STOCK MARKET WATCH, Thursday February 28

[ozymandius]

Source: du

STOCK MARKET WATCH, Thursday February 28, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 328
DAYS SINCE DEMOCRACY DIED (12/12/00) 2594 DAYS
WHERE'S OSAMA BIN-LADEN? 2320 DAYS
DAYS SINCE ENRON COLLAPSE = 2611
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 February 27, 2008

Dow... 12,694.28 +9.36 (+0.07%)
Nasdaq... 2,353.78 +8.79 (+0.37%)
S&P 500... 1,380.02 -1.27 (-0.09%)
Gold future... 961.00 +12.10 (+1.26%)
30-Year Bond 4.65% -0.01 (-0.13%)
10-Yr Bond... 3.85% -0.01 (-0.26%)






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: Change We Can Believe In

Change We Can Believe In
The Slow Decline of the U.S. Consumer
BY CHRIS PUPLAVA

Barack Obama’s campaign is running on the slogan, “Change we can believe in,” which aptly describes the likely future state of the U.S. consumer. This is not an article on how the U.S. consumer is dead, but looks at the likely decline of consumption’s importance in GDP using Japan as a historical guide with the focus centered on demographics and interest rates.

The core demographic for consumption is the age group that is entering their prime in terms of income generation from climbing the corporate ladder, whose higher incomes translate into greater consumption. The distribution of consumer spending reflects a bell-shaped curve in which the middle-aged demographic represents the largest income brackets while the younger and older populations represent the lower income brackets. This can be seen in the figure below with the middle-aged group (35-44) having higher incomes than the lower (25-34) and upper (>65) age groups.

-see chart-

This concept is important as a rising population of the higher income demographic relative to the lower income demographic represents a shift in total aggregate spending. When the higher income bracket population relative to the lower income bracket falls, so too will the rate of change in aggregate consumer spending and vice versa. As a rise in the rate of change in consumer spending increases with the higher earning income’s relative population, so too does the stock market which reflects a rise in GDP from the rise in consumption.
.....

The U.S. economy and stock market face several headwinds going forward over the next decade. One is the decline in the ratio of the 35-49 population demographic relative to the lower income 20-34 demographic that peaked in 2000, which was the top in the NASDAQ and the top of the S&P 500 when correcting for inflation. Additionally, it is likely that we have entered into a secular inflationary environment with which interest rates are likely to rise going forward, though they may continue to fall in the short-term. The case for a secular shift in inflationary pressures was put forth in a previous WrapUp (03.28.07) and will not be covered here. The two trends below will become secular headwinds with which the economy and markets will have to overcome.

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

[Demeter]

56. Referring No Doubt to the Pocket Change for Street Corner Beggars

and as for that ladder to success, the rungs have been sawn in two. Damn few are rising, and many more are falling through.

[ozymandius]

2. Today's Reports

8:30 AM GDP-Prel. Q4
Briefing Forecast 0.6%
Market Expects 0.8%
Prior 0.6%

8:30 AM Chain Deflator-Prel. Q4
Briefing Forecast 2.6%
Market Expects 2.6%
Prior 2.6%

8:30 AM Initial Claims 02/23
Briefing Forecast 355K
Market Expects 350K
Prior 349K

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

[UpInArms]

29. Very UGLY 8:30 Reports - Initial Claims @ 373,000 last wk rev'd up 5,000

03. U.S. 4Q real disposable incomes fall 0.3%
8:30 AM ET, Feb 28, 2008 - 3 minutes ago

04. U.S. 4Q business, residential investment revised lower
8:30 AM ET, Feb 28, 2008 - 3 minutes ago

05. U.S. 4-week avg. continuing jobless claims up 24,250
8:30 AM ET, Feb 28, 2008 - 3 minutes ago

06. U.S. 4Q consumer spending revised lower to 1.9% vs. 2%
8:30 AM ET, Feb 28, 2008 - 3 minutes ago

07. U.S. continuing jobless claims up 21,000 to 2.81 mln
8:30 AM ET, Feb 28, 2008 - 3 minutes ago

08. U.S. 4Q gross domestic purchases fall 0.3%
8:30 AM ET, Feb 28, 2008 - 3 minutes ago

09. U.S. 4-week avg. jobless claims down 1,250 to 360,500
8:30 AM ET, Feb 28, 2008 - 3 minutes ago

10. U.S. 4Q final sales revised up to 2.1% vs. 1.9%
8:30 AM ET, Feb 28, 2008 - 3 minutes ago

11. U.S. 4-week avg. jobless claims down 1,250 to 360,500
8:30 AM ET, Feb 28, 2008 - 6 minutes ago

12. U.S. 4Q final sales revised up to 2.1% vs. 1.9%
8:30 AM ET, Feb 28, 2008 - 6 minutes ago

13. U.S. weekly initial jobless claims up 19,000 to 373,000
8:30 AM ET, Feb 28, 2008 - 6 minutes ago

14. U.S. 4Q core inflation unrevised at 2.7% annualized
8:30 AM ET, Feb 28, 2008 - 6 minutes ago

15. U.S. 2007 GDP unrevised at 2.2%, 5-year low
8:30 AM ET, Feb 28, 2008 - 6 minutes ago

16. U.S. 4Q GDP unrevised at 0.6% annualized vs. 0.7% expected
8:30 AM ET, Feb 28, 2008 - 6 minutes ago

[UpInArms]

34. Initial jobless claims rise 19,000 to 373,000

http://www.marketwatch.com/news/story/initial-jobless-claims-rise-19000/story.aspx?guid=%7B38AAC57A%2DF0F8%2D4BF4%2DBBA0%2D1C1BDEF1F5F1%7D

WASHINGTON (MarketWatch) -- First-time claims for state unemployment benefits rose 19,000 last week, reaching the highest level since late January, the government reported Thursday.

The number of initial claims in the week ended Feb. 23 gained 19,000 to 373,000, according to the Labor Department.

The four-week average of initial claims fell 1,250 to 360,500.

Recipients of state jobless benefits rose 21,000 to 2.81 million in the week ended Feb. 16, reaching the highest level since October 2005. The four-week moving average of continuing claims rose 24,250 to 2.78 million, also reaching the highest level since October 2005, when Hurricane Katrina flooded the jobless rolls.

<snip>

Initial claims ranging from about 300,000 to 325,000 are consistent with healthy a rate of U.S. employment growth, economists say. Readings consistently higher than 350,000 would signal significant weakening in the labor market.

...more...

[AnneD]

44. So....

when does the jobless recovery start?:sarcasm: What maroons.

[ozymandius]

3. Oil rebounds to near $100 a barrel

SINGAPORE - Oil prices rose Thursday after dropping by more than a dollar in the previous session on larger-than-expected increases in U.S. crude and gasoline supplies.

Prices remained supported near Tuesday's record close of $100.88 a barrel as the U.S. dollar tumbled to fresh lows against the euro and worries about the American economy drove more money into energy futures as a hedge against inflation.

The report by the U.S. Energy Department's Energy Information Administration showed that country's crude oil inventories rose by 3.2 million barrels, or 1 percent, to 308.5 million barrels.

Although that number is slightly lower than levels a year ago, it is well ahead of the 2.4 million barrel gain analysts had been expecting, according to a survey by Dow Jones Newswires. It was the seventh straight week the report showed a rise in crude inventories, suggesting the U.S. at least has more than enough oil to meet demand.
.....

The contract fell $1.24 to settle at $99.64 a barrel Wednesday after surging as high as $102.08 a barrel, a trading record. On Tuesday, the contract jumped $1.65 to settle at a record $100.88 a barrel.

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

And with the next round of rate cuts from the Fed - the dollar will be weakened further. So expect to pay more at the pump.

[ozymandius]

4. House OKs new taxes on big oil companies

WASHINGTON - The House approved $18 billion in new taxes on the largest oil companies Wednesday as Democrats cited record oil prices and rising gasoline costs in a time of economic troubles.

The money collected over 10 years would provide tax breaks for wind, solar and other alternative energy sources and for energy conservation. The legislation, approved 236-182, would cost the five largest oil companies an average of $1.8 billion a year over that period, according an analysis by the House Ways and Means Committee. Those companies earned $123 billion last year.

Senate Democratic leaders said they would put the bill on a fast track and try to avoid a Republican filibuster. The White House said the bill unfairly takes aim at the oil industry. President Bush is expected to veto the legislation if it passes Congress.

http://news.yahoo.com/s/ap/20080228/ap_on_bi_ge/energy_taxes_12

[Ghost Dog]

17. Loss of wind causes Texas power grid emergency

HOUSTON (Reuters) - A drop in wind generation late on Tuesday, coupled with colder weather, triggered an electric emergency that caused the Texas grid operator to cut service to some large customers, the grid agency said on Wednesday.

Electric Reliability Council of Texas (ERCOT) said a decline in wind energy production in west Texas occurred at the same time evening electric demand was building as colder temperatures moved into the state.

The grid operator went directly to the second stage of an emergency plan at 6:41 PM CST (0041 GMT), ERCOT said in a statement.

System operators curtailed power to interruptible customers to shave 1,100 megawatts of demand within 10 minutes, ERCOT said. Interruptible customers are generally large industrial customers who are paid to reduce power use when emergencies occur.

No other customers lost power during the emergency, ERCOT said. Interruptible customers were restored in about 90 minutes and the emergency was over in three hours.

ERCOT said the grid's frequency dropped suddenly when wind production fell from more than 1,700 megawatts, before the event, to 300 MW when the emergency was declared.

In addition, ERCOT said multiple power suppliers fell below the amount of power they were scheduled to produce on Tuesday. That, coupled with the loss of wind generated in West Texas, created problems moving power to the west from North Texas.

/... http://www.reuters.com/article/newsOne/idUSN2749522920080228

[AnneD]

46. It took me a while to figure this out...

they had been hauling some really big equipment through Houston recently. I was big like oil field equipment. I finally saw a familiar arc on a blade and realized that it was wind mills headed to West Texas. I saw another one out in traffic last week. I see about one a month now. I haven't driven through West Texas in several years but before we moved back here, those windmills were popping up like gopher holes on the mesas. I miss the vistas-but I can live with it.

[Demeter]

64. And a Lack of Windfall Brings Down the Whole State?

Bad or NO planning. This isn't rocket science, either. Of course, it is science, and I know how adverse government and business is to cold hard facts nowadays....

By the way, Anne, I am posting an update on my custody battle with the late great state of Michigan sometime today, if you are interested. Once I can get the steam to stop gushing out of my ears, that is.

[Ghost Dog]

90. Evryone knows (local) wind power can't supply baseload:

"In addition, ERCOT said multiple (non-wind) power suppliers fell below the amount of power they were scheduled to produce on Tuesday." - so what's that all about?

[Demeter]

93. Any Renewable Energy Resource Needs Storage

whether it's in pumped water storage (potential to kinetic energy), battery (or perhaps the capacitor, although it's unproven), splitting water into hydrogen, or some other stable arrangement.

[happyslug]

112. Not if you plan around its limitations.

For example, Solar power is only available during Daylight hours. if you apply the power during that time period, no storage is needed. For example if you have electric rail service just depended on Solar, make sure it runs only in daylight. The same with Wind, people can use it when the wind is blowing, but do without when it is no. For example old water wells did this, the wind would pump water when the wind blew, but stop when it did not. For most farmers that was good enough, if you pumped the water into a tower, then gravity will provide the water where needed. The only time you needed power was to get water into the Tower, and that could be at any time before the tower ran dry.

Another way to avoid the need for storage is to have a widespread inter-connected system. Basically if the wind stops blowing in your area you can pull in power from a place where the wind is blowing. It is rare for whole Counties to have windless days, somewhere wind will be blowing, and if the region is big enough should be enough to minimize lack of electrical power.

As to electrical storage, don't forget mechanical storage systems. For example the cheapest AND quickest way to start generating electrical power is with a hydroelectric system (i.e. dams). A combination of Wind, Solar and Hydro could provide electrical power 24 hours a day. Solar during daylight, wind during times the wind is blowing and hydro at all other times. A good system would also include use of the Wind and Solar power to pump water UPHILL in the form of Water storage (i.e. to be released later to run the hydro electrical system). If I lived in a rural area I would look into a combination of all three systems to run my household and the farm. The only concern would be freezing weather, but that can be addressed by making sure the Water tower (Or other water storage device) is insulated to minimize the affect of Freezing. An Insulated glass top would also permit Solar power to directly heat the water to prevent freezing.

Just some points that electrical storage is NOT required if you work around the problem of when the wind is NOT blowing AND it is NOT a bright shinny day. This can include just doing without electricity doing those time periods. Even modern Laptops Computers can be powered by hand or foot powered generators if power is truly needed, thus you can survive without electrical power, people did it for thousands of years before most houses had electricity staring about 1900.

