STOCK MARKET WATCH, Thursday May 29

[ozymandius]

Source: du

STOCK MARKET WATCH, Thursday May 29, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 237
DAYS SINCE DEMOCRACY DIED (12/12/00) 2685 DAYS
WHERE'S OSAMA BIN-LADEN? 2410 DAYS
DAYS SINCE ENRON COLLAPSE = 2701
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 May 28, 2008

Dow... 12,594.03 +45.68 (+0.36%)
Nasdaq... 2,486.70 +5.46 (+0.22%)
S&P 500... 1,390.84 +5.49 (+0.40%)
Gold future... 905.00 -7.80 (-0.85%)
30-Year Bond 4.70% +0.05 (+1.12%)
10-Yr Bond... 4.01% +0.09 (+2.24%)






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: Relatively Speaking, Things Are Not Looking Up

BY MICHAEL PANZNER

The shares of KeyCorp fell 10.4% today, hurt by news of a doubling of loan loss estimates and a downbeat outlook from Ohio’s third-largest bank. That weighed on the bellwether KBW Bank Index, which fell 1.7%, and the S&P financial sector, which lost 0.7%. Even so, financial shares in the U.S. and around the globe remain above the lows they hit back in mid-March. In comparison to other shares, however, the sector has been steadily losing ground. The benchmark MSCI World Financials Index, for example, is now trading at its lowest level in relative terms since August 2000.

-see chart-

Yesterday, the Census Bureau reported that single-family home sales rose at a better-than-expected 3.3%, though the year-on-year pace hit a dismal -42%, the lowest level since the fall of 1981. However, relative to sales of existing homes, new home sales have actually fallen to a record low. Moreover, based on the following chart, the recent sharp fall in the ratio also appears to show that recession is upon us.

.....

Since the Nasdaq-100 index (NDX) made its closing low on March 10th, the NDX has gained 19%. Yet the rally has been anything but broad-based. One stock, Apple, has accounted for almost a third of the move. Three of Jim Cramer's four "Horsemen of Technology" -- Apple, Google and Research in Motion -- have been responsible for half. Nine stocks have accounted for two-thirds of the gain. That’s not exactly a strong foundation.

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

[DemReadingDU]

20. KeyBank, Fifth Third, M&T Bank, Comerica

5/28/08 KeyCorp Slide Foretells Losses at `Delusional' Banks

KeyCorp fell the most since the stock-market crash of 1987 after doubling its forecast for loans that won't be repaid, prompting concern that regional banks have underestimated the cost of bad mortgages.

KeyCorp sank 10.6 percent in New York Stock Exchange trading after saying uncollectible debts may be as much as 1.3 percent of average total loans this year. The figure may rise even more, KeyCorp said, as the Cleveland-based company cuts holdings tied to homebuilders.

The revision by the Ohio bank, which last month quadrupled its provision for loan losses to $187 million, may foretell similar increases at U.S. commercial banks as home prices keep sliding, analysts said. The S&P/Case-Shiller home-price index fell 14.4 percent in March to the lowest since figures were first published in 2001, data released yesterday show.

``Things are getting significantly worse before they are going to get better for KeyCorp and the banking industry,'' RBC Capital Markets analyst Gerard Cassidy said in a note to investors today. He rates KeyCorp ``underperform.''


Five of the 24 companies in the KBW Bank Index dropped by more than 4 percent. Fifth Third Bancorp slid 3.6 percent, M&T Bank Corp. lost 3.5 percent and Comerica Inc. declined 3.8 percent.

more...
http://www.bloomberg.com/apps/news?pid=20601087&sid=acabi0TqGvlo


edit to add link for list of banks in KBW Bank Index
http://www.analyzeindices.com/ind/banks.htm

and link for market quotes of the 24 banks in KBW Bank Index
http://quote.yahoo.com/q?s=BAC,BBT,BK,C,CMA,FITB,GDW,JPM,KEY,KRB,MEL,MTB,NCC,NFB,NTRS,PNC,RF,STI,STT,USB,WB,WFC,WM,ZION&d=v1

or try http://tinyurl.com/24eh2c

[skoalyman]

48. I don't care much for key bank

I took them my fed tax check to cash and they wouldn't cash it so I could pay them what I owed.SO I just told the women we'll look like I'll be Finding another bank.My credits in the crapper as it is.:puke:

[ozymandius]

52. Similarly

We at the Ozymandius household will not receive a stimulus check because we owe a balance to the IRS. So it seems that our stimulus stays with the Treasury Department so it can be issued to KBR and Halliburton.

[Tansy_Gold]

56. Ditto here, Ozy

Mine will go to education loans, and since they aren't making any more of those -- at least not the way they used to -- because of tight money, which in turn is because of THE WAR, mine will ultimately also be going to KBR, ExxonMobil (to put diesel fuel in all those WAR VEHICLES), and other entities pumping up the resident's flagging pole, er, poll numbers.

[ozymandius]

58. I called my Congressman about this.

John Lewis's IRS/tax expert says this is well within their rights. Sure, it violates the notion of stimulus (which we were going to use to pay down/off some debt) and prevents us from buying a few trinkets and beads. But why would the IRS pay you money when you owe money? It's harsh. But harsher still is that we still have an outstanding tax bill. Why?

We had to reduce our withholding during a time of brief unemployment bracketed by time periods when our net income was insufficient to cover our needs. (Funny how a sense of nausea creeps into my gut and throat while I write this.) Plus we had a run of bad luck with our cars. In essence: Life Happened.

Such has been the case with so many people. I'm sure we are not the only struggling barely-middle class with IRS debt who forfeited their stimulus to a litany of no-bid contractors. But that's our method of living for the past seven years. Violated and insufficient.

[InkAddict]

62. I totally relate Ozy and Tansy.

Same deal with Stimulus check, but glad the balance will be going down within reach (cross fingers); but also now probably a lifetime member of the "indentured servants club" due to school loans for two children, a little for each, the cost of which would cover a modest home mortgage. We're been existentially SCREWED by our government. Promote the general welfare, MY BUTT! Just promotion of filling their own pockets.

How is that "outsourcing" thing working out for you guys; you're killing off the workers ability to pay, who might just pay because we're decent folks, but now can't because jobs are scare, short, and/or end too soon, though as Lexis-Nexis claims, so "high-performing and have justifiably earned respect," so you'll just outsource them and starve them on the streets into a nice(?) write-off for you. How does that make any sense???? What am I missing?

[ozymandius]

64. These combined scenarios is what makes me so f*@king mad.

Trained professionals. Ability to pay. Perpetual indentured servitude. Selective welfare. Filling of pockets. Demonstrably served constituency.

I would never advocate the violent overthrow of the United States government! But I do advocate for an enraged electorate to steer political agendas and campaigns so that those who have made a good living off the wholesale legislative rape of the average citizen feel that change to our established course is violent.

All those who Phil Gramm, his wife and Mitch McConnell have helped over the years deserve to experience hard times. They and their legislative surrogates. No quarter should be granted to them as they have established the policy of none to be granted to their victims.

[skoalyman]

75. They'll never experiance hard times

the only hard time they'll ever experience is the day they die.:puke:

[AnneD]

76. Welcome...

to the TP club (Tar and Pitchforks-folks...although considering the outlook of most here on the board.....)

I use to get money back on my taxes but have not every since Bush took office, even when I was a single Mom. I have had to really scrape for everything. I am doing better than most but it has been rough. I really pity folks with young ones now. It's so hard.

