STOCK MARKET WATCH, Wednesday September 10

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday September 10, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 130
DAYS SINCE DEMOCRACY DIED (12/12/00) 2789 DAYS
WHERE'S OSAMA BIN-LADEN? 2514 DAYS
DAYS SINCE ENRON COLLAPSE = 2805
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.
$1 USD = EUR 1.06678
$1 USD = JPY 116.6200

AT THE CLOSING BELL ON September 9, 2008

Dow... 11,230.73 -280.01 (-2.43%)
Nasdaq... 2,209.81 -59.95 (-2.64%)
S&P 500... 1,224.51 -43.28 (-3.41%)
Gold future... 792.00 -10.50 (-1.31%)
30-Year Bond 4.19% -0.08 (-1.80%)
10-Yr Bond... 3.60% -0.07 (-1.88%)






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

"Maverick McCain" and the Resurrection of the US$
BY GARY DORSCH

“As soon as you think you’ve got the key to the stock market, they change the lock,” lamented Joe Granville, who is mostly remembered for his bearish calls on the US stock market during the 1970’s, 1980’s, and the 1990’s. Nowadays, many currency traders are scratching their heads, trying to figure out what’s behind the sudden resurrection of the US-dollar, which has been flexing its muscles, and bucking conventional logic by climbing sharply higher against all major foreign currencies, including those that offer much higher rates of interest.

...

There’s been a major shift in market psychology surrounding the US-dollar that’s caught many currency traders by surprise. Until July 15th, the key driver fueling the Euro’s historic advance against the US$ was a widening interest rate advantage. In Frankfurt, Germany’s 2-year yield rose to as high as +220 basis points above the comparable US-T-note in June, and up sharply from a negative -80 basis points in April 2007, which in turn guided the Euro on a steady climb higher to $1.600.

...

Even a rash of US bank failures and the possible collapse of Lehman Brothers, LEH, Wall’s Street’s fourth biggest investment bank, a big player in the sub-prime mortgage market, hasn’t put a dent in the US-dollar’s newly minted Teflon armor. Lehman’s 8% preferred-J shares plummeted today to $8 per share, lifting its junk-status yield to 25%, after an eleventh-hour rescue attempt by the Korea Development Bank (KDB) was placed in doubt.

True to form, the credit rating agencies are still touting LEH’s credit status at single “A” even though the company is locked out of the credit markets. And where there is smoke, there is fire! The cost of protecting Lehman's debt with credit default swaps for five-years rose to 450 basis points, or $450,000 a year to protect $10 million of debt, up from 325 basis points the previous day. When a bank loses the confidence of its customers, it can evaporate very quickly, just like Bear Stearns.

....

The Arabian monarchs have their eyes on the US political calendar, and are driving oil prices lower in order to help John “Maverick” McCain get elected and become the next commander in chief of the US armed forces in the Persian Gulf. On August 31st, South Carolina Senator Lindsey Graham told the Arab oil kingdoms that Democratic vice-presidential nominee Joe Biden lacked the backbone to stand up to powerful foes or to fix broken governments in the Middle East.

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

[Demeter]

27. Maybe Because The Dollar Holders Are Taking Losses?

All that paper wealth evaporating makes the real stuff more valuable....

[ozymandius]

2. Today's Report

10:35 Crude Inventories 09/06
Briefing.com N/A
Consensus N/A
Prior -1898K

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

[Tandalayo_Scheisskopf]

5. Overnight Craps Game in the alley behind The Kasino

CLV08.NYM Crude Oil Oct 08 104.14 4:45am ET Up 0.88 (0.85%)
HOV08.NYM Heating Oil Oct 08 2.9372 4:39am ET Up 0.0125 (0.43%)
NGV08.NYM Natural Gas Oct 08 7.486 4:44am ET Down 0.049 (0.65%)
PNV08.NYM Propane Gas Oct 08 1.60 4:46am ET 0.00 (0.00%)
RBV08.NYM RBOB Gasoline Oct 08 2.6837 4:43am ET Up 0.0311 (1.17%)

Not much of a bounce. If the Crude numbers come in just...reasonable...the drops could continue.

It is also worth noting that the overnight tends to go up and the downward trends continue once the market opens. Apparently, Asia likes goosing the market.