[AnneD]

108. We have ...

wind and solar (a lot). The weather we have had lately has not been helpful(cold, cloudy). We have oil but that is expensive and we make more money from that. I have the feeling that we will end up with a nuclear reactor as a supplement. The question is where will they put it? I have some good ideas because I saw an area where they were laying some big assed concrete pipes. Time will tell.

The number of folks affected here was really minimal compared to Fla. We doing better than most.

[AnneD]

105. My ears are always open...

PM me if needed.

[mbperrin]

130. NOT a lack of wind! Wonder what they're pulling here?

I live in Odessa, less than 50 miles from a huge wind farm near McCamey that provides power to Florida Power and Light, and we're under red flag warnings here for the last two weeks! Like yesterday

<snip>Red Flag Warning


/O.UPG.KMAF.FW.A.0014.080228T1800Z- 080229T0000Z/ /O.EXB.KMAF.FW.W. 0017.080228T1700Z-080229T0000Z/ DAWSON- BORDEN-SCURRY-MARTIN-HOWARD-MITCHELL- ECTOR-MIDLAND- GLASSCOCK-CRANE-UPTON- REAGAN- 415 AM CST THU FEB 28 2008
...RED FLAG WARNING IN EFFECT FROM 11 AM THIS MORNING TO 6 PM CST THIS AFTERNOON...

THE NATIONAL WEATHER SERVICE IN MIDLAND/ODESSA HAS ISSUED A RED FLAG WARNING FOR MUCH OF THE PERMIAN BASIN...WHICH IS IN EFFECT FROM 11 AM THIS MORNING TO 6 PM CST THIS AFTERNOON. THE FIRE WEATHER WATCH IS NO LONGER IN EFFECT.

INCREASING SOUTH AND SOUTHWEST WINDS NEAR 20 MPH ARE EXPECTED TO DEVELOP BY LATE MORNING. VERY WARM TEMPERATURES WILL ALLOW RELATIVE HUMIDITY TO DROP TO NEAR 10 PERCENT DURING THE AFTERNOON. THESE CONDITIONS...WHEN COMBINED WITH THE VERY DRY VEGETATION WILL CREATE A FAVORABLE ENVIRONMENT FOR RAPID FIRE GROWTH AND SPREAD THIS AFTERNOON.

DO NOT THROW CIGARETTES ONTO THE GROUND OR OUT OF A MOVING VEHICLE. KEEP VEHICLES ON DRIVING SURFACES... AND DO NOT DRIVE THROUGH TALL GRASS. AVOID ACTIVITIES THAT MAY PRODUCE OUTDOOR FLAMES OR SPARKS. ACCIDENTAL IGNITIONS WILL HAVE THE POTENTIAL TO GROW INTO WIND-DRIVEN WILDFIRES.



More detailed local map tracking!
Mark your exact location on weather.com radar maps - click here

Don't miss severe weather alerts while away from your computer!
Sign up to receive free email or text messages with your local weather alerts.

<snip>

Go to weather.com and check all you want for McCamey and the surrounding area. There's a possibility that the 300,000 acres of wildfire in the area yesterday perhaps had some impact on the lines themselves, but as a lifetime resident of west Texas, let me assure you, THERE IS NO and WILL NOT BE a wind shortage. The trees here grow at an angle of about 22 degrees, the wind is so constant.

So whatever else is happening or why, the wind hasn't quit!

[Ghost Dog]

149. Aha. Thanks for that. The story refers to Tuesday around 18:30 your time,

but I guess what you're saying still applies?

It does appear that the fault was in fact less that of wind-generated supply and more to do with those 'other' sources... And I was wondering why this was a not-so-obscure story for Reuters.

Could there have been some anti-wind power interests at play here, one wonders.

[Demeter]

152. Sometimes You Can Get Too Much of a Good Thing

If the wind velocity exceeds the ratings of the wind turbines, the controller will spill the wind so as to prevent damage from being overdriven.

It seems unlikely that they would have undersized the turbines, but you don't know until you get there.

[AnneD]

136. GE unit signs agreement to sell turbines valued at $700 million

FAIRFIELD, Conn. — GE Energy, a unit of General Electric Co., announced Thursday it has signed an agreement with an Austin, Texas-based energy company to sell wind power turbines valued at more than $700 million.

Renewable Energy Systems Americas Inc., a wind developer in North America, will buy 1.5-megawatt wind turbines for projects in 2009 and 2010. The turbines will supply RES with nearly 500 megawatts of wind energy capacity and provide commissioning and operations services and maintenance.

RES Americas is part of British-based Renewable Energy Systems. Since 1997, RES Americas has developed or built more than 12 percent of installed wind energy capacity in the United States, GE said.

Since 2004, GE has increased wind turbine production by 500 percent, with wind business revenue of more than $4.5 billion in 2007.

GE shares fell 31 cents, to $33.71, in early afternoon trading.

http://www.chron.com/disp/story.mpl/ap/business/5578937.html

This is getting interesting...

[UpInArms]

Crude hits new high of $102.35 a barrel

http://www.marketwatch.com/news/story/crude-hits-new-high-10235/story.aspx?guid=%7B8739FC4E%2D833D%2D453E%2DB6BF%2DC30A64CB42FB%7D

SAN FRANCISCO (MarketWatch) -- Crude-oil futures surged nearly 3% Thursday afternoon to a new record high of $102.35 a barrel as production was partially shut down in Nigeria after military attacks and as the dollar fell further against the euro. Natural-gas futures surged more than 2% to the highest level in more than two years after data showed U.S. inventories fell for a 14th week.

[ozymandius]

5. MBIA CEO sees Moody's, S&P done for 12-18 mos

NEW YORK (Reuters) - MBIA Inc (MBI.N) Chief Executive Jay Brown on Wednesday said he does not expect rating agencies Moody's Investors Service and Standard & Poor's to take any action on the company's ratings for up to 18 months.

"I think what you heard from Moody's and S&P this week is a very clear picture that they are done for 12 and 18 months with us," he told Reuters in a telephone interview.

Both of the rating agencies earlier this week affirmed the top triple "A" ratings for MBIA's insurance unit, easing market concerns.

Brown said MBIA was in talks with third rating agency Fitch Ratings but was not sure of their schedule, or what ratings action they might take.

http://news.yahoo.com/s/nm/20080227/bs_nm/bonds_insurers_mbia_ratings_dc

[ozymandius]

6. Fed tries to stave off stagflation

WASHINGTON - The Federal Reserve is ready to lower interest rates again to brace the wobbly economy even as zooming oil prices spread inflation, Chairman Ben Bernanke signaled to Congress on Wednesday.

He is fighting to keep the economy afloat after mighty blows from the housing and credit crises, while trying to contain inflation.

For now, the priority is shoring up the economy, Bernanke suggested in an appearance before the House Financial Services Committee. He pledged anew to slice a key interest rate and help the economy, which many fear is on the verge of a recession, if not already in one.
.....

Were energy prices to continue to rise at a sharp clip — something the Fed does not anticipate — it would "create a very difficult problem" for the economy, Bernanke said. Inflation would spread and growth would be further restrained, he said. If that happened, it would be a "very tough situation," he added.

The Fed is prepared to lower rates again to bolster economic growth, Bernanke said. The Fed "will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks," he said, sticking closely to assurances he offered earlier this month.

http://news.yahoo.com/s/ap/20080228/ap_on_bi_ge/bernanke_congress

[Demeter]

10. Such a Lie!

That isn't what they are trying to do, and that isn't what they will manage to do.

[UpInArms]

61. Higher inflation complicating Fed's job: Bernanke

01. Higher inflation complicating Fed's job: Bernanke
10:46 AM ET, Feb 28, 2008 - 6 minutes ago

[UpInArms]

63. Chopper Ben finds self in hole - digs deeper

01. U.S. nowhere near stagflation: Bernanke
10:54 AM ET, Feb 28, 2008 - 3 minutes ago

02. Bernanke says inflation expectations remain 'pretty stable'
10:53 AM ET, Feb 28, 2008 - 4 minutes ago

[UpInArms]

92. still digging: Unemployment rate likely to rise in coming months: Bernanke

01. Unemployment rate likely to rise in coming months: Bernanke
11:53 AM ET, Feb 28, 2008 - 2 minutes ago

02. Fed expects inflation to moderate this year: Bernanke
11:50 AM ET, Feb 28, 2008 - 5 minutes ago

03. Bernanke: Jan. large rate cuts look right in hindsight
11:49 AM ET, Feb 28, 2008 - 6 minutes ago

04. Bernanke: Slowdown is bigger risk than inflation
11:49 AM ET, Feb 28, 2008 - 6 minutes ago

[UpInArms]

100. bigger shovel: Bernanke: Downside risks to job rate forecast of 5.25% in Q4

03. Bernanke: Downside risks to job rate forecast of 5.25% in Q4
11:59 AM ET, Feb 28, 2008 - 14 minutes ago

[Demeter]

153. Somebody Take That Shovel Away from Bernanke!

and while we're at it, disarm Bush AND Cheney, too. In Cheney's case, take that literally.

[ozymandius]

7. Retailer Sears reports 47% decline in quarterly net income, blames worsening economic conditions.

Story developing...

http://money.cnn.com/

[cosmicdot]

109. Kmart drags Sears profit down 47%

Kmart drags Sears profit down 47%

Weak sales at U.S. Sears stores also hurts bottom line; company pledges better control of costs.

February 28 2008: 6:32 AM EST

HOFFMAN ESTATES, Ill. (AP) -- Sears Holdings Corp., the department store retailer controlled by Chairman Edward Lampert, said fourth-quarter profit tumbled 47%, due to poor performance at its Kmart and U.S. Sears stores.

The Hoffman Estates, Ill.-based company said Thursday that earnings dropped to $426 million, or $3.17 per share, from $811 million, or $5.27 per share, a year ago.

Revenue slipped to $15.07 billion from $16.18 billion.

~snip~ of short article

http://money.cnn.com/2008/02/28/news/companies/sears_earnings.ap/index.htm

[ozymandius]

8. Jittery on Wall Street

Futures decline as Bernanke heads to Capitol Hill for second day of testimony; Sears' profit tumbles.

NEW YORK (CNNMoney.com) -- Stocks were poised to slide Thursday as concerns about the economic outlook and weak earnings kept a shadow over the market ahead of Fed chief Ben Bernanke's second day of testimony before Congress.

At 6:06 a.m. ET, Nasdaq and S&P futures were lower, indicating a negative start for Wall Street.

Bernanke heads to Capitol Hill today for his second day of testimony. On Wednesday, he suggested that the Fed is likely to keep lowering rates, but also acknowledged that inflation is rising.

Stocks ended the session flat Wednesday as investors were torn between the prospect of more rate cuts and weak economic data.

http://money.cnn.com/2008/02/28/markets/stockswatch/index.htm?postversion=2008022805

[ozymandius]

9. Stock futures at 6:18ET

S&P futures vs fair value: -7.7.
Nasdaq futures vs fair value: -4.5.

[burf]

19. Not to worry,

Helicopter Ben will just keep repeating the magic words "Rate Cuts" and all will be well. It is simply incredible that the economic news can be totally in the toilet and Ben testifies that further rate cuts are likely and everything is better. Pretty soon there won't be any more rates to cut and then what happens? Even the printing presses won't save them then.

[neverforget]

55. I think the idea is to kick the can down the road for the next president and

let them deal with the shitstorm that they created. Cutting interest rates only helps Wall Street while selling out Main Street to inflation.

[Demeter]

58. They Can Try, But I Don't Think They'll Succeed

The crash is coming 12 months ahead of schedule--watch out for October!

[kineneb]

84. might be sooner

Jim Kunstler is guessing sometime around March...

http://jameshowardkunstler.typepad.com/clusterfuck_nation/2008/02/still-pretendin.html

STILL PRETENDING
The maneuvers that the big banks are making nowadays, along with their enablers at the Federal Reserve and elsewhere in Washington, really amount to little more than the old Polish blanket joke -- in which (excuse my concision) the proverbial Polack wants to make his blanket longer, so he scissors twelve inches off the top and sews it onto the bottom. Only in this case, the banks are shearing x-billions of losses off the top of their blankets and re-attaching x-billions of new debt onto the bottom. This new debt, of course, goes to cover the old losses and only represents further losses-to-be-reported-later, since the banks are basically insolvent. Borrowing more money when you're broke doesn't make you less insolvent.

The banks can probably keep this gag running a little longer, but not without consequences. My guess is that it spins out of control in March sometime when some more hedge funds blow up and at least one big bank, perhaps Citi, rolls belly up like a harpooned whale. The game is really over, and all the playerz know it. The consequence of continuing to pretend the meta-fiasco of Ponzi endgame is fixable will be an even more shattering depression than the one we're already in for.

-snip-

[Demeter]

94. Yeah, I Saw That Yesterday

Do you really think Bush and Bernanke can bring on Armageddon in 5 weeks though?

