough to combat the pressure.

/... http://online.wsj.com/article/SB10001424052970203518404577094140339214150.html

[xchrom]

39. good morning -- thanks miss tansy

for letting me know!

[xchrom]

40. Corporate panic doesn't bode well for earnings

http://www.msnbc.msn.com/id/45619171/ns/business-stocks_and_economy/

NEW YORK — On top of euro-zone debt troubles, Wall Street now has to worry about sagging sales from Europe as a recession in the region seems more likely.

Warnings from companies such as chemical maker DuPont and chip maker Texas Instruments suggest the crisis may already be taking its toll on corporate America.

While holiday shopping started on an upbeat note, corporate warnings could sour the cheerful mood for some investors.

"We are now beginning to see the collateral damage of the events in Europe with the earnings guidance cuts," wrote Peter Boockvar, equity strategist at Miller Tabak & Co in New York.

[Roland99]

41. I don't seem to be able to find the rec button.

hmmm

[Fuddnik]

42. If you already hit the rec button yesterday, when the thread started,

It now appears as "Undo".

[Roland99]

47. oh I see it. It's with the other junk (twitter, facebook, etc.)

ugh.

[Ruby the Liberal]

108. Someone had a thread on this the other day

Apparently AdBlock and some various browser extensions allow you to block any of those you want, so you would only see the DU Rec box/button.

I have that on my TODO list to look up for Chrome as I didn't see anything specifically mentioned for it.

[xchrom]

43. south asia: Sensex slides to 2-week closing low; RIL leads losses

http://economictimes.indiatimes.com/markets/stocks/market-news/sensex-slides-to-2-week-closing-low-ril-leads-losses/articleshow/11082124.cms

NEW DELHI: Indian shares slipped 2.12 percent to a two-week closing low on Monday after a sharper-than-expected fall in the country's October industrial output compounded concerns over slowing economic growth.

The 30-share BSE index closed 343.11 points down at 15,870.35, its lowest closing level since Nov 25. All but three of its components declined. The index fell as much as 2.3 percent during the day.

"The fear is now turning into reality...The data shows that the India growth story is perhaps just a story," said Jagannadham Thunuguntla, research head at SMC Global Securities.

Industrial output fell for the first time in more than two years in October as waning consumer demand took a toll. The output plunged by 5.1 percent, far worse than a median forecast for a 0.5 percent drop in a Reuters poll.

[xchrom]

45. Government, industry to discuss growth slump

http://timesofindia.indiatimes.com/business/india-business/Government-industry-to-discuss-growth-slump/articleshow/11080849.cms

NEW DELHI: Commerce and industry minister Anand Sharma will hold a government-industry consultation next week to discuss the slump in factory output, an official statement said on Monday.

"The minister will hold government-industry consultation on the issue Dec 19, 2011, after his return from the WTO ministerial meeting," the ministry of commerce and industry said in a statement.

The ministerial meeting of the World Trade Organisation (WTO) is scheduled to be held in Geneva Dec 15-17.

Industrial output growth has declined in the last few months and slumped into negative territory in October.

[xchrom]

44. Gold falls to 3-week lows as crisis boosts dollar

http://economictimes.indiatimes.com/markets/commodities/gold-falls-to-3-week-lows-as-crisis-boosts-dollar/articleshow/11082216.cms

LONDON: Gold fell to a three-week low on Monday, after a rise in the dollar prompted enough selling to push the bullion price through a key level of support, in spite of the persistent worry about the lack of a solution to the euro zone debt crisis.

Last week's summit of European Union leaders yielded a historic agreement on beefing up fiscal discipline in the 27-member bloc, but fell short of market expectations for a more drastic solution to the crisis.

This lack of confidence in Europe pushed investors into the relative safety of the U.S. dollar, rather than gold, which has fallen by about 5 percent in the last week alone.

A stronger dollar often encourages non-U.S. holders of gold to sell the metal to lock in a higher profit in their own currencies.

[Ghost Dog]

46. Economists forecast deeper UK recession

The UK economy is expected to contract by 1.3 per cent in 2012, according to respected economists at Standard Chartered bank.

Growth of 0.6% had been predicted but Standard Chartered’s latest survey, of 350 companies, points to a sharp recession in the face of the ongoing eurozone crisis.

The eurozone economy is expected to contract by 1.5 per cent next year.

Three factors are expected to contribute to the UK falling back into recession: a decline in consumer and business confidence; banks keeping tighter control on credit; and cuts to government budgets across Europe.

