STOCK MARKET WATCH, Wednesday August 8

[ozymandius]

Source: DU

Wednesday August 8, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 533 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2406 DAYS
WHERE'S OSAMA BIN-LADEN? 2118 DAYS
DAYS SINCE ENRON COLLAPSE = 2079
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

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

AT THE CLOSING BELL ON August 7, 2007

Dow... 13,504.30 +35.52 (+0.26%)
Nasdaq... 2,561.60 +14.27 (+0.56%)
S&P 500... 1,476.71 +9.04 (+0.62%)
Gold future... 682.30 -1.00 (-0.15%)
30-Year Bond 4.90% -0.00 (-0.08%)
10-Yr Bond... 4.74% +0.01 (+0.25%)






GOLD, EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

Read more: DU

[ozymandius]

1. Market WrapUp

Chasing Rainbows and the Greatest Hits of 1930!
BY FRANK BARBERA, CMT

It has been a horrible two weeks on Wall Street since we last did our Tuesday column chronicling what now appears to be the ‘popping’ of the Great Credit Bubble. Oh sure, stock prices recovered from the edge of the abyss on Monday, and managed to add to those gains in Tuesday’s trade, but to what end?

Of course, if you are one of the die hard bulls of Wall Street, the rally of the last two days probably means that “Happy Days Are Here Again,” strike up the Al Jolsen recordings. Further, for those few of you left who still enjoy being in serious denial, we recommend the afternoon programming on Bubblevision between 2 and 3PM PST – you’ll love it, as these guys perpetually have their heads planted firmly in the sand. They never see anything or say anything negative. Heaven forbid, the facts should ever get in the way. In fact, every day, they talk about the US economy and how it’s the ‘greatest story never told,’ and how wonderful the economy really is, and how the sub-prime debacle would be contained.

Yep, its contained all right, contained in all sorts of strange portfolios. In their view, this rapacious form of capitalism known as “global outsourcing’ should entitle the stock market to really be north of 35,000, not lingering around near 13,000. Nowhere can you find more twisting and exaggeration of the truth, more expertly done with a straight face, then on the Bubble-Vision Economic show. Yes, these guys have the Mantra of 'Happy Days Are Always Here Again.' But guess what? That song, funny thing, it comes from a movie released in 1929 called “CHASING RAINBOWS” that debuted in October of 1929, just before the Great Crash and the start of the Great Depression. Perhaps that’s what the bulls are doing on Wall Street these days -- Chasing Rainbows and desperately humming 'Happy Days are Here Again.' Unfortunately, events of the last two weeks point to a far more sordid tale in the making and one we take no pleasure in recognizing.

-cut-

Yet, as this now blooming downturn of most likely epic proportions gets underway, it is important that we confront head on the many systemic issues which are undoubtedly already being set in motion. Bad debts will affect not only the Wall Street Brokers, but the Banks, the Home Builders, the Mortgage Industry -- it will be a very long list indeed. Of course, a big tip of the hat has to go to the Rating Agencies, who managed to sign off and bless these illiquid debts with a AAA Rating. Great work guys! Way to give lots of credence to the most opaque securities perhaps ever created, the Collateralized Debt Obligations. Fitch, Moody’s, S&P, all in the name of greed and quarterly earnings, big fee’s, for shame! Has no one heard of the term fiduciary responsibility? They were AAA rated in some cases and now they are worthless! Perhaps the hedge fund managers at Bear Stearns would enjoy afternoon tea with the CNBC Economics Crowd.

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

[ozymandius]

2. Today's Reports

10:00 AM Wholesale Inventories Jun
Briefing Forecast 0.4%
Market Expects 0.4%
Prior 0.5%

10:30 AM Crude Inventories 08/03
Briefing Forecast NA
Market Expects NA
Prior -6497K

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

[UpInArms]

24. 10:00 report: June Wholesale Inventories Rise 0.5%

01. U.S. June wholesale petroleum sales fall 1%
10:00 AM ET, Aug 08, 2007 - 3 minutes ago

02. U.S. June wholesale petroleum inventories up 2.2%
10:00 AM ET, Aug 08, 2007 - 3 minutes ago

03. U.S. June wholesale sales rise 0.6%
10:00 AM ET, Aug 08, 2007 - 3 minutes ago

04. U.S. June wholesale inventories rise 0.5%
10:00 AM ET, Aug 08, 2007 - 3 minutes ago

[ozymandius]

3. Oil prices drop near $72 a barrel

Oil prices fell Wednesday as traders awaited the release of a U.S. government fuel stocks report expected to show gasoline inventories rose last week.

The data was expected to show another drop in crude oil inventories, but increases in both refinery activity and gasoline supplies, according to a Dow Jones Newswires survey of analysts.

Light, sweet crude for September delivery dropped 37 cents to $72.05 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. The contract had risen 36 cents to settle at $72.42 a barrel on Tuesday.

September Brent crude fell 26 cents to $71.54 a barrel on the ICE Futures exchange in London.

Oil futures were supported by news that ConocoPhillips shut down gasoline-producing equipment at two refineries, one in New Jersey and the other in Pennsylvania. One of the refineries, at Linden, New Jersey, was expected to be online Friday, so support could be short lived.

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

[ozymandius]

4. Mortgage mess spreads, creates bargains

NEW YORK (Reuters) - The near collapse of subprime loans has sent aftershocks into the broader mortgage market, pressuring some companies to quit or curtail their lending.

Impac Mortgage Holdings Inc (IMH.N), whose executives have complained about being lumped with struggling subprime lenders, on Tuesday suspended the funding of Alt-A mortgages. The loans -- Impac's chief product -- are not as risky as subprime, but not worthy of prime status.

The Irvine, California-based company will only fund loans eligible for sale to government-sponsored entities such as Fannie Mae (FNM.N) and Freddie Mac (FRE.N). Impac has cut expenses and workers nationwide.

-cut-

RIPE FOR THE PICKING

But the mortgage mess has created bargains ripe for the picking.

Countrywide Financial Corp (CFC.N) announced plans on Tuesday to buy five retail mortgage branches from HomeBanc Corp (HBM.N), which is leaving the business after its stock was delisted last week for trading around 30 cents a share.

HomeBanc of Atlanta also said it was no longer funding loans or taking mortgage applications.

http://news.yahoo.com/s/nm/20070807/bs_nm/usa_mortgage_wrap_dc

[mojavekid]

38. Bloomberg: Credit Brothel Raided, Even Piano Player Not Safe

http://www.bloomberg.com/apps/news?pid=20601039&sid=a31pp7slShC8

Aug. 3 (Bloomberg) -- As the financial-liquidity police raid the credit-market brothel, even the piano player faces arrest. The malaise enveloping global markets is becoming increasingly indiscriminate in choosing its victims.

At the start of July, Tunisia hired Daiwa Securities SMBC Co. and Nikko Citigroup Ltd. to help its central bank sell yen- denominated bonds. By the time the fund raising finished this week, Tunisia's borrowing costs had risen by almost a quarter of a percentage point.

So the taxpayers of an African nation suffer because Joe Blow in Detroit can't pay his mortgage.

In Germany, while IKB Deutsche Industriebank AG's losses aren't up to the system-shaking standards of Long-Term Capital Management LP, its subprime woes have nevertheless inspired a government-engineered bailout. In Asia, Taiwan Life Insurance Co. booked a $13 million first-half loss on its investment in one of the failed Bear Stearns Cos. funds.

more....

[ozymandius]

5. Angry Homeowners Take to the Web

The outside of Susan Sabin's house in Lenexa, Kan., is covered with lemons: lemon-shaped foam cutouts, twinkling lemon Christmas lights, and a lemon-adorned wreath on the front door. If you go to her Web site, you can see for yourself. You'll also see photographs of splintered beams, bowed floors, and a graphic that declares: "Pulte Homes sold me a lemon!"