[ozymandius]

2. Today's Reports

08:30 GDP-Prel. Q1
Briefing.com 1.0%
Consensus 0.9%
Prior 0.6%

08:30 Initial Claims 05/24
Briefing.com 370K
Consensus 370K
Prior 365K

10:30 Crude Inventories 05/24
Briefing.com NA
Consensus NA
Prior -5317K

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

[UpInArms]

24. Initial Claims @ 372k - last wk rev'd up 3k - GDP books cooked upwards (LOL!)

01. U.S. 4-wk. avg. continuing claims rise to 3.06 mln
8:30 AM ET, May 29, 2008

02. U.S. continuing jobless claims rise 36,000 to 3.10 mln
8:30 AM ET, May 29, 2008

03. U.S. 4-wk. avg. initial jobless claims fall 2,500 to 370,500
8:30 AM ET, May 29, 2008

04. U.S. 4Q real disposable incomes revised to 0.9% vs. 0.1%
8:30 AM ET, May 29, 2008

05. U.S. weekly initial jobless claims rise 4,000 to 372,000
8:30 AM ET, May 29, 2008

06. U.S. 1Q corporate profits up 0.3% quarterly rate
8:30 AM ET, May 29, 2008

07. U.S. domestic sales fall first time in 17 years
8:30 AM ET, May 29, 2008

08. U.S. 1Q final domestic sales -0.1% vs. -0.4% previously
8:30 AM ET, May 29, 2008

09. U.S. 1Q core PCE price index revised down to 2.1% vs. 2.2%
8:30 AM ET, May 29, 2008

10. Upward revision to GDP due to trade, structures, inventories
8:30 AM ET, May 29, 2008

16. U.S. 1Q GDP revised to 0.9% annual rate vs. 0.6% previously
8:30 AM ET, May 29, 2008

[UpInArms]

44. US jobless claims up; continued claims at 4-yr high

http://www.reuters.com/article/bondsNews/idUSN2937284220080529

WASHINGTON, May 29 (Reuters) - The number of U.S. workers filing new claims for jobless benefits rose slightly more than expected last week, while the tally of those remaining on the benefit rolls hit its highest mark in more than four years, the government said on Thursday.

Initial claims for state unemployment insurance benefits climbed to 372,000 in the week ended May 24 from an upwardly revised 368,000 for the prior week, the Labor Department said.

Analysts polled by Reuters were expecting 370,000 in new claims, up from the originally reported 365,000 in the prior week.

The four-week average of new jobless claims, which is considered a more accurate measurement of employment trends since it evens out weekly volatility, dipped to 370,500 in the week ended May 24 from a revised 373,000 in the previous week.

In a sign that unemployed workers were having a tough time finding a new job, the number of people remaining on the benefit rolls rose by 36,000 to 3.10 million in the week ended May 17, the latest period for which figures were available.

...more...

[ozymandius]

49. This report again from the Ozymandius Bureau of Economics and Sore Brains.

Incredulous puke creation heaves forward by a staggering 110%. :puke:

[skoalyman]

53. Nerver mind the spiral of death folk's were just making a fast decent

so we can land just site back and enjoy the peanuts and champagne. Oh and roll your:crazy:eyes around that helps to counteract the spin.:puke:

[InkAddict]

63. Umm..I think they stopped passing out the peanut/pretzel snacks

to save money, and it's a cash-bar now...I think they may still be providing barf bags and instruction in using the masks when they drop down, if they drop down...more better we do singalong as we descend, perhaps the seated, strapped in versions of the YMCA, the Macarena, or the Wave. Delightful.

[UpInArms]

25. First-quarter GDP revised up to 0.9% as expected

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B0285C58E%2D7834%2D4CD0%2DAE20%2D2BFF920AD20C%7D&siteid=mktw

WASHINGTON (MarketWatch) - The U.S. economy grew at a sluggish pace in the first quarter of the year, held back by the biggest slump in housing in 26 years and the first decline in final domestic sales in 17 years, the Commerce Department reported Thursday. The nation's real gross domestic product increased at a 0.9% annual rate in the first three months of the year, slightly faster than the 0.6% rate originally estimated a month ago. The GDP revision matched expectations of economists. The revision to GDP showed a better mix of growth. Personal incomes were also growing significantly faster than first believed.

love that "personal incomes growing" bullshit

[Ghost Dog]

28. U.S. economy grows slightly better than expected

WASHINGTON (Reuters)- The U.S. economy grew at an upwardly revised 0.9 percent in the first quarter, slightly better than previously thought because of lower demand for foreign goods and services and a rise in investment in non-residential structures, the Commerce Department said on Thursday.

The department estimated a month ago that gross domestic product, which measures the total output of goods and services within U.S. borders, grew at a 0.6 percent rate. But it raised the growth estimate to take into account updated economic and trade data.

Growth in the January-March quarter was in line with economists' expectations for a revision to 0.9 percent growth after the economy grew 0.6 percent in the fourth quarter of 2007.

Consumer spending, which accounts for more than two thirds of national economic activity, was left unrevised at a 1.0 percent increase for the first quarter.

The Commerce Department said imports of goods and services fell 2.6 percent in the first quarter, a sharp revision from the 2.5 percent increase initially estimated. But exports, a recent source of strength for the U.S. economy, also were weaker than first thought, with the first-quarter figure revised to an increase of 2.8 percent from a 5.5 percent rise.

Investment in nonresidential structures rose 1.1 percent compared with a 6.2 percent fall estimated last month. This was partially offset by a $14.4 billion drop in private inventories, previously estimated as a $1.8 billion rise.

In its first estimate of corporate profits for the quarter, the Commerce Department said after-tax corporate profits rose 3.8 percent after falling 3.3 percent in the fourth quarter.

(Reporting by David Lawder; Editing by Andrea Ricci)

/. http://news.yahoo.com/s/nm/20080529/bs_nm/usa_economy_gdp_dc

:raisedeyebrow:

[Roland99]

30. Corporate profits != American workers prospering

[Dr.Phool]

36. Talk about cooked numbers.

Everyone I know is cutting back. But their bills keep going higher and higher. igher prices for gasoline, medicine, food, natural gas, you name it will all lead to an increase in GDP.

And my income soared by 2% thanks to my COLA escalator in my Railroad Retirement Disability pension. But, wait. That didn't keep up with the $1,000 per month whack I got from the PBGC, on my LTV Steal company pension.

I'm probably a lot better off and don't know it.

[ozymandius]

3. Oil slips ahead of US inventory report

BANGKOK, Thailand - Oil fell back Thursday in Asia ahead of a report expected to show U.S. inventories of crude and petroleum products grew last week.

Prices remained volatile, though, buffeted about by threats against Nigerian oil facilities, worries about falling gasoline demand in the U.S. and volatility in the dollar.

Late afternoon in Singapore, the light, sweet crude contract for July delivery was down 63 cents at $130.40 a barrel in electronic trade on the New York Mercantile Exchange.

The contract dipped below $126 a barrel Wednesday in New York before recovering to finish at $131.03, up $2.18. At its low in the floor session, oil was more than $9 off the record high it hit last week above $135 a barrel.

The reversal in Asia from the floor session's close came with a renewed strengthening of the dollar and ahead of the U.S. Energy Department's inventory report, to be released later Thursday.

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

[ozymandius]

4. Exxon Mobil leader keeps both hats

DALLAS — Rex Tillerson's grip on the dual titles of Exxon Mobil Corp. chairman and chief executive is safe despite a well-publicized push to divide the jobs by descendants of 19th-century oil magnate John D. Rockefeller.

The Rockefellers threw their weight behind a nonbinding proposal to split the top roles, but shareholders at Exxon Mobil's annual meeting Wednesday stood by their man at the company whose stock is among the most widely held in the country.

Steven Milloy, managing partner of the Free Enterprise Action Fund, presented a proposal to block nonbinding proposals — such as the one backed by the Rockefellers. It also was rejected, as were 15 other shareholder proposals.

.....

Rockefeller family members, whose patriarch founded Exxon Mobil's corporate ancestor, Standard Oil, said they backed the proposal out of concern about Exxon Mobil's strategy and what they see as the company's refusal to accept new ideas — notably investment in alternative and renewable energy beyond funding research.

They noted that London-based BP and The Hague-based Royal Dutch Shell have separate CEOs and chairmen, as is common among European companies. U.S. companies, including Exxon Mobil peers Chevron Corp. and ConocoPhillips, commonly combine the roles.

http://www.chron.com/disp/story.mpl/headline/biz/5806645.html

[ozymandius]

17. Gas guzzler graveyard

Big SUVs used to rule the American road. But now, like big cars with tail fins in the '50s or muscle cars in the '60s, full-size SUVs may have seen their day.

High gas prices have sent consumers in search of more fuel-efficient alternatives, such as car-based crossovers, and that's meant hard times for these brawny vehicles.

In a sign of the times, Ford announced Thursday it's bowing to market realities and shifting production away from pick-ups and truck-based SUVs to focus on more fuel-friendly offerings like cars and crossovers.

The deceased are as follows:
1. Ford Explorer
2. Chevrolet Trailblazer
3. Dodge Durango
4. Ford Expedition
5. Chevrolet Tahoe
6. Toyota Sequoia

http://money.cnn.com/galleries/2008/autos/0805/gallery.truck_based_suvs/index.html

[TrogL]

71. Many of my friends work in trades

...and hence drive big diesel 3/4 tons full of tools and ladders and stuff.