/... http://www.financemarkets.co.uk/2011/12/12/economists-forecast-deeper-uk-recession/

[Fuddnik]

53. Just in case......

I just made a post that might make me disappear. You know where to find me.

[AnneD]

84. Next time you disappear....

come back as Lazarus. You have gone through more lives than my tom cat Sampson.

[Demeter]

102. Michael Valentine Smith would be a good nom de guerre

if you are a Heinlein cognoscenti.

[xchrom]

54. europe: Spain tops the European table for number of overqualified workers

http://www.elpais.com/articulo/english/Spain/tops/the/European/table/for/number/of/overqualified/workers/elpepueng/20111209elpeng_4/Ten

Spain is the European Union country with the greatest amount of overqualified workers, meaning those with a college degree or vocational training certificate who hold a job beneath their training level. While the average for the EU of 27 was 19 percent, that figure reached 31 percent in Spain, according to a Eurostat study using 2008 figures.

These numbers refer to the native-born population. For the foreign-born, the over-qualification rate jumped to 58 percent in Spain versus 34 percent for the 27 members of the EU as a whole. The study concludes that "when employed, foreign-born persons often have more difficulties in finding a job corresponding to their level of education." The highest gap between overqualified natives and overqualified foreigners was to be found in Belgium, with rates of five percent and 14 percent respectively.

Over-qualification has been a serious problem in Spain for years, as the schooling level of the general population - especially attendance at higher education centers - has risen much faster than the number of available jobs for highly qualified workers. In a country whose economy has rested mostly on construction and the services sector, notably tourism, the percentage of the Spanish population with higher studies grew from 21 percent to 30 percent in the space of a decade, between 1999 and 2009.

An earlier study using 2006 data already showed Spain as being one of the countries with the largest number of overqualified workers (38 percent) in Europe. That study, however, did not differentiate between native-born and foreign-born workers.

[xchrom]

56. The End of Old Europe Why Merkel's Triumph Will Come at a High Price

http://www.spiegel.de/international/europe/0,1518,803097,00.html

Everything was over after half an hour. At that point the summit, which was expected to be a historic one, had not even begun, and yet it was already clear that it would not end well.

German Chancellor Angela Merkel and French President Nicolas Sarkozy had met with British Prime Minister David Cameron at 7:30 p.m. on Thursday evening. Their goal was to determine how far Great Britain would be willing to go to support the German-French plans to save the euro.

Not very far, it would soon become clear.

Cameron demanded extensive exceptions for his country in the event that the European treaties would have to be amended. Most of all, however, he wanted the British financial sector not to be subject to European supervision. Merkel and Sarkozy quickly made it clear to Cameron that that would be unacceptable.

And so the summit, which was intended to be a turning point in the struggle to save the euro, ended up marking a major turning point in the history of the European Union. In the middle of its biggest crisis to date, the European Union is divided and Great Britain has been sidelined, possibly for the long term.

[dixiegrrrrl]

75. Fascinating power play going on over there.

There is something very ...deja vu...about it all.
Hmmmmmmm

[amandabeech]

87. There is a lot of deja vu going on, and to different periods of modern European history.

Germany seems to want to rule over all (and I'm not writing that in German), which should scare the you-know-what from older voters in many European countries.

What I find interesting is a throwback to the DeGaulle years. From the original article, Germany sees the EU as a political partner of the US and sees the UK as an important part of that connection. France, however, wishes to separate the EU from the US, and marginalizing the UK improves the probability of success of the French. DeGaulle would be proud.

I think that the French only like us when we are fighting French enemies, like we did in our revolution and like we did in the World Wars. We had a French exchange student, I've traveled in France, I've worked with French business people, all of them very nice. However, their politicians . . .

[dixiegrrrrl]

94. or, rather, the people BEHIND the politicians.

[amandabeech]

106. Certainly one must consider that.

However, it appears to me that TPTB here are divided between the German types and the French types.

It is as if the German TPTB are still Germans and the French are still French. It is congenital fear of "Weimar" vs. a congential attachment to "Le Honneur."

Which is the reason why I've never seen good long-term prospects for the Euro.

The Anglosphere TPTB, however, seem to be watching each other's backs.

The French will, however, feel free to tap into US and UK military power. Libya was first; Syria will be second.

[xchrom]

57. The Crisis Has Reached a Systemic Level'

http://www.spiegel.de/international/europe/0,1518,803127,00.html

A stress test performed on European banks last week found a capital shortfall of some 115 billion euros. In a SPIEGEL interview, European Banking Authority head Andrea Enria defends the decision to perform the stress test and discusses the huge challenges facing the European banking sector.

