STOCK MARKET WATCH, Thursday 8 December

[ozymandius]

Thursday December 8, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 45 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1813 DAYS
WHERE'S OSAMA BIN-LADEN? 1512 DAYS
DAYS SINCE ENRON COLLAPSE = 1474
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54


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




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

AT THE CLOSING BELL ON December 7, 2005

Dow... 10,810.91 -45.95 (-0.42%)
Nasdaq... 2,252.01 -8.75 (-0.39%)
S&P 500... 1,257.37 -6.33 (-0.50%)
10-Yr Bond... 4.52% +0.02 (+0.51%)
Gold future... 517.80 +4.00 (+0.77%)






GOLD, EURO, YEN, Dollars and Loonie


PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Chris Puplava

ECONOMIC AND MARKET PULSE CONTINUED

I wanted to continue from where I left off on 11/23/05 when I was reviewing several economic indicators and the markets. This week has several economic reports with the Institute of Supply and Management’s (ISM) non-manufacturing survey report released on Monday and the International Council of Shopping Centers (ICSC-UBS's) weekly comparable store sales at major retail chains as well as Factory Orders released today. Jobless claims will be released this coming Thursday with the Trade Report and Retail Sales due next week, all potential market moving reports.

The ISM non-manufacturing report survey’s business activity index dropped slightly from 59.0 in October to 58.5 for November. New Orders, employment, inventories, new export orders were up while prices and backlog of orders were down. Currently the business activity index is below the level seen when the market peaked in 2000 as did the index. The business index has been on a downtrend with the peak seen in April 2004.

-cut-

What should be noted is that we have transitioned from a manufacturing economy to a service economy, where the consumption component of GDP makes up just over 70% of real GDP. It makes sense then that the market would follow the ISM service index (business activity) more closely than the ISM manufacturing index (PMI), as the plunge seen in the PMI in January 2004 did not cause a sell off in the market as the Business Activity index held in a range between 60 and 65.

more... lots more...

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

[ozymandius]

2. One report today

8:30 AM Initial Claims 12/03
Briefing Forecast 315K
Market Expects 318K
Prior 320K

[UpInArms]

18. U.S. jobless claims increase in latest week

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38694.3542522454-853740109&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits rose 6,000 to 327,000 in the week ended Dec. 3, the Labor Department said Thursday. It's the highest level of claims since the week ended Nov. 19. The increase was unexpected. The consensus forecast of Wall Street economists was for claims to inch lower by 2,000 to 318,000. Claims in the previous week were revised to a decrease of 16,000 to 321,000 compared with the initial estimate of a fall of 17,000 to 320,000. The four-week average of initial claims fell 250 to 322,500. Meanwhile, the number of Americans receiving state jobless benefits fell 137,000 to 2.60 million in the week ending Nov. 26. This is the lowest level since the week ended Sept. 3. The four-week moving average of continuing claims fell 46,750 to 2.73 million, the lowest since Sept. 24.

8:30am 12/08/05 U.S. CONTINUING JOBLESS CLAIMS DOWN 137,000 TO 2.60 MLN

8:30am 12/08/05 U.S. 4-WEEK AVG. JOBLESS CLAIMS DOWN 250 TO 322,500

8:30am 12/08/05 U.S. WEEKLY JOBLESS CLAIMS ABOVE CONSENSUS 318,000

8:30am 12/08/05 U.S. WEEKLY JOBLESS CLAIMS UP 6,000 TO 327,000

(last week revised up 1,000 - making this week actually increasing 7,000 over the number that was reported last week)

[UpInArms]

21. Hurricanes have cost almost 600,000 jobs so far

http://www.marketwatch.com/news/story.asp?guid=%7B2FE9E62F%2D0FDC%2D496C%2D8B60%2DF062F19DB805%7D&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - First-time filings for state unemployment benefits rose 6,000 to 327,000 in the week ended Dec. 3, the Labor Department said Thursday.

It's the highest level of claims since the week ended Nov. 19.

A Labor Department official said 7,000 claims in the latest week were related to Hurricanes Katrina and Rita, bringing the total number of claims filed because of the two hurricanes to 569,000.

The official said it is unusual for claims to continue to be filed so long after the hurricanes struck the Gulf Coast in late August and September.

<snip>

The increase in jobless claims in the latest week was unexpected. The consensus forecast of Wall Street economists was for claims to inch lower by 2,000 to 318,000. See Economic Calendar.

...more...

[UpInArms]

27. check out the unemployment and jobs in the NOLA area

http://www.bloomberg.com/apps/news?pid=10000103&sid=aGO.7z56rSB4&refer=us

excerpt:

Louisiana and Mississippi had combined economic output in 2004 of $229.1 billion, or 2 percent of the national GDP. They were among the poorest states even before the storms: In both states, about 17 percent of people live in poverty, compared with the national average of 11.7 percent, according to 2002 Census Bureau figures.

Employment

Bush and his senior advisers have mentioned the country's 5 percent November unemployment rate four times since the Labor Department reported it Dec. 2. The jobless rate among 866,000 working-age Katrina evacuees the government surveyed in November was 20.5 percent.

Non-farm employment in the seven-parish area that comprises metropolitan New Orleans will drop next year to 337,000 workers, the lowest since 1963, down from the pre-Katrina level of 620,000, according to an LSU forecast released last month.

``That's the equivalent of costing the area four decades of growth,'' Scott said. ``The rest of the country's economy may be rocking, but here it's pretty rough.''

...more at link...

[54anickel]

30. They've been chanting that 5% unemployment so much and for so long,

you know dang well it's got to be another lie. Seems anything they spew repetitively proves to be a huge lie in the end. WMD, no torture, few bad apples, no leaks, on the cusp, last throes, turned the corner, etc, etc, etc. So many lies and I'm still waiting for them to get bit in the ass big time. Low poll numbers alone don't cut it for me, they are still in power and can do plenty of damage before they are ousted - if it ever happens.

[AnneD]

43. Morning Marketeers,

:donut: Don't tell me, let me guess.... the higher numbers in the unemployment 'surprised' the economist :eyes:. Well I guess the stats that will come out the first quarter will shock the shit out of 'em. Dang, I want their job-I can do better. The amount of money consumers put on plastic went down (so I heard on the local news this am). Can't remember if it was with 54anickel or UIA, that was talking about this the other day, but we were right. Serves the bastards right...they have been gouging consumers long enough-I wouldn't mind if a few of them went under.
Well Happy Hunting and watch out for the bears....I think they are stirring from their hibernation.

[54anickel]

49. Mornin' AnneD. You'd think that after being surprised, day after day,

month after month, report after report, these fools would stop and buy a clue.

[WhiteTara]

76. I would think that the ripples of their economic

disaster would move out the rest of the country. :shrug:

[ozymandius]

3. Oil Prices Up Despite Stockpile Rise

5 minutes ago

LONDON - Crude-oil futures rose Thursday as traders brushed aside U.S. government data showing increases in supplies of oil and gasoline last week.

Light, sweet crude for January delivery rose 10 cents to $59.31 a barrel in electronic trading on the New York Mercantile Exchange. Heating oil edged lower to $1.7335 a gallon while gasoline inched up to $1.5705 a gallon. Natural gas increased 10 cents to $13.800 per 1,000 cubic feet.

-cut-

In its weekly petroleum supply report, the U.S. Energy Department said American inventories of crude oil grew last week by 2.7 million barrels to 320.3 million barrels, or 11 percent above last year.

Inventories of distillate fuel, such as heating oil and diesel, rose by 2.7 million barrels to 130.6 million barrels, or about 6 percent higher than last year.

more

[UpInArms]

15. Jan Crude @ $59.59 bbl - Jan NatGas @ $14.074 mln btus

8:14am 12/08/05 JAN UNLEADED GASOLINE UP 0.89C AT $1.5765 A GALLON

8:14am 12/08/05 JAN HEATING OIL UP 0.09C AT $1.7375 A GALLON

8:15am 12/08/05 JAN NATGAS FUTURES UP 37.40C AT $14.074 PER MILLION BTUS

8:14am 12/08/05 JAN CRUDE UP 31C AT $59.52 A BARREL

[ozymandius]

4. Consumer Borrowing Down by $7.2B in Oct.

WASHINGTON - Consumer borrowing plunged at a record annual rate of $7.2 billion in October, reflecting a big drop in auto loans.

The Federal Reserve reported Wednesday that the decline was the biggest amount ever in dollar terms, and included a record drop of $5.6 billion rate of decline in the category that includes car loans.

The dollar declines translated into a drop of 4 percent in overall borrowing, the biggest percentage setback in nearly 15 years, and a decline of 4.9 percent in the category that includes auto loans, the biggest percentage drop in 13 years.