Sabin has been called crazy, but she's not the only dissatisfied customer. The Internet has rapidly become an outlet for frustrated homeowners to chronicle their bad experiences with new homes they have found to be structurally defective. Homeowners can now post complaints, discuss legal options, and warn future buyers on at least a dozen builder-directed "gripe sites," with names such as www.crapconstruction.com and www.khovsucks.com.

Careless Building During Boom?

As home values decrease and home sales slow in many parts of the country, construction problems seem to have become an even bigger concern for homeowners. "I notice the traffic has definitely picked up," says Andy Martin, a longtime consumer advocate who runs three sites: www.FightPulte.com, www.FightDiVosta.com and www.FightDelWebb.com. The three sites serve as national clearinghouses for those who think they may be victims of shoddy construction. During the housing boom, builders were working fast to keep up with all the people gobbling up new properties, and Martin believes the quality of building suffered as a result. "The pendulum swung too far in (the builders') favor," he says. "The Internet now is rising to level the playing field."

-cut-

In Sabin's case, the culprit is a type of soil called fat clay that swells excessively and has been pushing apart the frame, doors, and ceilings of the brand new home she bought last summer. The builder, Bloomfield (Mich.)-based Pulte Homes (NYSE:PHM - News), should have tested the soil before constructing her house, Sabin says. Pulte has come in to make repairs, but Sabin claims they have proved futile as the soil continues to exert pressure on her foundation. The value of the home has fallen nearly $120,000 in the past six months, Sabin writes on her site. She now wants Pulte to buy back her home, but they refuse. "I try not to be emotional, but I live in this house every single day," Sabin says. "I have a right to be emotional about this."

But Sabin doesn't have a right to sue the builder. Not yet, anyway. Many new-home sales contracts, including Pulte's, state that disputes related to the purchase of the home must be settled by arbitration before moving to court. For now, Sabin says she's content to use her Web site to spread the word and prevent others from going through a similar ordeal.

http://news.yahoo.com/s/bw/20070807/bs_bw/aug2007db2007082138347

[mojavekid]

37. BullnotBull: The Debt Endgame: A Theory

http://www.bullnotbull.com/bull/node/20

Four or five years ago I began to wonder how economic globalization would work out. I figured that the long term goal would be for people around the globe to earn similar pay for like work. In order for this to happen either the industrialized west would have to have a sharp decrease in pay or the far east and third world nations would have to enjoy a sharp increase in pay. My initial inclination was that it would be a combination of both, the east would rise while the west’s earning rate would decline. Likewise the middle class of the west would experience a decline in their standard of living while the east’s middle classes standard of living would rise.

At about the same time I felt that the rate of debt of the American consumer was getting out of hand. I wondered if this would somehow be used as an opportunity to defeat the American middle class. Since that initial thought much has happened which supports this intuition and has made it more feasible.

I began to believe that the American and European middle class were beginning to be viewed as an obstacle to a global economy. Since the trend has been for more and more money to go into fewer and fewer hands I began to look for mechanisms to be put in place to help accomplish this goal.

The feds reaction to the tech and stock market bust of 2001/2002 was to cut interest rates to stimulate the economy. Low interest rates encouraged everyone to borrow the cheap money, and put it to use. Many people put the money to work in the real estate market and the housing boom began to pick up steam.

As the real estate market climbed so did consumer debt. American’s level of debt skyrocketed along with the value of their homes. With interest rates so low, it was hard to save money. Money put into money markets and bank accounts did not keep up with the rise in the cost of living (inflation). This caused people to seek higher returns with their borrowed money. Not only did real estate boom, but Americans put their money back into the stock market and it too surged.

more...

[AnneD]

41. Morning Marketeers......

:donut:Not only did these builders build it shoddy during the boom-they built it with cheap, inexperienced labour-thus maximizing their profits and denying a decent paying job and career to many Americans. My step dad is a carpenter and knows housing construction inside and out. Just going out nd being with him has taught me a bit. I am appalled when I see some of the new construction sites. The shoddiness is evident-even from the road. All these folks pouring money into these crappy McMansions. We had a building boom here in Houston before we had the RE bust and the houses were notorious for the poor construction (aluminum electrical wiring instead of copper, etc).

And some of you that have been on this site for a while know about my master welder brother. I am afraid I can't reprint his take on the Minnesota Bridge-except that he said look for more in the future.

I can't tell you how much this sub prime scandal and subsequent bust is like what we experienced in Houston. Suffice it to say, we are in for a nasty recession and it will be years before the financing AND real estate markets recover, It will hurt those that had good credit and were not in foreclosure. THe effects are just beginning to ripple out into the economy.

Happy hunting and watch out for the bears.

[ozymandius]

6. Stock futures climb after Fed forecast

NEW YORK - Stock futures rose Wednesday as investors shook off disappointment about the Federal Reserve's failure to lean toward an interest rate cut.

Investors initially reacted poorly to the Fed's economic assessment, which maintained the central bank's stance that inflation remains its primary concern. Wall Street had hoped the Fed might indicate some inclination to cut rates because of an increasingly difficult credit market. But investors also seemed assuaged by the Fed's forecast for moderate economic growth.

Futures traders appeared to give little weight to a Wednesday report from Toll Brothers Inc. that showed home building revenue fell 21 percent in the fiscal third quarter, according to preliminary results. The company said net signed contracts slid 31 percent over the same period, while its cancellation rate increased from the second quarter.

Wall Street may also look for cues from corporate earnings reports. Wireless provider Sprint Nextel Corp. said second-quarter profits dropped sharply on slightly higher revenue and higher costs. Also expected to report Wednesday were Cablevision Systems Corp. and the Liberty Media Corp. Cisco Systems Inc. reported strong earnings after the closing bell on Tuesday. The supplier of computer networking equipment said profit jumped 25 percent in its fiscal fourth quarter and raised its revenue forecast for fiscal 2008.

http://news.yahoo.com/s/ap/20070808/ap_on_bi_st_ma_re/wall_street

[ozymandius]

7. Mortgage demand jumps, bankers say

NEW YORK (Reuters) -- Mortgage applications rose for the first time in three weeks as interest rates fell sharply and demand surged for home purchase and refinance loans, an industry group said Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Aug. 3 increased 8.1 percent to 656.5, its highest level since early June.

The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 1.2 percent to 626.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.41 percent, down 0.09 percentage point from the previous week. Interest rates were below year-ago levels at 6.45 percent.

The MBA's seasonally adjusted purchase index, widely considered a timely gauge of U.S. home sales, rose 7.4 percent to 447.4. The index was also above its year-earlier level of 388.9.

http://money.cnn.com/2007/08/08/real_estate/bc.usa.economy.mortgages.reut/index.htm?postversion=2007080807

[Hugin]

17. Checking in...

This leaves me wondering, is it post #4 or this one which is really the bottom line?

Mortgage demand jumps?

or...

We don't do that 'mortgage thing' anymore?

[UpInArms]

23. Alt-A mortgage-backed securities in firing line

http://www.marketwatch.com/news/story/alt-mortgage-backed-securities-firing-line/story.aspx?guid=%7BA1B91AAA%2DCD87%2D45D5%2D8814%2D5BBAE12D50E4%7D

SAN FRANCISCO (MarketWatch) -- So-called Alt-A mortgages, which were considered higher quality than subprime home loans, are also suffering from rising delinquencies and the harsh scrutiny of rating agencies such as Standard & Poor's and Moody's Investors Service.