Yesterday one drove up practically in tears. It had cost him nearly CAN$100 to top up with diesel when not so long ago it had cost him less than that. They can NOT take transit to work and they never know what tool or ladder thay may need so they can't leave anything behind.

He felt a little better when I pointed out it had cost me CAN$60 to fill a Subaru Outback (it takes 91 Octane).

[TalkingDog]

78. Then there are the govt. vehicles

like job site inspectors and so on.

If you've never worked for a government agency, you may not know that if you fail to use up your budget for the fiscal year, next years budget is cut by that amount.

Then guess what happens? You spend every penny whether it is necessary or not. So the County Inspectors just bought about 1/2 dozen full sized trucks. Do they haul equipment? No. Do they go to impassible places? No. Do they need full sized contractor white pick ups? Hell. No.

But they've got them anyway and now they are out tooling around the county, sucking up gas like there's no tomorrow.

woo-hoo government foresight and conservation

[UpInArms]

26. U.S. retail gasoline prices rise a penny to new record

http://www.marketwatch.com/news/story/us-retail-gasoline-prices-rise/story.aspx?guid=%7BF8E777D1%2D71E6%2D4216%2DA527%2D346EBD5F2EFF%7D&dist=morenews

NEW YORK (MarketWatch) -- U.S. retail gasoline prices rose a penny to a new record of $3.95 a gallon for regular unleaded in the last day, according to the Daily Fuel Gauge Report from the AAA. A month ago, the car fuel sold for $3.61 a gallon and a year ago the price was $3.20 a gallon. In San Francisco, gasoline rose to its highest recorded price ever of $4.20 a gallon, on average, up 3 cents from Wednesday.

[ozymandius]

5. Dow's price increases to hit household goods

Better start stocking up on diapers and detergent.

Consumers hit hard in recent months by sharply higher prices for gasoline and food should prepare to start paying more for various household items after Dow Chemical Co.'s decision to raise its prices by up to 20 percent to offset the soaring cost of energy.

The company, which announced the price increases Wednesday, took the unusual step of directing blame at the nation's energy policymakers.

.....

The price increases will take effect Sunday and will be based on a product's exposure to rising costs. Dow Chemical said it spent $8 billion on energy and hydrocarbon-based feedstock, or raw materials, back in 2002, and that could climb fourfold to $32 billion this year.

Dow Chemical makes everything from the propylene glycols used in antifreeze, coolants, solvents, cosmetics and pharmaceuticals to acrylic acid-based products used in detergents, wastewater-treatment and disposable diapers.

http://www.chron.com/disp/story.mpl/headline/biz/5806644.html

[MadinMo]

32. Stock up on napalm too.

At least Dow used to make napalm during the Vietnam war era --- my mother assiduously boycotted anything she knew was made by Dow for a long time for that reason.

[Dr.Phool]

37. A lot of us did.

[ozymandius]

6. Honda intent on saving US jobs by switching models

TOKYO - Honda will meet growing U.S. demand for small cars while maintaining North American jobs by moving production of two bigger models from Canada to Alabama, Chief Executive Takeo Fukui said Thursday.

Honda Motor Co.'s Pilot sport utility vehicle and Ridgeline pickup, now rolling off its plant in Alliston, Ontario, will be produced in Lincoln, Alabama, allowing the production of the Civic sedan to be raised in Canada, he said.

.....

Even the usually booming Japanese automakers are sensing the pinch from a U.S. economic slowdown and soaring material costs, including steel. But the Japanese are holding up better than their American rivals because of their reputation for fuel-efficient offerings.

.....

Honda will create American jobs when its plant to build Civics opens in Indiana later this year. That plant, Honda's seventh in North America, is expected to add about 2,000 jobs.

http://news.yahoo.com/s/ap/20080529/ap_on_bi_ge/japan_honda_us

[ozymandius]

15. UPDATE 1-Honda CEO fears more price hikes for U.S. steel

TOKYO, May 29 (Reuters) - Honda Motor Co's chief executive said on Thursday the Japanese automaker had been asked to pay more by a U.S. steelmaker despite a contract agreed earlier this year, and added he feared other suppliers may follow suit.

Global steel prices have soared on tight demand, with brisk orders for construction machinery, ships and energy-related products in Russia, the Middle East and other emerging markets.

.....

Most of the steel that Honda uses in Japan comes from domestic makers, with some from South Korea's Posco. Similarly, almost all the steel used for North American production comes from non-Japanese makers such as United States Steel Corp, a spokesman said.

http://www.reuters.com/article/CARMFG/idUST22664220080529

[ozymandius]

7. AP source: GM plans more restructuring measures

DETROIT - General Motors Corp.'s top managers are working on additional restructuring measures to deal with a declining U.S. auto market and an accelerated shift from trucks to more fuel efficient vehicles, a person familiar with the plan told The Associated Press late Wednesday.

The person, who requested anonymity because the plan is still being devised, would not give details of what is under discussion by Chairman and Chief Executive Officer Rick Wagoner and his top managers.

.....

The new steps likely will involve further cost cuts including reduced truck and sport utility vehicle production and a faster rollout of more car and crossover models, similar to what Ford Motor Co. announced last week. Already this week GM announced it would speed up the elimination of one shift each at its Flint and Pontiac pickup truck factories.

Ford on Wednesday confirmed that it is looking at involuntary layoffs of salaried employees, perhaps costing as many as 2,000 workers their jobs.

http://news.yahoo.com/s/ap/20080529/ap_on_bi_ge/gm_restructuring

[ozymandius]

8. Sears Holding swings to 1Q loss on markdowns

HOFFMAN ESTATES, Ill. - Sears Holding says it swung to a loss in its first quarter as it increased promotions and markdowns to clear slow-moving merchandise.

The operator of Sears and Kmart stores says its first-quarter loss was $56 million, or 43 cents per share, compared with $223 million, or $1.45 per share a year earlier. On an adjusted basis it had a loss of 53 cents per share, compared with $1.15 per share in the same period last year.

http://news.yahoo.com/s/ap/20080529/ap_on_bi_ge/earns_sears_holding

[ozymandius]

9. Costco 3Q profit climbs 32 percent, tops outlook

ISSAQUAH, Wash. - Costco Wholesale says its fiscal third-quarter profit climbed 32 percent to top Wall Street expectations, as cash-squeezed customers flocked to its warehouse clubs in search of bargains on food and toiletries.

.....

Analysts surveyed by Thomson Financial had expected profit of 65 cents per share on revenue of $16.35 billion.

http://news.yahoo.com/s/ap/20080529/ap_on_bi_ge/earns_costco

[ozymandius]

10. Inflation-wary Fed looks ahead to rate increases

SAN FRANCISCO (Reuters) - Two Federal Reserve policy makers warned on Wednesday that interest rate increases might be needed before too long to curb inflation, even as the United States struggles with a weak economy.

The remarks solidified expectations that the Federal Open Market Committee has ended an aggressive rate-cutting campaign and could start to reverse its policy course late this year.

Dallas Fed President Richard Fisher and Minneapolis Fed President Gary Stern, both voting members of the FOMC in 2008, said they are keeping a close eye on inflation expectations being dialed into financial markets.

.....

The Fed monitors inflation expectations as a test of what assumptions are priced into markets and, by implication, consumer behavior.

Central bank officials have expressed concern the United States may face early signs of stagflation, the damaging combination of weak growth and wage-price spiral that hit the world's biggest economy in the late 1970s and early 1980s.

http://news.yahoo.com/s/nm/20080529/bs_nm/usa_fed_dc

[DemReadingDU]

38. Dallas Fed Richard W. Fisher speech: Storms on the Horizon

5/28/08
a few snippets from the speech

Tonight, I want to talk about a different matter. In keeping with Bill Martin’s advice, I have been scanning the horizon for danger signals even as we continue working to recover from the recent turmoil. In the distance, I see a frightful storm brewing in the form of untethered government debt. I choose the words—“frightful storm”—deliberately to avoid hyperbole. Unless we take steps to deal with it, the long-term fiscal situation of the federal government will be unimaginably more devastating to our economic prosperity than the subprime debacle and the recent debauching of credit markets that we are now working so hard to correct.


Yet no one, Democrat or Republican, enjoys placing our children and grandchildren and their children and grandchildren in harm’s way. No one wants to see the frightful storm of unfunded long-term liabilities destroy our economy or threaten the independence and authority of our central bank or tear our currency asunder.