[ozymandius]

10. That's the nature of after hours trading.

Back in the Pre-W days, when I had money to invest, I sat in my financial advisor's office talking shop. He showed me trading trends after the close. Someone was parading shares of Martha Stewart at $50 when the day's close was near $30. I asked who would buy a share at that price when the day's close was so much lower. He explained that it happens all the time. After hours trading is a crap shoot and the wild west wrapped up in one. Rules and common sense are scarce.

[UpInArms]

40. Mortgage applications up (article contains spin writing at its finest!)

http://www.reuters.com/article/bondsNews/idUSN0933494620080910?sp=true

NEW YORK (Reuters) - The lowest 30-year mortgage rates since late May boosted demand for mortgage applications last week, particularly by homeowners looking to refinance existing loans, according to data published by an industry group on Wednesday.

Average 30-year loan rates sank 0.33 percentage point to 6.06 percent in the week ending September 5, spurring a more than 15 percent jump in refinance applications, the Mortgage Bankers Association said.

The slide in rates came prior to Sunday's government takeover of Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz), the two largest U.S. home funding companies, aimed at staunching global markets turmoil and stabilizing the worst housing market since the Great Depression.

Home loan rates sank as much as a half percentage point the day after the bailout of the two struggling companies.

The MBA's seasonally adjusted index of total mortgage application activity rose 9.5 percent last week to 496.2, the highest level since mid-July.

The seasonally adjusted index of refinancing applications gained by 15.4 percent to 1,222.9 and the measure of home purchase loan requests rose 6.4 percent to 371.5.

The past week's results include an adjustment for the Labor Day holiday, which shut U.S. financial markets.

...more...

[ozymandius]

3. Oil rises in Asia after OPEC vows to lower output

SINGAPORE - Oil prices rose Wednesday in Asia after OPEC said it would cut more than 500,000 barrels a day of production that exceed its self-imposed output quotas.

Light, sweet crude for October delivery rose 77 cents to $104.03 a barrel in electronic trading on the New York Mercantile Exchange midafternoon in Singapore. The contract fell $3.08 overnight to settle at $103.26, the lowest close since April 1.

A statement by the Organization of Petroleum Exporting Countries issued after oil ministers ended their meeting Wednesday in Vienna said the organization had agreed to produce 28.8 million barrels a day. OPEC President Chakib Khelil said that quota in effect meant that member countries had agreed to cut back 520,000 barrels a day of excess production.

....

In other Nymex trading, heating oil futures rose 3.66 cents to $2.9613 a gallon, while gasoline prices gained 4.82 cents to $2.7008 a gallon. Natural gas for October delivery fell 2.6 cents to $7.509 per 1,000 cubic feet.

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

[Tandalayo_Scheisskopf]

9. Question:

If these 500K barrels exceed their quotas, how will they enforce the new quota?

This happens a lot with OPEC: the quota system breaks down because the OPEC countries pump more to make more. Also, I would suspect that there are those who would like to reverse the demand destruction trend.

It looks to me like they mollified Venezuela and a few others with this announcement. Getting it to take and hold will be another thing altogether. Also, there are the putative supplies out there, in storage, that have been...ahem..."underreported". Ahem.

[ozymandius]

12. Rhetorical one? You've just pointed at the answer.

OPEC nations lie about their reserves. Enforcing quotas is nearly impossible. If one nation is found to excessively break policy, the representative tends to get yelled at during the next meeting. The system is built on faith and volunteerism. These OPEC meetings are more about tweaking the markets to affect price-per-barrel than setting firm rules.

[Tandalayo_Scheisskopf]

14. Well, the fly in the ointment of that fragile equation is...

Found in that link to the video of Prof. Greenberg, that I posted the other day, where he lays out the hoarding by private speculators, a relatively new trend in these times. According to him, there is a good amount sitting around, hoping for better times ahead.

Greenberg is one angry man. Angry men tend to expose the truths others want hidden.

[ozymandius]

16. Indictment will make a person angry too.

Is this the same Greenberg?

Former GenRe, AIG execs indicted on fraud charges

Would you mind either posting that video again or posting the link?

[Tandalayo_Scheisskopf]

34. Completely different guy.

Apparently, this one comes from the side of the extended family that has little things like courage, moral fiber, ethics and compassion:

http://www.youtube.com/watch?v=_DY8pUTTNuk

You are thinking of Maurice Greenberg, former CEO and boss dog of the AIG tanyard. Too bad Mo is as old as he is. At his age, the other inmates will generally leave him alone. I would not expect Mo to be getting too many good Tee Times at Allenwood.