The big drop took analysts by surprise. They had been expecting that consumer spending would rise at an annual rate of $5 billion in October.

more

[fasttense]

29. Are the poor and middle class running out of credit? n/t

[54anickel]

35. Sheesh, more surprised analysts - imagine that. A $12.2 B-b-b-billion

surprise! Must be why WhistleAss is out telling us the economy is fantastic - even brighter days ahead, so get out there and borrow and spend like there's no tomorrow! Didn't he once say, "In the end, we're all dead anyway" or something like that in quoting Keynes?

[AnneD]

45. Yes he did..

but I believe he may have said that in an interview with Woodward when Woodward asked him about how history would judge his presidency, if memory serves me.

[54anickel]

50. That was it! Check out the first google hit on "Bush we'll all be dead"

http://www.opednews.com/lower042904_dead.htm

It is possible that Bush's comment "We'll all be dead" might only be subconsciously related to his belief in apocalypse. Perhaps he only meant that by the time "history" is written, we'll all be dead of prevailing disease and old age. If that is the case, the man remains a complete idiot. History did not wait for Hitler to die before condemning him, nor did the Republican party wait for Clinton to die before condemning him. History will not wait for George either. The man is already in deep trouble everywhere but in his half of America.

It is not clear just what Bush meant with his remark if taken outside the context of apocalypse. It is more clear that Bush does not know what he meant either, since his remark doesn't make any sense outside of the context of apocalypse. So, what else is new about our affable guy president?

Interpreting a fool might best be left to fools. On the other hand, Bush does fervently believe that he is doing the work of his god, and we can expect the worst. Given Bush's alcoholic indebtedness to the Old Testament apocalyptic religion that keeps him sober, we are justified in examining his remark in that context, even if Bush did not understand the context within which he made the remark.

In one of those rare moments when Bush actually appeared to provide something resembling a direct answer to a direct question, Bush may have let his psychosis (and the psychosis of his neocon advisors) slip into public view, not much of that psychosis and only for the moment, but enough to allow a reasonable appreciation of the deep trouble into which Bush has plunged a frightened and frighteningly naive American citizenry. Conservative Americans thought they were voting for a good religious family man in government and they got a Jim Jones.

more...

[AnneD]

56. Thank goodness for biological redundancy....

I still have a few neurons left, despite my misspent youth.
54anickel, you have to read Bush on the Couch. I think the author's name was Dr. Frank, a psychiatrist at Georgetown. He did a psych profile (like the CIA does on all leaders). It was scary. I had the pleasure of attending a talk he gave. Best insightful summary I have ever read and heard. And he is a good guy too. He should be on the DNC payroll as an adviser instead of some of those useless types (guess my psyop history is coming back to haunt me).

[ozymandius]

5. Real estate investors bailing out?

NEW YORK (CNNMoney.com) - Recent economic data may point to a cooling housing market and some investors are already dashing for the exits, according to a news report published Wednesday.

Speaking with real estate brokers and analysts from such hot real estate markets as Las Vegas, Miami and Washington, D.C., The Wall Street Journal reported that fewer people are buying property as an investment vehicle.

A researcher at Arizona State University told the paper that in the hot market of Phoenix, as many as 30 percent of the properties for sale on the market right now are owned by investors, while Sandra Geary, a real estate broker in Sonoma County in California said that her sales to investors have dipped by over 75 percent.

-cut-

Recent industry reports have hinted at a slowdown in the real estate market. On Tuesday, the National Association of Realtors said that pending home sales in October dipped by 3.2 percent, while the Federal Reserve reported last week in its "beige book" summary of economic conditions that some housing markets have cooled.

more

[ozymandius]

8. 'Take this house and shove it'

NEW YORK(CNNMoney.com) - Many residents of high-priced housing markets around the country are cashing out and moving to more affordable areas.

In Massachusetts, a quarter of the people in the state said they would leave if they had the opportunity, according to a poll by MassINC, a non-profit public policy think tank. They would join some 170,000 Bay Staters who left for other parts of the United States between 2000 and 2004.

The No. 1 reason cited by those who want to leave: The high cost of living. And the No. 1 area needing major improvement: Housing affordability.

-cut-

California suffers a net loss of about 100,000 residents a year to other states, according to Economy.com. In recent years, many have cashed out their rapidly appreciated homes and moved to Arizona, Washington, and Oregon.

more

[WhiteTara]

78. unfortuantely, now those states housing prices

are almost the same as California!

[54anickel]

41. Sustained decline forecast in U.S. housing market

http://www.usatoday.com/money/economy/housing/2005-12-07-ucla_x.htm

WASHINGTON — The U.S. housing industry is in for a sustained decline, though signs of a cool-down have been slower to emerge than previously expected, according to the quarterly UCLA Anderson Forecast released Wednesday.

The widely respected forecasting center at UCLA said rising interest rates, slowing population growth, overbuilding and the fact that prices had reached bubble-like heights in some hot areas will drive the decline. Housing, which had been a big driver of growth, is contributing little to the economic expansion at present, the forecast said.

While a sharper slowdown in housing will hurt the broader economy, it is not expected to push it into recession, the economists said.

snip>

And while Leamer estimated the bursting of the housing bubble could cause the loss of 500,000 construction jobs and 300,000 financial services positions over two to three years, he does not expect a large decline in manufacturing and notes that steady job gains are expected in other industries.

"Bottom line: A jobless recovery is going to be followed by a jobful non-recession," Leamer wrote in his U.S. forecast.

:rofl: And this forecasting center is widely respected?

more...

[ozymandius]

6. Ford seen cutting up to 30,000 jobs (update)

NEW YORK (CNNMoney.com) - Ford Motor Co. plans to close at least 10 plants and cut 25,000 to 30,000 hourly jobs in North America within five years, according to a published report Wednesday.

The Detroit News, quoting people familiar with the plan, said the deep cuts will be presented to the Ford board of directors for consideration Wednesday. It will not be revealed to the public until Jan. 23, according to the paper.

The cuts are much deeper than earlier reports, which initially had Ford closing as few as three assembly plants and cutting only about 7,000 positions.

-cut-

The depth of the cuts would be comparable to the plans announced at General Motors two weeks ago to close a dozen North American facilities and eliminate about 30,000 hourly jobs.

more

[54anickel]

36. Old Henry has got to be just rolling in his grave. Where is the middle

class going to come from to buy whatever autos they end up producing? Wal-mart greeters and burger flippers won't be able to afford a new car, and high faluttin' bankers, analysts, and corporate managers ain't gonna want no stinkin' Ford!

I saw that one of Ford's marketing slogans for the Escape is "because you can't spend your whole life working". Ummmm, right. :eyes: I don't think they are using that line in the same context as old Hank.

[AnneD]

46. Sounds like some of the chickens...

are coming home to roost. Hen house should be full by Feb....

[ozymandius]

7. Analysts: Delta faces liquidation

WASHINGTON (Reuters) - Delta Air Lines Inc. is the weakest among traditional U.S. airlines and faces risk of liquidation if things do not go well in bankruptcy court, analysts said Tuesday.

"There is a tangible risk that Delta could be up for liquidation," said CreditSights analyst Roger King at the Reuters Aerospace and Defense Summit.

-cut-

Unlike Northwest, Delta has nothing it can fall back on, CreditSights' King added. Delta's hubs are not attractive for European business, and it faces competition from low-cost carriers on their domestic routes, he said.

"Their balance sheet is full of a lot of secured debt," said King. "Everything is liened up, including probably the pencils."

more

[UpInArms]

9. daily dollar watch

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

Last trade 91.56 Change -0.33 (-0.36%)

Dollar Takes Step Back Before Going Forward

http://www.dailyfx.com/index.php?option=com_content&task=view&id=5342&Itemid=39

EUR/USD – Euro bulls once again pushed the pair toward the 1.1800 handle, which saw the price being constantly rejected as par remains confined to a narrow 1.1700-1.1863 consolidation range. In case the pair fails to reach the ranges upper boundary at 1.1863, a level marked by the 23.6 Fib of the 1.2588-1.1644 USD rally, a reversal from these levels will most likely see the pair head lower and break below the 1.1700 handle and see the pair accelerate toward 1.1639, the most recent 2005 low. A collapse of the level of such significance will most likely see the pair head lower and test the euro’s bids around 1.1546, an October 17, 2003 daily low, and a gateway toward the psychologically important 1.1500 handle. Indicators are mixed with positive momentum above the zero line and negative MACD sloping upward toward the zero line, while neutral oscillators give either side enough room to maneuver.