Of late, we have heard many complaints about the weakness of the dollar against the euro and other currencies. It was recently argued in the op-ed pages of the Financial Times <3> that one reason for the demise of the British pound was the need to liquidate England’s international reserves to pay off the costs of the Great Wars. In the end, the pound, it was essentially argued, was sunk by the kaiser’s army and Hitler’s bombs. Right now, we—you and I—are launching fiscal bombs against ourselves. You have it in your power as the electors of our fiscal authorities to prevent this destruction. Please do so.

lots more...
http://www.dallasfed.org/news/speeches/fisher/2008/fs080528.cfm

[ozymandius]

11. Stock futures point to flat start ahead of GDP

LONDON (Reuters) - Stock futures were largely flat on Thursday, suggesting Wall Street stocks may steady after Wednesday's rally as the market keeps an eye on first-quarter growth data and corporate earnings.

The GDP report, due at 8:30 a.m. EDT, will offer a second look at first-quarter growth, but will include an initial look at the impact of first-quarter corporate profits after declines in the last two quarters of 2007.

A Reuters poll of economists shows U.S economic growth was probably stronger than originally reported, with growth of 0.9 percent, compared with the 0.6 percent reported last month.

By 6:10 a.m. EDT, June Dow Jones futures were down 0.12 percent, while Standard & Poor's 500 futures and Nasdaq 100 futures were flat. The indicative Dow Jones index was down 0.91 percent.

http://news.yahoo.com/s/nm/20080529/bs_nm/markets_stocks_dc_28

[ozymandius]

12. Goodbye, Bear Stearns

NEW YORK (CNNMoney.com) -- JPMorgan Chase should complete its historic bid for Bear Stearns Thursday, effectively closing one of the more dismal chapters in the annals of Wall Street.

Nearly two-and-a-half months after the extraordinary tie-up was revealed, Bear Stearns (BSC, Fortune 500) shareholders are widely expected to approve the proposed takeover at a special meeting.

The purchase, unveiled on a Sunday evening, not only heralded the end of the 85-year-old Wall Street firm, but also came to represent just how vulnerable Wall Street had become as a result of the subprime mortgage meltdown and credit crisis.

.....

While the coming months will most likely be spent wrapping tying up the loose ends of the merger, that may not necessarily stop JPMorgan from pursuing its long-rumored goal of acquiring a regional bank with exposure either in the South or along the West Coast.

http://money.cnn.com/2008/05/29/news/companies/bear_stearns/?postversion=2008052903

[Hugin]

40. I'm anxiously awaiting antigop's next scoop on this...

I meant to say thanks yesterday for the links.

[ozymandius]

13. Writedown bug could bite Lehman

NEW YORK (Fortune) -- Lehman Brothers has some explaining to do.

Shares of the big brokerage firm have dropped 13% over the past three days amid renewed questions about the health of Lehman's (LEH, Fortune 500) balance sheet. The setback comes just over a month after finance chief Erin Callan led a public relations blitz that aimed to dispel worries about Lehman's financial standing following the collapse of rival Bear Stearns (BSC, Fortune 500). Callan's efforts were aided by a surprisingly solid first quarter earnings report and a $4 billion preferred stock sale that was strongly oversubscribed.

But David Einhorn, the manager of the Greenlight Capital hedge fund, reopened the case against Lehman in a speech Wednesday. Einhorn, who along with any number of other value-oriented, long/short hedge fund managers is short Lehman, says the firm hasn't taken sufficient writedowns on its $6.5 billion collateralized debt obligation book to account for the sharp decline in the value of this sort of paper. Einhorn laid out his argument in a speech at the Ira Sohn Investment Research Conference.

.....

Of course, according to its 10-Q filing, at the end of the first quarter Lehman had $786 billion in total assets. So the decision of whether to write down a billion dollars or two could easily fall short of materiality. But it's nearly impossible to carry off an argument that the 3% haircut Lehman has taken so far on its $6.5 billion portfolio is remotely adequate. Were Lehman to seek a buyer for the entire portfolio at once, a bid of 50% of face-value might be generous. Whatever Einhorn's motivation, it appears clear that the firm's investors would do well to brace for at least one more round of asset writedowns.

http://money.cnn.com/2008/05/23/news/companies/boyd_lehman.fortune/index.htm?postversion=2008052313

[TalkingDog]

14. In a pinch, it makes great bait. Especially if you cut it in strips and microwave it.

Spam.

http://www.cbsnews.com/stories/2008/05/28/business/main4133539.shtml
Sales of Spam - that much maligned meat - are rising as consumers are turning more to lunch meats and other lower-cost foods to extend their already stretched food budgets.

snip:
Food prices are increasing faster than they've risen since 1990, at 4 percent in the U.S. last year, according to the Agriculture Department. Many staples are rising even faster, with white bread up 13 percent last year, bacon up 7 percent and peanut butter up 9 percent.

There's no sign of a slowdown. Food inflation is running at an annualized rate of 6.1 percent as of April, according to the Bureau of Labor Statistics.


snip:
Spam's maker, Hormel Foods Corp., reported last week that it saw strong sales of Spam in the second quarter, helping push up its profits 14 percent. According to sales information coming from Hormel, provided by The Nielsen Co., Spam sales were up 10.6 percent in the 12-week period ending May 3, compared to last year. In the last 24 weeks, sales were up nearly 9 percent.



My morning stomach is "delicate". So it takes me a while to even consider the idea of food. You can imagine my response when I read this:

"They've credited the sales increase to that, along with new products like individually packaged "Spam Singles" slices."




Sorry *urp* I have to go get something to settle my stomach.

[ozymandius]

16. I guess we'd better get used to it (urpiness, Spam and high prices).

World food prices will dip but stay high: report

PARIS (Reuters) - Food prices will remain high over the next decade even if they fall from current records, meaning millions more risk further hardship or hunger, the OECD and the UN's FAO food agency said in a report published on Thursday.

Beyond stating the immediate need for humanitarian aid, the international bodies suggested wider deployment of genetically modified crops and a rethink of biofuel programs that guzzle grain which could otherwise feed people and livestock.

The report, released ahead of a world food summit in Rome next week, said food commodity prices were likely to recede from the peaks hit recently, but that they would remain higher in the decade ahead than the one gone by.

Beef and pork prices would probably stay around 20 percent higher than in the last 10 years, while wheat, corn and skimmed milk powder would likely command 40-60 percent more in the 10 years ahead, in nominal terms, it said.

http://www.reuters.com/article/topNews/idUSCOM00014720080529

[54anickel]

55. Hmmm, yeah let's get them all fed once we get the system of royalty payments and

intellectual property rights of gm crops for the big corporate seed farms (Monsanto, ADM, etc) ironed out. :eyes: I don't know enough about gm crops to make a call one way or the other with regards to the environment or health, but I do know enough about corporate greed and profit to make me suspicious. I just can't get that Monsanto royalty lawsuit against some farmer out of my head whenever I hear some entity pushing for genetically modified crops.

Side note:
We've got a cousin that raises beef, they grown their own feed, but as the herd gets bigger they started mixing in the by-product from the nearby ethanol plant. Looks and smells like silage, a bit more fermented = happy cattle.

Their beef is rated prime (no hormones, anti-biotics, etc) and he was telling me that anything not purchased by local individuals or restaurants gets shipped overseas because none of the big chain suppliers of "boxed beef" will pay the price for choice or prime. We re-fired up the chest freezer in the basement early spring to bring home a quarter - best beef I've had in a long time. Reminds me of when I was a kid and we raised our own or bought from the local butcher shop. I'll never buy meat at the big chain grocery store again. Oh, and I paid $1.60/lb hanging plus another .40/lb to the processor to cut and double freezer wrap it.

We've got a pig coming from a friend who is in the process of getting rated "organic" right now, not sure what he's charging other than it's not the "organic" price yet. Got plenty of local folks raising and selling free-range eggs and chickens now too. Love the eggs, not real fond of yard-bird though.

Plan on hitting to local farmer's markets more than usual for produce to freeze/can this summer as well.

[AnneD]

77. That's what I try to do...

buy from friends and family. It's cheaper and better.