[ozymandius]

20. Oil Investors Pulled $39 Billion in Futures, Triggering Decline

Sept. 10 (Bloomberg) -- Commodity index investors, blamed for record oil prices, sold $39 billion worth of oil futures between their July record and Sept. 2, causing crude to plunge, according to a report to be released today.

The work by Michael Masters, president of the Masters Capital Management hedge fund, blames investors who buy and hold an index of commodities for driving prices to records, and for their subsequent drop. It comes a day before the U.S. Commodity Futures Trading Commission is set to discuss its own study of energy trading with a congressional committee.

Masters testified three times before Congress this year, arguing that limits on traders would cut oil prices to $65 to $70 a barrel. He has been cited by lawmakers who introduced at least 20 measures to curb speculation. Congressional pressure on the CFTC to step up enforcement and restrict anonymous trades has pushed index traders out of their positions, Masters said.

....

JPMorgan Chase and Co., Goldman Sachs Group Inc., Barclays Plc and Morgan Stanley control 70 percent of the commodities swaps positions, and swaps dealers are the largest holders of Nymex crude oil futures contracts, Masters said.

http://www.bloomberg.com/apps/news?pid=20601103&sid=ax6CtUUtg4EI&refer=us

[Robbien]

26. So between July 11 and Sept 2nd, $29B of bets left the game

And as the article states:

Crude oil futures surged to a record $147.27 on July 11, an increase of 53 percent for the year, on the New York Mercantile Exchange, then fell 26 percent to $109.71 on Sept. 2.

Nice to see the article include Oppenhimer's statement:

``The speculators that drove prices up basically deflated the bubble,'' said Fadel Gheit, director of oil and gas research at Oppenheimer Capital in New York. ``They said, `That's it, the game is over. We are going to bet on another horse.'''


But then of course the lobbyists start jumping up and down screaming:

“Just as weather forecasters have no effect on the weather, energy speculators have no effect on the price of oil,'’ Scott Talbott, a lobbyist for the Financial Services Roundtable, which represents investors, told Bloomberg.

With the major players being JPMorgan, Goldman, Barclays and Morgan Stanley, this congressional hearing will mount to nothing and the gambling casino will remain open for play.

[Demeter]

28. Commentary: Move to cut production unlikely to have an effect on prices

OPEC is behind the curve By MarketWatch

Last update: 6:19 a.m. EDT Sept. 10, 2008LONDON (MarketWatch) -- OPEC oil ministers' decision to curb oil production is unlikely to have any real effect on the near-term price of oil.

With oil prices down nearly a third from their summertime highs and nearing the psychologically important $100 a barrel mark, the ministers moved to cut 500,000 barrels of production a day at their latest meeting. See related story.

But just as maintaining sufficient production during the price spike had no effect on the near-term prices, so too the cut won't serve to put much of a floor under them. That's true for a couple of reasons.

For one, the global economy is still slowing down. While the U.S. may have technically avoided a recession so far, unemployment's up, consumer confidence has fallen, and the housing crisis shows no signs of abating anytime soon.

The intensification of financial woes in the U.S. -- demonstrated by the government takeover of Fannie Mae and Freddie Mac -- suggests that growth is likely to remain muted for a long time. Even the most optimistic forecasts suggest no bottom in the U.S. housing market before 2009.

But it's a long way from a bottom to a return to the go-go days of the housing bubble.

Even if the U.S. itself creeps along and avoids sharp economic slowdown, the rest of the world is beginning to feel the discomfort of slow growth inflationary pressures.

Unlike the Fed, neither the European Central Bank nor the Bank of England is in a position to cut rates and spur growth because of inflation fears.

And in India and China inflation eats away at much of the benefits of those economies' rapid expansion.

A secondary reason why OPEC's move is unlikely to bolster oil prices is that its members are notorious for cheating on their production quotas. And the habitual cheaters need for cash in a slowing global economy is likely to intensify...


http://www.marketwatch.com/news/story/why-opecs-production-cuts-wont/story.aspx?guid=%7b9D8123A2-5C8F-40F1-B897-BF6FDE48F760%7d&siteid=yahoomy&print=true&dist=printMidSection

[Tandalayo_Scheisskopf]

35. Shorter Version:

Speculators and OPEC, in their greed, baked a Shit Pie. Now, they get to eat it. Yum yum.