<snip>

USD/JPY – Japanese Yen finally made a move toward the psychologically important 120.00 handle as the price action seemed to stall above the 121.00 figure. As the pair head lower, a confirmed break below the 120.00 level will most likely see the yen traders add to their existing positions and push the dollar bulls toward 119.24, a level established by the November 30 daily low and is reinforced by the 20-day SMA, thus seeing the yen traders sweep clean the stops placed below the 120.00 figure. A further move to the downside will most likely see the USD/JPY gain momentum as more prospective yen bulls join the retrace with the pair taking on the 118.35, a level created by the November 28 daily low. Indicators remain supportive of the dollar longs with both momentum indicator and MACD treading above the zero line, with ADX above 25 at 39.99 signaling an existence of a trend, not a direction of one, while both overbought RSI and Stochastic give the yen longs a chance to retrace part of the rally.

<snip>

USD/CAD – Canadian dollar traders continued to put up a fight in a futile attempt to keep the pair below the 1.1600 handle as greenback traders set their sights on a retrace. As the pair remains above the 1.1600 figure, a further move to the upside will most likely see the pair head higher and test the Loonie bids around 1.1686, a level marked by the October 12 daily low. A break above will most likely see the pair head above the 1.1700 level and sweep the stops placed above the figure thus adding to upside momentum with the US dollar aiming for the Loonie offers around 1.1803, a level established by the November 10 daily low and is protected by the combination of the 20-day and 50-day SMA around the 1.1730-60 zone. Indicators are favoring of the Canadian dollar longs with both momentum indicator and negative MACD below the zero line, while oversold Stochastic gives the US dollar bulls a chance to retaliate.

...more...

[UpInArms]

11. Yen Rises; Report Shows Biggest Buying From Overseas This Year

http://www.bloomberg.com/apps/news?pid=10000101&sid=a2XpmsvgZ8q8&refer=japan

Dec. 8 (Bloomberg) -- The yen rose against the dollar and the yen in Asia after a government report showed overseas investors bought the biggest amount of Japanese bonds and stocks this year.

The figures helped the yen to strengthen against 16 most- traded currencies today. Demand for the Japanese currency also increased after Bank of Japan Governor Toshihiko Fukui said an end of the central bank's deflation-fighting policy is near, and consumer prices will show solid gains in the first quarter. The Nikkei 225 Stock Average rose to a five-year high this week.

``Foreign investors are in a hurry to buy Japanese assets such as stocks,'' said Xinyi Lu, chief strategist in Tokyo at Mizuho Corporate Bank Ltd., a unit of Japan's second-largest lender. ``That's clearly yen supportive.''

<snip>

Japan's central bank has kept its so-called ``quantitative easing policy'' of pumping cash into the economy and holding interest rates at almost zero for 4 1/2 years as it struggles to overcome deflation, which erodes corporate profits and discouraged spending.

``Consumer prices, excluding fresh food, became zero in October, and it is clear to everyone that the end is close,'' Fukui said at a meeting of business executives in Nagoya, central Japan.

...more...

[54anickel]

54. Yen gains as carry trade investors bail out

http://news.ft.com/cms/s/e02e1e1a-67de-11da-bfce-0000779e2340.html

The yen extended its bounce from multi-year lows in European morning trade on Thursday amid further signs that carry trade investors are liquidating short-yen trades.


Carry trades involve borrowing in a low-yielding currency (one backed by low interest rates or bond yields) and buying a higher-yielding currency. With Japan’s zero interest rate policy seemingly entrenched, one of the most popular trades has been to short the yen against high-yielders such as the Australian and New Zealand dollars.

But with the New Zealand dollar in particular falling sharply on Wednesday on renewed fears that the island nation’s ballooning current account deficit is unsustainable, traders reported further profit taking on these short-yen trades on Thursday.

“One of the most popular trades in the foreign exchange market this year has been the ‘carry trade’, selling the yen for high-yielding currencies. The unwind of these positions is fuelling demand for the yen,” said Derek Halpenny, senior currency economist at Bank of Tokyo-Mitsubishi.

more...

[54anickel]

39. Dollar Falls After Fukui, Issing Signal Higher Interest Rates

http://www.bloomberg.com/apps/news?pid=10000087&sid=a60llS46rW3g&refer=top_world_news

Dec. 8 (Bloomberg) -- The dollar fell against the yen and the euro after Japanese and European policy makers suggested they will raise borrowing costs, reducing a gap with the Federal Reserve's benchmark rate that has left the U.S. currency poised for its best year since 2001.

Bank of Japan Governor Toshihiko Fukui said today an end to the bank's deflation-fighting policy is close while European Central Bank Chief Economist Otmar Issing warned of further rate increases should inflation pose a threat. The U.S. currency has risen 15 percent and 13 percent respectively versus the yen and euro this year as the Fed lifted its key rate seven times.

``I wouldn't expect much further strength for the dollar this year,'' said Steve Saywell, chief currency strategist at Citigroup Inc. in London ``A lot of people have been buying the dollar this year because of the rate advantage and eventually that will start to decline.''

snip>

`Excuse To Buy'

``Fukui's comments could be used as an excuse to buy back the yen,'' said Gen Kawabe, a foreign-exchange manager in Tokyo at Chuo Mitsui Trust and Banking Co. Ltd. ``Markets have priced in that the so-called quantitative easing policy of pumping cash into the economy will end by next spring, and are very fixated on when the BOJ will raise interest rates from zero.''

more...

[UpInArms]

10. Calpine Corp representatives resign from fund

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-08T022703Z_01_WEN5834_RTRIDST_0_UTILITIES-CALPINEPOWERINCOME-URGENT.XML

NEW YORK, Dec 7 (Reuters) - The Calpine Power Income Fund (CF_u.TO: Quote, Profile, Research) said on Wednesday that representatives of Calpine Corp. (CPNL.PK: Quote, Profile, Research) who sit on the fund's board of trustees have resigned to avoid the potential for conflicts of interest that may arise due to the liquidity situation facing Calpine Corp.

Toby Austin, John King and Eric Pryor have stepped down and the fund will continue to be governed by the existing five independent trustees, Calpine Power Income Fund said in a statement.

Don't you think they might have done that a bit sooner? Conflict of interest? When? Only after all the bad decisions have been made?

:banghead:

[UpInArms]

12. More Hollinger charges possible, court told

http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20051208/RHOLLINGER08/TPBusiness/Canadian

American prosecutors are considering laying more charges in a criminal case involving Conrad Black and other former executives of Hollinger International Inc.

Assistant U.S. Attorney Robert Kent said during a court hearing yesterday in Chicago that there is a possibility of additional charges that could be brought as early as next Thursday, according to Randall Samborn, a spokesman in the office of the U.S. Attorney for the Northern District of Illinois.

Mr. Samborn added that if new charges are laid, Lord Black and the others could be re-arraigned next Friday during a hearing before Judge Amy St. Eve that has already been scheduled. He declined to comment on what the new charges might entail or whether other people would be charged.

<snip>

Prosecutors could also be targeting other former Hollinger officials. Last month, U.S. Attorney Patrick Fitzgerald said the investigation was continuing. In response to a question at the time, however, he exonerated members of the audit committee of Hollinger's board.

...more...

Is Richard Perle in Fitz's sights?

[UpInArms]

13. More U.S. SEC book-cooking actions hit Fortune 500

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-12-07T213238Z_01_N07258883_RTRIDST_0_FINANCIAL-SEC-FORTUNE500.XML

WASHINGTON, Dec 7 (Reuters) - The U.S. Securities and Exchange Commission -- once hopelessly outgunned by big business -- each year is bringing more financial reporting actions involving the Fortune 500 corporate elite, officials said on Wednesday.

In fiscal 2005, 24 percent of SEC financial reporting actions hit Fortune 500 companies, their executives or those they do business with, like auditors and vendors, the SEC said.

That proportion was up from 20 percent in 2004, 17 percent in 2003 and just 5 percent in 1998, it said.

<snip>

For instance, healthcare services group HealthSouth Corp. <HLSH.PK> -- a Fortune 500 company until two years ago -- in June agreed to pay $100 million to settle an SEC action alleging a massive 1996-2002 accounting fraud.

Media giant Time Warner Inc. <TWX.N> -- No. 32 on the 2005 Fortune list -- agreed in March to pay $300 million to settle SEC charges that, among other things, from 2000 to 2002 it overstated its AOL online advertising revenues.

Telecommunications group Qwest Communications International Inc. <Q.N> -- No. 154 on the 2005 list -- in October 2004 agreed to a $250-million fine to settle SEC allegations of fraudulently recognizing revenues between 1999 and 2002.