[xyouth]

83. A must watch about Monsanto. They are EVIL!!!!!

http://www.informationclearinghouse.info/article19738.htm

[Ghost Dog]

84. Shit, man. Friends were just commententing about the apparently GM Marijuana seeds

(some kind of "terminator", one now suspects) sold by (as far as i know) these people in Amsterdam (corrupt business shit gets everywhere): http://www.sensiseeds.com/ (I'd always respected them until, maybe, now).

NOTE: I only grow, like, three or four plants at a time for personal, private (+ friends) pleasure & enlightenment).

(I passed some of last year's (indica) purchase on to friends: didn't work for them this year. Didn't grow for me either. The seeds purchased last year: fertile; the same seeds from last year, sown this year: dead. Already.).

--> BUT, the seeds from those plants sown last year from those seeds which (I don't cut down males) did fertilize between themselves (I must have, in a tin here, like, 1000), ARE alive and growing this year.

Thanks be to the goddesses and gods. Please care for, and let grow naturally, albeit selectively (that's what "cultivation" is all about) seeds, folks.

Any comments out there --> in a different thread, maybe.

..... + Welcome to DU, of course, xyouth. Pick up the ball and run with it.....


Edit to add: check yourself: the video in that link, from March 11 (it doesn't say of what year) is DEAD ALREADY.

fuck.

:smoke:

PM me if you' like.

[xyouth]

85. Green peace called it new in March 2008

http://www.greenpeace.org/international/news/monsanto_movie080307
Thanks for the welcome, I've been here for a while though. I was angryxyouth, but for some reason I can't log in anymore. But it is all good, It is bad Karma to be Angry all the time. I could almost smell the fresh bud in your post. I use to grow once in a while for fun. My brother took it more seriously using Nitrogen and lights. I can't smoke anymore, it tenses up my neck muscles and ruins the mellow. I admit I still try once in a while just to test.

TO all of the contributers to this Thread, Thanks you do a great job. I feel that I am an economically well informed poor person. :patriot: PEACE!!

[DemReadingDU]

27. There is even low-fat, low-salt Spam for the health conscious

Heard this on NPR this morning

http://www.npr.org/templates/story/story.php?storyId=90931441

[MadinMo]

33. I will have to be pretty hungry to eat Spam.

Although as a child I loved vienna sausages. Now the thought makes me "urp" too.

[Dr.Phool]

39. I used to buy a can every couple of years just to see if it was as bad as I remember.

It was.:puke:

[Hugin]

35. I'm there!

Yum. :9

[AnneD]

47. Morning Marketeers....

:donut: and lurkers. I laughed at the NPR report this morning. My daughter swears I could eat enough SPAM to be considered a native Hawaiian. Breakfast, lunch, or dinner I have a recipe. I haven't been to Hawaii, but when my daughter went-she said the breakfast were like mine-but with different fruit.:rofl: It was the meat that Mom could afford when we were young and she was very creative with it.

Today is the last day of school and tomorrow is my daughter's graduation and conducting debut, thus my irregular posts yesterday, today and tomorrow. Good luck at the casinos guys. Lot's of stuff popping.

Happy hunting and watch out for the bears.

[Hugin]

51. Morning AnneD...

:hangover:

Congrats to the daughter! Three cheers! :party:



I recently noticed my Authentic Indiana Jones hat was missing... And my youngest apple-of-my-eye cherub tops my
list as the perpetrator. Luckily, the Leather Jacket, Marshalltown Trowel, and Whip ( *snap* ) remained undisturbed.

There's a long story behind this... Like way back when, I thought Archeology held the path to my Self-Actualization.
( But, no money.) So, to avoid starvation, I went into a technological field. (and starved there instead.)

So... I have no good career advice for your daughter. Except to make what she loves, what she does!

[AnneD]

66. Thenks...

I tell her the same thing. It makes no sense to work for a paycheck these days because corperations hold too much power over thng and they will cheat you out of your wages and retirement so you may as well do what you love. And if you can grow it into a cottage industry-so much the better. I'd rather be my own boss anyway.

[Hugin]

34. Next stop...

Soylent green!

This is all part of the "Greenspan Trickle-down Negative Inflation Scheme". You know, the one where there's always
a lower rung on the ladder, so things stay pretty much the same. The one they use to calculate the COLAs and such.

That one.



Edit: Ask Roland99 to tell you all about it.

[ozymandius]

18. Signs of Worsening Credit Conditions

Two UK columnists looked at the credit markets, and neither liked what he saw. And they wrote it up more colorfully than most of their American counterparts would have.

The first, Nils Pratley of the Guardian, tells us that that the idea that the credit crisis is on the wane is more than a tad optimistic:

Some say the credit crisis is over. Not Tom Attwood, managing director of Intermediate Capital Group (ICG), a firm which makes few waves outside financial circles. Its business is mezzanine finance, specialist high-risk lending to private equity firms. That puts it at the frontline of the financial turmoil and Attwood's bleak assessment of conditions yesterday is worth quoting.

Sub-prime, he says, was merely a catalyst to the bursting of the credit bubble. It was going to happen anyway. "Credit disciplines across almost all markets were bypassed in favour of loan book growth at almost any cost."

.....

His bottom line is: "There is no sign of a return to liquidity in debt markets as a whole. Raising new funds will become increasingly difficult across the board."...

But the implication is that an awful lot of duff loans are still to surface. Attwood's killer fact is that in 1999 ICG was one of three funds in Europe in the mezzanine and leveraged loan business; by 2007, there were 112. Some of the inexperienced losers are known already, but there's surely more pain to be revealed.

Ambrose Evans-Pritchard of the Telegraph looks at the rise of credit default swaps prices on investment banks and increasing interbank spreads, both indicators of heightened concern about counterparty and systemic risk.

.....

The debt markets in the US and Europe have begun to flash warning signals yet again, raising fears that the global credit crisis could be entering another turbulent phase.

The cost of insuring against default on the bonds of Lehman Brothers, Merrill Lynch and other big banks and brokerages has surged over the last two weeks, threatening to reach the stress levels seen before the Bear Stearns debacle. Spreads on inter-bank Libor and Euribor rates in Europe are back near record levels.

Credit default swaps (CDS) on Lehman debt have risen from around 130 in late April to 247, while Merrill debt has spiked to 196. Most analysts had thought the coast was clear for such broker dealers after the US Federal Reserve invoked an emergency clause in March to let them borrow directly from its lending window.

.....

Willem Sels, a credit analyst at Dresdner Kleinwort, said the banks are beginning to face waves of defaults on credit cards, car loans, and now corporate loans. "We believe we're entering Phase II. The liquidity crisis has eased a little, but the real credit losses are accelerating. The worst is yet to come," he said.

http://www.nakedcapitalism.com/2008/05/signs-of-worsening-credit-conditions.html

[UpInArms]

19. dollar watch

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

Last trade 72.805 Change +0.277 (+0.38%)

US Dollar Rally Cut Short by Drop in Durable Goods Orders

http://www.dailyfx.com/story/bio1/US_Dollar_Rally_Cut_Short_1212019305500.html

The US dollar rallied across the majors throughout much of the European trading session, but the release of data during the US trading session cut the move short. Indeed, the Commerce Department's most recent durable goods report showed that new orders fell 0.5 percent in April, led by a decline in transportation as Boeing reported only 58 airplane orders during the month, down from 99 in March. Indeed, excluding this factor, durable goods orders actually jumped 2.5 percent, the biggest gain in 9 months. A further breakdown of the index shows that business investment - as measured by capital goods orders excluding defense and aircraft - rebounded 4.2 percent following three consecutive months of declines, suggesting that companies feel a bit more confident about conditions down the road. As a result, we’ve seen that fed fund futures have moved increasingly in favor of no change in rates in June, with the markets only pricing in a 4 percent chance of a 25bp cut to 1.75 percent, down from 10 percent yesterday. These expectations are not likely to change drastically before the next rate decision, so what is most likely to be the biggest driver of day-to-day price action? USD/JPY. The pair has seen a pick up in volatility thanks to sharp moves in the equity markets, and if this trend persists, we could continue to see wild moves in the US dollar across the majors.

...more...

Dollar Rally Rolls On as Eurozone Economy Shows More Signs of Weakness - Will 1.5500 Break?

http://www.dailyfx.com/story/bio2/Dollar_Rally_Rolls_On_as_1212056681079.html

A surprising increase in the German unemployment helped push EURUSD below the 1.5600 figure in early European trade as evidence of economic slowdown in the 15 member union continued to mount. German unemployment increased for the first time more than 2 years suggesting that the regions most important economy is starting to sputter and run out of gas.