On second thought, don't answer that.

[kineneb]

114. uhhh, "bring on"? not exactly

more like "be unable to stop", as in avalanche...



(I love the stuff at www.despair.com)

[Demeter]

115. NObody Has Ever Called Bush and Co "Harmless Flakes"

They are rather like nitroglycerin--unstable and explosive--dangerous by intentional design.

[Karenina]

133. BWHAHAHAHA!!!

Looks like sperm!!! Every one of which is sacred, ya know!!! :rofl:

[Ghost Dog]

11. Japanese Stocks Fall as Yen Strengthens, Factory Output Drops

Feb. 28 (Bloomberg) -- Japanese stocks fell for a second time this week, led by automakers and electronics companies, after manufacturers forecast factory production will slow and the yen strengthened against the dollar.

Honda Motor Co., Japan's second-largest carmaker, broke a three-day winning streak, while Mazda Motor Corp. fell the most in three weeks. Sony Corp., the world's second-largest maker of consumer electronics, posted the biggest drop since Feb. 6.

Companies expect factory output to fall 2.9 percent this month from January, worse than previously forecast, the Trade Ministry said today. The yen rose to the highest in three weeks after Federal Reserve Chairman Ben S. Bernanke signaled the U.S. central bank may cut interest rates again.

The Nikkei 225 Stock Average declined 105.79, or 0.8 percent, to close at 13,925.51 in Tokyo, while the broader Topix index fell 11.42, or 0.8 percent, to 1,353.10. The trading value and volume on the bourse's first section were the lowest for a full- trading day so far this year.

``The bigger-than-expected decline in industrial production makes the outlook even more uncertain for Japanese companies,'' said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co., which manages the equivalent of $5.1 billion. ``Automakers can't avoid an economic slowdown in North America, and the stronger yen may further reduce their earnings.''

Honda retreated 2.3 percent to 3,360 yen, while Mazda fell 4 percent to 461 yen. Sony, which gets three quarters of its sales from outside of Japan, slipped 1.9 percent to 5,220 yen.

Factory output dropped 2 percent last month, more than double what economists had predicted. Production of transport equipment, including cars, ships and motorcycles, fell the most in four months on a seasonally adjusted basis.

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=aGoz82IF6yYs&refer=japan

Japan Production Falls 2%, Twice as Much as Predicted (Update5)

Feb. 28 (Bloomberg) -- Japan's factory production fell in January at twice the pace economists predicted as a deepening U.S. slump weakened demand for cars and electronics.

Companies cut output 2 percent from December, when it rose 1.4 percent, the Trade Ministry said today in Tokyo. The median estimate of 47 economists surveyed by Bloomberg News was for a 0.8 percent decline.

Bonds gained the most in three weeks on speculation that the drop in production signals growth in the world's second- largest economy will slow this year. Cutbacks in output have coincided with the nation's last three recessions.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=ab5Y2r5Jthfk&refer=asia

[Ghost Dog]

12. Asian Stocks Fall for First Time This Week on Yen

Feb. 28 (Bloomberg) -- Asian stocks declined for the first time this week, led by automakers and finance companies, on concern the weakening dollar will erode earnings and after a brokerage slashed its share-price estimates on Australian banks.

...

The MSCI Asia Pacific Index declined 0.6 percent to 148.64 as of 5:21 p.m. in Tokyo, halting a three-day, 4.1 percent rally. The benchmark advanced 13 percent through yesterday since reaching a 14-month low on Jan. 22.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=azzlb0G4Sc_k&refer=asia

[Ghost Dog]

14. HK shares rise as resource, property plays support

HONG KONG, Feb 28 (Reuters) - Hong Kong stocks rose on
Thursday for a third straight day as a commodities rally fuelled
resource plays, and refiner Sinopec Corp (0386.HK: Quote, Profile, Research) leapt on talk
it may receive government subsidies as oil prices test records.

Investors also bid up rate-sensitive Hong Kong property
developers after U.S. Federal Reserve Chairman Ben Bernanke
signaled a readiness to cut interest rates again to stem further
damage to the faltering U.S. economy.

After opening lower, the market built on Wednesday's rally
and gathered strength, then eased as the benchmark Hang Seng
Index .HSI approached 25,000 points.

Investors remain wary whether shares could break out of
range. "We have yet to see if the current uptrend can be
sustained," said Mona Chung, fund manager at Daiwa Asset
Management. "I don't think all the bad news have been reflected. We'll be
range-trading until we get clarity from the U.S. and China."

The benchmark Hang Seng Index .HSI ended up 0.4 percent at
24,591.69. The China Enterprises Index of Hong Kong-listed
mainland companies , or H shares, finished up 0.7 percent
at 14,039.98.

/... http://www.reuters.com/article/marketsNews/idCAHKG6761820080228?rpc=611

[Ghost Dog]

15. European shares extend fall, UBS weighs on banks

LONDON, Feb 28 (Reuters) - European shares fell to session lows by midmorning on Thursday, weighed down by another slide in bank stocks, while disappointing earnings from Axa (AXAF.PA: Quote, Profile, Research) and Bayer (BAYG.DE: Quote, Profile, Research) jolted investors.

Swiss bank UBS (UBSN.VX: Quote, Profile, Research) was the largest negative weight on the broader market, falling by 4.3 percent, followed by BP (BP.L: Quote, Profile, Research), which shed 1.6 percent in line with a dip in the price of crude oil (CLc1: Quote, Profile, Research).

By 1042 GMT the FTSEurofirst 300 index (.FTEU3: Quote, Profile, Research) of top European shares was down 1 percent at 1,344.55 points, having struck a session low at 1,343.85 points.

/.. http://uk.reuters.com/article/eurMktRpt/idUKL2884763120080228

[Ghost Dog]

20. IMF says German export-led economy to be hit by global slowdown

FRANKFURT (AFP) - The IMF slashed its 2008 German growth forecast to 1.5 percent on Wednesday, warning that weaker global economic activity would curb exports from the biggest European economy.

In forecasts released in October, the International Monetary Fund had estimated that the German economy would expand by 2.0 percent this year, following growth of 2.5 percent in 2007.

"A slowing US economy and weaker world trade is pulling down GDP (gross domestic product) growth given Germany's strong external dependence," the fund said in comments posted on its Internet site.

/... http://nz.news.yahoo.com/080227/8/47iu.html

[Ghost Dog]

23. UK's 'coping classes' feel financial pinch

As Britain's economy slows, the gloom felt by its middle class has led to the acquisition of a new label: the coping class. The term, invented by an Irish politician, has been enthusiastically adopted by the media who deploy it as a display of empathy with their readers and listeners.

Recent news suggests that middle-class Britons are right to feel financially squeezed. Economic growth is expected to slow to 1.5 per cent this year and Mervyn King, governor of the Bank of England, has warned of recession. Job losses are expected in the City of London, Europe's premier financial centre and one of the UK's main drivers of growth. Meanwhile, the Labour government has steadily been increasing taxation to pay for welfare and public services.

/Continues... http://news.yahoo.com/s/ft/20080228/bs_ft/fto022720082319260472;_ylt=And0D2VxwA6gOC5iFoUY7Uf2ULEF

[Ghost Dog]

110. Consumer woes lead Europe lower

European equity markets fell back on Thursday, with France's CAC 40 leading the declines after French consumer confidence hit a record low.

Paris' benchmark index fell 2.1 per cent to 4,865.23 after consumer confidence sank to its lowest level since the measure was introduced in 1987 as purchasing power was squeezed by inflation, which hit a 12-year high in January.

The FTSE Eurofirst 300 fell 1.8 per cent to 1,333.99, Frankfurt's Xetra Dax shed 1.9 per cent to 6,862.52 and London's FTSE 100 lost 1.8 per cent to 5,965.7.

Banks took a dive on renewed writedown fears, with UBS (NYSE:UBS) slipping 4.9 per cent to SFr35.66 after Morgan Stanley warned that deteriorating credit markets could force it to take further losses.

Confidence in the wider banking sector took another hit in later afternoon trading when Ben Bernanke, Chairman of the Federal Reserve, said he expected some small US banks to fail because of market turmoil.

BNP Paribas fell 4 per cent to EU61.36 and Credit Suisse (NYSE:CS) dropped 2.6 per cent to SFr53.50

/... http://news.yahoo.com/s/ft/20080228/bs_ft/fto022820081218500539

[DemReadingDU]

26. US economy risks a 'lost decade' like Japan

2/28/08 The US could be facing a "lost decade" like that suffered by Japan in the 1990s as the markets fail to respond to interest rate cuts and the US Federal Reserve runs out of options, the head of one of the leading private equity firms said today.

Tim Collins of Ripplewood Holdings, said the Fed was "running out of policy alternatives" as it attempted to prevent a long recession in the US.

Mr Collins, whose firm has significant expertise in Japan after leading the buyout and turnaround of Japan Telecom, said he believed a "sharp repricing of assets" was the most likely outcome.

But he said: "My fear is that we will prolong it and suffer a death of a thousand cuts after we have exhausted all the options."

"Even without a recession and with all of the policy tools available we still have hundreds of billions of dollars of losses."

Japan has only recently emerged from a period of zero interest rates.


more...
http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/02/28/bcnusrates12.xml

[AnneD]

43. Morning Marketeers.....

:donut: and lurkers. It's funny, I think it will take at least a decade to pull out of this too, and that's if we do it right. I don't have any stats or figures to back me up, I just have my experiences in Houston during the S&L scandal and the subsequent Real Estate bust and Oil bust. It took a full 5-7 years to absorb the excess office space and about 10 years for the residential market to pick up. The face of Houston really changed. We knew we had a strong economy and relied on oil, but those three busts really hurt. If it hadn't been for the fact that the Oil Bust happened too-I don't the the Real Estate Bust would have been as bad

What has helped us now is the large influx of NOLA folks that do not want to go back. They absorbed a lot of housing. However or contractor seemed to get the memo a bit late and we are see a big slow down now. What will help us this time around is the Oil. Houston leaders made a conscious effort to diversify the economy after our experience of the 80's. The Texas Medical Center, Port of Houston, and NASA are as strong as the Oil and Petrochemical business now. We do a lot of international business also. One industry or two may be having a downturn, but something will be going. It IS like an eight cylinder engine. If you are hitting on all cylinders...great. But one-three could be misfiring or sputtering along and you can still get by. But their comes a point that if enough cylinders fail-you have a hell of a time getting it up and running again. That is what happened in Japan, and that is what happened in Houston the first go round, Time will tell if we did better this time around in Houston.

Happy hunting and watch out for the bears.

[Hugin]

47. Morning AnneD...

:hangover:

My calculations show it will take 32.5 years give or take a year or two in order to totally clear this current
malfeasance and restore some semblance of order to the financial system. The clock starting when
either... 1. The wages of the median American worker reaches some sort of realistic parity with the cost of living.
or 2. The cost of living re-adjusts to nearer the median income level.

Oh, and the real kicker is the time-frame it will take to cure the ills is non-linear and the longer nothing is done
the longer it will take. Exponentially, JUST LIKE INTEREST CALCULATIONS.

But, other than that, I'm fine thanks. and you? How are you doing? :)

[AnneD]

101. Well we had some good leaders during this time....

I mean, they actually worked at solving the problem. Kathy Whitmire steered us through those tough times. We had one screwup (Lee Brown-he was a good police chief but a lousy mayor-he went on to become a Drug Czar for Clinton-I don't think he was good at that either).

We now have Bill White-We like him a lot. He really gets things done and is not afraid to make unpopular decisions that are good for the city in the long view. He's one of those new DEM's you hear about. I can't think of too many folks that could have pulled off taking all those evacuees and making it work as well as it has. We have term limits and we really will hate to see him go.

I can't wait till the GOP is out wandering in the desert again. Unfortunantly-I don't think the DEM's are up to snuff like they should be.

Glad to see you'r chipper Prag. My tires weren't slashed and I don't worry about the car getting keyed (it's a beater) anyway. So I'm ok. It takes more than a threat to get me down. I use to make house calls to crack house at my first school. I have a whole set of Tales From The Crib stories. That is what opened my eyes two the 2 Americas.

Our student came back with her mom-they are safe and we reassured the girl that our first concern was her-we knew her dad has some problems and not to be embarassed about it. They will be returning soon and he will be undergoing surgery (I can only imagine). Some things are just tough on kids-and this is one of them.

[Demeter]

60. We'd Be Extremely Fortunate If It's Only a Decade and Not 2 Generations

I don't know what they think they're doing, besides the usual avoidance of reality, duty, and ethics. But NOBODY is looking to planning recovery. The Powers that Be are scrabbling after the last crumbs of the economic pie that they stole from anyone who actually produces wealth by honest labor at something tangible and productive.