...more...

[UpInArms]

14. American Greetings slashes outlook

http://www.marketwatch.com/news/story.asp?guid=%7BA044AD52%2DEFC9%2D4216%2D8C99%2DA443DB2B45E6%7D&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- American Greetings Corp., the nation's largest publicly held greeting-card maker, on Thursday sharply cut its third-quarter earnings forecast, citing continued weakness in its U.K. business and disappointing Christmas shipments of domestic promotional gift wrap.

American Greetings (AM), based in Cleveland, now sees third-quarter earnings from continuing operations at 15 cents to 18 cents a share, down from its prior outlook for 70 to 75 cents. Analysts were looking for earnings, on average, of 71 cents a share.

An after-tax charge of approximately $33 million for goodwill impairment also contributed to the earnings revision, American Greetings said.

...more...

[54anickel]

24. Huh? Christmas wrapping paper sales down? And what's that

goodwill impairment all about anyway? What could a greeting card company possibly do to "goodwill" that would need $33 million to straighten up?

[54anickel]

16. Good morning Ozy, UIA and all. Have you heard about the latest

ruling on student loans? I can't believe baby boomers have that much out in delinquent loans!

Still owe on your student loan?
Government can tap into Social Security benefits to settle debt, high court says

http://www.indystar.com/apps/pbcs.dll/article?AID=/20051208/NEWS06/512080431/1012

WASHINGTON -- Bad news for baby boomers nearing retirement who still haven't paid off their college loans: The Supreme Court ruled Wednesday that the government can seize part of a person's monthly Social Security benefit to pay off the old debts.

The 9-0 decision gives the government an extra way of collecting on more than $7billion in delinquent student loans. It could cost retirees up to 15 percent of their monthly benefit.

Generally, Social Security benefits have been shielded from being seized. But Congress revised the law in 1996 to allow specifically for the collection of unpaid student loans, the justices said.

snip>

While the government has backed billions of dollars in bank loans to college students, those loans become the government's debt if the former students default. Lawmakers have made clear those debts should not be forgiven simply because the former students are disabled or retired.

snip>

The court was ruling in the case of James Lockhart, who attended four institutions of higher education from 1984 to 1989 and took out nine federally guaranteed loans. By 2002, he was disabled from diabetes and heart disease and had $80,000 in unpaid student loans.

more...

[UpInArms]

22. g'morning 54anickel!

with the deficit on the uptick (per SnowJob yesterday), I would imagine that the marching orders will be to find every single penny owed by the poor and the middle class and collection proceedings will be instituted - especially when the Fed is the one that is cutting the checks - how easy is that? It will decrease the amount of money flowing outward and those with the least will have even less.

[54anickel]

26. Sounds like a bad precedent to me. What other loans are considered

a government debt? I hate the slippery slope argument, but I wonder if it won't turn out to be applicable here. Either way, there certainly seems to be a double standard going on here. The bankruptcy bill, now this. Meanwhile corps are bailing out on their obligations to the public, whether they be share holders or pensioners, left and right these days.

[AnneD]

47. I am glad you remembered,

I heard it on the way home on NPR. Those loans will follow you into and beyond your grave. One more monkey to get off you back. But I do seem to remember a hardship clause in the loan that one can apply for. There is probably more to this case than meets the eye, but this is another reason NOT to take out a student loan to get that Master's in Social Work.

[54anickel]

52. Would be tough to afford the legal fees required to file for the hardship

clause, in the meantime they'll be "garnishing" your SS benefits. Another thought, suppose you're getting pension payments from the PBGC because the company you retired from filed bankruptcy and walked away from their pension obligation. Could the government start to garnish those benefits as well? :shrug:

DISCHARGE OF STUDENT LOANS: A QUANDARY (1999)

http://touchngo.com/lglcntr/usdc/bnkrptcy/briefs/bnk49.html

snip>

Now that all student loans are nondischargeable unless the borrower can establish "undue hardship," there will no doubt be an increase in litigation over whether a student loan is discharged. The question is, in what court, and will some debtors be subjected to a multiplicity of actions? For example, assume an Alaska debtor with three student loans: (1) an ACPE loan; (2) a Pennsylvania Higher Education Assistance Agency ("PHEAA") loan; and (3) a United Student Aids Fund ("USAF") loan. USAF is not a state agency, therefore, an action to determine discharge of that loan would be properly brought in the bankruptcy court. However, under the Eleventh Amendment, dischargeability of neither the ACPE loan nor the PHEAA loan could be adjudicated in the bankruptcy court. Moreover, the Alaska court would lack jurisdiction over PHEAA and a Pennsylvania court would lack jurisdiction over ACPE. Result: three separate actions!

The current situation is fraught with uncertainty and possible inequities for borrowers and lenders alike. Should the borrower be proactive or reactive? That is, should the borrower make a preemptive strike and file a declaratory relief action or should the borrower simply wait until sued and raise the affirmative defense of discharge in bankruptcy? Can one loan be discharged and another not?

I assume for the purpose of this article that Alaska and Pennsylvania would apply the three-part Brunner test for a bankruptcy discharge of a student loan used by the bankruptcy court. First, the debtor must establish that she cannot maintain, based on current income and expenses, a "minimal" standard of living for herself and her dependents if forced to repay the loans. Second, the debtor must show "that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans." The third prong requires "that the debtor has made good faith efforts to repay the loans"

The first problem we face is if our hypothetical borrower meets the first prong, how is that borrower supposed to fund the legal battle to determine dischargeability in three separate actions, at least one of which will be 4,000 miles removed from where the debtor lives? Does a "minimal" standard of living include legal fees in prosecuting or defending against a dischargeability action? Unless counsel is willing to undertake the action on a pro bono basis, student loan dischargeability actions can be very expensive. Having tried more than a couple of these cases, I can attest to the fact that counsel for the borrower, even if he/she does not intend to take the case on a pro bono basis, more often than not it ends up as at least a partially, if not mostly, pro bono endeavor.

[UpInArms]

17. Whoopsie! Mizuho errant order hits Japan brokers, banks

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-12-08T132410Z_01_L0851825_RTRIDST_0_FINANCIAL-JAPAN-MIZUHO-UPDATE-3.XML

TOKYO, Dec 8 (Reuters) - A huge errant sell order by Japanese brokerage Mizuho Securities in newly listed shares of recruitment firm J-Com Co. <2462.T> pushed down stocks of the country's top brokerages and banks on Thursday.

The ruckus was caused by a sell order for 600,000 shares -- valued at $3 billion at J-Com's IPO price -- from an unidentified brokerage, market participants said. Mizuho admitted to having made an error only after the market closed.

<snip>

In the credit derivatives market, the cost of default protection over five years on Mizuho Financial Group's subordinated dollar bonds <MZFGAE5US=GFI> rose to 27 basis points from a nine-month low of 24 basis points.

<snip>

An order to sell 600,000 J-Com shares would represent 41 times the company's outstanding stock.

This was the first time that an errant order exceeded the number of outstanding shares, according to TSE.

...more...

[54anickel]

38. Heh-heh! Was gold on the other side of that exchange?...eom

[UpInArms]

40. Mizuho Sec sees Y27 bln loss from errant order

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-08T150838Z_01_T273363_RTRIDST_0_FINANCIAL-JAPAN-MIZUHO-LOSS-URGENT.XML

TOKYO, Dec 8 (Reuters) - Mizuho Securities, a brokerage unit of Mizuho Financial Group Inc. (8411.T: Quote, Profile, Research), said late on Thursday it expects a 27 billion yen ($223 million) loss from a huge errant order in newly listed shares of recruitment firm J-Com Co. (2462.T: Quote, Profile, Research).

The firm placed an errant order to sell 610,000 J-Com shares for 1 yen each, it said.

Expectations a securities firm would suffer a big dealing loss after placing an errant order to sell 600,000 shares -- more than 41 times the number of outstanding shares -- dragged down Tokyo's brokerage and banking sectors.

[UpInArms]

19. White House poised to replace OFHEO head as early as Jan.

http://www.marketwatch.com/news/story.asp?guid=%7BBAFC47D8%2DA670%2D49B6%2DA44B%2DCD102C6CC680%7D&symbol=

WASHINGTON (MarketWatch) -- The White House is poised to replace Stephen Blumenthal as Fannie Mae's (FNM) and Freddie Mac's (FRE) top regulator as early as January, following a controversial speech last month in Hong Kong where he disputed the administration's position on cutting the companies' assets, according to several people familiar with the matter.

The White House had been actively seeking a successor to Blumenthal at the Office of Federal Housing Enterprise Oversight since former Director Armando Falcon resigned in May.