German unemployment rose by 4K from an expected drop of -25K – a considerable difference that sent the euro tumbling below 1.5550 before bargain hunters scooped in. In addition to the weak employment numbers EZ consumer confidence also slipped to -15 from -12 expected. On the other hand, EZ Retail PMI showed a marked improvement jumping from 41.6 to 51.3 as warm weather and stronger euro drove consumption trends higher.

In short, the economic picture in Europe remains mixed as the economy continues to expand at a moderate pace but warning signs abound that high exchange rates and high energy costs may take a serious toll on growth in the 2nd half of 2008. At the very least the current state of the EZ economy shows that there is virtually no chance for an ECB rate hike into the later half of this year and as such dampens any euro rally going forward.

On the US side the greenback received a boost from comments by Federal Reserve Bank of Dallas President Richard Fisher that the Fed may consider a rate hike if US inflation expectations begin to mount. We seriously doubt that the present day Fed will risk the possibility of double digit unemployment rates a la Chairman Volcker of the 1980’s by actually tightening credit conditions in the midst of major wealth destruction for most US households. However, his statement simply added to this week’s dollar bullishness and helped to push euro lower.

The key event risk facing the market in North America is the 2nd revision of US Q1 GDP data. While the report is backward looking, an upward revision will help to make the argument for dollar bulls that US economy despite all the well known woes has managed to avoid recession for the time being. Today’s jobless claims may also play a role in FX trade. Last week’s better than expected numbers helped quell fears that unemployment for May will expand markedly, and if today’s data remains on trend, the case for a US slowdown rather than full blown recession will become stronger.

...more...

[UpInArms]

21. The cost of soaring public and private debt levels

http://www.marketwatch.com/news/story/cost-soaring-private-public-debt/story.aspx?guid=%7B850A8114%2DC2BE%2D4C36%2DBC01%2DFB07DC75B45F%7D

NEW YORK (MarketWatch) -- Is Kevin Phillips right that something funny is going on in the economy? Yes, although just how funny is less clear.

The numbers do suggest he's correct about one thing at least: public and private debt has indeed reached unprecedented levels.

Recently, we described Phillips' thesis, in his new book "Bad Money: Reckless Finance, Failed Politics, and the Global Finance of American Capital" that the U.S. economy has been run by a Washington-Wall Street mercantilist alliance for the benefit of the finance sector. See column.

Phillips doesn't flat-out predict that the resulting distortions will result in a crash. He says it's too early to say. But he meaningfully quotes a number of authorities, such as Yale economist Robert Shiller, to the effect that it will.

<snip>

Phillips calls this "The Great American Debt Bubble". He says, somewhat melodramatically, that the financial media haven't been running it recently "Analogies to the 1920s would have been too disturbing."

...more...

[UpInArms]

22. State Street tells employees, some customers of data theft - MarketWatch

http://www.marketwatch.com/quotes/stt

State Street tells employees, some customers of data theft - MarketWatch

State Street: 'No evidence to date' of any impact from theft - MarketWatch

State Street says some of its data were stolen - MarketWatch

[UpInArms]

23. State Street says data stolen from acquired company

http://www.marketwatch.com/news/story/state-street-says-data-stolen/story.aspx?guid=%7BA37CCE4B%2DA7BA%2D4A8F%2D8708%2D14161E490878%7D&dist=msr_1

BOSTON (MarketWatch) -- State Street Corp. (STT) on Thursday said it has sent notices to employees and some customers of the former Investors Financial Services Corp. that computer equipment containing personal data was stolen from a vendor's facility. Investors Financial, an asset custody firm which State Street acquired last year, had used the vendor for legal support services, according to a press release. "There is no evidence to date to suggest that the data has been misused or that legacy State Street customers or employees are impacted," the Boston-based company said in a statement.

[ozymandius]

29. futures turning negative

08:57 am : S&P futures vs fair value: -1.9. Nasdaq futures vs fair value: -1.5. Futures now indicate a slightly lower start to the day as selling pressure picks up following the in-line economic data.

08:32 am : S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: +3.5. Futures have a muted reaction as two in-line economic reports hit the wires. There was a total of 372,000 jobless claims for the week ended May 24, which is very close to the consensus estimate of 370,000. Separately, the preliminary first quarter GDP reading showed growth of 0.9%, in-line with expectations. Core PCE was revised to 2.1% from 2.2%.

[Hugin]

41. ~09:40 EST: Ring-a-ding-ding...

Index Last Change % change
• DJIA 12584.99 -2.04 -0.02%
• NASDAQ 2490.13 +3.43 +0.14%
• S&P 500 1389.96 -0.88 -0.06%

[ozymandius]

42. edging into the positive range with frail, pawltry offerings

9:54
Dow 12,601.60 Up 7.57 (0.06%)
Nasdaq 2,495.33 Up 8.63 (0.35%)
S&P 500 1,391.96 Up 1.12 (0.08%)
10-Yr Bond 4.056% Up 0.047
NYSE Volume 330,770,875
Nasdaq Volume 164,772,468.75

09:40 am : The major indices start trading on a sluggish note, as in-line economic data failed to spur buying interest in the early-going.

First quarter GDP was revised higher to 0.9% from 0.6%. The change was primarily due to revisions to net exports (+0.6%), nonresidential construction (+0.2%) and inventories (-0.6%). GDP growth is sluggish at a rate well below 3.0%, but is much better than the alarmist recessionary talk.

In a separate report, the weekly jobless claims held mostly steady at 372,000, which was also in-line with expectations.DJ30 -8.71 NASDAQ +2.89 SP500 -0.50

[Hugin]

43. " is much better than the alarmist recessionary talk"...

I'll give them a talking to they won't soon forget! :grr:



( :lol: )

[DemReadingDU]

31. Fed Governor Mishkin Will Step Down

5/28/08
Federal Reserve Governor Frederic Mishkin will leave at the end of August and return to teaching at Columbia University, the central bank announced Wednesday. His departure means yet another empty seat on the Fed as it battles housing, credit and financial debacles.

Mishkin, a Fed board member since Sept. 5, 2006, submitted his resignation to President Bush. His exit leaves the Fed with just four of its seven board seats filled.

"Rick's contributions to the intellectual underpinnings of monetary policy at the Federal Reserve have been invaluable," said Fed Chairman Ben Bernanke. "His keen insights, deep analysis and humor have enriched our deliberations."

Mishkin, 57, will return to Columbia University's Graduate School of Business as a professor of economics and resume teaching in the fall, the Fed said.

The Fed's meeting on Aug. 5 will be Mishkin's last.

An author of more than 15 books, Mishkin's academic research has focused on how monetary policy affects financial markets and the economy at large.

"It has been a great privilege to serve my country in this capacity," Mishkin wrote in his resignation letter to the president.

His departure comes as the Fed has been working urgently to help the economy recover from the blows of the housing slump, a painful credit crunch and market turmoil.

a bit more...
http://news.yahoo.com/s/ap/20080528/ap_on_go_ot/fed_departure

[ozymandius]

46. good riddance

Mishkin is a forceful advocate of rate cuts. He and Chopper Ben have been too cozy. Their relationship has been more than professional (no - not meaning romantic) which has produced the blasted rate cuts that have beaten down the dollar.

[antigop]

45. Auditor: Supervisor covered up risky loans

http://www.npr.org/templates/story/story.php?storyId=90840958&ft=1&f=1001

Now that millions of people are facing foreclosure because they got into loans that never should have been approved, everybody's looking for someone to blame. Borrowers, or their brokers, lied on loan applications. Others got high interest rates they couldn't afford.

A big unanswered question is whether the Wall Street investment banks that were packaging these mortgages knew they were selling garbage loans to investors. A wave of litigation is starting against these firms. One former worker whose job was to catch bad loans says her supervisors covered them up.

Mortgage Quality Control

Tracy Warren is not surprised by the foreclosure crisis. She saw the roots of it firsthand every day. She worked for a quality-control contractor that reviewed subprime loans for investment banks before they were sold off on Wall Street.

It was her job to dig into the loans and ferret out problems. By 2006, they were easy to find.