[UpInArms]

13. dollar watch

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

Last trade 74.193 Change -0.029 (-0.04%)

Play a Dollar Recovery against the Yen

http://www.dailyfx.com/story/topheadline/Play_a_Dollar_Recovery_against_1204143635554.html

Exit the USDCAD short that we entered last Wednesday for a 300+ pip gain. Although we expect price to come under .9755, the low this morning is close enough at .9759. The new idea is to play a USD recovery against the Yen. The USDJPY has held above 106, which is round number support and a reaction low from earlier in the month.

The entire rally from 104.97 to 108.59 could have completed a larger correction but we subjectively favor a larger rally because of various sentiment measures. A large complex correction may be unfolding with the drop from 108.59 as wave X in a W-X-Y. If this is the case, then price should put in a bottom soon and begin a rally that reaches roughly 110. Be sure to visit the Elliott Wave forum for trading ideas and updates to this pattern.

...more...

Fed Report Points to Further Rate Cuts, Dollar Accelerates Its Record Breaking Declines

http://www.dailyfx.com/story/bio1/Fed_Report_Points_to_Further_1204155491231.html

Since the dollar marked its unfavorable milestones late in the US session yesterday, traders around the world have jumped in to sell the battered currency. Now at record lows, bulls have quickly lost hope in a possible rebound from an overextended greenback. In fact, looking across the market, we have seen the influences of an unwanted dollar on otherwise sound technical formations among the majors. Momentum in EUR/USD pushed the pair through the closely watched 1.50 level and quickly surpassed 1.51 in the same session. Those currencies with high yields and hawkish central banks proved especially attractive to those wanting to short the dollar. NZD/USD rallied to a new multi-decade high of 0.82 while the Australian dollar broke to a new 23 year high. This follow through momentum wasn’t found on sentiment alone, however; Fed Chairman Ben Bernanke’s semiannual testimony before the House Financial Services Committee certainly played its part. Few major changes were made in the central banker’s outlook for economic activity and Fed policy from last week’s minutes from the January 29-30 FOMC meeting; though his commentary did confirm the outlook for further policy easing. In his testimony, Bernanke said the policy group would be “carefully evaluating incoming information bearing on the economic outlook and will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks.” In addition to his concern for growth, Bernanke had also recounted concern over inflation trends. While these worries have been present in the Fed’s commentary for some time, more media outlets and analysts have connected the dots and taken these forecasts to mean the economy will fall into a period of stagflation. Besides the Fed Chairman’s dour commentary, the market had further reason to sell dollars from two disappointing indicators. The Commerce Department reported a 5.2 percent drop in durable goods orders – the biggest such contraction in a year – predominately due to the drop in consumer sentiment and its expected effect on American’s spending habits. And, keeping the pressure on the housing market’s recession, new home sales dropped a greater-than-expected 2.8 percent to a 588,000-annual pace, now the weakest since 1995.

...more...

[Ghost Dog]

18. Out of favor, the dollar could do well

LONDON: The out-of-favor U.S. dollar, currently plumbing record lows against the euro, could yet turn out to be an unlikely beneficiary of the economic misery afflicting the United States.

Long-term investors have begun betting on the dollar to gain strength against most major currencies over the coming year, citing, among other things, the seemingly contradictory notion that it will benefit from a recession or slowdown.

One view has it that no matter how the U.S. and global economies proceed, the dollar does well.

Under one scenario, the United States has a mild recession but recovers quickly with the help of lower interest rates from the U.S. Federal Reserve. Once the Fed stops cutting, investors buy the dollar because rates and the economy will be heading up.

The second scenario is that the U.S. economy suffers a heavy downturn and drags the global economy with it. This would prompt U.S. investors to bring their money home and global investors to seek safety, both of which would bolster the dollar.

/... http://www.iht.com/articles/2008/02/27/business/col28.php

[Ghost Dog]

22. UAE to keep dollar peg, says cbank governor-paper

DUBAI, Feb 28 (Reuters) - The United Arab Emirates is committed to keeping its currency tied to the dollar, its central bank governor said in remarks published on Thursday, a day after the dollar hit a record low against the euro.

Sultan Nasser al-Suweidi said the dollar "was heading towards a rise, therefore it is illogical to talk now about dropping the link of the dirham to the dollar", according to paraphrased remarks reported by al-Ittihad newspaper.

/.. http://www.reuters.com/article/marketsNews/idINL286499220080228?rpc=44

[DemReadingDU]

24. new dollar low $74.07, 2/27/08

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

[Ghost Dog]

25. Euro= USD 1.510, GBP 0.761, CHF 1.604 and JPY 161.0 at this time

[DrDebug]

72. Euro = USD 1.520

GhostDog, how many billions are needed to cause one cent difference between the two largest economies? It must be fast fortunes which are being converted.

[Ghost Dog]

77. You've got me there, DrDebug.

Don't know, but there are clearly very large flows at the moment...

(And, BTW, the numbers I'm quoting are delayed, and smoothed-out (just google 'widgets'), so I'll look into that $1.520 right now (I see the charts)).

ed. Hmm:

Pressure on dollar resumes after data, Bernanke
By William L. Watts & Lisa Twaronite, MarketWatch
Last update: 11:18 a.m. EST Feb. 28, 2008

SAN FRANCISCO (MarketWatch) -- Pressure remained on the dollar Thursday, as it buckled to fresh record lows against the euro after lackluster U.S. data.

The 15-nation currency rose as high as $1.5194, its loftiest level since it began trading in January 1999, as U.S. Federal Reserve Chairman Ben Bernanke spoke on Capitol Hill for the second day of his report on monetary policy.

While he downplayed concerns that the U.S. economy might be in the grip of stagflation - a combination of low growth and inflation -the Fed chief said there would likely be some bank failures, though not large firms.

"The Fed chief is still playing it close to the vest in terms of the policy stance by mid March," said analysts at Action Economics.

/... http://www.marketwatch.com/news/story/dollar-pressure-resumes-data-bernanke/story.aspx?guid=%7BDB01F1C6%2D4BA6%2D4D8B%2DA421%2D21FE58009C0C%7D

Bush says 'we believe in a strong dollar policy'

WASHINGTON (Thomson Financial) - President George Bush repeated his strong dollar policy today as he was asked about the US economy showing increased reliance on exports which are aided by a weak dollar.

'We believe in a strong dollar policy,' Bush told reporters at the White House, adding that the value of the dollar will ultimately be reflected in 'the ability of the economy to grow economically.' :freak:

/... http://www.moneyam.com/action/news/showArticle?id=2719990

[DrDebug]

78. I saw the vertical line at the OP and used my calculator

I am curious how much is being dumped, and the question nobody dares to ask: who is doing the dumping, because this sounds like major players.

[Ghost Dog]

85. Some evidence on (practical) demand for Euros here:

Rebalancing from the US to Europe -- evidence from shipping containers
http://www.rgemonitor.com/blog/setser/245987/

-- And, notice the 'safe haven' Swiss Franc powering higher, even against the Euro.

[DrDebug]

91. Thanks for the edit. Bush wants a strong dollar

I hate "stagflation," because it sounds like a neo-con invented that word.

In the meantime, we are still looking for the owner of the dog who just took a crap on the dollar.

The dog is rumored to look like this:

[Ghost Dog]

74. Euro= USD 1.513, GBP 0.761, CHF 1.602 and JPY 161.0 at this time

:smoke:

[UpInArms]

76. Dollar in death throes - now under 74

Last trade 73.957 Change -0.265 (-0.35%)

[UpInArms]

80. 73.818

Last trade 73.818 Change -0.404 (-0.53%)

[DemReadingDU]

102. dropping lower: $73.798

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

[UpInArms]

107. 73.751

Last trade 73.751 Change -0.471 (-0.62%)

[UpInArms]

121. 73.639

Last trade 73.639 Change -0.583 (-0.76%)

[Roland99]

122. EGADZOOKS!!!

:faint:

[Warpy]

129. Bernanke hasn't even dropped rates yet, has he?

It seems all the damned fool has to do now is mention the possibility and the buck takes a dive.

[Karenina]

135. Was that $1.50 "psychological mark"

not mentioned, like, I mean, AGES AGO in these parts? When it cra$he$, there will be a $ignficant few who will have to order larger pocket$ on their tailored $uit$ to accommodate the bulk.

[Ghost Dog]

148. Euro= USD 1.523, GBP 0.763, CHF 1.598 and JPY 160.6 at this time

.

[UpInArms]

16. Sprint Nextel reports $29.5B loss in 4Q (with a B!)

http://news.yahoo.com/s/ap/20080228/ap_on_bi_ge/earns_sprint_nextel

OVERLAND PARK, Kan. - Sprint Nextel Corp. says it swung to a huge fourth-quarter loss as it wrote down most of the remaining value of its 2005 purchase of Nextel Communications Inc.

The nation's third-largest wireless carrier said Thursday it lost $29.5 billion, or $10.36 per share, during the quarter ending Dec. 31. By comparison, Sprint Nextel earned $261 million, or 29 cents per share, during the same period a year ago.

...more...

[UpInArms]

119. Fitch cuts Sprint Nextel rating to junk after loss

http://www.reuters.com/article/bondsNews/idUSWNA420020080228

NEW YORK, Feb 28 (Reuters) - Fitch Ratings on Thursday cut its rating on Sprint Nextel Corp. (S.N: Quote, Profile, Research) to junk status and warned it may cut the rating again after the No. 3 U.S. mobile service posted a $29.45 billion quarterly loss.

Fitch cut Sprint's rating by one notch to "BB-plus," the highest junk rating, from "BBB-minus." The downgrade reflects expectations that Sprint's 2008 results will be significantly worse than expected, Fitch said in a statement.

[DemReadingDU]

21. Healthcare fraud trial in Columbus, Ohio - Update

2/27/08 Defense attorneys portray government's chief witness as liar

The testimony of a main architect of the largest alleged fraud ever to take place at a private company ended Wednesday morning, with defense attorneys suggesting the witness is a liar.

Sherry Gibson, the former executive vice president of compliance at National Century Financial Enterprises Inc., concluded her three-and-a-half days of testimony, but not before defense attorneys attempted to draw blood for the last time. Gibson testified earlier that she was at the center of a $2.84 billion fraud that led to National Century's 2002 bankruptcy. She also implicated the five executives standing trial in U.S. District Court in Columbus on criminal fraud, conspiracy and money laundering charges.

Standing trial are Rebecca S. Parrett, Donald H. Ayers, Roger S. Faulkenberry, Randolph H. Speer and James E. Dierker, all of whom have pleaded not guilty. If convicted, the defendants face 30 years to life in prison.

Gibson was indicted, too, but pleaded guilty in 2003 to conspiracy to commit securities fraud. She spent three years in a federal penitentiary in Kentucky, repaid $420,000 to the government and agreed to cooperate with the Justice Department's investigation into National Century.

Before she left the stand, defense attorneys attempted to discredit Gibson's testimony for the last time, while laying blame solely on her.

"Who was the No. 1 person falsifying investor reports?" asked Gregory Peterson, attorney for Parrett.

"I was," Gibson said.

"You had the option of telling the truth, did you not?" asked Frederick Benton, attorney for Speer.

"Yes," Gibson said.

"You lied as a matter of choice?" Benton asked.

"Yes," Gibson said.

Javier Armengau, attorney for Faulkenberry, asked Gibson about the people at the firm who knew about National Century making illegal advances to health-care clients. When Gibson named the defendants on trial, Armengau accused her of parroting the government's indictment, leaving out former National Century employees who testified before Gibson who knew about fraud at the company.

National Century was a financier of last resort for health-care providers. The firm specialized in buying receivables from medical businesses at a discount, giving them cash up front so they could pay their bills. It then packaged the receivables as asset-backed bonds and sold them to investors.

http://www.bizjournals.com/columbus/stories/2008/02/25/daily22.html

link to previous articles...
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3199986&mesg_id=3200050

[Robbien]

30. Thanks for the daily updates

They are much appreciated. That this case gets so little ink just goes to prove how powerful the insurance industry is.

[DemReadingDU]

32. You're welcome

That's why I think it is important for an update every day when court is in session. This gives more people exposure to the antics of the insurance industry. I don't doubt that this scheme was cooked up only in Ohio. It is probably more widespread, but the fraudsters haven't been caught, yet.

And with a link back to the previous articles, a person can track the trial from the beginning.

[UpInArms]

155. this exchange is priceless:

"You had the option of telling the truth, did you not?" asked Frederick Benton, attorney for Speer.

"Yes," Gibson said.

"You lied as a matter of choice?" Benton asked.

"Yes," Gibson said.

[Demeter]

65. So, Are There Any Innocent Parties On Trial Here?

In your opinion?