SPIEGEL: Mr. Enria, the European Banking Authority was established with the aim of stabilizing the banking system. Has that plan worked out?

Andrea Enria: It is far too early to say. We started in January, in a very difficult market environment. It is like we are building our house and living in it, while outside there is a storm. But there are some very positive indications: One of the major shortcomings before the establishment of the EBA was the inability to decide and coordinate policy actions within the European Union. Already in the first months of its activity, the EBA has shown that this is different now.

SPIEGEL: At the moment it looks like the European banking system is more fragile than ever. What went wrong?

Enria: The banking sector has made major efforts to strengthen since the collapse of Lehman Brothers. But now the sovereign debt crisis is putting a lot of pressure on bank funding, especially in countries under stress. Since July, only a few banks have been able to finance their operations, and only at very high prices. If banks don't have funding, they don't lend, and this affects the real economy. We are locked in a vicious circle and we must try to break it.

[xchrom]

55. Britain – like the Cayman Islands, in the rain

http://www.presseurop.eu/en/content/article/1277451-britain-cayman-islands-rain

Britain is not leaving the European Union, just yet. But the EU may already have abandoned Britain. The fog of the Battle of Brussels, 8-9 December 2011, is still clearing. But psychologically and politically a Rubicon has been crossed, both in Brussels and in London.

The Prime Minister has played a poor hand very badly. He has put Britain into a position of deep isolation within the EU which even Mrs Thatcher in her "money-back" days skilfully avoided. He has given the circling sharks of the Eurosceptic backbenchers and press a taste of blood which could rapidly turn into a feeding frenzy.

Months of difficult negotiations lie ahead in which Britain will find itself willingly cast as the villain by our anxious European partners as they struggle to avoid the collapse of the euro. In such a febrile mood, in Britain and on the Continent, the possibility of a de facto, or even actual, UK departure from the EU is no longer unthinkable.

Past EU-UK battles have been about important but fundamentally secondary issues, such as farm policy or budget contributions or "mad-cow" beef exports. Mr Cameron has managed to manoeuvre himself into a position of Britain vs the Rest on the most fundamental issues of all: the survival of the euro and the EU itself.

[Fuddnik]

64. At least I could kiss a stingray in the Caymans.

In Britain, I think you have to kiss Margaret Thatcher. I'll take the stingray.

[Demeter]

59. -239 at Noon

That is not a happy market--futures are -253 at the moment.

[PassingFair]

62. How long can it LURCH back and forth like this before it really crashes?

<----------------------- How I feel most mornings....

[dixiegrrrrl]

76. A little Queen in the late morning is good to hear.

For we who grew up tall and proud
In the shadow of the mushroom cloud
Convinced our voices can't be heard
We just wanna scream it louder and louder louder.

Yep, I feel like that at times.

[PassingFair]

77. I think it's cool the way...

the video shows up now, and not just the blind link.

[Demeter]

109. That remains to be seen

The amount of BS fiat currency that the banksters can throw around, with Fed and Treasury's help, is probably limitless at this point.

The REAL market keeps deflating their funny money out of existence, and the central banksters keep printing new money "to make the investor-rent seeking class whole".

Notice how today's deflation of the DOW was boosted at the last half hour to get back up to 12K. That's intentional manipulation, and it's been going on for most of the year.

The markets no longer find prices, reflect reality, nor serve any useful purpose for the greater society. To undo this would take politicians who were not corrupted by the banksters to regulate the fraud back out, or a bloody revolution by the 99%, neither of which seems likely, at this point.

The rules we all grew up with and studied in economics classes have been rewritten to defraud the 99%. There's no denying it. And those that rewrote the rules are very proud of themselves.

[KoKo]

71. Woo Hoo! Thanks "Hugin" it great to see this back!

[Hugin]

72. Hey, KoKo!

The template still needs some work.

[Roland99]

73. Of course we don't need financial industry regulation!!!!

MF Global and the great Wall St re-hypothecation scandal
http://newsandinsight.thomsonreuters.com/Securities/Insight/2011/12_-_December/MF_Global_and_the_great_Wall_St_re-hypothecation_scandal/

In fact, by 2007, re-hypothecation had grown so large that it accounted
for half of the activity of the shadow banking system. Prior to Lehman
Brothers collapse, the International Monetary Fund (IMF)
calculated that U.S. banks were receiving $4 trillion worth of funding
by re-hypothecation, much of which was sourced from the UK. With assets
being re-hypothecated many times over (known as “churn”), the original
collateral being used may have been as little as $1 trillion – a quarter
of the financial footprint created through re-hypothecation.