[ozymandius]

50. 10:10 bounce-less

Dow 12,576.93 Down 17.10 (0.14%)
Nasdaq 2,494.36 Up 7.66 (0.31%)
S&P 500 1,389.94 Down 0.90 (0.06%)
10-Yr Bond 4.083% Up 0.074
NYSE Volume 492,218,281.25
Nasdaq Volume 257,260,921.875

10:00 am : The stock market recovers into positive territory, although gains are modest. Declines in the energy (-1.1%) and materials (-1.5%) sectors are acting as a drag on the broader market as crude prices slip 1.7% and gold prices fall 2.1%. Seven of the ten economic sectors are trading higher, led by health care (+1.0%) and financials (+0.7%).

Retailers are up 1.2% this morning as traders digest a mixed batch of earnings reports. Discount retailers Costco (COST 74.20, +0.96) and Big Lots! (BIG 30.80, +2.27) both posted better than expected quarterly earnings results, benefiting from consumers' search for bargains. Conversely, Sears Holdings (SHLD 86.66, -2.70) unexpectedly lost $0.53 per share, excluding items, compared to a profit of $1.15 per share in the prior year. Analyst were expecting a profit of $0.15 per share.DJ30 +3.42 NASDAQ +10.59 SP500 +1.59 NASDAQ Dec/Adv/Vol 1012/1300/190 mln NYSE Dec/Adv/Vol 1214/1494/128 mln

[UpInArms]

54. FDIC Report shows big banks in trouble

01. FDIC report says end of housing slump in not near
10:25 AM ET, May 29, 2008

02. Unsold homes inventory suggests no near term rebound:FDIC
10:25 AM ET, May 29, 2008

04. Bank assets increase by 2.6% in Q1, FDIC says
10:21 AM ET, May 29, 2008

05. Q1 bank earnings $19.3 bln vs. $35.6 bln year-ago: FDIC
10:20 AM ET, May 29, 2008

06. Worsening real estate loans hurt banks in Q1, FDIC says
10:19 AM ET, May 29, 2008

08. FDIC list of 'problem' banks grows from 76 to 90 in Q1
10:17 AM ET, May 29, 2008

09. Community banks in better shape than broad sector_FDIC
10:16 AM ET, May 29, 2008

10. Latest FDIC qtly banking profile shows continued weakness
10:16 AM ET, May 29, 2008

[DemReadingDU]

57. Is there a link to the FDIC report?

I'm curious if the FDIC lists the big banks that are having trouble.

[Demeter]

59. Can't Leave You Folks Unsupervised At All!

What have you been doing to the economy while I was out there slaving away so I could buy a replacement computer?

Don't answer that. I have over 200 emails to get through, maybe the answer is there. Should I even buy a computer, or is ignorance bliss?

Anyway, if there was ever a day that needed an uplifting theme, this has got to be the one!



The sun'll come out
Tomorrow
Bet your bottom dollar
That tomorrow
There'll be sun!

Just thinkin' about
Tomorrow
Clears away the cobwebs,
And the sorrow
'Til there's none!

When I'm stuck a day
That's gray,
And lonely,
I just stick out my chin
And Grin,
And Say,
Oh!

The sun'll come out
Tomorrow
So ya gotta hang on
'Til tomorrow
Come what may
Tomorrow! Tomorrow!
I love ya Tomorrow!
You're always
A day
A way!

Save your tomatoes for sphaghetti sauce. Thank you! I won't be here all week, most likely. Hang tough, friends!

[Hugin]

60. I was wondering what happened to you...

:hi:

[TalkingDog]

61. If you live near a public library, Use the computers they buy

with your tax dollars.

Keep an eye on Craigslist too. Folks are paring down and there are deals to be had.

Glad to see you. How's your girly?

[Demeter]

80. That's Where I Am Right Now--The Library

and man is it a slow system!

My daughter's is very despondent, and behaviors we haven't seen for years are returning. I have enough dirt to go after the idiot who started it all, out of her philosophical belief that parents of the developmentally disabled ought to be relieved of "the burden" once the kid turns 18, even if they don't want to. I said "No, thank you," she filed a complaint with Adult Protective Services.

Since there was no basis for the complaint, and no policy that she was following, I think the issue of immunity for a state agency is gone.

To date we have eliminated the following parties:

the court-appointed guardian
the Adult Protective Services of the state
the court (mostly)
the police department, which has closed the case due to the fact that I retain partial guardianship, and the originator of this mess didn't co-operate.

Now I just have the original idiot and the terms of her settlement and the suit for the fortune it's cost the family to fight her. And try to keep the kid together, long-distance and part-time.

At least I can take her out without a chaperon.

Why me?

[ozymandius]

65. I was starting to think that I smelled bad.

You've been gone so long. I am glad to hear that your troubles with the thread have been only technical. Welcome back!
:hi:

Speaking of strangers - has anyone seen Radfringe? She's been missing for quite awhile.

[ozymandius]

67. Traders start passing around the after-lunch hooch.

1:34
Dow 12,704.03 Up 110.00 (0.87%)
Nasdaq 2,515.56 Up 28.86 (1.16%)
S&P 500 1,402.88 Up 12.04 (0.87%)
10-Yr Bond 4.128% Up 0.119
NYSE Volume 2,104,043,000
Nasdaq Volume 1,117,340,000
1:00 pm : There is quite clearly an oil trade today as the stock market has rallied while oil prices have backed up considerably. Overall, oil prices are down 2.9% for the session to $127.21, but more significantly, they are down 4.5% from the highs they hit shortly after the release of some bullish inventory data at 10:30 ET.

The pullback in crude prices has been exacerbated by a boost in the dollar that is also playing a part in a broader decline across the commodity complex today.

Of the 19 commodities that comprise the CRB Index, only two -- cocoa and lean hogs -- are showing a gain at this juncture. The CRB Index as a whole is down 1.5%.DJ30 +116.43 NASDAQ +30.71 SP500 +12.96 NASDAQ Dec/Adv/Vol 910/1816/960 mln NYSE Dec/Adv/Vol 1069/1958/567 mln

12:35 pm : Stocks are posting solid gains near session highs. The reversal in crude prices is boosting the Amex Airline Index (+3.2%) and the Dow Jones Transportation Average (+1.0%).

Crude oil is currently trading with a loss of 2.3% at $128.01 per barrel. The sharp and unexpected 8.8 million drop in crude inventories was due to temporary delays in crude off-loadings on the Gulf Coast, according to the Department of Energy.DJ30 +91.03 NASDAQ +24.38 SP500 +10.70 NASDAQ Dec/Adv/Vol 1013/1683/885 mln NYSE Dec/Adv/Vol 1114/1888/549 mln

[ozymandius]

68. Rates on 30-year mortgages jump to 11-week high

WASHINGTON (AP) — Rates on 30-year mortgages jumped this week to the highest level since mid-March as investors began to worry about what the Federal Reserve will do to combat growing inflation pressures.

Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.08 percent this week. That was up from 5.98 percent last week.

It was the highest level for 30-year mortgages in 11 weeks, since they averaged 6.13 percent the week of March 16.

Analysts attributed the increase to rising concerns in financial markets about what the Fed might do to battle increased inflation pressures. Financial markets this week pushed the yield on 10-year Treasury bonds above 4 percent for the first time in five months.

http://ap.google.com/article/ALeqM5iBKSZB3l69BiVRfJpIp5SSEKir3QD90VCUJ80

[UpInArms]

69. Reason for party? Wall Street jobs cuts may only hit 25,000: report

http://www.reuters.com/article/bondsNews/idUSN2926075020080529

NEW YORK (Reuters) - New York City's financial sector might only slice 15,000 to 25,000 jobs in the current downturn, which could prove shorter than the mayor has predicted, the city comptroller said on Thursday.

In contrast, the financial sector that is such a vital part of the city's economy slashed 40,200 jobs in the previous retreat from 2000 to 2003 that straddled the September 11, 2001 attacks, Comptroller William Thompson said in his report.

The current job-losing cycle began in August 2007 and should run through March 2009, the Democrat added.