But administration officials stepped up that process in recent weeks after receiving calls from several current and former federal regulators, including officials at the Treasury Department and the Securities and Exchange Commission, who said they lost confidence in the acting director, according to government officials and other people close to the matter.

"Mr. Blumenthal is serving in the acting capacity. We will move forward (on appointing a replacement) as soon as possible, but we don't speculate on the timing or the content of those announcements," said White House spokeswoman Erin Healy, who declined to comment further.

Blumenthal, who temporarily took over OFHEO's helm in May, hit a nerve among top policymakers last month when he told a group of bond traders that arguments by the Bush administration and the Federal Reserve to shrink Fannie's and Freddie's massive portfolios weren't "terribly persuasive" and that cutting their assets could result in a "massive sell-off" of both companies' stock, government officials and others said.

...more...

Another *Co dissenter gets canned. Why am I not surprised?

[UpInArms]

20. we should expect another recess appointment on this

also from the link above:

Falcon, who is a Democrat, originally resigned from his post that February under pressure from the White House over a controversial study he released on the risks Fannie and Freddie pose to the broader financial system. But White House nominee, derivatives trader Mark Brickell, fell flat in the Senate after questions about his previous business dealings with Fannie and Freddie weighed down his confirmation.

The White House can avoid, at least temporarily, the Senate confirmation process by appointing Blumenthal's replacement after Congress adjourns for the winter break later this month. Under Senate rules, so-called recess appointments can remain in place without Senate approval through the end of the following year. That would allow the Bush administration to install as early as January a new OFHEO director who could remain in place through the end of 2007.

[UpInArms]

23. Printing Press Report: Fed adds reserves via 14-day system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-08T134508Z_01_N08314268_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Dec 8 (Reuters) - The Federal Reserve said on Thursday it added temporary reserves to the U.S. banking system through 14-day system repurchase agreements.

The benchmark federal funds rate last traded at 4.06 percent, above the Fed's current 4.0 percent target for the overnight lending rate.

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

[UpInArms]

31. Treasuries rise, market gets set for 10-yr auction

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-08T144450Z_01_N08333199_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Dec 8 (Reuters) - U.S. Treasuries moved higher on Thursday morning, supported by soft equities prices, as traders positioned themselves for a $8 billion auction in 10-year notes shortly after midday.

Analysts said the market was trading within this week's narrow range, recovering from Wednesday's retreat when bonds fell on profit-taking.

On Thursday, bonds showed no perceptible reaction to weekly first time jobless claims, the day's only data offering, which came in at 327,000 for the week ended Dec. 3, compared with economists' expectations of 317,000 and the prior week's result of 321,000.

"I didn't think jobless claims was terribly important," said Carol Hurley, senior market strategist at Lind-Waldock in Chicago. "The 10-year auction is more important today, and traders are probably hedging for that."

<snip>

Analysts disagree on what that means, with some saying that any narrowing of yield spreads that "flatten" the yield curve historically point to a slowing of the economy. Others say heavy foreign participation in the market in recent years has distorted the yield curve's value as a predictor of the domestic economy.

...more...

[AnneD]

48. The bright side ? ....

we can pay our student loans with cheaper dollars.:rofl:

[RawMaterials]

72. 50k in student loans is going to be nothing

in a few years cant wait to start dropping 100$ bills for big mac's and some coke.

:puke:
especially with bernake at the helm

[UpInArms]

25. pre-opening blather

9:00AM: S&P futures vs fair value: -0.3. Nasdaq futures vs fair value: +2.5. Still shaping up to be a mixed start for the indices but futures indications are trading near their best levels of the morning. With Tuesday's FOMC meeting still looming large as a potential stimulus, especially if a change in the policy directive's wording suggests an end to Fed tightening, perhaps investors have taken a cue from modest strength in the Treasury market. A rebound in the 10-yr note (+06/32) has knocked the yield back below the psychological 4.50% mark.

8:31AM: S&P futures vs fair value: -1.5. Nasdaq futures vs fair value: +0.5. Futures trade improves somewhat since the last update, but still indicates a sluggish start for stocks. Meanwhile, investors have digested the day's only piece of economic data - initial claims rose 6K to 327K (consensus 318K) - but the data have had little impact on trading as worries that the market may have advanced too far too fast in Q4 continue to loom.

8:00AM: S&P futures vs fair value: -2.9. Nasdaq futures vs fair value: -3.0. Futures market versus fair value suggesting a lower open for the cash market as investors weigh cautious FY06 guidance from Toll Brothers (TOL) against an upbeat Q4 outlook from Texas Instruments (TXN). A rebound in crude oil and uncertainty ahead of Intel's (INTC) mid-quarter update tonight have also kept buyers on the sidelines in the early going.

[UpInArms]

28. 9:37 EST markets are giving the bidness

Dow 10,790.66 -20.25 (-0.19%)
Nasdaq 2,251.62 -0.39 (-0.02%)
S&P 500 1,256.11 -1.26 (-0.10%)
10-Yr Bond 4.484 -0.33 (-0.73%)

NYSE Volume 71,410,000
Nasdaq Volume 85,674,000

9:16AM: S&P futures vs fair value: +0.5. Nasdaq futures vs fair value: +5.0. Futures market continues to improve heading into the open, as indications above fair value now suggest stocks will rebound from yesterday's broad-based decline. Adding to the recent shift in sentiment has been raised Q1 guidance from Qualcomm (QCOM), which further underscores TXN's upbeat outlook (tied largely to handset sales) and Briefing.com's Overweight rating on the Tech sector.

[54anickel]

32. A Tale of Two Countries

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=49265

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way – in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.”

- “A Tale of Two Cities,” Charles Dickens

It was autumn in the fifth year of the third millennium.

On that side of the Atlantic “pond,” on a little island that calls itself Great Britain, it was the best of times. In contrast to its neighbors on the Continent, Britain had rung up an extraordinary period of growth and prosperity over the last dozen years. Recovering dramatically from the deep recession of the early 90’s, the UK had enjoyed its longest expansion since the Second World War. GDP growth in the new millennium had averaged around 2.5% per year, unemployment had halved from 10% in 1993 to 5% in mid-2005, inflation during 2001-2005 was a tame 1.5% per annum, while the Bank of England base interest rate had dropped from 14% in the early 90s to 4.5% in mid-’05. Housing values had appreciated faster and faster … in late 2002, annual house price appreciation hit 25%! Britons were getting dramatically wealthier and it showed. Home equity extraction and other forms of consumer debt fueled consumption with retail spending rocketing ahead at real annual growth rates of 3-4% during ’03 and ‘04. More than 600,000 Britons, over 1% of the population, now owned holiday homes abroad … especially in France and Spain. It was a dramatic turnaround for a nation that 25 years ago was dubbed the “sick man of Europe.” The performance stood in stark contrast to the major European economies that were stuck with low growth and double-digit unemployment rates.

On this side of the pond, a big island known as the cradle of liberty and democracy, the USA, also basked in the glow of prosperity and global dominance. The world’s only remaining superpower, it was also the engine of global economic progress … especially as the world’s 2nd and 3rd largest economies, Japan and Germany, remained mired in slow/no growth. Over the last 15 years it too made gigantic strides – growth averaged more than 3% annually, unemployment dropped from 8% in the early 90s to 5% in 2005 and long-term interest rates (the 10-yr Treasury bond) fell from over 8% in 1990 to around 4% in 2005. The only recession in this period was in 2001 and it was the shallowest and shortest recession in the post-war era. Core inflation dropped from over 4% in the early 90’s to less than 2% as the new millennium dawned. There was a dramatic renaissance in American labor productivity, zooming from the sclerotic 1.5% - 2.0% in the 70’s and 80’s to more than 3% by the late 90’s. And there was a meteoric rise in American wealth … first with the stock market boom of the late 90’s and then with the housing boom of the early 2000’s. The dominant nation of the 20th century, the USA, was at the “top of its game.”

Indeed, for the entire English-speaking world it was the best of times. In the Far East, incomes and wealth were rising rapidly in Australia and New Zealand. Ireland’s spectacular growth had earned it the title of “Celtic Tiger”. And here, in North America, things were bubbling along nicely north of the border in Canada.

more...

[Kolesar]

63. and then we ran out of oil

[Kolesar]

33. Daniel Gross writes the best blog--Ever!

DG writes for www.Slate.com and he used to be a Clinton advisor.
The whole blog is compelling. Here is one excerpt. Good morning!!

http://www.danielgross.net/

SANTA CHAVEZ
In the A section of today's New York Times there's a hysteriical, heartwarming full-page ad from Hugo Chavez to the people of America.