Alt-A loans are considered less risky than subprime mortgages, but usually have lower credit quality than "prime" loans. Companies such as IndyMac Bancorp, American Home Mortgage (AHMIQ : 0.30, -0.04, -11.8%), Impac Mortgage Holdings (IMH : 1.42, +0.20, +16.4% ) and Countrywide Financial (CFC : 28.74, +1.39, +5.1% ) have offered them.

Alt-A loans were originally designed for borrowers with clean credit records, but with other issues that often meant they provided fewer documents or even no documents showing what they earned. These loans were attractive to investors in mortgage-backed securities because they offered higher yields than traditional "prime" home loans, but were underpinned by the cleaner credit records of the borrowers. See full story.

However, delinquencies on Alt-A loans have risen this year, prompting action from rating agencies. Investors have become a lot less willing to buy such loans in the secondary mortgage market.

Standard & Poor's said on Tuesday that it may downgrade 207 classes of Alt-A residential mortgage-backed securities because of rising delinquencies on the underlying home loans. The 207 classes, which represent so-called Alt-A mortgages with an original total balance of approximately $913.9 million, were put on CreditWatch Negative, S&P said.

...more...

[UpInArms]

27. Impac seeks to reassure investors

http://www.reuters.com/article/bondsNews/idUSN0831596820070808

NEW YORK, Aug 8 (Reuters) - Embattled mortgage lender Impac Mortgage Holdings Inc. (IMH.N: Quote, Profile, Research) on Wednesday sought to reassure investors after an analyst speculated the company might file for bankruptcy if additional funding does not materialize.

Impac this week stopped funding Alt-A loans, its chief mortgage product, but said it would continue writing loans eligible to be sold to government-sponsored agencies.

Impac Chairman Joseph Tomkinson said recent remarks by UBS analyst Omotayo Okusanya are largely speculative and contributing to the volatility of Impac's stock. Impac shares on Tuesday closed down 36 percent at $1.09, and have lost more than 85 percent of their value this year.

"While we can not make any guarantees, we continue to believe that we can successfully navigate through this cycle emerging as a stronger, more competitive company," Tomkinson said in a statement.

...more...

[UpInArms]

26. NAR - Home sales to slip further this year

http://www.reuters.com/article/bondsNews/idUSWAT00798320070808

WASHINGTON (Reuters) - The pace of U.S. home sales will fall further in 2007 than earlier expected but prices will drop less sharply than previously thought, a leading realty trade association predicted on Wednesday.

The National Association of Realtors trimmed its sales forecast for the sixth straight month but pared back its predicted drop in existing home values.

Existing-home sales should hit a pace of 6.04 million units this year, down from the 6.11 million units it predicted last month.

The national median sales price for existing homes should ease by 1.2 percent to $219,300 this year. Last month the trade group said prices should slip 1.4 percent.

...a bit more...

[fedsron2us]

44. Yes but the same thing happened in May

yet the housing market continued to fall.

http://www.mbaa.org/NewsandMedia/PressCenter/54186.htm

Is this increased demand due to new buyers or is it desperate homeowners making multiple applications for loans in an attempt to refinance before ARMS resets kick in ? How useful is the MBA index at the moment ?

http://calculatedrisk.blogspot.com/2007/05/is-mba-index-currently-useless.html

[UpInArms]

8. dollar watch

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

Last trade 80.337 Change -0.246 (-0.31%)

Dollar Reverses after FOMC Signaling that Traders Do Not Believe Fed Will Stay Hawkish for Long

http://www.dailyfx.com/story/bio1/Dollar_Reverses_after_FOMC_Signaling_1186521169540.html

It has been some time since we’ve seen this degree of volatility in the financial markets following an interest rate decision. As expected, the Fed left interest rates unchanged at 5.25 percent, but both the US dollar and the US stock market tanked on the back of the monetary policy statement. The statement was as hawkish as it could be given current market conditions. Although the Fed felt that the downside risks to growth have increased, they still believe a strong labor market and growing incomes will keep economic growth stable. They also acknowledged that volatility in the markets have increased and credit conditions have become tighter, but at this point, the problems are not severe enough for them to stop worrying about inflation and start focusing on growth. The rollercoaster price action in the financial markets suggests that traders are still trying to figure out whether or not to believe the Federal Reserve’s attempts to calm the market. The central bank clearly needs more evidence than the few bankruptcies and blowups that we have seen thus far to shift their tone. Unfortunately there is never just one cockroach in the closet. More adjustable rate mortgages will be repriced over the next 6 months, which means the risk of defaults will continue to rise. Even if the Fed is right, the age of easy money is over and everyone will be far more careful about the degree of risk that they are willing to take. Therefore don’t expect a rebound back to all time highs in the US stock market. Instead, it is more likely that we see the US dollar slip back towards its record lows against the Euro. Today’s Fed meeting was supposed to set the tone for trading for the remainder of the week. At this point however, it seems that the market is more doubtful of the FOMC statement than anything else. This makes the release of the minutes and any further Fed speak even more important.

...more...

EURJPY and Dow Rally are Nearing an End

http://www.dailyfx.com/story/topheadline/EURJPY_and_Dow_Rally_are_1186491942820.html

On June 8th, in our special report, “EURJPY and the Dow - Separated at Birth ,” we wrote that “it is hardly a coincidence the wave structure from a long term to a short perspective suggests that significant tops may be in place for the both EURJPY and the Dow.” We were a bit early as the EURJPY and Dow did make new highs in July but the idea that tops were close to being put in place was correct. The correlation still exists as the declines from the respective tops in EUR/JPY and the Dow continue to look like mirror images of each other.

<snipping chart>

The EURJPY top was put in at 168.94 on Friday, July 13th. The DJIA (Dow) top was put in at 14021.38 on Tuesday, July 17th. Both the EURJPY and Dow have now traced out clean 5 wave declines. 5 waves down indicates that at least one more 5 wave decline is likely to occur following a 3 wave countertrend rally. Those rallies are unfolding now and in the latter stages. An objective for the end of the countertrend rally for the EURJPY is 165.70, the 61.8% of 168.94-160.45. The corresponding level for the Dow is at 13682.01. We are not far from those levels, so look for the countertrend rally to end soon and for the next decline to send EURJPY down towards 150.00 (the 161.8% extension of the initial decline from 165.70 would be near 151.00).

...more...

[mojavekid]

35. The Daily Pfenning: Bernanke's Hands Remained Tied

http://www.dailyreckoning.com/Writers/Butler/Articles/080807.html

Good day… The dollar gained strength going into the FOMC announcement yesterday and held afterwards. As Asia started trading, the dollar gained even more, with the euro (EUR) touching 1.3720 before moving back up to 1.3770 as I write. As expected, the big story of yesterday was the FOMC decision. The markets were waiting to see if Bernanke would ease off his inflationary watch and start showing some concern over the subprime meltdown. Well those that were expecting him to turn dovish were disappointed, but so were some of us who think he should be doing more about inflation. Chuck is on the side of the hawks, and had this to say about the FOMC's statement:

"Talk about not having intestinal fortitude (guts)… Well… Most people know that the Fed left rates unchanged yesterday, as I thought they would. But, here's where I'm calling out the Fed Heads for their lack of intestinal fortitude… These guys still keep talking about inflation… But they don't do a darn thing about it!

"This is from their statement following the 'no rate hike/cut decision'. The Fed reiterated that its primary concern was that 'inflation will fail to moderate as expected.'

"Oh really? If inflation is failing to moderate, then why don't they do something about it? Bawk, Bawk, Bawk… Did I hear a chicken? No, I heard a whole hen house of chickens!