[UpInArms]

48. Chevron extends agreement with Saudi Arabia (for thirty years)

http://www.reuters.com/article/marketsNews/idUSN1039993520080910

NEW YORK, Sept 10 (Reuters) - Chevron Corp (CVX.N: Quote, Profile, Research, Stock Buzz) said on Wednesday it extended an agreement that allows the oil company to operate a 50 percent interest in certain crude oil and natural gas deposits on behalf of the Kingdom of Saudi Arabia.

The resources are located in the onshore area of the Partitioned Neutral Zone (PNZ) between the Kingdom and the State of Kuwait. The field operations are managed jointly by Chevron and Kuwait Gulf Oil Company.

The agreement extends the existing arrangement for 30 years, through Feb. 19, 2039.

...more...

[Ghost Dog]

4. GLOBAL MARKETS-Lehman uncertainty weighs on world shares

Wed Sep 10, 2008 4:21am EDT

* MSCI world equity index down 0.2 percent at 315.65

* KDB says talks with Lehman end on disagreement over terms

* Yen and govt bonds trim losses; dollar slips

By Natsuko Waki

LONDON, Sept 10 (Reuters) - World stocks headed for last week's two-year low on Wednesday as worries over the fate of U.S. investment bank Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) grew after Korean Development Bank said talks on investment had ended in disagreement.

The low-yielding yen trimmed losses while safe-haven government bonds also pared losses after KDB said it has ended talks for now with Lehman because of disagreement over terms and its assessment of financial market conditions.

Lehman, a casualty of the one-year-old credit crunch, is bringing forward the release of quarterly results and key strategic initiatives to 1130 GMT after its shares sank to a decade low on Tuesday on growing concern over its ability to raise capital.

The bank is in talks with BlackRock Inc (BLK.N: Quote, Profile, Research, Stock Buzz) to sell a package of British real estate assets, people familiar with the matter told the Wall Street Journal.

"We are reacting to the Lehman news... At the moment it looks like there's no deal in the offing so people are selling risk," a London-based currency trader said. Continued...

/...http://www.reuters.com/article/marketsNews/idINLA81622020080910?rpc=44

[Ghost Dog]

7. Asian stocks fall on Lehman fears

* Focus on Lehman results due ahead of U.S. market open

* Oil up towards $104 on effective OPEC output cut

* Fannie, Freddie relief effect wears off

By Kevin Plumberg and Vidya Ranganathan

HONG KONG/SINGAPORE, Sept 10 (Reuters) - Asian shares fell about 1 percent and U.S. Treasuries dipped on Wednesday on fears about Lehman Brothers' ability to raise capital, demonstrating Washington's bailout of Fannie Mae and Freddie Mac this week had not fixed the credit crisis.

...

While the U.S. government bailout of its top mortgage finance companies on Sunday removed a big risk of a system-wide failure, problems at other financial institutions were painful reminders of how severely an avalanche of bad loans has threatened almost every major economy.

/... http://www.reuters.com/article/marketsNews/idINSP6911120080910?rpc=44

[Ghost Dog]

8. China inflation drops, trade surplus hits record

BEIJING, Sept 10 (Reuters) - China's consumer inflation fell in August to a 14-month low of 4.9 percent, giving policy makers more room to pump up the world's fourth-largest economy if growth slows abruptly in coming months.

Markets, which had expected inflation to drop to 5.3 percent from 6.3 percent in the year to July, cheered the news.

...

"With these numbers we move much closer to the time when Beijing decides inflation is not an issue any more," said Stephen Green, head of China research at Standard Chartered Bank in Shanghai. "There are increasing noises that this tightening policy has lasted too long, and more and more worries about growth skidding seriously."

Indeed, China reported a record trade surplus for August of $28.69 billion, but economists said the surprisingly strong figure was due to weakening domestic demand that sapped import growth. Forecasts for the surplus had centred on $23.5 billion.

Lu Zhengwei, chief economist at Industrial Bank in Shanghai, said China had ramped up imports of everything from oil to consumer goods ahead of August's Olympics. Now the Games were over, so was that temporary fillip to demand, Lu said. "Another reason is slowing economic growth, which is reducing China's demand for imports," he said. "In the next few months, import growth is unlikely to rebound as global oil and commodities prices are falling."

That bodes well for a further easing of price pressures, especially as economists expect food costs -- the main cause of a leap in consumer price inflation to a 12-year high of 8.7 percent in February -- to keep rising much more slowly than last year.