[DemReadingDU]

82. Here's the link of people on trial

2/3/08
http://www.dispatch.com/live/content/local_news/stories/2008/02/03/fraud.html

I'm not from Columbus, Ohio. I am only reading what I post here. I have not spoken to anyone about this trial nor do I know anyone who was impacted by this fraud. It seems interesting to follow, in light of how the company got cash by selling bonds to investors, including some big pension funds, which were among those hit hardest by National Century's collapse.

more...1st article about the trial
2/3/08 As fraud cases go, the National Century Financial Enterprises case ranks up there with Enron and WorldCom, prosecutors say.
http://dispatch.com/live/content/local_news/stories/2008/02/03/poulsen.ART_ART_02-03-08_A1_PH97M78.html?sid=101

[donkeyotay]

111. NCFE, aka No Cash Flow Ever by some employees. nt

[DemReadingDU]

116. LOL

That was brought out at the trial a few days ago...
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3198268&mesg_id=3198425

[donkeyotay]

120. That's it! Thanks for keeping these links to this trial going.

I've been researching some of the players. Ayers and Poulsen had some interesting companies. Happ has some interesting connections. too. I don't know if it's a sideline, but the FBI busted a prescription fraud that took place through a Tender Loving Care entity, another of many little companies Ayer created. (This one was only $22 million, so it was just pocket change. Another one for $10m was busted in Detroit yesterday. I don't know if they're related, but like I said, they're just a sideline if they do connect.)

There are books to be written here. I'm waiting for someone in Washington to call out the fact that healthcare could be a lot more affordable if we could get the crime out.

[DemReadingDU]

126. No kidding!

Intresting history about Ayers, Poulsen, & Happ. So much fraud out there...I need a spare brain to try to keep track of it all. Yeh, get the fraud out and CEO salary down so we can afford basic healthcare.

:P

[Ghost Dog]

27. Before the Bell-Freddie Mac drops after results

NEW YORK, Feb 28 (Reuters) - Shares of Freddie Mac (FRE.N: Quote, Profile, Research) dropped 3.3 percent to $24.26 before the bell on Thursday after the second-biggest provider of U.S. residential mortgage funding posted a $2.5 billion fourth-quarter loss.

/. http://uk.reuters.com/article/hotStocksNews/idUKN2854286420080228

[Ghost Dog]

38. ...and of course we heard from Fannie

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x2933140

- includes this great toon:

[zabet]

41. That is a GREAT toon!

Chimpy has never spoken truer
words in real life.

[DemReadingDU]

28. China raises minimum wages to calm consumers

2/27/08 Analysts fear wage hikes could further fuel inflationary pressure

In an effort to calm grousing consumers as prices rise to 11-year highs, China is raising minimum wages across the country, a move analysts fear could further stoke inflation.

Guangdong, China's richest province, said it plans to raise minimum wages by as much as 18% in some cities starting April 1. The decision followed similar actions in other areas, notably the major cities of Shanghai and Beijing. Tibet, an autonomous region administered by China's central government, raised minimum wages by nearly 50% at the beginning of this year.

The wage increases, aimed at relieving food and other price pressures, could instead fuel inflation, analysts said. Higher wages are also likely to raise prices of U.S. imports from China, and possibly reduce China's attraction as the world's manufacturing center.

China is wrestling with consumer inflation that accelerated to 7.1% in January, up from a 6.5% rise in December, the National Bureau of Statistics reported last week.


Minimum wages in the capital city Guangzhou will rise to 860 yuan ($120) per month from 780 yuan, an increase of 10%. Wages of other cities in the province will also get a boost, with those in some inland cities up nearly 18%.

more...
http://www.marketwatch.com/news/story/story.aspx?guid=%7BB120D814%2D3C01%2D468A%2D9C11%2DB7596BCE1A35%7D&siteid=rss

[Hugin]

39. Ouch, those outsourced Corporations are going to feel that one...

Should've stayed home where the brainwashed programmed 'Look out for the rich while firmly screwing our
own best interest crowd' could buffer them.

[Ghost Dog]

40. God, how I hate that term "consumers". n/t

[Hugin]

42. What term would you prefer?

Let's see if we can get it into the common vernacular.

[Ghost Dog]

45. Well, in this context, how about "workers"?

or, like, The People, you know...

[Hugin]

48. Hey, I'm all for it...

Anything to remind the elite they're dealing with other people.

:thumbsup:

[donkeyotay]

117. I almost watched Dear Leader, right up until he said "our consumers..."

Then he had to smirk and add his line about the checks being sent out being "our money." Then I had to turn off tee vee while I still had one. We aren't his. We are citizens. Not folks, not consumers. We are citizens, We the People, that the government in Washington supposedly works for.

[AnneD]

146. At this point...

I am truly angry that the DEM leaders haven't brought charges against these crooks. This will come back to haunt us....mark my words. Clinton did nothing and they tried to impeach him-Bush et al steal the treasury, our Rights, etc and they get a free pass.:nuke:

[UpInArms]

156. my mom hated it when Dimson was TX gov and he would

call Texans "my people" like they were his property - slaves or something he could own.

it literally made her :puke: to hear him talk

[Warpy]

131. Meanwhile, the price of rice has soared 60% all over Asia

This lousy 10% raise will please no one.

Expect riots.

[Ghost Dog]

31. Joseph Stiglitz on the true cost of war...

... Thus, any idea that war is good for the economy, Stiglitz and Bilmes argue, is a myth. A persuasive myth, of course, and in specific cases, such as world war two, one that has seemed to be true - but in 1939, America and Europe were in a depression; there was all sorts of possible supply in the market, but people didn't have the cash to buy anything. Making armaments meant jobs, more people with more disposable income, and so on - but peacetime western economies these days operate near full employment. As Stiglitz and Bilmes put it, "Money spent on armaments is money poured down the drain"; far better to invest in education, infrastructure, research, health, and reap the rewards in the long term. But any idea that war can be divorced from the economy is also naive. "A lot of people didn't expect the economy to take over the war as the major issue ," says Stiglitz, "because people did not expect the economy to be as weak as it is. I sort of did. So one of the points of this book is that we don't have two issues in this campaign - we have one issue. Or at least, the two are very, very closely linked together."

And it is the world economy that is at stake, not just America's. The trillions the rest of the world has shouldered include, of course, the smashed Iraqi economy, the tens of thousands of Iraqi dead, the price, to neighbouring countries, of absorbing thousands of refugees, the coalition dead and wounded (before the war Gordon Brown set aside £1bn; as of late 2007, direct operating costs in Iraq and Afghanistan were £7bn and rising). But the rising price of oil has also meant, accoring to Stiglitz and Bilmes, that the cost to oil-importing industrial countries in Europe and the Far East is now about $1.1 trillion. And to developing countries it has been devastating: they note a study by the International Energy Agency that looked at a sample of 13 African countries and found that rising oil prices have "had the effect of lowering the average income by 3% - more than offsetting all of the increase in foreign aid that they had received in recent years, and setting the stage for another crisis in these countries". Stiglitz made his name by, among other things, criticising America's use of globalisation as a bully pulpit; now he says flatly, "Yes, that's part of being in a global economy. You make a mistake of this order, and it affects people all over the world."

And the borrowed trillions have to come from somewhere. Because "the saving rate is zero," says Stiglitz, "that means that you have to finance by borrowing abroad. So China is financing America's war." The US is now operating at such a deficit, in fact, that it doesn't have the money to bail out its own banks. "When Merrill Lynch and Citibank had a problem, it was sovereign funds from abroad that bailed them out. And we had to give up a lot of shares of our ownership. So the largest shareowners in Citibank now are in the Middle East. It should be called the MidEast bank, not the Citibank." This creates a precedent of dependence, "and whether we become dependent on Middle East oil money, or Chinese reserves - it's that dependency that people ought to worry about. That is a big change. The amount of borrowing in the last eight years, on top of the borrowing that began with Reagan - that has all changed the US's economic position in the world."

So quite apart from the war, does he think a particular kind of unfettered market has had its day? "Yes. I think that anybody who believes that the banks know what they're doing has to have their head examined. Clearly, unfettered markets have led us to this economic downturn, and to enormous social problems." Combined with the war, whoever inherits the White House faces a crisis of epic proportions. Where do they go from here? "The way that shapes the debate," says Stiglitz, "is that Americans have to say, 'Even if we stay for another two years, just two years, and we're spending $12bn a month up front in Iraq, and it's costing us another 50% in healthcare, disability, bringing it up to $18bn a month in Iraq, and you look at that in another 24 months, we're talking about half a trillion dollars more for two years - forgetting about the economic cost, the ancillary costs, the social costs - just looking at the budgetary cost - not including the interest - you have to say, is this the way we want to spend a half a trillion dollars? Will it make America stronger? Will it make the Middle East safer? Is this the way we want to spend it?"

/more... http://www.guardian.co.uk/world/2008/feb/28/iraq.afghanistan

[Demeter]

68. A Growing Demand for Shrinks!

See, there are bright spots--thousands of points of light!

(One would think that a going need for mental health would indicate an epidemic of disease...not a good thing, IMO)

[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

2008-01-17 Thursday, January 17 0.971817 USD
2008-01-18 Friday, January 18 0.97144 USD
2008-01-21 Monday, January 21 0.97144 USD
2008-01-22 Tuesday, January 22 0.9758 USD
2008-01-23 Wednesday, January 23 0.972573 USD
2008-01-24 Thursday, January 24 0.99295 USD
2008-01-25 Friday, January 25 0.995619 USD
2008-01-28 Monday, January 28 0.995818 USD
2008-01-29 Tuesday, January 29 1.0022 USD
2008-01-30 Wednesday, January 30 1.00644 USD
2008-01-31 Thursday, January 31 0.998203 USD
2008-02-01 Friday, February 1 1.00614 USD
2008-02-04 Monday, February 4 1.00735 USD
2008-02-05 Tuesday, February 5 0.995718 USD
2008-02-06 Wednesday, February 6 0.997705 USD
2008-02-07 Thursday, February 7 0.988631 USD
2008-02-08 Friday, February 8 1.0006 USD
2008-02-11 Monday, February 11 0.998203 USD
2008-02-12 Tuesday, February 12 1.00371 USD
2008-02-13 Wednesday, February 13 1.0008 USD
2008-02-14 Thursday, February 14 1.00331 USD
2008-02-15 Friday, February 15 0.998702 USD
2008-02-18 Monday, February 18 0.998702 USD
2008-02-19 Tuesday, February 19 0.984349 USD
2008-02-20 Wednesday, February 20 0.981547 USD
2008-02-21 Thursday, February 21 0.991768 USD
2008-02-22 Friday, February 22 0.984737 USD
2008-02-25 Monday, February 25 1.0018 USD
2008-02-26 Tuesday, February 26 1.0141 USD
2008-02-27 Wednesday, February 27 1.02291 USD

Current values

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

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     1.0242 1.0242 1.0242 1.0242 +0.0042 +0.42% 
CD.H08 Mar 2008 1.0229 1.0235 1.0220 1.0220 +0.0027 +0.27% 
CD.M08 Jun 2008 1.0190 1.0207 1.0173 1.0175 -0.0012 -0.12% 
CD.U08 Sep 2008 0.9990 0.9990 0.9990 1.0155 -0.0015 -0.15% 
CD.Z08 Dec 2008 1.0148 1.0148 1.0148 1.0136 -0.0015 -0.15% 
CD.H09 Mar 2009 1.0130        1.0130 1.0117 -0.0015 -0.15% 
CD.M09 Jun 2009 0.9995 0.9995        1.0098 -0.0015 -0.15% 

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

Market              Open    High     Low    Last   Change     Pct 
AUSTRALIAN $/CANADIAN $ (NYBOT:AS)
AS.H08 Mar 2008   0.8834                  0.9201  +0.0076  +0.88%  
AUSTRALIAN $/US$ (NYBOT:AU)
AU.H08 Mar 2008   0.90420                 0.93700 +0.00735 +0.84%  
CANADIAN $/JAPANESE YEN (NYBOT:HY)
HY.H08 Mar 2008   108.42                  108.42  +0.21    +0.19%  
EURO/AUSTRALIAN $ (NYBOT:RA)
RA.H08 Mar 2008   1.60580 1.60580 1.60580 1.61165 +0.00155 +0.09%  
EURO/BRITISH POUND (NYBOT:GB)
GB.H08 Mar 2008   0.76280 0.76280 0.76280 0.76280 +0.00015 +0.02%   
EURO/CANADIAN $ (NYBOT:EP)
EP.H08 Mar 2008   1.47880 1.47880 1.47880 1.48310 +0.01395 +0.97%  
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.H08 Mar 2008   160.25  160.25  160.25  160.25  -0.24    -0.15%   
EURO/US$ (SMALL) (NYBOT:EO)
EO.H08 Mar 2008   1.46580 1.46580 1.46580 1.51025 +0.01360 +0.93% 

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

The March Canadian Dollar was higher overnight as it extends this week's rally and is poised to test December's high crossing at 102.59. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. Closes above December's high crossing at 102.59 would open the door for a larger-degree rally into March. Closes below the 20-day moving average crossing at 99.87 would confirm that a double top with December's high has been posted. First resistance is Wednesday's high crossing at 102.43. Second resistance is December's high crossing at 102.59. First support is the 10-day moving average crossing at 99.97. Second support is last week's low crossing at 98.02.