"But what are they to do? Their hands are tied! They can't raise rates to combat inflation due to the mortgage meltdown and the threat of a huge hickey to the economy… And they can't cut them due to the inflation failing to moderate! Oh, poor, poor, Ben Bernanke… His predecessor left him this bag of wooden nickels for an economy, and he has to deal with it!

more...

[mojavekid]

36. Whiskey and Gunpowder: Toilet Paper Money

http://www.whiskeyandgunpowder.com/Archives/2007/20070807.html

The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well.

Why would it be different here in the U.S.? Well, in actuality, it hasn’t been. In fact, in our short history, we’ve already had several failed attempts at using paper currency, and it is my opinion that today’s dollars are no different than the continentals issued during the Revolutionary War. But I will get into that in a moment. In the meantime, I will show you that fiat currencies have not been successful, and the only aspect of fiat currencies that have stood the test of time is the inability of political systems to prevent the devaluation and debasement of this toilet paper money by letting the printing presses run wild.

snip...

Marco Polo said of Kublai Khan and the use of paper currency:

“You might say that has the secret of alchemy in perfection…the Khan causes every year to be made such a vast quantity of this money, which costs him nothing, that it must equal in amount all the treasure of the world.”

Even Helicopter Ben would be impressed. Marco Polo went on to say:

“This was the most brilliant period in the history of China. Kublai Khan, after subduing and uniting the whole country and adding Burma, Cochin China, and Tonkin to the empire, entered upon a series of internal improvements and civil reforms, which raised the country he had conquered to the highest rank of civilization, power, and progress.”

Wait a second, I thought we were bashing fiat currencies here…

more...

Entertaining historical overview of Fiat currencies...

[UpInArms]

9. Consumer credit up in June

http://news.yahoo.com/s/ap/20070808/ap_on_bi_ge/consumer_credit

WASHINGTON - Consumers boosted their borrowing more than expected in June, reflecting another hefty jump in credit card debt.

The Federal Reserve reported Tuesday that consumer credit rose at an annual rate of 6.5 percent in June. It marked the second straight sizable gain. Consumer credit rose by an even larger 7.9 percent in May.

The increase was led by an 8.4 percent rate of increase for revolving credit, the category that includes credit card debt. The category that includes auto loans rose at a 5.3 percent rate, the same as in May.

Total consumer credit rose by $13.2 billion in June to a record $2.459 trillion. The increase was double what economists had been expecting.

Consumer credit as measured by the Fed does not include mortgage debt. Analysts said the big rise in consumer credit reflects the slumping housing market and growing troubles in mortgage markets.

...more...

[UpInArms]

10. Toll Brothers expects lower home-building revenue

http://www.reuters.com/article/bondsNews/idUSN0829190820070808?sp=true

NEW YORK, Aug 8 (Reuters) - Luxury home builder Toll Brothers Inc (TOL.N: Quote, Profile, Research) said on Wednesday that it expected to report a decline in quarterly home-building revenue as the U.S. housing crisis deepened.

Based on preliminary results, Toll Brothers said its home-building revenue fell 21 percent to about $1.21 billion in the third quarter ended on July 31.

"We are now in the twenty-third month of a down housing market," Chief Executive Robert Toll said in a statement. "With the uncertainties roiling the mortgage markets right now, the pace of home sales could slow further until the credit markets settle down."

The Horsham, Pennsylvania-based company said that under current market conditions, it was not comfortable giving an earnings outlook.

...more...

[Ghost Dog]

11. GLOBAL MARKETS-Asian stocks rise, dollar firm on Fed view

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070808:MTFH20060_2007-08-08_05-44-47_HKG56976&type=comktNews&rpc=44

HONG KONG, Aug 8 (Reuters) - Asian stocks rose on Wednesday and the dollar held firm after the U.S. Federal Reserve gave a positive outlook for the world's biggest economy, soothing worries about global credit woes.

The Fed, which left its key interest rate unchanged at 5.25 percent in a widely expected move, said while tightening credit conditions were a risk to the U.S. economy, inflation was still its main worry.

Those comments knocked back expectations of a cut in U.S. interest rates, helping shore up the dollar, while an interest rate hike in Australia gave the Aussie dollar a boost.

"It looks like the Fed delivered the best possible statement to relieve the market. While touching on the credit issue, it maintained a positive economic outlook," said Kim Joong-hyun, an analyst at Goodmorning Shinhan Securities in Korea.

MSCI's measure of Asia Pacific stocks excluding Japan <.MIAPJ0000PUS> put on 1.4 percent by 0225 GMT, rising for a second session from a one-month low plumbed on Monday. It was still down about 8 percent from a record high set on July 24.

/...

[Ghost Dog]

12. Wall St fuels HK share rebound, coal plays surge

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=hongkongMktRpt&storyID=2007-08-08T051416Z_01_HKG72852_RTRIDST_0_MARKETS-HONGKONG-STOCKS-UPDATE-2.XML

HONG KONG, Aug 8 (Reuters) - Hong Kong stocks rose 1.8 percent on Wednesday, in line with other Asian markets and led by HSBC Holdings Plc (0005.HK: Quote, Profile , Research) and China Mobile (0941.HK: Quote, Profile , Research), after Wall Street gained on the U.S. Federal Reserve's positive outlook on the economy.

Coal shares were among the morning's outperformers on talk that coal prices may reach record highs amid supply shortfalls and strong Asian demand. China Coal (1898.HK: Quote, Profile , Research) was up nearly 10 percent at one point.

The benchmark Hang Seng Index <.HSI> had risen 393.39 points to 22,301.38 by midday on mainboard turnover of HK$38.5 billion (US$4.9 billion), compared with Tuesday morning's HK$41.8 billion.

The index is expected to hold at current levels above its 50-day moving average at the 22,000 level in the afternoon, some brokers said.

"The index is getting near-term support around 22,000 points," said Kingston Lin, associate director at Prudential Brokerage.

"People are still cautious, but if there's no bad news from the U.S., the market may stabilise at current levels."

/...

[Ghost Dog]

14. Seoul shares gain; Hyundai units surge on summit

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070808:MTFH21578_2007-08-08_06-50-46_SEO102359&type=comktNews&rpc=44

SEOUL, Aug 8 (Reuters) - Seoul shares rose 2.3 percent on Wednesday to close above 1,900 for the first time in a week, led by Hyundai Group affiliates such as Hyundai Marine on hopes an inter-Korean summit would revive stalled projects with the North.

Apparel firm Shinwon (009270.KS: Quote, Profile , Research) and others with plants in North Korea and power provider Korea Electric Power Corp. rallied, while the Federal Reserve's positive view of the U.S. economy lifted exporters such as Samsung Electronics (005930.KS: Quote, Profile , Research).

The leaders of the divided Koreas will meet this month in the North Korean capital Pyongyang in only the second summit between the two countries and their first in seven years.

"We had a set of good news today, both locally and globally. The news of the summit follows Moody's recent upgrade of South Korea's credit rating, and comes a day after the Fed soothed market fears over global credit woes," said Kim Joon-kie, an analyst at SK Securities.

"But it's too early to call a bottom to the recent correction from global credit woes, and market may still seesaw for the time being."

The benchmark Korea Composite Stock Price (KOSPI)) <.KS11> rose 2.34 percent to 1,903.41 points, its highest close since July 31 and logging its biggest daily gain in nearly three weeks.

The main index is now down 5.6 percent since hitting a record 2,015.48 on July 26, hit by worries that a U.S. subprime mortgage crisis would limit the availability of credit and leave some funds exposed to soured investments.

/...