I can't reproduce the photo of the little girl looking joyfully at a Chrismtas present as lights from a Christmas tree twinkle in the background, but I can reproduce the text.

"SHARING THE WARTMH OF THE SEASON. VENEZUELA IS WARMING UP THE HOLIDAYS IN NEW YORK."
"When temperatures dip -- and heating oil prices rise, the best holiday gift for a low-income family is to help them stay warm.

To help keep those in need warm this winter, CITGO--a major supplier of heating oil to the Northeast -- is reaching out to help these families enjoy a warm holiday and safe winter.

Working with non-profit housing and community organizations, CITGO is offering a significant amount of gallons of heating oil at deeply discounted prices to qualified residents of the Bronx, Queens, and Harlem.

...snip........

And here is a business story, edited:

MEN (AND WOMAN) OVERBOARD
Joann S. Lublin and Lee Hawkins in the Wall Street Journal point out the deficiencies of GM's board.

The good news for Mr. Wagoner is that his board of directors is sticking with him, despite shareholder misgivings. But GM's board, which includes two former CEOs who left their posts early as their own companies struggled, soon could face pressure of its own.
Las Vegas investor Kirk Kerkorian, who controls 9.9% of GM's stock, now is more than $350 million in the red on his investment in the car maker. Mr. Kerkorian has signaled he may seek a seat on the board, which would probably be occupied by Jerome York, a former Chrysler Corp. and International Business Machines Corp. finance executive and veteran of corporate turnarounds. . . .

[UpInArms]

34. Gold futures climb, set to extend a five-session win

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38694.4094233912-853750492&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- February gold is up $1.10 at $518.90 an ounce in morning trading, set to extend a winning streak to six sessions in a row after trading at a nearly 23-year high of $522.60 overnight. "Momentum is definitely accelerating as February gold has now tacked on $60 in just a little over a month's time," said Dale Doelling, chief market technician at Trends In Commodities. "All the markets need now is some extraordinary event to occur, like a stock market meltdown or a terrorist attack on U.S. soil, and we could see a quick $50-$100 pop in the price of gold."

[54anickel]

37. Funds lift gold to new peaks near $520

http://biz.yahoo.com/rb/051208/markets_precious.html?.v=3

LONDON (Reuters) - Gold held near a new 24-1/2-year high of $518.50 an ounce in Europe on Thursday as investment funds persisted in buying an asset that is outperforming stocks and bonds.

"Its current stratospheric performance is a combination of three factors -- strong fundamentals, a rampant commodities sector, with most base and all precious metals at multi-year or all-time highs, and massive investor interest led by the Japanese," Paul Merrick of RBC Capital Markets said.

snip>

"It has come off a bit, but that is only to be expected. It looks as if we will see $520 soon," a trader said.

Others said gold remained vulnerable to fund and other selling after recent steep gains on inflation worries, high oil prices and fund interest.

"...gold looks increasingly vulnerable to a nasty correction lower which could see the metal drop back to $500 in the blink of an eye," James Moore of the BullionDesk.com said.

Darren Heathcote, head of trading at N M Rothschild in Sydney, said current prices appeared unsustainable due to large long positions on the New York Mercantile Exchange's COMEX division and the Tokyo Commodity Exchange (TOCOM).

more...

[RawMaterials]

42. Forbes was on cnbc last night

Pointing out that the bubble in oil has more to do with the fed printing too much money and the the evidence can also be seen in all other commodities that have risen in price. Glad to see some of the main street media is catching up the the whole printing press/ inflation reality.

[54anickel]

62. Hey RM, check out these pictures of pallets of gold bars - shiny things -

I just love shiny things....


http://www.streettracksgoldshares.com/index.php?noMsg=true

[RawMaterials]

73. I cant afford a whole bar ....

but i need to get out and get some shiny coins, so i know my family will be able to pick up some bread when needed, while my neighbor will be taking his wheelbarrow of dolors, I'll just need one little coin..

[UpInArms]

44. Josh Marshall: The contracting scandal won&#8217;t end with Duke

http://thehill.com/thehill/export/TheHill/Comment/JoshMarshall/120805.html

excerpt:

According to my sources and a scattering of published reports, the Cunningham scandal appears to be evolving into a full-fledged defense and intelligence contracting scandal with Duke Cunningham just the most colorful character and the first to be taken down. As part of his plea agreement, Cunningham has agreed to assist prosecutors in their ongoing investigation. And, I’m told, one of the four unnamed “co-conspirators” mentioned in the charges against him has been cooperating with investigators pretty much from the beginning.

Most of the original attention in the Cunningham scandal focused on Mitchell Wade, owner of MZM Inc. He’s the one who bought Cunningham’s house at that comically inflated price and set in motion the chain of events that led to Cunningham’s downfall. But the person to focus on is the man identified in court documents as co-conspirator No. 1, Brent Wilkes. (Wade actually came up through Wilkes’s operation.)

Wilkes is commonly referred to as a “defense contractor,” but his real line of work seems a bit different. Wilkes specialized in finding companies or products for which the Department of Defense had little or no use and then lathering up a few members of Congress so that they’d force the Pentagon to buy his junk.

According to Cunningham’s guilty plea, entered last month in San Diego, the lathering included bribes to Cunningham. It also included the standard generous campaign contributions and, according to an article last weekend in The San Diego Union-Tribune, perhaps less traditional “hospitality suites” at hotels around Washington.

...much much more...

[ozymandius]

51. 11:41 numbers and blather

Dow 10,844.37 +33.46 (+0.31%)
Nasdaq 2,261.08 +9.07 (+0.40%)
S&P 500 1,263.24 +5.87 (+0.47%)
10-Yr Bond 44.72 -0.45 (-1.00%)
NYSE Volume 800,665,000
Nasdaq Volume 744,728,000

11:30AM: Major averages now trade at their best levels of the morning as buyers continue to emerge even as volatility in crude futures now has oil prices trading near session highs. With regard to the latter, the increasingly influential Energy sector is now up 1.1%, lending some support to the Dow and S&P, while a recovery in the semiconductor space, further upside momentum in networking and a turnaround in biotech have helped the Nasdaq extend its reach into positive territory. SOX +0.4, XOI +1.4, NYSE Adv/Dec 1960/1086, Nasdaq Adv/Dec 1703/1061

11:00AM: Market rebounds some but not nearly enough to make a significant change in the standings. While the brief reversal in oil prices following a smaller than expected decline in natural gas inventories perhaps lured some buyers from the sidelines, modest turnarounds in the influential Financial and Health Care sectors have provided the larger sources of recent support. NYSE Adv/Dec 1485/1475, Nasdaq Adv/Dec 1318/1352

[OrangeCountyDemocrat]

53. Tax Bill Being Debated In House

Just a heads up. On CSpan, they're covering the debate over their version of the Tax Bill.

[AnneD]

66. I have been streaming it..

very telling. The GOP plan sucks so badly. I wish more people watched. If this doesn't get you riled up, I don't know what will. They (GOP) are fiscally irresponsible. On all the phony baloney charts they presented re job creation-they didn't show how the deficit has ballooned since the tax cuts went into effect. What is more responsible that working down the debt, and to allow the cap gains at the expense of student loan fees. They want to totally gut the middle class. When will the public get a clue.

[OrangeCountyDemocrat]

67. Why Should They Tell The Truth Now?

We're all screwed. They're going to get their Extension on those dividend & capital gains cuts, and then LIE like dogs to make the average joe six pack thin they stand to benefit, when most ordinary people don't even own a single stock in a regular account subject to income taxes.

I really can't believe the S**T hasn't hit the fan yet. But I'm starting to believe in gold and being liquid in at least cash, so when the bottom does drop out, I'm not in debt.

It might be wise to figure out a way to get all income from dividends, since that seems to be the way to avoid taxes in the future.

[AnneD]

74. The House is not in order.....

man, it is getting heated. At least they are doing a physical vote instead of ramming things though. You are right Orange, the mata will hit the fan soon enough. That is why I have been working hard to get out of debt and be stronger in portable wealth.
You have also hit on the major shift that this country has gone through under Bush. Capital gains was a major source of tax income. It has now firmly shifted and income is the major source of income. In addition, wealth stratification will intensify with the repeal of the inheritance taxes. So now the wealthy are taxed less and get to keep all of their money in the family.
The irony is that not everyone can derive income from dividends. I know a lot of ex Enron millionaires. It is a rigged game. If it were easy, everyone would do it. Someone has to clean the toilets, if you know what I mean. Work has to be done, something has to be made. These wealthy are like locusts. They consume everything and produce nothing.