Analysis

The greenback sucks. It really does. That's all I can say.

[UpInArms]

35. opening with a bloody thud

Dow 12,601.48 92.80 (0.73%)
Nasdaq 2,339.96 13.82 (0.59%)
S&P 500 1,371.53 8.49 (0.62%)
10-Yr Bond 3.729% 0.121

NYSE Volume 69,654,093.75
Nasdaq Volume 41,675,355.469

08:59 am : S&P futures vs fair value: -11.4. Nasdaq futures vs fair value: -6.2. Futures are trading modestly above their worst levels. They continue to point to a negative start. Crude oil has recovered some of yesterday's losses, and is now above the $100 per barrel mark.

08:35 am : S&P futures vs fair value: -8.4. Nasdaq futures vs fair value: -9.0. Futures dip a bit on two disappointing economic readings. Fourth quarter preliminary GDP matched the advance reading of 0.6%. This was less than the expectations of 0.8% rise. Also, personal consumption was revised downward to 1.9% from 2.0%. Separetely, the weekly initial jobless claims rose to 373,000. Economists expected 350,000 claims.

08:05 am : S&P futures vs fair value: -7.5. Nasdaq futures vs fair value: -6.0. Early indications suggest a lower start to trading. In earnings news, Sears Holdings (SHLD) missed its EPS estimate by six cents. Freddie Mac (FRE) reported a fourth quarter loss of $3.97 per share, which is $1.63 worse than the First Call consensus. On Wednesday, Fannie Mae (FNM) also reported a larger than expected loss. Sprint (S) is down more than 10% in pre-market trading. The company had a massive write-down in the value of its wireless unit and eliminated its dividend. Bernanke will once again be testifying, this time before the Senate Banking Committee. Because he already testified before the House yesterday, there should not be any real surprises today.

06:18 am : FTSE...6010.40...-66.10...-1.1%. DAX...6928.08...-69.77...-1.0%.

[UpInArms]

36. PIEHOLE ALERT! the One-Trick Pony spy talk at 10:05 EST

http://www.reuters.com/article/bondsNews/idUSN2854419720080228

WASHINGTON, Feb 28 (Reuters) - U.S. President George W. Bush will hold a news conference on Thursday at 10:05 a.m. (1505 GMT), the White House said.

White House spokeswoman Dana Perino said Bush would ask lawmakers in the House of Representatives to pass legislation that would retroactively shield phone companies for participating in a warrantless wiretap program.

Perino said Bush would also talk about the need for funding troops in Iraq and he would urge Congress to quickly pass legislation to help homeowners avoid foreclosure.

[Hugin]

37. "he would urge Congress to quickly pass legislation to help homeowners avoid foreclosure."

He's sure in a hurry to Veto it. :rofl:

[UpInArms]

51. spewing stupidity right now

01. Bush calls for Fannie Mae, Freddie Mac reforms
10:16 AM ET, Feb 28, 2008 - 3 minutes ago

02. Congress should pass terrorist-monitoring bill, Bush says
10:16 AM ET, Feb 28, 2008 - 3 minutes ago

03. Bush urges Congress to reject Senate mortgage-relief bill
10:16 AM ET, Feb 28, 2008 - 3 minutes ago

04. Bush: economy has slowed, but doesn't see recession
10:15 AM ET, Feb 28, 2008 - 4 minutes ago

[Hugin]

54. ~10:25 ET: Kinda slow...

Index Last Change % change
• DJIA 12602.37 -91.91 -0.72%
• NASDAQ 2343.78 -10.00 -0.42%
• S&P 500 1372.31 -7.71 -0.56%

[Hugin]

57. ~10:45 ET: Still slow...

Index Last Change % change
• DJIA 12632.74 -61.54 -0.48%
• NASDAQ 2349.98 -3.80 -0.16%
• S&P 500 1375.73 -4.29 -0.31%

[UpInArms]

59. lips still moving

03. Bush reiterates belief in U.S. strong dollar policy
10:43 AM ET, Feb 28, 2008 - 6 minutes ago

[Hugin]

62. ~11:00 ET: More Slow...

Index Last Change % change
• DJIA 12618.08 -76.20 -0.60%
• NASDAQ 2344.91 -8.87 -0.38%
• S&P 500 1372.49 -7.53 -0.55%


In related news: The little "Rate this story" thing at the bottom of the MSNBC page remains... Blank.

Will update.

[UpInArms]

66. 11:04 and dropped like a rock

Dow 12,562.64 131.64 (1.04%)
Nasdaq 2,338.05 15.73 (0.67%)
S&P 500 1,367.50 12.52 (0.91%)
10-Yr Bond 3.74% 0.11

NYSE Volume 1,156,260,750
Nasdaq Volume 618,362,250

10:30 am : The stock market is off its lows as the telecom (+2.0%) and energy (+1.1%) sectors climb to their best levels of the session.

There will be no surprises in Fed Chairman Ben Bernanke's prepared remarks before the Senate. Bernanke's prepared text for the Senate Finance Committee is exactly the same as his text yesterday for the House. Senate members will be asking Bernanke a series of questions. There is a possibility the market may respond to some of Bernanke's comments, but it is likely he will just be reiterating what he said yesterday.

In a press conference, President Bush said he does not think we are in a recession, but there is no question the economy is in a slowdown. He said the tax rebate checks for the recently passed fiscal stimulus plan will begin going out in the second week of May.DJ30 -66.18 NASDAQ -5.52 SP500 -5.32 NASDAQ Dec/Adv/Vol 1611/945/428 mln NYSE Dec/Adv/Vol 1924/905/283 mln

[UpInArms]

67. Bernanke sees some bank failures, but not larger firms (oops!)

03. Bernanke sees some bank failures, but not larger firms
10:59 AM ET, Feb 28, 2008 - 7 minutes ago

[Hugin]

71. Nah, the bucket brigade has them covered...

:eyes:

[Hugin]

69. ~11:05 ET: Surge of slowness...

Index Last Change % change
• DJIA 12586.90 -107.38 -0.85%
• NASDAQ 2341.43 -12.35 -0.52%
• S&P 500 1370.69 -9.33 -0.68%


Rate this story -Update- :teletypenoise: Importance now stands at, "Current rating: 0.5 by 23 users".
(I'm guessing the staff of MSNBC.com is allowed to vote on story importance.)

[Hugin]

75. ~11:20 ET: Robust slow...

Index Last Change % change
• DJIA 12562.48 -131.80 -1.04%
• NASDAQ 2332.80 -20.98 -0.89%
• S&P 500 1367.09 -12.93 -0.94%

Rate this story -Update- :teletypenoise: Importance now stands at, "Current rating: 0.5 by 48 users".
Looks like they cleaned up Dub for no reason.

[Hugin]

83. ~11:45 ET: Slow as molasses...

Index Last Change % change
• DJIA 12553.12 -141.16 -1.11%
• NASDAQ 2327.13 -26.65 -1.13%
• S&P 500 1365.29 -14.73 -1.07%


Rate this story -UPDATE- :teletypenoise: Importance now stands at, "Current rating: 1.0 by 125 users".
That's a 50% increase folks.

[UpInArms]

49. an article that actually addresses inflation - and what is really going on

unfortunately, they think it only affects "seniors"

but, I'll take what I can get, so here it is:

The Danger in 'Senior' Inflation

Meanwhile, according to BLS data, the cost of food in the supermarket is rising by 5.7% a year. Home energy is up 5.5%. Gasoline is up 34%.

It costs 8.9% more to fly than it did a year ago. Medical services are rising by 5.7% a year, hospital services by 8.5%, home health-care and nursing-home fees by 4.5%. Funerals are up 4.8%.

Overall, this "senior" inflation is running well ahead of the official CPI, even though that just scared investors by rising at a 4.4% annual rate. The latest producer-price data, out Tuesday, added to concerns.

Falling house prices, while deflationary, actually hurt seniors as well. Many of those heading into retirement are, effectively, net sellers of real estate. Empty nesters often hope to cash out of their big family homes and move to something smaller, pocketing the difference. Via reverse mortgages, many also may want to tap into their homes' values in the years ahead.

If "senior" inflation continues to run well ahead of general inflation, it could raise two extra problems, even for those who are a long way from retirement.

The first is that tens of millions of Americans may be in even worse shape financially than they realize. We already have a savings crisis in this country. The national savings rate is on the floor, and millions of Americans are financially unprepared for retirement. Yet most of their personal retirement calculations factor in "standard" CPI estimates. Raise those numbers by a percentage point or two per year, and what looks like a savings "shortfall" by the time you reach 65 will stretch into a yawning chasm.

[Hugin]

50. Just call me, 'Gramps'.

:crankyoldcoot:

Edit: (*snort* built in smilie land mine... Just like, GD:P. :D )

[Roland99]

52. Ron Paul confronted Bernanke yesterday. M3 is rising 16%/yr.

[Demeter]

96. Bernanke says it's not as bad as in '70s

http://news.yahoo.com/s/ap/20080228/ap_on_bi_ge/bernanke_congress_96

By JEANNINE AVERSA, AP Economics Writer
18 minutes ago



WASHINGTON - Federal Reserve Chairman Ben Bernanke told Congress Thursday that the nation is "not anywhere near" the dangerous stagflation situation that prevailed in the 1970s.

With the economy slowing and inflation rising, fears have grown that the country could be headed for the dreaded twin evils of stagnant growth and rising prices known as "stagflation."

"I don't anticipate stagflation," Bernanke told the Senate Banking Committee.

Still, high energy prices and rising inflation do complicate the Fed's job of trying to keep the economy growing and inflation contained, Bernanke acknowledged.

High energy prices are creating "inflationary stress," Bernanke said. And, that is "complicating" the Fed's work in terms of shoring up the economy, the Fed chief said.

President Bush, at a news conference Thursday, noted the slow economic growth but said the nation isn't headed into a recession.

He rejected calls for additional stimulus efforts, instead advising patience. "Why don't we let stimulus package one, which seemed like a good idea at the time, have a chance to kick in?" Bush said at the White House.

Bernanke's testimony in the Senate caps back-to-back appearances on Capitol Hill that started in the House on Wednesday. The Fed chief's overarching economic message was the same on both days: The Fed stands ready to lower a key interest rate yet again to bolster the struggling economy.

Many fear the country is hurtling toward a recession or is in one already.

The central bank started lowering a key interest rate in September. Over just eight days in January, the Fed shaved 1.25 percentage points, the biggest one-month reduction in a quarter century. Economists and Wall Street investors predict the Fed will cut rates again at its next meeting, March 18.

Just before Bernanke testified, the government reported that the economy nearly stalled in the final quarter of last year. It grew at a pace of just 0.6 percent, a big loss of momentum compared with the prior quarter's brisk 4.9 percent growth rate.

The committee's chairman, Sen. Christopher Dodd, D-Conn., described the nation's economic situation as "very serious, if not perilous."

Dodd said: "Growth is slowing. Inflation is rising. Consumer confidence is plummeting, while indebtedness is deepening."

Bernanke indicated he is prepared to lower rates even as high oil prices heighten inflation risks.

To energize the economy the Fed cuts rates. To combat inflation, it would boost rates. Rising inflation can reduce the Fed's maneuvering room in terms of revving up a slowing economy.

"We are concerned," Bernanke said. "We are trying to balance a number of different risks against each other," he told lawmakers.

Still, Bernanke is hopeful that energy prices — and overall inflation — will moderate somewhat this year.

And, he was hopeful that the economy will turn stronger in the second half of this year, helped by the Fed's rate reductions and a recently enacted rescue package of rebates for people and tax breaks for businesses.

THE BLIND LEADING THE BLIND FOLLOWING THE IDIOT

[Demeter]

97. Bush urges Congress to reject Senate mortgage bill

Bush urges Congress to reject Senate mortgage bill
Says economy has slowed but not in recession

By Robert Schroeder, MarketWatch

http://www.marketwatch.com/news/story/bush-urges-congress-reject-senate/story.aspx?guid={76AB0118-8A80-47F2-8F50-46A975D67191}&siteid=yahoomy


WASHINGTON (MarketWatch) -- President Bush urged lawmakers on Thursday to reject a Senate bill that would allow bankruptcy judges to alter the terms of mortgages and includes $4 billion to help states redevelop foreclosed houses.

Speaking at a White House press conference, Bush said the bill would do more to bail out lenders and speculators than homeowners. It would also lead to higher interest rates, he said.