[Ghost Dog]

15. Nikkei ends above 17,000 as exporters, telecoms up

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=tokyoMktRpt&storyID=2007-08-08T061023Z_01_TKB002819_RTRIDST_0_MARKETS-JAPAN-STOCKS-UPDATE-6.XML

TOKYO, Aug 8 (Reuters) - The Nikkei average rose 0.64 percent to close above 17,000 for the first time in a week on Wednesday, as Federal Reserve comments eased concerns about a slowing U.S. economy, lifting Canon Inc. (7751.T: Quote, NEWS , Research) and other exporters.

Mobile phone carriers such as KDDI Corp. (9433.T: Quote, NEWS , Research) surged on data showing that the number of Japanese wireless users expanded, while computer security software firm Trend Micro Inc. (4704.T: Quote, NEWS , Research) extended gains on profit prospects.

The Nikkei rose 107.51 points to 17,029.28, the highest close since July 31. The benchmark is now off nearly 7 percent from this year's peak marked in February. The broader TOPIX index added 0.53 percent at 1,669.04.

[Ghost Dog]

19. Japan machinery orders tumble, BOJ seen on track

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070808:MTFH21618_2007-08-08_06-52-36_T12591&type=comktNews&rpc=44

TOKYO, Aug 8 (Reuters) - Japan's core private-sector machinery orders fell much more than expected in June, signalling a slowdown in corporate capital spending ahead, but did little to alter market players' views that the Bank of Japan (BOJ) will raise rates this month.

The 10.4 percent decline in core orders, which exclude those for ships and machinery at electric power firms, was the biggest in nearly a year and blindsided market forecasts expecting a fall of just 1.9 percent from May.

"The orders fell much more than expected and it was a bad result but if you look at other surveys, such as the BOJ's tankan, capital spending is unlikely to falter," said Noriaki Haseyama, economist at Dai-Ichi Life Research Institute.

"So it is premature to decide a change in the trend of capital spending by looking at this data alone."

In a positive sign, manufacturers said they expected 3.7 percent more orders for machinery in the July-September quarter, the most positive outlook this year, although analysts pointed out that such forecasts had not proven very accurate in the past.

"The data is still in line with the BOJ's basic scenario. Given the current economic fundamentals, the BOJ could raise rates this month," Haseyama said.

/...

[Ghost Dog]

20. JGBs drop as higher share prices stoke BOJ jitters

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070808:MTFH21024_2007-08-08_06-27-01_T100521&type=comktNews&rpc=44

TOKYO, Aug 8 (Reuters) - Japanese government bonds fell on Wednesday as stabilising stock and credit markets stoked investor jitters about a possible interest rate rise by the Bank of Japan this month.

The Nikkei share average <.N225> ended up 0.64 percent at 17,029.28, following U.S. stocks higher even as data showed a surprisingly big drop in Japanese core machinery orders in June.

Swap contracts on the overnight call rate <JPONIBOJ=TRDT> show about a 70 percent chance of the BOJ raising interest rates to a 12-year high of 0.75 percent to the current 0.5 percent at its Aug. 22-23 meeting, up from around 55 percent on Tuesday.

"JGBs took a hit as many market participants stubbornly believe the BOJ will boost interest rates this month," said Mari Iwashita, a senior market economist at Daiwa Securities SMBC.

"JGB yields have been too low given that the chance of an August rate hike is higher than 50 percent," Iwashita said.

A sell-off in global equities and corporate bond markets in the past months due to concerns over U.S. subprime mortgage woes has led some investors to question whether the BOJ will lift interest rates this month, helping push JGB yields to their lowest levels since late May.

September futures <2JGBv1> were down 0.34 point at 133.52, moving away from a 2-1/2-month high of 133.97 hit on Monday.

/...

[Ghost Dog]

16. Aussie stocks gain 1.9%; Brambles, Macquarie lead

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070808:MTFH21400_2007-08-08_06-42-48_SYD176978&type=comktNews&rpc=44

SYDNEY, Aug 8 (Reuters) - Australian shares rose 1.9 percent on Wednesday, their biggest one-day percentage rise in four months, as Macquarie Bank Ltd. (MBL.AX: Quote, Profile , Research) gained on easing concerns over the risks to the U.S. economy and Brambles Ltd. (BXB.AX: Quote, Profile , Research) jumped on bid talk.

Investors shrugged off a widely expected interest rate rise from the Reserve Bank of Australia and focused on strong economic fundamentals, while hopes for an upbeat company reporting season continued to buoy sentiment.

"The good news for investors is that uncertainty about interest rates is resolved, so now people can get on with their lives," said Craig James, chief equities economist at CommSec.

"Overall, we expect the Australian economy to continue to grow at a healthy pace and for inflation to moderate, thus boosting company profits and propelling the share market higher."

Australia's central bank raised rates to a decade-high 6.5 percent, saying higher borrowing costs were needed to check inflation, though Prime Minister John Howard said the strength of the economy was the reason behind the hike .

The benchmark S&P/ASX 200 index <.AXJO> rose 115.8 points to 6,100.8, based on the latest available data, its biggest one-day percentage gain since April 3, and adding to a 1.1 percent rise in the previous session.

/...

[Ghost Dog]

18. Europe shares up on Fed relief, earnings, M&A talk

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-08-08T104301Z_01_L08919565_RTRIDST_0_MARKETS-EUROPE-STOCKS-UPDATE-2.XML&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=InvArt-C1-ArticlePage2

LONDON, Aug 8 (Reuters) - European shares rose by midday on Wednesday, helped by strong earnings, renewed acquisition talk and investor relief that the Federal Reserve expected enough economic growth to keep it focused on inflation.

At 1020 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 1 percent at 1,539.47 points, with Dutch bank ING (ING.AS: Quote, Profile , Research) the top positive weight on the benchmark after reporting strong results.

...

The Fed kept U.S. interest rates constant at 5.25 percent on Tuesday, as expected, and took note of financial market turbulence, but said it believed the economy was sound. This calmed investors scouring the remarks for signs the Fed saw credit market worries spilling over into the broader economy. "The Fed weakened a little bit their tightening bias, we think. They didn't go neutral, but they acknowledged that some market participants have more difficulties to get credit," said Achim Matzke, European stock indexes analyst at Commerzbank.

"They don't put any oil into the fire, and that should help stabilise the market."

European shares have fallen 6 percent since hitting a 6 1/2 year peak on July 13 over worries that costlier credit would slow mergers and acquisitions, and that a crisis in the U.S. subprime mortgage sector would cast an ever-widening shadow on banks and the economy.

...

Around Europe, Germany's DAX index <.GDAXI> and Britain's FTSE 100 index .FTSE were both up 0.6 percent and France's CAC 40 <.FCHI> was up nearly 1 percent.

/...

[spotbird]

13. China threatens 'nuclear option' of dollar sales

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2945181

or directly here:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.

.....


Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.

It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.


.....

[DemReadingDU]

28. The bond market's China Syndrome

Bonds are having a rough go of it this morning, with long bond futures recently off 21/32 in price (and 10-year yields up about 6 basis points). What's up? For one thing, the stock market's post-Fed bounce from yesterday has carried over into pre-market trading today. More importantly, bonds are suffering due to some fear about the possibility of a financial "China Syndrome." The term refers to the actual meltdown of a nuclear reactor. The financial equivalent could be set off by China dumping its vast holdings of U.S. Treasury securities.

Why is this an issue today? In an overnight story in the Telegraph newspaper out of London, it was reported that the Chinese are making noises about dumping dollars and/or Treasuries in retaliation for U.S. pressure on China (over trade, the value of China's currency, the yuan, etc.). According to these U.S. government stats, China owned about $407 billion in U.S. Treasury debt as of May. That makes it the second-largest holder behind Japan (at $615 billion).