[54anickel]

55. PORSCHE PUSHES LUXURY ENVELOPE

http://www.nypost.com/business/58503.htm

A $150,000 titanium Porsche watch — the world's first with a digital automatic chronograph — will be unveiled today at Tourneau on Madison Avenue.

Each watch has 800 moving parts and takes a week to create — only 50 are made each year.

snip>

The storefront becomes a limited Internet store after hours, when shoppers can touch arrows on the windows to learn more about Porsche products inside.

The store expands Porsche's brand into lifestyle products, selling everything from $50 pens to the $150,000 watch.

"But the $50 pen is an exception," Rudigier told The Post. "We are really oriented toward high-end luxury products."

Oh, so a 50 buck pen is just too beneath them? :wtf: sort of comment is that?

[AnneD]

61. I remember a time...

when the well to do did not engage in such displays of conspicuous consumption. It was considered vulgar, garish, and in poor taste. Had a VERY well to do friend growing up (old money). She went to public school and we were often in the same class. Now, she had better quality of things, but it was never blatant or excessive. Her dress might be from the high end department store and be tailored a bit better, but she didn't sport jewelry, a fancy watch, or expensive shoes. Her lunch kit was like mine and we got similar toys (not the expensive kind). In fact, the only difference was that she had a college fund at an early age. It wasn't until I had a sleepover that I figured it out (they had a cook/maid and a butler). She would come over to our house for sleepovers too.
Really, some of these trappings are just so in your face rude.

[54anickel]

57. Not Just Accounting

http://www.cfo.com/blogs/index.cfm/l_detail/5278520?f=home_todayinfinance

The New Yorker this week weighs in on Sarbox (though in its grammatically hair-splitting fashion chooses to spell it "SarbOx") and reminds those who think the cost of compliance outweighs the benefits of an interesting point: Competitors of a fraudulent company may suffer from inflated results no less than its shareholders and other stakeholders.

In fact, the article cites new research that finds WorldCom's fraud was at least partly responsible for overinvestment in capacity by other telecom companies. That still dogs the industry and the economy four years after WorldCom failed because it chose to violate U.S. GAAP and capitalize expenses.

No link seems to be available for the academic paper itself, but here's one for the Columbia University scholar who conducted the research.

Tell me again how accounting has no bearing on economics.

[54anickel]

58. India's costly love affair with gold

Money spent on the precious metal could be cutting the country's economic growth by 0.4 percentage points per year.

http://www.csmonitor.com/2005/1207/p07s02-wosc.html

BOMBAY – In India, nearly all that glitters is, in fact, gold. With a stockpile already worth $200 billion, Indian gold purchases jumped nearly 40 percent this year, making the country the world's leading consumer of the precious metal.

Gold may seem like a savvy investment as its value hits a 22-year high. But experts say it may actually be weighing down one of Asia's fastest rising economies. It would be better if the money locked up in the glistening yellow metal went instead to finance new start-ups or better roads, boosting the Indian economy over the long term, economists contend.

That could provide quite a boost, given that the amount Indians have saved in gold - mostly as jewelry - is worth 30 percent of the country's $690 billion economy. But Indians have a deep cultural soft spot for the soft metal - something that may hinder new efforts to introduce more modern investment strategies for India's burgeoning middle class.

"It's fair to say India's economic growth would be higher if the money tied up in gold was invested more productively," says Diana Farrell, director of the McKinsey Global Institute in San Francisco.

Chetan Ahya, a Morgan Stanley economist in Bombay, has put a number on how much higher growth - roughly 0.4 percent each year. This may sound like a small quantity of growth to forgo, but in reality it translates into billions of dollars in lost wealth annually. The cumulative amount lost year after year was "huge," Mr. Ahya wrote in a report earlier this year.

more...

Guess the importance of culture and a general cultural awareness and respect just don't play into the globalization money chaser's scheme of things.

[AnneD]

68. I know a little bit about India.....

they will not part with their gold, esp for some paper money scheme. Even the poorest woman on the street will have a gold bangle or two (at least 2-for the sound), a wedding necklace (no rings) and a nose ring (in some areas of the country) as her husband can provide. They will continue to have saris with gold threads woven into them. Wealth is not just what you have in the bank, you wear it too. And frankly, given all the scandelous business dealings, I am beginning to wish I had taken hubby up on some of his offers (no nose ring, of course).

[54anickel]

70. I suppose the nose ring might be a bit over the top for a school nurse,

but I'd take one if it didn't involve piercing and would somehow slip on and off. I've got way to many allergies and suffer long sneeze attacks to be wearing one of those. :-)

[AnneD]

77. interesting you should say that...

I went to Nursing School with a Nurse from India that DID have a nose ring (a beautiful 1 carat diamond stud and she looked gorgeous). One of the instructors was a real ass about it and demanded she take it out during clinicals. The student said it was like a wedding ring (true) and she could NOT take it off (we were allowed to wear our wedding rings). It went all the way to the Director. She was allowed to keep it in but covered it with a small round band aid. I though the band aid was stupid. No pt complained, and what a missed opportunity to share your culture.

[54anickel]

79. That's terrible! I was thinking more about how "kids" are about stuff

you know, bodily fluids, boogers, snot, goobers, suppressed laughter and passing milk through your nose. They get all bent outta shape over stuff like that and seem to be pre-occupied with it. Sounds like that instructor hadn't graduated from such juvenile thoughts.

[AnneD]

82. I don't have to deal with anything more serious than an infected

ear ring hole. My high school Nurse amigos deal with infections in all sorts of piercing places. I never knew you could get pierced in some of those spots. I can only envisions them as confused elderly, in a nursing home, with those rings and studs hidden in saggy skin folds. Real sexy huh. Bout as sexy as a old tatoo on a wrinkled ass.

[54anickel]

83. Thanks for the end of the day visual - NOT! eom

[ozymandius]

59. 12:28 numbers and blather

Dow 10,826.68 +15.77 (+0.15%)
Nasdaq 2,258.30 +6.29 (+0.28%)
S&P 500 1,261.80 +4.43 (+0.35%)
10-Yr Bond 44.70 -0.47 (-1.04%)
NYSE Volume 994,800,000
Nasdaq Volume 905,530,000

12:00PM: Market holding steady at session highs midday as renewed buying efforts keep early selling interest in check, improving sentiment and lifting nine of ten sectors to the upside. While rising oil prices normally raise an inflationary red flag, continued leadership in Energy has more than offset the commodity's sixth straight gain in seven sessions. Investors have also taken a bullish cue from strength in the Treasury market, as the yield on the 10-yr note (+10/32) falling back below the psychological 4.50% level (to 4.47%) has provided some support for the rate-sensitive Financial and Utilities sectors. A recent turnaround in chip stocks, coupled with strength in networking -- Qualcomm (QCOM 45.48 +0.48) raised its Q1 outlook -- has lent support to Technology and further underscored Briefing.com's Overweight rating on the influential sector. Semiconductor has been in focus following upbeat guidance from Texas Instruments (TXN 33.40 -0.16) and ahead of Intel's (INTC 26.13 -0.02) mid-quarter update tonight. While Toll Brothers' (TOL 35.12 +0.82) cautious FY06 outlook initially raised housing concerns, which weighed on market sentiment at the onset of trading, investors are now embracing the 72% year/year growth in Q4 (Oct) profits. Weakness in autos, as Wall Street continues to view General Motors' (GM 22.39 -0.65) cost-cutting efforts as only half of the turnaround equation, however, has weighed on Consumer Discretionary enough to leave it as the only sector trading lower. Separately, initial claims unexpectedly rose 6K to 327K -- the highest level since Nov. 19, however, the report has had little impact on trading as the outlook for non-farm payroll gains to return to around the monthly 185K level remains intact.