...

Hence, when MF Global conceived of its Eurozone repo ruse, client funds
were waiting to be plundered for investment in AA rated European
sovereign debt, despite the fact that many of its hedge fund clients may
have been betting against the performance of those very same bonds.

...OFF BALANCE SHEET

As well as collateral risk, re-hypothecation creates significant
counterparty risk and its off-balance sheet treatment contains many
hidden nasties. Even without circumventing U.S. limits on
re-hypothecation, the off-balance sheet treatment means that the amount
of leverage (gearing) and systemic risk created in the system by
re-hypothecation is staggering.

Re-hypothecation transactions are off-balance sheet and are therefore unrestricted by
balance sheet controls. Whereas on balance sheet transactions
necessitate only appearing as an asset/liability on one bank’s balance
sheet and not another, off-balance sheet transactions can, and
frequently do, appear on multiple banks’ financial statements. What this
creates is chains of counterparty risk, where multiple re-hypothecation
borrowers use the same collateral over and over again. Essentially, it
is a chain of debt obligations that is only as strong as its weakest
link.

With collateral being re-hypothecated to a factor of four (according to IMF
estimates), the actual capital backing banks re-hypothecation
transactions may be as little as 25%. This churning of collateral means
that re-hypothecation transactions have been creating enormous amounts
of liquidity, much of which has no real asset backing.

[amandabeech]

88. Well, perhaps here is a market opening for a firm actually contractually committing itself to not

rehypothecate its clients funds.

Of course, that would cut down on bonuses . . .

[AnneD]

82. AnneD checking in......

I miss the old format. Between getting slammed in the clinic today and trying to find SWT, I am just now posting. I hope we can be just as subversive here as we we. This polly doesn't want a cracker....I take my fire water straight up no ice or water. Now if I can just find WEE and spell check.

[Hugin]

83. Hey there, AnneD.

Don't bother looking for a spell check... It's not here yet.

Hopefully, Demeter willing... WEE will reside in the same group as the SWT. Here.

[AnneD]

86. Great...

Now I will look like an illiterait hick. My dyslexia is terriable sometimes, but I am smart enough to hit spell check.

Dear Grammer Nazis-please cut me some slack.

[Fuddnik]

89. Dyslexics of the world, UNTIE!!!!!

[Ghost Dog]

90. So long as you remember how to segue without a Segway, AnneD

Your browser might have a spellchecker built-in you could use as an alternative. They say there will be a DU3 spellchecker coming online soon...

[dixiegrrrrl]

96. Your browser should have spell check , no?

Firefox does, as an option ( one I depend on). I B click for it almost as much as I A click.

[Demeter]

103. You bet your sweet bippy!

I was never happy that SMW and WEE lived in different forums...but it probably widened the audience appreciably.

Now here in our cozy little ghetto, we would have to advertise to grow the readership...and there's no way to do that, is there? Things that make one go hmmm....

Am I correct to infer that you are shouldering the SMW for us, and PBD is gratefullly retired? We have to have a party, if so.

[tclambert]

93. I found it!

I found Stock Market Watch. They made it a lot harder. The new DU3 format looks slick but where is everything?

[AnneD]

117. Glad you made it......

It is another beautiful day in Krackow. LOL

[Ghost Dog]

95. U.S. Stocks Fall on Rating Comments

Dec. 12 (Bloomberg) -- U.S. stocks fell, after a two-week rally, as Moody’s Investors Service and Fitch Ratings said last week’s summit did little to ease pressure on Europe’s struggling governments and Intel Corp. (INTC) cut its revenue forecast...

... “This is not heaven,” Stanley Nabi, New York-based vice chairman of Silvercrest Asset Management Group, which oversees $10.5 billion, said in a telephone interview. “The European stopgap may not be successfully implemented. In order for this program to be successful, there’s going to have to be a lot of belt tightening. That means that the European economy is not going to do well at all. That would have negative impact on other countries around the globe.”

Stocks rose last week as European leaders agreed to boost a rescue fund and reports spurred optimism about the U.S. economy. Today, equities joined a global slump as Moody’s said that last week’s EU summit failed to produce “decisive policy measures.” Fitch said a comprehensive solution has not yet been offered and predicted a “significant economic downturn” in the region.

/... http://www.bloomberg.com/news/2011-12-12/u-s-stock-index-futures-drop-as-germany-opposes-further-ecb-bond-buying.html


US stocks slump as Europe hopes fade

AFP - US stocks followed their European counterparts lower Monday, dragged down by doubts over the strength of the EU pact aimed at ending the eurozone financial crisis...