None of us should be as naïve as to expect China to dump a couple hundred billion dollars worth of U.S. bonds tomorrow. That would cause the value of its remaining bond reserves to plunge and U.S. interest rates to surge. That, in turn, would help drive a huge customer for Chinese goods – the U.S. – into recession. Instead, this is likely a case of China trying to put the U.S. on notice that strong anti-China trade legislation could be counterproductive.

That said, this news does appear to be hitting the dollar and Treasuries overnight. And it's likely that over the longer-term, less foreign buying of our bonds and other dollar-denominated assets will drive interest rates higher and the dollar lower.


http://interestrateroundup.blogspot.com/2007/08/bond-markets-china-syndrome.html

[roamer65]

32. The dollar would tank, but the FRB would buy up every bond they sell.

All Bernanke has to do is fire up the computers and debt monetize it all. Aren't fiat currencies wonderful?

:sarcasm:

Plus, they really will have to float the Renminbi before they try anything like this.

[Roland99]

21. Cisco ("technology bellwether") lifts Wall Street

http://www.marketwatch.com/news/story/us-stocks-get-lift-opening/story.aspx?guid=%7BA0F87101%2DA837%2D47C9%2DA553%2D38B427B8717E%7D

U.S. stocks opened higher Wednesday, benefiting from a higher revenue outlook from Cisco Systems Inc. as well reassuring assessments about economic growth and the credit markets from the Federal Reserve.

Well, yeah. I don't think anyone is really doubting that corporations are doing well, at least in key industries. The trouble is, that trickling down of profits is just not happening. Corporations and their execs are growing fatter and fatter while the rest of America starves.

[UpInArms]

22. Gold futures rise, as dollar trades mixed

http://www.marketwatch.com/news/story/metals-stocks-gold-futures-rise/story.aspx?guid=%7B0F88DB43%2D6299%2D4892%2DAA2B%2D55702F55EC37%7D&dist=hplatest

NEW YORK (MarketWatch) -- Gold futures rose Wednesday, after posting slight losses in the previous two trading sessions, as the dollar traded mixed against major currencies.

Gold for December delivery gained $5 at $687.30 an ounce on the New York Mercantile Exchange.

"A couple of constructive days may be in the cards for bullion, but all eyes remain fixed on other markets for external cues during this seasonal hiatus," said Jon Nadler, analyst at Kitco Bullion Dealers, in a research note.

"Range-trade continues," Nadler said. "Fresh impact news and more tanned traders back from holidays are on the prescription list for livelier gold-market action."

On Tuesday, gold closed down $1 at $682.30 an ounce shortly before the Federal Reserve kept interest rates unchanged at 5.25% as expected and maintained its focus on inflation. Read more.

...more...

[mojavekid]

34. DJNewswire: Swiss Central Bank Sold Around 35 Tons Of Gold In July

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=05aef9f8-a0ce-4c14-bbbd-02f6f750359d

Swiss Central Bank Sold Around 35 Tons Of Gold In July

LONDON (Dow Jones)--The Swiss central bank sold around 35 metric tons of gold in July, data released by the Swiss National Bank showed Wednesday.

The bank said gold holdings fell by CHF917 million to CHF31.81 billion in July.

Allowing for exchange rate and gold price movements, this implies sales of around 35 tons last month, which is more than double the 13.9 tons sold in June, analysts said.

Recently, Switzerland proposed to sell up to 250 tons by September 2009

tiny bit more...

[UpInArms]

25. Pepsi Bottling to combine units, cut some 700 jobs

http://www.reuters.com/article/bondsNews/idUSN0833912120070808

NEW YORK, Aug 8 (Reuters) - Pepsi Bottling Group Inc. (PBG.N: Quote, Profile, Research) said on Wednesday that it would combine some field operations in the United States and Canada and realign its work force to improve productivity, cutting up to 700 jobs.

The largest bottler of PepsiCo Inc. (PEP.N: Quote, Profile, Research) drinks said these moves would lead it to record a pretax charge of $30 million to $40 million, or 9 cents to 12 cents per share, in the second half of the year, mostly for severance and other employee-related costs.

The company plans to spend $20 million to $25 million on the restructuring, and expects to reap about $30 million in annualized, pre-tax savings.

Pepsi Bottling said there will now be six business units in the United States and Canada, instead of eight. The company will eliminate about 150 management positions and up to 550 hourly positions.

...more...

[Buttercup McToots]

29. USD $80.08 @10:30 am

:donut:

[mojavekid]

30. Chicago Tribune: Japanese make $3,814 more on each car

http://www.chicagotribune.com/business/chi-070807-profit-gap,0,2093644.story

Japanese automakers widened their profit-making gap over the Detroit Three last year by 32 percent, according to a study released Tuesday.

The profit gap, which already was significant in 2005 at $2,899 per vehicle sold in North America, widened by $915 to $3,814, according to a study of industry costs and profits by Laurie Harbour-Felax, managing director of Stout Risius Ross, a Chicago-based financial and operational advisory firm.

The study, made public at an automotive industry conference, found that while General Motors Corp. had improved its efficiency and cut production costs, the nation's largest automaker and its Detroit counterparts, Ford Motor Co. and Chrysler LLC, still have a long way to go to match the profits of Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co.

GM cut its loss per vehicle in North America to $146 in 2006 from $1,271 in 2005, due largely to cost cuts that included the departure of more than 34,000 hourly workers to buyout and early retirement offers. It also is saving money due to efforts to design cars and trucks globally, by increasing the number of parts common to all of its vehicles and by purchasing parts on a global basis, Harbour-Felax said while attending an industry conference run by the Center for Automotive Research.

more...

[mojavekid]

31. FT: Wheat prices surge to 11-year high

http://www.ft.com/cms/s/610f6bb2-44e0-11dc-82f5-0000779fd2ac.html

Wheat prices surged to a fresh 11 year highs on Tuesday amid concerns about further production losses after extreme weather damaged the Australian and European cereals crops.

Middle East and North African countries, such as Morocco, have rushed into the market to secure wheat supplies, underpinning prices, according to traders.

Chicago CBOT September wheat pushed above the $6.70 a bushel level for the first time since 1996 and later was trading up 5¼ cents to $6.69 ¼ a bushel.

European milling wheat futures rose in Paris to €220 per tonne, the highest since the contract was launched on the Euronext.Liffe platform in 1998. The contract later traded €4 higher at €215.50 a tonne.

Rainer Guntermann, analyst at Dresdner Kleinwort in Frankfurt, said: “”Extremely hot and dry weather conditions in Southern Europe and Australia as well as rain and floods in Northern Europe have tightened global supply for agriculture products.”

CBOT September soyabeans traded 0.7 cents higher at $8.26¾ a bushel while corn was flat at $3.25¾ a bushel.

more...