[TrogL]

70. 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

2008-04-17 Thursday, April 17 0.989413 USD
2008-04-18 Friday, April 18 0.99167 USD
2008-04-21 Monday, April 21 0.993443 USD
2008-04-22 Tuesday, April 22 0.996711 USD
2008-04-23 Wednesday, April 23 0.980969 USD
2008-04-24 Thursday, April 24 0.987069 USD
2008-04-25 Friday, April 25 0.983961 USD
2008-04-28 Monday, April 28 0.984446 USD
2008-04-29 Tuesday, April 29 0.987362 USD
2008-04-30 Wednesday, April 30 0.990884 USD
2008-05-01 Thursday, May 1 0.981643 USD
2008-05-02 Friday, May 2 0.982125 USD
2008-05-05 Monday, May 5 0.987654 USD
2008-05-06 Tuesday, May 6 0.996413 USD
2008-05-07 Wednesday, May 7 0.998004 USD
2008-05-08 Thursday, May 8 0.985319 USD
2008-05-09 Friday, May 9 0.993838 USD
2008-05-12 Monday, May 12 0.996314 USD
2008-05-13 Tuesday, May 13 1.0004 USD
2008-05-14 Wednesday, May 14 0.998203 USD
2008-05-15 Thursday, May 15 1.0004 USD
2008-05-16 Friday, May 16 1.00341 USD
2008-05-19 Monday, May 19 1.00867 USD
2008-05-20 Tuesday, May 20 1.00725 USD
2008-05-21 Wednesday, May 21 1.01626 USD
2008-05-22 Thursday, May 22 1.0141 USD
2008-05-23 Friday, May 23 1.01184 USD
2008-05-26 Monday, May 26 1.01184 USD
2008-05-27 Tuesday, May 27 1.00685 USD
2008-05-28 Wednesday, May 28 1.00878 USD


Current values

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

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     1.0131 1.0170 1.0124 1.0124 +0.0022 +0.22% 
CD.M08 Jun 2008 1.0144 1.0170 1.0110 1.0110 +0.0012 +0.12% 
CD.U08 Sep 2008 1.0141 1.0141 1.0140 1.0140 +0.0050 +0.50% 
CD.Z08 Dec 2008 0.9780 0.9780 0.9780 1.0085 +0.0044 +0.44% 
CD.H09 Mar 2009 0.9757 0.9757        1.0084 +0.0044 +0.44% 
CD.M09 Jun 2009 0.9995 0.9995        1.0083 +0.0044 +0.44% 
CD.U09 Sep 2009 0.9780 0.9780 0.9780 1.0082 +0.0044 +0.44%  

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

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.M08 Jun 2008 0.9504 0.9504 0.9504 0.9504 -0.0003 -0.03%  
EURO/BRITISH POUND (NYBOT:GB)
GB.M08.E Jun 2008 (E) 0.7904 0.7904 0.7856 0.7856 -0.0089 -1.13%    
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.M08.E Jun 2008 (E) 163.52 163.52 163.52 163.52 +0.43 +0.26%     
EURO/US$ (SMALL) (NYBOT:EO)
EO.M08.E Jun 2008 (E) 1.56350 1.56350 1.54780 1.54860 -0.01735 -1.11%    

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

The June Canadian Dollar was steady to slightly higher overnight as it extends Wednesday's rally. However, stochastics and the RSI remain neutral to bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 100.03 are needed to confirm that a short-term top has been posted. If June renews this month's rally, March's high crossing at 102.38 is the next upside target. First resistance is last Wednesday's high crossing at 101.80. Second resistance is March's high crossing at 102.38. First support is Wednesday's low crossing at 100.37. Second support is the 20-day moving average crossing at 100.03.

Analysis

Can't believe I'm posting three days in a row after a long absense. Listened to two drive-in shows both talking about rosy outlooks in the TSE and the loonie looking up. Checked the blather site and it shows a contrarian loonie so I thought I'd better do yet another :wtf: entry.

I will definitely be posting late tomorrow if at all.

[antigop]

72. TPM: More on "Foreclosure Phil" (Gramm)

http://tpmmuckraker.talkingpointsmemo.com/2008/05/todays_must_read_346.php

John McCain's go-to economics adviser isn't holding up very well under close scrutiny.

Phil Gramm, the former Texas senator and economist, is taking a lot of heat after reports that up until April 18 he was a registered lobbyist for UBS, the Swiss bank that is the world's largest manager of private wealth.

A former economics professor at Texas A&M, Gramm has long advocated for tax cuts, supply-side economics and less government regulation. But as David Corn over at Mother Jones reports in "Foreclosure Phil?" Gramm also played an integral role in the financial scandal commonly known as the "subprime meltdown."

Gramm took to the Senate floor on Dec. 15, 2000 -- just two days after the U.S. Supreme Court handed down the Bush v. Gore decision -- and inserted a 262-page measure into a massive budget bill.

[antigop]

73. Article on UBS from July, 2007 in The Economist

http://www.economist.com/finance/displayText

[Demeter]

81. We Need a Theme Song Entitled "Schaudenfreude"

It should be catchy, with some biting lyrics that can be easily updated.

Maybe there's a tune from Gilbert and Sullivan that could be parodied.....

[antigop]

74. Motherjones: "Foreclosure Phil"

http://www.motherjones.com/news/feature/2008/07/foreclosure-phil.html

Who's to blame for the biggest financial catastrophe of our time? There are plenty of culprits, but one candidate for lead perp is former Sen. Phil Gramm. Eight years ago, as part of a decades-long anti-regulatory crusade, Gramm pulled a sly legislative maneuver that greased the way to the multibillion-dollar subprime meltdown. Yet has Gramm been banished from the corridors of power? Reviled as the villain who bankrupted Middle America? Hardly. Now a well-paid executive at a Swiss bank, Gramm cochairs Sen. John McCain's presidential campaign and advises the Republican candidate on economic matters. He's been mentioned as a possible Treasury secretary should McCain win. That's right: A guy who helped screw up the global financial system could end up in charge of US economic policy. Talk about a market failure.

[Ghost Dog]

79. Phil Gramm, UBS, Uh Huh, thanks, antigop. n/t

ed: ( http://www.victorianweb.org/art/illustration/tenniel/alice/2.4.html )

[ozymandius]

82. End of bidness

Dow 12,646.22 Up 52.19 (0.41%)
Nasdaq 2,508.32 Up 21.62 (0.87%)
S&P 500 1,398.26 Up 7.42 (0.53%)
10-Yr Bond 4.079% Up 0.07
NYSE Volume 3,894,412,250
Nasdaq Volume 1,969,488,500

16:25 ET
Stocks Advance, Crude Oil Falls
Dow +52.19 at 12646.22, Nasdaq +21.62 at 2508.32, S&P +7.42 at 1398.26

The stock market posted a solid gain Thursday, its third consecutive advance. Market participants were encouraged by an upward revision to the first quarter economic growth rate and a sharp drop in crude prices.

Crude oil ended the session down 3.5% at $126.40 per barrel after a volatile trading session. In morning trade, crude spiked to a 1.9% gain after the government reported the largest weekly drop in crude inventory levels since 2004. Prices soon reversed, however, on demand concerns and recognition that the plummet in inventory levels was caused by delivery issues and is only temporary.

The Dollar Index advanced 0.7% which also weighed on crude prices, as well as commodities as a whole (-2.4%). Precious metals (-3.9%) took a notable hit, with gold falling 2.6% and silver falling 5.2%.

The declines in oil and commodities weighed on the energy (-2.0%) and material (-1.3%) sectors, which were the only sectors to finish the day with a loss. The rest of the stock market fared well, as the drop in crude and commodity prices helped ease inflation fears.

Financials posted a solid 1.6% gain in a bit of a rebound trade following its more than 6% drop last week. MasterCard (MA 309.00, +22.11), which is not included in the S&P 500, rose to a new lifetime high after the company forecast long-term net income growth of between 20% and 30%.

Merck (MRK 38.92, +0.26) garnered the market's attention on news that two Vioxx verdicts against Merck were overturned, however the stock underperformed the health care sector (+1.5%).

Retail stocks outperformed following a mixed batch of earnings reports. Discount retailers Costco (COST 72.98, -0.26) and Big Lots (BIG 30.66, +2.13) both posted better-than-expected quarterly earnings results, benefiting from consumers' search for bargains. Conversely, Sears Holdings (SHLD 86.14, -3.22) unexpectedly lost $0.53 per share in its latest quarter, excluding items, compared to a profit of $1.15 per share in the prior year. Analysts were expecting a profit of $0.15 per share.

The session's in-line economic data didn't ignite buying interest, but it helped keep selling interest at bay.

First quarter GDP was revised higher to 0.9% from 0.6%, matching the consensus estimate. The reading remains below the 3% normal growth rate, but the result is much better than the alarmist recessionary talk. The change was primarily due to revisions to net exports (+0.6%), nonresidential construction (+0.2%) and inventories (-0.6%).

In a separate report, the number of weekly jobless claims reading held mostly steady at 372,000, which was roughly in-line with expectations.