By contrast, he said, lawmakers should reform mortgage-finance companies Fannie Mae and the Federal Housing Administration. Such moves, he said, would "help our economy weather the difficult time in the housing market."


Bush added that his administration supports a strong dollar.
"We believe in strong dollar policy," Bush said.

[Demeter]

98. Freddie Mac loss swells as mortgage crisis deepens

http://news.yahoo.com/s/nm/20080228/bs_nm/freddiemac_results_dc_7

NEW YORK (Reuters) - Freddie Mac (FRE.N), the second-biggest provider of U.S. residential mortgage funding, said on Thursday its loss widened to a record $2.5 billion in the fourth quarter as the housing crisis worsened.

A sharper-than-expected drop in home prices that first sparked a crisis in subprime lending last summer has since tainted all types of mortgages, hurting Freddie Mac's and rival Fannie Mae's (FNM.N) ability to support the housing market. Fannie Mae said on Wednesday it posted a $3.6 billion loss.

But in a sign financial markets thought the worst news may be behind both companies, their share prices, which have been battered in recent months, rose more than four percent on Thursday.

As the housing crisis worsened, rising delinquencies and foreclosures have forced the companies to write down the values of mortgage securities they own and boost reserves to cover their guarantees of payment on bonds held by investors.

Losses led the companies to sell $13.8 billion in preferred stock last quarter to boost capital needed for growth.

"Freddie Mac's ability to maneuver in 2008 is severely limited after fourth quarter results ate through almost one-half the preferred capital raised during the period," Jim Vogel, a strategist at FTN Financial in Memphis, Tennessee, said in a note to clients.

Freddie Mac shares, which are down 23 percent this year, were up 4.4 percent at $26.20 by midmorning, while Fannie Mae's shares were up about 4.5 percent at $28.47. Freddie Mac's shares initially had dropped after the results.

Freddie Mac lost $3.97 per share in the fourth quarter -- far more than Wall Street analysts' expectations of a loss of $2.48 per share, according to Reuters Estimates.

The government-chartered company said its net loss increased from $401 million in the year-earlier period. It is coming off a $1.2 billion loss for the third quarter that was revised from $2 billion after an accounting change.

Citing the "severe" housing downturn, Freddie Mac increased its estimate of total credit losses by a combined $1.5 billion for 2008 and 2009. It now expects losses of $2.2 billion and $2.9 billion for the next two years, respectively.

"We will be cautious going into the year because we think 2008 will be a very telling year as to where the credit market is going," Buddy Piszel, Freddie Mac's chief financial officer, told Reuters.

Credit-related expenses were $912 million for the quarter, while total credit losses were $236 million.

McLean, Virginia-based Freddie Mac, which was chartered by Congress in 1970 to boost U.S. homeownership, is struggling to strike a balance between growing its business while tightening underwriting guidelines to protect itself from further losses.

The federal regulator for Freddie Mac and Fannie Mae on Wednesday lifted restrictions on the growth in the companies' combined $1.4 trillion mortgage portfolios, giving them more flexibility to support the ailing housing market.

But dire predictions for foreclosures will probably keep the companies conservative with their capital, analysts said.

Freddie Mac, as of January 1, had $4.5 billion in capital above the amount mandated by its federal regulator. The regulator on Wednesday said it was considering easing capital requirements, a signal of "more optimism than certainly we've heard earlier," Piszel told Reuters.

The company will take advantage of buying opportunities but not grow aggressively, he said.

"It's really about having the capital flexibility to manage throughout the year," Piszel said, adding that he was happy with the current capital base.

[donkeyotay]

128. George is always against a boondoggle before he's for it. Just like Homeland

Security. Wait until someone waves a billion dollar bill under Dick's nose and then they'll be for creating another multi-billion dollar boondoggle.

[UpInArms]

118. blather refutes Chopper Ben's claim of "not as bad as the 70s"

The CRB Index, which tracks a basket of commodities, is trading at an all-time intraday high. The index is up 11.2% this month, with silver up 16%, copper up 17% and wheat up 24%. This the largest monthly percent gain for the CRB Index since July 1973. DJ30 -129.19 NASDAQ -22.60 SP500 -13.20 NASDAQ Dec/Adv/Vol 1960/815/1.10 bln NYSE Dec/Adv/Vol 2211/811/717 mln

[Warpy]

132. Bullshit, Bernanke

This is the 70s redux and for much the same reason, energy prices. Back then it was an offshore cartel. These days, it's your own bungling combined with stupid right wing party dogma.

The first thing an incoming administration will have to do is get taxes back up to take the pressure off the money supply. That means a bigger bite on my taxes, but I can well afford it. The second thing they need to do is kick that minimum wage up to the point where it will support one adult in safe housing, with nutritious food, and the ability to save for a rainy day. The third thing they need to do is start enforcing the laws against scumbag employers who exploit undocumented labor at below market rate wages. The fourth thing they need to do is institute tariff parity with all the countries we trade with. That means China will go from 2% to the 20% they charge on US goods.

The last things we need are more prime rate cuts and tax cuts to for the wealthy. Coincidentally, that's all the GOP can think of.

Morans.

[AnneD]

147. And this 70's redux

will slide us right into the 80's bust (but unlike the 80's, the safe guards are gone and things will be worse).

[kineneb]

103. one's house is not a bank...

Falling house prices, while deflationary, actually hurt seniors as well. Many of those heading into retirement are, effectively, net sellers of real estate. Empty nesters often hope to cash out of their big family homes and move to something smaller, pocketing the difference.

"Seniors" who planned on making a mint by buying down should be reconsidering their plans. Hope they don't mind renting out rooms for income...those McMansions will probably wind up being boarding houses.


I am not yet a senior, but with Hubby disabled, we live on a fixed income like many seniors. However, we never saw our house as a source of retirement income. It is a place to live, plant my rose collection and have a garden. Because of some very careful planning, our housing cost is far cheaper than rent ($~300/mo, including small mortgage, property taxes and insurance).

In a perverse sort of way, it is rent, since the State of California (because Hubby is on MediCal) will own the house when we both depart this current "manifestation". In the meantime...it is still cheaper than rent and I can put up picture hangers if I want.

[UpInArms]

53. US labor market could grind to a halt - Conf Board

http://www.reuters.com/article/bondsNews/idUSNAT00375620080228

NEW YORK, Feb 28 (Reuters) - The number of help-wanted ads
in U.S. newspapers fell in January, a private research group
said on Thursday.

The Conference Board said its gauge measuring help-wanted
ad volume edged down to 21 from 22 in December. The index was
31 a year earlier.

"Many economists debate whether we're in a recession or on
the verge of one. What's more important is people are behaving
as if a recession is already here," said Ken Goldstein, labor
economist at the Conference Board, in a statement.

"The latest data on job advertising in print suggests
there's virtually no chance that labor market activity will
improve over the next few months. To the contrary, there is a
chance the labor market could grind to a halt," Goldstein
said.

...more...

[Roland99]

124. That will drive down salaries as more people will be vying for the same jobs.

Making inflation all that much more of an impact on the average consum...er... worker. :)

[antigop]

70. The year's scariest investing news

http://articles.moneycentral.msn.com/Investing/JubaksJournal/TheYearsScariestInvestingNews.aspx

Here's my nominee:

The Pension Benefit Guaranty Corp., the government agency that protects the pensions of 44 million workers in case their employers can't (or won't) pay promised benefits, has announced that to avoid going bust it will double the percentage of its portfolio -- to 45% -- that it puts into stocks. An additional 10% will go into alternative investments, including hedge funds.

In other words, facing a $14 billion deficit and even larger projected shortfalls, the Pension Benefit Guaranty Corp., or PBGC, decided not to save (by raising premiums) or to live within its means (by cutting benefits) but to gamble in the financial markets by taking on more risk. The PBGC was so proud of its new strategy that it announced it on Presidents Day, when the U.S. financial markets were closed and almost no one was paying attention.

So why is this so scary?

Because as a result of 10 years of booms and busts -- the Asian currency crisis, the Long Term Capital Management hedge fund disaster, the tech stock bear market of 2000-02, the housing smash-up, the debt market debacle -- I've increasingly come to believe that those of us who play by the rules (work hard, live within our paychecks, save) are chumps. The way to get ahead is to gamble big and then, if you lose, find someone to cover your losses.

[Hugin]

73. Is it even legal for them to do that?

Don't they have to get some Legislative permission? :shrug:

[antigop]

86. Even if it's not...you just do it... and then get Congress to pass retroactive immunity, right?

:sarcasm:

[antigop]

79. deleted -- posted in wrong spot --sorry n/t

[Hugin]

88. ...

No problem antigop... I saw the reply here and read it. :)

[DemReadingDU]

89. one way or another, they plan to steal my meager pension

:(

[Robbien]

81. Ex-Hedge Fund Trader Pleads Guilty To Insider Trading

A former hedge fund trader has pleaded guilty to insider trading alongside his illicit tipster.

David Tavdy, of the now-defunct Jasper Capital, and Mitchel Guttenberg, formerly of UBS’s equity research department, have pleaded guilty to fraud and conspiracy. The two men were among 13 arrested in a massive insider-trading round-up last March; 12 have since pleaded guilty, including Tavdy’s former boss, Jasper founder David Glass.

Guttenberg, who served on UBS’s investment review committee, admitted passing hundreds of tips to Tavdy and former Chelsea Capital trader Erik Franklin of impending upgrades and downgrades between 2001 and 2006. Tavdy said he made more than 1,100 trades based on Guttenberg’s tips, earning his firm more than $10 million. Chelsea made some $7.5 million on Franklin’s illicit trades.

“Both men paid me for this information,” Guttenberg told the court. The Securities and Exchange Commission said the scheme began when Guttenberg passed Franklin a tip in exchange for Franklin’s forgiving of a $25,000 debt. He eventually made hundreds of thousands of dollars on the scheme.

Guttenberg is to be sentenced on June 2; he faces eight years in prison. Tavdy will be sentenced on June 30, when he faces up to six-and-a-half years in the clink.

http://www.finalternatives.com/node/3684

Huh, they actually caught one and punished him. Usually these insider trading hedge guys get a big fat bonus for doing stuff like this. Must be a leftie.

[Hugin]

87. If conspiracies don't exist, how come people keep getting convicted of them?

:tinfoilhat:

[Demeter]

95. There You Go Again!

Being Pragmatic (and me, trying to impersonate Reagan--if my mother were alive, she'd wash my mouth out with soap!)

[Demeter]

99. Bernanke: U.S. banks solid, some small ones may fail

http://news.yahoo.com/s/nm/20080228/bs_nm/usa_fed_bernanke_banks_dc_1

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday that some small U.S. banks might go under during the current stress prompted by housing market problems, but the U.S. bank system overall remained solid.

"I expect there will be some failures," Bernanke told the Senate Banking Committee, referring to smaller regional banks who became heavily invested in real estate.

"Among the largest banks, the capital ratios remain good and I don't anticipate any serious problems of that sort among the large, internationally active banks that make up a very substantial part of our banking system," he said in response to a question during semi-annual congressional testimony.

(Reporting by Alister Bull; Editing by James Dalgleish)





YOU HEARD IT HERE FIRST, FOLKS!



I THINK THE PLAN IS FOR ALL THESE PINOCCHIOS TO TELL ENOUGH LIES SO THAT THEY SUPPLY THE NATION WITH AN INFINITE SUPPLY OF HARDWOOD--THROUGH THEIR NOSES! SUITABLE FOR CONSTRUCTION, FIREWOOD, AND MAKING MORE BLOCKHEAD PUPPETS.

[kineneb]

104. (rubs hands together) Hardwood! Goodie!

I shall collect some, allow the proper curing time, and then make lovely things in my woodshop...those long, pointy noses should be excellent for turning up decorative items on the wood lathe...

:evilgrin:

[UpInArms]

106. Rogue Wheat Trader at MF Global!

http://www.marketwatch.com/news/story/mf-global-take-bad-debt/story.aspx?guid=%7B24897E75%2D468E%2D4BDF%2DBDB7%2D22EE08657873%7D">MF Global to take bad debt provision

NEW YORK (MarketWatch) -- Exchange-traded futures and options brokerage MF Global (MF: 23.81, -5.47, -18.7%) said Thursday that it would take a $141.5 million bad debt provision after one of its representatives trading in wheat futures vastly exceeded his authorized trading limit Wednesday morning. The company said the trader was terminated immediately, and MF Global recorded a loss for the full amount. The provision represents nearly 6% of MF Global's equity; the company also has an additional $1.5 billion in undrawn committed credit facilities. The firm remains well-capitalized, with the event having no foreseeable impact on client funds. MF Global added it has enlisted a third-party risk technology consultant to review its relevant order entry systems.

(edited for spulling)

[Demeter]

113. Somebody Switched Polarities on the Defibrillator?

Oh, no, it was the famous comedy team of Bush and Bernanke trying out their latest material on an unappreciative audience....