[TrogL]

33. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



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




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

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

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

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

2007-07-09 Monday, July 9 0.95429 USD
2007-07-10 Tuesday, July 10 0.95057 USD
2007-07-11 Wednesday, July 11 0.947239 USD
2007-07-12 Thursday, July 12 0.955384 USD
2007-07-13 Friday, July 13 0.954563 USD
2007-07-16 Monday, July 16 0.958773 USD
2007-07-17 Tuesday, July 17 0.958313 USD
2007-07-18 Wednesday, July 18 0.958313 USD
2007-07-19 Thursday, July 19 0.959233 USD
2007-07-20 Friday, July 20 0.957854 USD
2007-07-23 Monday, July 23 0.956938 USD
2007-07-24 Tuesday, July 24 0.964134 USD
2007-07-25 Wednesday, July 25 0.959417 USD
2007-07-26 Thursday, July 26 0.952018 USD
2007-07-27 Friday, July 27 0.944287 USD
2007-07-30 Monday, July 30 0.935541 USD
2007-07-31 Tuesday, July 31 0.938438 USD
2007-08-01 Wednesday, August 1 0.946522 USD
2007-08-02 Thursday, August 2 0.949848 USD
2007-08-03 Friday, August 3 0.950029 USD
2007-08-06 Monday, August 6 0.951203 USD
2007-08-07 Tuesday, August 7 0.947598 USD


Current values

Loonie:

Last trade 0.9532 Change +0.0041 (+0.43%)
Previous Close 0.9495 Open 0.9521
Low 0.9521 High 0.9566


Other combinations:

AS.M07 AUSTRALIAN $/CANADIAN $ Sep (NYBOT) 0.89925 -0.00180
RA.M07 EURO/AUSTRALIAN $ Sep (NYBOT) 1.61540 +0.00225
HY.M07 CANADIAN $/JAPANESE YEN Sep (NYBOT) 111.78 -0.18
GB.M07 EURO/BRITISH POUND Sep (NYBOT) 0.6796 -0.00200
EP.M07 EURO/CANADIAN $ Sep (NYBOT) 1.44920 -0.00325
EJ.M07 EURO/JAPANESE YEN Sep (NYBOT) 164.66 +2.10
EU.M07 EURO/US$ (LARGE) Sep (NYBOT) 1.37800 -0.00385


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

The September Canadian Dollar was higher overnight as it extends this week's trading range above the 25% retracement level of this year's rally crossing at .9385. Stochastics and the RSI are neutral to bullish signaling that a short-term low might be in or is near. Closes above the 20-day moving average crossing at .9528 are needed to confirm that a short-term low has been posted. If September renews the decline off July's high, the reaction low crossing at .9313 is the next downside target. Overnight action sets the stage for a steady to higher opening in early-day session trading.



Analysis

I'm back. Prices in the UK weren't too bad. The airline lost my luggage and had to go clothes shopping but I hit the July sales and actually got some pretty good deals. They need to tell you about the VAT tax refund BEFORE you get to the stores, not after. I don't have the pretty piece of paper for half my stuff.

Anyway, the loonie's all over the damn place today. I still haven't replaced my car radio so no news from the drive in so I don't know what's going on.

Dubya's claiming tax cuts stimulated the economy - pure Straussian gospel. Here's a freebie for the Democratic Party platform. The infrastucture sucks, it's literally falling down, bridges collapsing, subways flooding. Stop the war in Iraq, spend the money on re-doing your infrastructure using local firms - the gospel according to Keynes.

[specimenfred1984]

39. Up almost 60, the Nasdaq has been "de-bargain-ized"

Another exciting episode of "Hedge Funds Gone Wild".

[ben_meyers]

40. Thank You China

I put in an order for 1000 shares of TGT last night after the latest round of saber rattling from China. Why? Because unlike Walmart 99% of their stuff doesn't come from China. I guess I wasn't alone! Also look at the last split, are they due?

[specimenfred1984]

42. It pretty closely tracks the DOW

http://finance.yahoo.com/q/bc?s=%5EDJI&t=2y&l=on&z=m&q=l&c=tgt

It's anyone's guess in these hedge fund driven markets.

[specimenfred1984]

43. Weeeeeeee, let's go for a ride on the Hedge Fund-o-Coaster!

A ticket only costs a minimum of $1,000,000 and you never know where or when it'll stop!

[mojavekid]

45. Kunstler: The Open Ocean

http://www.jameshowardkunstler.typepad.com/

By now, is there anyone over twelve in the USA who has not seen Jim Cramer's tantrum recorded late Friday afternoon on CNBC as the stock market took a 280 point swan dive off the rocky cliff of Hedge Fund Island?

Cramer's histrionics were only a few clicks above his normal antics on the "Mad Money" show, but even so, they made a remarkable impression of someone in real, not mock, despair. He mentioned more than once during the tirade that he'd been on the phone all week with other interested parties who were begging him to do something about the rising bloodbath on Wall Street. And by "do something," they clearly meant that Cramer should go on his TV show and make an appeal to Federal Reserve chief Ben Bernanke to drop the prime interest rate at the Fed's meeting this coming Tuesday -- the purpose of which would be to make cheaper loan money available to the Wall Street players whose investment houses suddenly found themselves underwater in the churning straits off Hedge Fund Island, weighed down by bagfuls of worthless securitized non-performing mortgages.

Personally, I don't quite get how a financial industry based on bad loans would be helped by borrowing more money to bail out a hopelessly unwinding Ponzi loan racket of the type the industry had engineered for itself -- but maybe I'm lacking the gene for financial creativity that the Bear Stearns bonus babies were all born with.

In any case, apropos of Cramer's telephone marathon, one can only imagine the number of cell phone minutes racked up this weekend out in the Hamptons by players trying desperately to finagle their way out of the brutal fact that their firms and funds suddenly lay exposed to the cruel ravages of reality. A lot of catered crab tidbits and mini-quiches must have gone uneaten out along the dunes as weeping men in blazers realized that "marked to market" had come to mean the same thing as "holding a bundle of shit."

more...

It's classic Kunstler....

[ozymandius]

46. Close with a hoot-n-holler

Dow 13,657.86 Up 153.56 (1.14%)
Nasdaq 2,612.98 Up 51.38 (2.01%)
S&P 500 1,497.49 Up 20.78 (1.41%)
10-Yr Bond 4.86% Up 0.117
NYSE Volume 1,204,592,000
Nasdaq Volume 3,674,332,000

4:20 pm : A day after very volatile trading swung the Dow within a 260-point range, the indices were finally exhibiting a bit more normalcy Wednesday and progressively sporting a solid follow-through effort.

That is until market speculation late in the day that Goldman Sachs (GS 193.30 +2.05) will make a potentially troubling announcement after the close took the wind out of the market's sails.

The widespread knee-jerk reaction briefly pushed the Dow, which at its peak was up 1.4%, into the red. The renewed wave of anxiety left the S&P 500, which at its intraday highs was up 1.8%, within two points of also turning negative. Fortunately for market bulls, however, Goldman quickly denying any such rumors helped put a bid back in stocks and the indices retraced most of their late-day pullback.

As evidenced by the Nasdaq sharply outpacing its blue-chip counterparts right out of the gate, it was easy to see what sort of impact Cisco Systems (CSCO 31.68 +1.99) was having on early action. Last night, the tech bellwether reported a 25% jump in Q4 profits and raised its long-term revenue forecasts. That news prompted several Wall Street analysts to up their price targets.

Cisco, which is also a suggested holding in the Briefing.com Active Portfolio, opened up almost 5% at a fresh six-year high and matched its average daily volume before 11:00 ET before finally closing up an impressive 6.7%. Since it now ranks among the 10 most heavily-weighted components in the S&P 500, with a market cap of more than $190 bln, the tech-heavy Composite's second most influential name was also a big contributor to the broader market's 1.4% advance.

While the Technology sector (+1.7%) was clearly the biggest beneficiary of Cisco's solid quarterly report, Cisco painting a comforting picture of global economic strength helped restore confidence across all sectors.

The Materials (+2.4%), Financial (+2.2%), and Energy (+2.1%) sectors turned in the best performances; but that wasn't too surprising since all three sectors had lost more than half of their value from their July 19th levels.

The Energy sector's resilience to falling oil prices was noteworthy; but the notion that stocks remain oversold following three weeks of declines sparked another short-covering rally in Financials that was the biggest source of market support.