/... http://www.reuters.com/article/marketsNews/idINPEK28651220080910?rpc=44&sp=true

[Ghost Dog]

18. European shares extend losses; banks, miners slip

Wed Sep 10, 2008 6:21am EDT

LONDON, Sept 10 (Reuters) - European stocks extended losses on Wednesday, as banking shares slipped on persistent concerns about the financial sector's health and miners tracked weaker metals prices.

At 1008 GMT, the FTSEurofirst 300 index of top European shares was down 0.96 percent at 1,144.5 points. The pan-European index has fallen 24 percent this year.

...

Banks were among the heaviest negative weights on the index, with Dexia (DEXI.BR: Quote, Profile, Research, Stock Buzz) down 3.3 percent, Credit Agricole (CAGR.PA: Quote, Profile, Research, Stock Buzz) falling 2.5 percent and Societe Generale (SOGN.PA: Quote, Profile, Research, Stock Buzz) dropping 2.3 percent.

BHP Billiton (BLT.L: Quote, Profile, Research, Stock Buzz), Anglo American (AAL.L: Quote, Profile, Research, Stock Buzz), Vedanta Resources (VED.L: Quote, Profile, Research, Stock Buzz), Lonmin (LMI.L: Quote, Profile, Research, Stock Buzz), Kazakhmys (KAZ.L: Quote, Profile, Research, Stock Buzz), Xstrata (XTA.L: Quote, Profile, Research, Stock Buzz), Antofagasta (ANTO.L: Quote, Profile, Research, Stock Buzz) and Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) fell between 1.4 and 5.8 percent.

/.. http://www.reuters.com/article/marketsNews/idCALA15034720080910?rpc=44

[ozymandius]

22. European Stocks Fall on Economy Concern; U.S. Futures Advance

Sept. 10 (Bloomberg) -- European stocks fell for a second day as the European Commission cut its forecast for the region's economic growth and analysts speculated bank losses will increase. Asian shares declined, while U.S. index futures rose.

BHP Billiton Ltd., the world's largest mining company, sank 3.1 percent and PPR SA, the retailer that owns Gucci, lost 2.9 percent after the commission said the euro-area economy will expand 1.3 percent this year, down from an earlier forecast of 1.7 percent. Barclays Plc sank 2.9 percent and UBS AG slipped 1.4 percent. Analysts including Merrill Lynch & Co.'s Guy Moszkowski predict Lehman Brothers Holdings Inc. will post more writedowns and losses today.

Europe's Dow Jones Stoxx 600 Index slipped 0.9 percent to 276.97 at 11:07 a.m. in London, extending this year's decline to 24 percent. More than $15 trillion has been erased from global equities in 2008 as accelerating inflation and $507 billion in bank writedowns and losses threaten economic growth.

...

National benchmark indexes dropped in 16 of the 17 western European markets that were open. Germany's DAX declined 0.6 percent, and the U.K.'s FTSE 100 lost 1.2 percent. CAC 40 fell 0.4 percent.

BHP slipped 3.1 percent to 1,362 pence. Xstrata Plc, the world's fourth-largest copper producer, dropped 4.8 percent to 2,245 pence. PPR retreated 2.9 percent to 73.72.

http://www.bloomberg.com/apps/news?pid=20601085&sid=aGvLXmIcY0e8&refer=europe

[Ghost Dog]

51. EU Slashes Economic Growth Forecasts

The European Commission has painted a gloomy picture of the European economy, predicting that the 15 euro-zone countries will only experience 1.3 percent growth in 2008. The EU executive says some economies such as Germany and Spain will even slide into recession for part of the year.

That sinking feeling. EU Commissioner Joaquin Almunia announced a dismal picture of the European economy.
Many countries in the euro-zone are sliding toward recession -- that at least is the forecast of the European Commission. The European Union's executive said Wednesday that it was slashing its economic growth prognosis for the 15 EU countries that have the euro as their currency. Europe is now braced for a slowdown amid high inflation, collapsing real estate markets in some countries and the ongoing turmoil in financial markets.

While the bloc as a whole was predicted to escape recession, Germany, Spain and non-euro zone member the United Kingdom, will not be so lucky, according to the Commission.

It cut the growth estimate for the zone for the whole of 2008 from 1.7 percent to 1.3 percent, a sharp drop from the solid 2.6 percent growth experienced last year. Growth for the entire 27-member bloc has been downgraded from 2 percent to 1.4 percent.