... The slump came "amid growing pessimism that last week's fiscal pact agreement in Europe will yield substantive results in solving the festering eurozone debt crisis," Charles Schwab analysts said.

/... http://www.france24.com/en/20111212-us-stocks-slump-europe-hopes-fade


Euro, global stocks fall on fiscal plan anxiety

(Reuters) - ... Initial market enthusiasm over the plan on Friday faded due to legal uncertainty surrounding the pact and the absence of a sufficiently strong financial backstop for the euro zone single currency.

Ratings agency Standard & Poor's put more pressure on investor sentiment after its chief economist said time was running out for the euro zone to resolve its debt problems and that it might need another financial shock to get it moving. Fitch Ratings warned that the meeting of EU leaders last week did little to ease pressure on the region's sovereign debt crisis and the rating agency predicted a "significant economic downturn" across the region...

... The euro fell 1.5 percent to $1.3189 and borrowing costs for Italy and Spain rose as the EU plan failed to restore market confidence... Investors rushed to the safety of U.S. government debt.

/... http://uk.reuters.com/article/2011/12/12/uk-markets-global-idUKTRE7BB02I20111212


(Bleak) history in the making?

[Ghost Dog]

100. Euro Summit Failure Underscores Need for Sovereign Default

OANDA Corporation Mon, Dec 12 2011, 22:30 GMT

...The main outcome of the weekend meeting was the establishment of another fund, this time to be administered by the International Monetary Fund. Eurozone central banks will provide 200 billion euros to the IMF which is also expected to make available another 300 billion euros.

This new fund will be in addition to the existing European Financial Stability Fund. The EFSF currently contains about 500 billion euros but much of it is already committed to existing bailout plans. This leaves the EFSF woefully underfunded to save the larger economies now teetering towards insolvency.

The fact that eurozone officials continue to print money in anticipation of another round of bailouts makes it clear that the problem is still being perceived as a liquidity issue. The reality, however, it that the lack of liquidity is the result of a debt problem and a corresponding lack of confidence. Investors are unwilling to buy Greek debt at a rate Greece can afford; and until confidence is restored, Greece and a handful of other countries following Greece’s path will continue to rely on bailouts to cover their deficits.

The only way to break this dependency is to invoke a reset. These countries must be forced into a controlled default that involves a writing-down of sovereign debt. The cash now being set aside would be better served to minimize the impact a write-down would have on debt holders including the banks forced to accept a reduced payout. To simply hand billions of euros over to these countries may deal with the symptoms, but does nothing to address the ailment.

/... http://www.fxstreet.com/fundamental/analysis-reports/market-pulse-fx/2011/12/12/

[dixiegrrrrl]

105. So the banksters only solution is to keep building TARPS,

( with different names for them)
to put newly printed money into, to avoid facing the debt they are creating by building more TARPS?

[Ghost Dog]

107. Yeah, really cool, huh? Just look at the commissions and bonuses!

Plus, they get to roll back the world to a new golden age of robber barons, and serfs! Wipe out a century of social progress at a stroke!

It's all good.

[RUMMYisFROSTED]

110. Mr. 12K

Months now...

Pseudo-psychological bullshit? Helicopter?


I think we know.

[NMDemDist2]

111. why is it dated May 16th?? n/t

[Hugin]

115. Because I was editing the template. n/t

[snot]

116. Want to make sure you saw this:

It's from October, so sorry if I just missed it 'til now:

Goldman set to be LME sale winner

"Goldman Sachs has more than quadrupled its stake in the London Metal Exchange in the past two years, making the US investment bank the biggest potential winner from the proposed sale of the 130-year-old exchange.

"The LME, the centre for global metals trading, said last week it had been approached by more than 10 suitors over a sale that shareholders hope will value it at more than £1bn ($1.6bn). That would give the shares a value of about £77.50 each, 15 times the last traded price, putting Goldman and other shareholders in line for a large windfall.

"Ownership of the 130-year-old exchange, which houses the last open outcry trading pit in Europe, is restricted to its 94 members and shares rarely come on the market. The most recent trade in LME shares was the sale of the shareholding of Lehman Brothers’ European arm, which Goldman bought in July, according to people familiar with the situation. Since August 2009 it has raised its stake from 300,000 shares to 1.23m.

"The buying spree has made the bank the LME’s largest shareholder with a stake of 9.5 per cent, potentially worth as much as £95m ($150m)."