[antigop]

123. Wachovia municipal derivative employees under investigation

http://money.cnn.com/2008/02/28/news/companies/bc.wachovia2.ap/index.htm?postversion=2008022811

The nation's fourth largest bank said two of its workers connected to the municipal derivative market were being examined by the DOJ.

Wachovia, the nation's fourth-largest bank, said Thursday the Department of Justice is investigating two company employees for possible misconduct related to competitive bids in the municipal derivative markets.

The Charlotte-based bank also said it expects to set aside more money in the first half of 2008 to cover troubled mortgage loans.

Wachovia said the DOJ and Securities and Exchange Commission have advised the bank that they believe some of the company's employees engaged in "improper conduct" in connection with certain competitively bid transactions.

The company disclosed the investigation in its annual report filed with the SEC. According to the filing, Wachovia was notified that the two employees, who are on administrative leave, were under investigation in November.

[Karenina]

137. Oh, tho$e derivative$

Little Bo-Peep
lo$ing HERD$ of $heep
not a clue where to find them

leave them alone
they'll come home
trailing their $hit behind them...

[Ghost Dog]

150. Hmm. Could there be a kind of 'Abu Ghraib' syndrome here;

ie. some firms naming and shaming lowly underlings to take some heat off top management?

[UpInArms]

159. Wachovia CEO says timing of Golden West deal 'poor'

http://www.reuters.com/article/bondsNews/idUSN2863045920080228

NEW YORK, Feb 28 (Reuters) - Wachovia Corp (WB.N: Quote, Profile, Research), the fourth-largest U.S. bank, on Thursday increased its forecast for loan losses in the first half of 2008, and Chief Executive Ken Thompson admitted to "poor" timing in his $24.2 billion purchase of Golden West Financial Corp in October 2006.

In its annual report filed with the U.S. Securities and Exchange Commission, Wachovia said it now expects first-half losses to exceed 0.75 percent of loans on an annualized basis in 2008, more than triple the 0.23 percent level for 2007.

Charlotte, North Carolina-based Wachovia had on Feb 13 projected first-half annualized losses below 0.75 percent of loans. It attributed its revised forecast to "rapidly changing conditions in the housing markets."

Wachovia was criticized for overpaying for Golden West, an Oakland, California-based specialist in adjustable-rate mortgages.

Shares of Wachovia traded at $59.39 immediately before the merger was announced in May 2006 and have not seen that level since, having fallen 46 percent. They closed down $1.74, or 5.1 percent, to $32.36 on Thursday.

...more...

[UpInArms]

125. Gold futures end higher after hitting record - @ $967.50 ounce

http://www.marketwatch.com/news/story/gold-futures-end-higher-after/story.aspx?guid=%7BCCB2051B%2DB505%2D4A3F%2DA933%2D78CD94378719%7D

NEW YORK (MarketWatch) -- Gold futures ended with strong gains Thursday, surging to a record high of $970 an ounce, propelled by the dollar's tumble to a new low against the euro. Gold for April delivery hit a record $970 an ounce on the New York Mercantile Exchange. The contract rose $6.50 to end at $967.50 an ounce.

[Demeter]

127. Is It a Panic Yet?

[PassingFair]

134. Not as long as they keep the stock market propped up, it seems.

Stock Market Crash = Panic

EVERYONE know this....

:sarcasm:

[RUMMYisFROSTED]

139. Holy shit!

Oil at $102.00.

[UpInArms]

140. Crude-oil futures close above $102 a barrel on Nymex @ $102.59 barrel

http://www.marketwatch.com/news/story/crude-oil-futures-close-above-102/story.aspx?guid=%7BF0CFCBA5%2D22C0%2D4848%2D896B%2D14A2A422E0F9%7D

NEW YORK (MarketWatch) -- Crude-oil futures on Thursday climbed to a new record high of $102.64 a barrel before ending several cents lower as production was hindered by military attacks in Nigeria. Crude oil for April delivery gained $2.95 to end at $102.59 a barrel on the New York Mercantile Exchange.

[RUMMYisFROSTED]

145. Thanks, Chimp.

:thumbsup:

[Roland99]

138. Bush and Bernanke Sing Karaoke....

Oh! Ohhhh yeaaah
I used to think maybe you loved me now baby I'm sure
And I just cant wait till the day when you knock on my door
Now every time I go for the mailbox, gotta hold myself down
Cuz I just wait till you write me you're coming around

I'm walking on sunshine, whoa-oh
I'm walking on sunshine, whoa-oh
I'm walking on sunshine, whoa-oh
and don't it feel good!!

Hey, alright now
and don't it feel good!!
hey yeah

I used to think maybe you loved me, now I know that its true
and I don't want to spend all my life, just in waiting for you
now I don't want u back for the weekend
not back for a day, no no no
I said baby I just want you back and I want you to stay

whoa yeah!
I'm walking on sunshine, whoa-oh
I'm walking on sunshine, whoa-oh
I'm walking on sunshine, whoa-oh
and don't it feel good!!

Hey, alright now
and don't it feel good!!
hey yeah, oh yeah
and don't it feel good!!

walking on sunshine
walking on sunshine

I feel the love,I feel the love, I feel the love that's really real
I feel the love, I feel the love, I feel the love that's really real

I'm on sunshine baby oh
I'm on sunshine baby oh

I'm walking on sunshine whoa-oh
I'm walking on sunshine whoa-oh
I'm walking on sunshine whoa-oh

and don't it feel good!!
I'll say it again now
and don't it feel good!!

[UpInArms]

141. Ruh-Roh! UBS Valentine's disclosure causes mortgage mayhem ($26.6 Billion in exposure)

http://www.marketwatch.com/news/story/ubs-valentines-day-disclosure-causes/story.aspx?guid=%7B8F3407B8%2DA83A%2D4CE4%2D94CA%2DADAD5B1FAC3C%7D

SAN FRANCISCO (MarketWatch) - UBS AG's recent disclosure that it's highly exposed to so-called Alt-A home loans has caused margin calls and forced selling among other big players in the mortgage market.

On Valentine's Day, UBS (UBS: 34.02, -0.83, -2.4%) revealed $26.6 billion in exposure to securities backed by Alt-A mortgages.

These types of home loans were usually sold to more creditworthy borrowers than subprime mortgages, but they often required less information, such as documents verifying home buyers' incomes.

Delinquencies and foreclosures on Alt-A mortgages haven't climbed as high as subprime loans, but they have deteriorated faster than many expected. Securities backed by Alt-A loans also built in less protection for investors than similar structures holding subprime mortgages. That's made the deterioration in Alt-A securities almost as painful as the subprime meltdown.

Alt-A securities have been under pressure for roughly a year, but in recent weeks market valuations have come under severe pressure, partly because of UBS's disclosure.

The revelation sparked concerns in the mortgage market that UBS might become a forced seller of Alt-A mortgage securities. Buyers immediately withdrew and market prices for these securities slumped 10% to 15% within days, according to Larry Goldstone, chief executive of Thornburg Mortgage (TMA: 10.16, -1.38, -12.0%).

That forced other holders of Alt-A securities, including banks, broker-dealers, hedge funds and Thornburg, to mark down their positions. Some investors have been investing in Alt-A securities with borrowed money, so these valuation declines triggered margin calls, Goldstone said.

...more...

[Karenina]

142. What? Yet another Valentine'$ Day Ma$$acre???

OH THE HUMANITY!

[kickysnana]

143. Sector Snap: Mortgage Lenders Fall

NEW YORK — Shares of mortgage lenders fell in Thursday trading after Freddie Mac posted a $2.5 billion fourth-quarter loss earlier and Thornburg Mortgage Inc. said it has faced a renewed round of margin calls.

<snip>
Thornburg Mortgage earlier Thursday said it has been the subject of margin calls on a portfolio of securities backed by alt-A mortgages. Alt-A mortgages are loans given to customers with minor credit problems or who do not have documentation to get a traditional, prime loan.

<snip?
Shares of Thornburg fell $2.03, or 17.6 percent, to $9.51. Shares of Thornburg have traded between $7.49 and $28.40 during the past year. Elsewhere among mortgage lenders, shares of Countrywide Financial Corp. fell 27 cents, or 3.9 percent, to $6.71. Shares of IndyMac Bancorp Inc. fell 57 cents, or 8.1 percent, to $6.51. Shares of Fannie Mae fell 22 cents to $27.05 in afternoon trading.

http://www.chron.com/disp/story.mpl/ap/fn/5578745.html

[Robbien]

144. "These are very solid credit structures," he said. End of Story

So there.


Ha. Marketwatch's standard 'End of Story' coming after UBS's statement is a bit of wishful thinking.

[Ghost Dog]

151. .

[ozymandius]

157. Paulson Says No Go on Housing Bailouts

http://www.nakedcapitalism.com/2008/02/paulson-says-no-go-on-housing-bailouts.html

Treasury Secretary Hank Paulson has thrown a bucket of cold water on a number of proposals being floated in Washington to rescue troubled borrowers via the explicit use of public funds, such as the idea of reviving the 1933 Home Owner's Loan Corporation to buy underwater mortgages and renegotiate them.

In some respects, Paulson's tough stance is welcome, because many of these proposals would do more for banks and investors than borrowers. Many homeowners, including ones who are capable of servicing their mortages, are walking away because they deem them an unattractive investment. There is now a large class of nominal homeowners who in fact are more akin to renters with a home ownership option that is now deeply out of the money. And they can often rent more cheaply too.

But unfortunately, what is driving Paulson isn't a pragmatic assessment of what measures might be cost effective and not involve undue moral hazard. Instead, he is guided primarily by the ideological imperatives of this Adminsitration, which is to favor so-called private sector solutions. But that construct is dishonest and limiting. For instance, the Journal reports that Paulson maintains that "market-based approach will be enough to keep the situation under control."

Fucker.

[ozymandius]

154. To close: wanna buy some stocks that yield 0% annual return?

Check out some of these lovely items...


Dow 12,582.18 Down 112.10 (0.88%)
Nasdaq 2,331.57 Down 22.21 (0.94%)
S&P 500 1,367.68 Down 12.34 (0.89%)
10-Yr Bond 3.71% Down 0.13
NYSE Volume 3,874,906,500
Nasdaq Volume 2,108,631,250

-still waiting on the blather-

[ozymandius]

158. blather

Stocks Lower on Financial and Economic Fears
Dow -112.10 at 12582.18, Nasdaq -22.21 at 2331.57, S&P -12.34 at 1367.68

The major indices remained in negative territory for the entirety of trade on Thursday as weak economic and corporate news weighed on the market. Negative headlines regarding small and regional banks also impacted sentiment. Stocks finished the day with significant losses, which sent the major indices back into negative territory for the month.

Financials (-3.0%) and the broader market fell to their worst levels of the session after Fed Chairman Bernanke said before the Senate Banking Committee that smaller U.S banks may fail. Also fueling the selling pressure was news that Moody's took negative rating actions on a number of regional banks. Moody's cited the banks' exposures to commercial real estate.

Adding to the financial sector's weakness was JPMorgan (JPM 42.44, -1.97) having its earnings estimate cut at Goldman Sachs and Merrill Lynch.

A pair of worse than expected economic reports kept buyers on the sidelines. The fourth quarter preliminary GDP reading was unchanged from the advanced reading at 0.6%. Economists were expecting a reading of 0.8%. Inventories subtracted a large 1.5% from the fourth quarter.

New unemployment claims for the week ended Feb. 23 rose to 373,000 from 354,000. The consensus estimate called for a reading of 350,000. This increase is not a good economic signal.

Treasuries rallied in response to the poor data. The 10-year gained 42/32 ticks.

In corporate news, Fannie Mae (FNM 27.90, +0.63) and Sears Holdings (SHLD 101.40, -0.20) missed earnings expectations.

Sprint Nextel (S 8.09, -0.86) topped its earnings expectations when excluding one time items. However, the stock got clipped after the company said it's ending its dividend, lost subscribers and is writing down nearly $30 billion in goodwill. The goodwill write-down is related to the premium Sprint paid for Nextel, and is a non-cash charge. Telecom (+1.2%) still finished the day as a leader, thanks to strength in AT&T (T 35.96, +0.76) and Verizon (VZ 37.18, +0.79).

Commodities hit all-time highs while the dollar hit all-time lows.

Oil hit an all-time non inflation adjusted intraday high of $102.97 per barrel, before settling at an all-time closing high of $102.60. Energy (+1.4%) was the best performing sector due to the gains in oil.

Likewise, the CRB Commodity Index hit an all-time high. Its 12% month-to-date gain is the largest since 1973.

The Dollar Index fell to lifetime lows as the euro climbed to lifetime highs. One euro now buys $1.5221.
..Nasdaq 100 -0.3%. ..S&P Midcap 400 -0.9%. ..Russell 2000 -1.5%.