[ozymandius]

60. barely hanging onto the black

12:42
Dow 10,813.39 +2.48 (+0.02%)
Nasdaq 2,254.12 +2.11 (+0.09%)
S&P 500 1,259.80 +2.43 (+0.19%)
10-Yr Bond 44.74 -0.43 (-0.95%)
NYSE Volume 1,047,930,000
Nasdaq Volume 953,261,000

[54anickel]

65. 2:10 and a deep shade of red

Dow 10,770.33 -40.58 (-0.38%)
Nasdaq 2,245.66 -6.35 (-0.28%)
S&P 500 1,255.37 -2.00 (-0.16%)
10-Yr Bond 4.47% -0.05
NYSE Volume 1,411,681,000
Nasdaq Volume 1,277,961,000

2:00PM: Indices continue to languish near their worst levels of the day but strangely, market internals still paint a slightly bullish picture. As reflected in the A/D line, advancers on the NYSE outpace decliners by a 19-to-12 margin while advancing issues on the Nasdaq hold a 16-to-13 edge over declining issues. New highs outpacing new lows by a more than 2-to1 margin have also added to the confusion, as the November rally that lifted the three major indices an average of 4.1% continues to look very tired in December. NYSE Adv/Dec 1927/1290, Nasdaq Adv/Dec 1611/1317
1:30PM: Choppy afternoon trading now has the indices trading where they opened -- lower. Further deterioration in the PHLX Semi Index, as investors consolidate some of the gains that lifted the SOXX to a new 52-week high Tuesday, has pushed the Tech to session lows. A pullback in Industrials which has sent the sector back into negative territory for the year, led by a drubbing in Air Freight & Logistics (-2.3%) -- the day's worst performing industry group, has also been an influential leader to the downside.DJTA -0.5, SOX -1.2, NYSE Adv/Dec 1831/1369, Nasdaq Adv/Dec 1556/1325

[54anickel]

64. Funds Blowing Foreign Bubbles?

http://www.washingtonpost.com/wp-dyn/content/article/2005/12/07/AR2005120702417.html

Remember the financial crisis that laid waste to the Mexican economy in 1995? Or Thailand's meltdown in 1997, which soon spread to Indonesia, South Korea, the Philippines, Russia and Brazil? Or the implosion of Argentina's economy in 2001, which left millions of people destitute?

Just distant memories, unlikely to recur -- or so the world's investors seem to have concluded.

International money managers are pouring funds at a record pace into the emerging markets of Latin America, Asia, Eastern Europe and Africa. Cash is gushing into mutual funds that specialize in emerging markets, and billions of dollars more are flowing into such countries from giant insurance companies and pension funds.

Turkey's stock market is up more than 50 percent this year; Mexico's is up more than 30 percent; Egyptian stocks have more than doubled. And investors are snapping up bonds issued by emerging-market governments with remarkable gusto.

Therein lie the makings of future disasters, in the view of many economists, market veterans and policymakers. Having pumped large sums into emerging markets at a time of low interest rates and high prices for the commodities that many developing countries produce, investors may well bolt when conditions deteriorate, with the sudden outflow of cash devastating economies and plunging governments into default.

"I worry that there's this perfect storm coming for emerging markets," said Kristin J. Forbes, a Massachusetts Institute of Technology economics professor who served until early this year on President Bush's Council of Economic Advisers.

more...

[ozymandius]

69. bleeding like the good Sir Knight

2:50
Dow 10,744.64 -66.27 (-0.61%)
Nasdaq 2,237.61 -14.40 (-0.64%)
S&P 500 1,253.29 -4.08 (-0.32%)
10-Yr Bond 44.66 -0.51 (-1.13%)
NYSE Volume 1,637,152,000
Nasdaq Volume 1,499,576,000

2:30PM: Market extends its reach into negative territory as the Nasdaq and Dow slip under yesterday's lows. Weighing heavily on both has been Intel (INTC 25.40 -0.75), which is the most actively traded Nasdaq-listed issue and the second worst performing component (-2.9%) on the Dow, surpassed only by GM (-3.8%). Even if Intel mirrors TXN's mid-quarter update after the close and boosts its guidance to the high end of prior estimates, the stock, which is up 16.0% since Nov. 1, could very well encounter the same sell-the-news response TXN has experienced. SOX -2.3, NYSE Adv/Dec 1853/1370, Nasdaq Adv/Dec 1496/1464

[54anickel]

71. Whoa, haven't read that line in the blather for quite a while -

sell-the-news. If I recall correctly, they used to pull that one outta their arse quite often when they just couldn't come up with any other explanation.

[ozymandius]

75. Into the witching hour

3:18
Dow 10,748.62 -62.29 (-0.58%)
Nasdaq 2,240.60 -11.41 (-0.51%)
S&P 500 1,253.54 -3.83 (-0.30%)
10-Yr Bond 44.64 -0.53 (-1.17%)
NYSE Volume 1,779,685,000
Nasdaq Volume 1,625,615,000

3:00PM: More of the same for stocks heading into the final hour of trading. Even though commodities trading has finally closed, the 2.5% surge in crude to nearly $61/bbl and a record high close for natural gas has raised consumption concerns, leaving only the Energy sector to reap any benefits. Refiners, explorers and drillers have extended their respective year-to-date leading performances of 83%, 66%, and 55%, further supporting Briefing.com's bullish view on Energy while ongoing weakness in Autos and Internet Retail -- two of the year's five worst performing industry groups -- lend credence to why we have had an Underweight rating on Consumer Discretionary since April 2004. XOI +1.2, NYSE Adv/Dec 1553/1690, Nasdaq Adv/Dec 1308/1679

[Tace]

80. Not "enough of a positive catalyst ... to sustain" a fourth-quarter rally

U.S. Stocks Drop as Oil Tops $60; General Motors Shares Decline

Dec. 8 (Bloomberg) -- Surging energy prices left U.S. stocks unable to sustain early gains for a second straight day and sent the market lower. The Dow Jones Industrial Average wiped out its advance for the year.

Stocks retreated as crude oil rose above $60 a barrel and natural gas reached a record in New York trading, reviving concern that higher fuel costs may curtail consumer spending.

``We've pretty much capped out our gains,'' said Art Hogan, chief market analyst at Jefferies & Co. in Boston. ``I don't think there's enough of a positive catalyst in the next three weeks to sustain'' a fourth-quarter rally, he said.

more

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aukDCSZ2aQyo&refer=home

[ozymandius]

81. at the close

Have a great evening folks. See you tomorrow at the same Bat Time/Channel.

Ozy :hi:

Dow 10,755.12 -55.79 (-0.52%)
Nasdaq 2,246.46 -5.55 (-0.25%)
S&P 500 1,255.84 -1.53 (-0.12%)
10-Yr Bond 44.64 -0.53 (-1.17%)
NYSE Volume 2,177,910,000
Nasdaq Volume 1,951,074,000

The major indices consolidated for a second straight session as the impact of surging energy prices on the consumer resurfaced and profit-taking in technology's best performing industry group -- semiconductor -- ahead of Intel's (INTC 25.70 -0.45) mid-quarter update weighed on sentiment. To wit, Technology turned in the day's worst performance, as upbeat outlooks from chip makers Texas Instruments (TXN 32.63 -0.93), Xilinx (XLNX 26.02 -0.46) and National Semiconductor (NSM 27.28 -0.40) were evidently already priced into the recent surge from chip makers across the board. The sell-the-news response weighed heavily on a sector that has been a driving force behind the rally in November that lifted the three major indices an average of 4.1% -- a rally that so far this month is beginning to look a bit tired. Consumer Discretionary was another area of weakness as losses in autos and retail, influenced partially by a 2.5% surge in oil prices, offset strength in homebuilders. With regard to the latter, Toll Brothers' (TOL 35.55 +1.25) cautious FY06 outlook initially raised housing concerns, but strength in the Treasury market helped investors refocus on TOL's 72% year/year growth in Q4 (Oct) profits. Despite a lackluster 10-yr note auction that showed foreign demand was the weakest since June, growing optimism that the Fed may sound less hawkish at Tuesday's FOMC meeting helped shave 6 basis points off the 10-yr note yield (to 4.45% from 4.51%). Falling bond yields, though, were not enough to prevent further consolidation in the Financial sector, spurred in part by analyst downgrades on Goldman Sachs (GS 128.64 -1.25) and Bear Stearns (BSC 111.01 -0.64). The rate-sensitive Utilities sector, however, perhaps more markedly on its defensive nature, attracted enough safe-haven buying interest to push its year-to-date gain to 12%. Turning in an even stronger performance was Energy, as refiners, explorers and drillers -- the year's three best performing S&P industry groups -- extended their respective 83%, 66%, and 55% year-to-date performances as oil surged and natural gas closed at a new record, further supporting Briefing.com's bullish view on the sector. Health Care was another bright on an otherwise dismal day, benefiting from strength in biotech as well as a rebound in HMOs and medical devices. Separately, initial claims unexpectedly rose 6K to 327K -- the highest level since Nov. 19; nevertheless, the data had little impact on equities trading as the outlook for non-farm payroll gains to retrace the monthly 185K level remained intact. DJTA -0.7, DJUA +1.4, DOT -0.3, Nasdaq 100 -0.7, Russell 2000 +0.3, SOX -1.7, S&P Midcap 400 +0.3, XOI +1.5, NYSE Adv/Dec 1830/1462, Nasdaq Adv/Dec 1560/1483