Telecom was the only sector that didn't participate in what was the S&P 500's best three day performance since March 2003. Sprint-Nextel (S 19.77 -0.45) plunged 2.2% after posting a sharp 95% drop in Q2 earnings. A small 0.3% decline in a sector that only accounts for 3.8% of the influence on the broader market, however, was barely felt as the indices extended their winning streak to three sessions. BTK +1.1% DJ30 +153.56 DJTA +1.4% DJUA +0.7% DOT +1.3% NASDAQ +51.38 NQ100 +1.3% R2K +2.8% SOX +2.4% SP400 +1.3% SP500 +20.78 XOI +1.5% NASDAQ Dec/Adv/Vol 968/2121/3.58 bln NYSE Dec/Adv/Vol 953/2393/2.42 bln

[UpInArms]

48. hey Ozy!

we seem to have simul-posting down to a science :D

[ozymandius]

49. just as good as the PPT's pump-n-dump system

:toast:

[UpInArms]

47. closing PAR-TEE!

Dow 13,657.86 153.56 (1.14%)
Nasdaq 2,612.98 51.38 (2.01%)
S&P 500 1,497.49 20.78 (1.41%)
10-Yr Bond 4.86% 0.117

NYSE Volume 1,204,592,000
Nasdaq Volume 3,674,331,000

4:20 pm : A day after very volatile trading swung the Dow within a 260-point range, the indices were finally exhibiting a bit more normalcy Wednesday and progressively sporting a solid follow-through effort.

That is until market speculation late in the day that Goldman Sachs (GS 193.30 +2.05) will make a potentially troubling announcement after the close took the wind out of the market's sails.

The widespread knee-jerk reaction briefly pushed the Dow, which at its peak was up 1.4%, into the red. The renewed wave of anxiety left the S&P 500, which at its intraday highs was up 1.8%, within two points of also turning negative. Fortunately for market bulls, however, Goldman quickly denying any such rumors helped put a bid back in stocks and the indices retraced most of their late-day pullback.

As evidenced by the Nasdaq sharply outpacing its blue-chip counterparts right out of the gate, it was easy to see what sort of impact Cisco Systems (CSCO 31.68 +1.99) was having on early action. Last night, the tech bellwether reported a 25% jump in Q4 profits and raised its long-term revenue forecasts. That news prompted several Wall Street analysts to up their price targets.

Cisco, which is also a suggested holding in the Briefing.com Active Portfolio, opened up almost 5% at a fresh six-year high and matched its average daily volume before 11:00 ET before finally closing up an impressive 6.7%. Since it now ranks among the 10 most heavily-weighted components in the S&P 500, with a market cap of more than $190 bln, the tech-heavy Composite's second most influential name was also a big contributor to the broader market's 1.4% advance.

While the Technology sector (+1.7%) was clearly the biggest beneficiary of Cisco's solid quarterly report, Cisco painting a comforting picture of global economic strength helped restore confidence across all sectors.

The Materials (+2.4%), Financial (+2.2%), and Energy (+2.1%) sectors turned in the best performances; but that wasn't too surprising since all three sectors had lost more than half of their value from their July 19th levels.

The Energy sector's resilience to falling oil prices was noteworthy; but the notion that stocks remain oversold following three weeks of declines sparked another short-covering rally in Financials that was the biggest source of market support.

Telecom was the only sector that didn't participate in what was the S&P 500's best three day performance since March 2003. Sprint-Nextel (S 19.77 -0.45) plunged 2.2% after posting a sharp 95% drop in Q2 earnings. A small 0.3% decline in a sector that only accounts for 3.8% of the influence on the broader market, however, was barely felt as the indices extended their winning streak to three sessions. BTK +1.1% DJ30 +153.56 DJTA +1.4% DJUA +0.7% DOT +1.3% NASDAQ +51.38 NQ100 +1.3% R2K +2.8% SOX +2.4% SP400 +1.3% SP500 +20.78 XOI +1.5% NASDAQ Dec/Adv/Vol 968/2121/3.58 bln NYSE Dec/Adv/Vol 953/2393/2.42 bln

3:30 pm : Stocks continue to come in hard as the bottom begins to fall out of a handful of key sectors going into the close. The major averages are still trading in positive territory but have relinquished all of their afternoon gains and then some. At their recent highs, the Dow, S&P 500 and Nasdaq were up 1.4%, 1.8%, and 2.6%, respectively.

The blue-chip averages are now struggling to stay positive, up only 0.2% and 0.4% while the Nasdaq, also well off its best levels, is still up 1.5%; but that's due largely to an 8% rally in the tech-heavy Composite's second most influential component -- Cisco Systems (CSCO 32.06 +2.37).

In similar fashion to the institutional influx that just 60 minutes ago helped propel stocks to their best levels of the day, another round of program trades (this time on the sell side) have resulted in a mass exodus among equity traders. DJ30 +35.76 NASDAQ +36.85 SP500 +5.65 NASDAQ Dec/Adv/Vol 1046/2026/2.60 bln NYSE Dec/Adv/Vol 978/2356/1.92 bln

3:00 pm : Over the last 45 minutes, a rally in mortgage lenders was a big reason behind the broader market's latest advance since everything from accounting troubles to tighter lending standards has weighed heavily on the group of late.

Remarks from HUD Secretary Jackson about the ability of Fannie Mae (FNM 66.97 +2.54) and Freddie Mac (FRE 63.41 +1.77) to buy bigger loans and U.S. Representative Frank saying he favors lifting FNM and FRE portfolio caps initially injected an additional bid in the depressed group.

However, President Bush recently commenting about reforming the GSEs before talks of assisting with the subprime mortgage meltdown has prompted a knee-jerk reaction to the downside in Financials (+2.0%). The influential sector has since seen more than 1.0% of its recent advance erased.DJ30 +98.83 NASDAQ +52.61 SP500 +16.27 NASDAQ Dec/Adv/Vol 941/2132/2.55 bln NYSE Dec/Adv/Vol 847/2477/1.69 bln

2:30 pm : The market is showing no signs of slowing as increasingly bullish breadth figures and strong industry leadership to the upside continue to bode well for equities. On the NYSE, where trading curbs are now in effect, advancers outpace decliners by a nearly 3-to-1 margin.

The extensiveness of the market's latest short-covering move to the upside, as all three indices have spiked in synch with each other and logged roughly the same percentage improvements, also suggests the triggering of another buy program. The heavily weighted Financial sector is now up more than 3.0% while the Energy sector is a close second with a 2.7% advance, despite oil prices closing lower on the session. Technology and Materials are also up more than 2.0%. DJ30 +185.75 NASDAQ +65.93 SP500 +27.13 NASDAQ Dec/Adv/Vol 907/2152/2.39 bln NYSE Dec/Adv/Vol 833/2481/1.56 bln

2:00 pm : The indices are hitting fresh session highs as investors continue to subscribe to the notion that stocks remain oversold following three weeks of declines. Since the Dow and S&P 500 closed in record territory on July 19, stocks had fallen virtually uninterrupted until this week began. As of Friday's close, the Dow, S&P 500, and Nasdaq were down 5.8%, 7.7%, and 7.7%, respectively, from their closing levels on July 19.

While neither index exhibited the textbook definition of a market correction -- a drop of at least 10% -- the market's perception that downside risk to the economy, earnings, and stock prices are not as severe as recently feared has lit a fire under equities. The major indices are now up roughly 1.6% on average. DJ30 +136.91 NASDAQ +59.35 SP500 +21.82 NASDAQ Dec/Adv/Vol 920/2125/2.13 bln NYSE Dec/Adv/Vol 870/2434/1.38 bln

[w8liftinglady]

50. I hate days like today-I can't keep up with shit-what were the big topics?