"This is not good news indeed," said Joaquin Almunia, the EU's economic and monetary affairs commissioner, who presented the forecast. "We are living in a very uncertain environment … The way the European economies will start 2009 will not be very good."

/... http://www.spiegel.de/international/business/0,1518,577502,00.html

[Ghost Dog]

56. Gloomy economic forecasts help darken political mood in Europe

... For now Europe is sidestepping a contentious debate over the kind of economic stimulus measures that the United States embraced this year, even though the euro area economy contracted in the second quarter.

Budgets are tight, and constrained by European rules against overspending. The European Central Bank argues that the slowdown will ease soon, and that European welfare states should be able to give economies a fillip without showy new programs to encourage spending and investment.

"Politicians have demanded these, and they will probably demand more if there is a negative third quarter," said Klaus Zimmermann, director of the German Institute for Economic Research in Berlin. "But every economic researcher would say we need to wait and see what happens."

The ECB president, Jean-Claude Trichet, urged European governments Wednesday not to go down the road of greater spending or higher wages. The bank argues that growth will resume by year-end.

"We will have a gradual recovery over the next years after the present depressed episode," Trichet told the European Parliament. "The fall of oil prices from their peak in July will help strengthen disposable income."

Trichet, eager to avoid a spending binge, has highlighted what economists call the "automatic stabilizers" that distinguish most European countries from the United States. As unemployment rises, spending on jobless benefits and other programs eases the pain without any action by politicians.

The European Union also has rules that limit budget deficits to 3 percent of gross domestic product, a measure designed to bolster confidence in the euro. The pact, analysts agree, has helped raise the pressure for fiscal discipline in Europe, though major countries, including France and Germany, have breached it without sanction.

Not every European politician is willing to wait for the economy to turn a corner.

/more... http://www.iht.com/articles/2008/09/10/business/euro.php

[Ghost Dog]

30. ECB allots 50 bln euros in extra three-month refis

FRANKFURT, Sept 10 (Reuters) - The European Central Bank lent banks 50 billion euros ($70.8 billion) in three-month funds on Wednesday in a supplementary liquidity operation aimed at soothing persistent money market tensions.

Demand was solid with 114 banks bidding for 69.5 billion euros in funds but interest rates at which funds were allotted was below that forecast by traders in a Reuters poll on Tuesday.

The ECB said it lent the 91-day funds at an interest rate of 4.45 percent and above, for a weighted average allotment rate of 4.66 percent -- lower than the 4.75 percent average expected by traders in a Reuters poll.

/.. http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=3533b949-9aab-4541-b2b9-63c27feabc4a

[ozymandius]

6. Lehman to announce initiatives; KDB talks over

SINGAPORE (Reuters) - Lehman Brothers is set to announce key initiatives on Wednesday that could include plans to sell a package of British real estate assets to BlackRock Inc to raise much-needed capital to survive the global credit crisis.

The Wall Street Journal reported on its Website that Lehman is in talks with BlackRock over the sale and is expected to announce a separate plan to spin off some commercial real estate assets into a new company, citing people familiar with the matter.

Lehman, a casualty of the U.S. subprime mortgage crisis, has brought forward the release of the initiatives and quarterly results by a week to 7:30 a.m. EDT on Wednesday after its shares sank as much as 46 percent on Tuesday on growing concern over its ability to raise capital.

....

Facing what may be billions of dollars in additional write-downs, the bank has examined options from selling a stake to a Korean bank to spinning off its investment management unit.

But state-run Korea Development Bank confirmed on Wednesday talks had ended with Lehman over a possible investment.

http://www.reuters.com/article/topNews/idUSN0927996520080910

[ozymandius]

13. Lehman's Fuld Faces Pressure to Land Deal After Drop (Update3)

Sept. 10 (Bloomberg) -- Lehman Brothers Holdings Inc.'s Richard Fuld, the longest-serving chief executive on Wall Street, is under increasing pressure to seal an agreement for a capital infusion and unload hard-to-sell mortgage investments after the company's stock suffered a record decline yesterday.

Lehman, the fourth-largest U.S. securities firm, issued a statement late yesterday, saying it will report third-quarter financial results today at about 7:30 a.m. in New York, a week earlier than planned. The investment bank also promised to disclose ``key strategic initiatives.''

...

Lehman, which has lost 88 percent of its stock-market value this year, fell 45 percent in New York trading yesterday after talks with Korea Development Bank about a capital infusion ended. The Korean bank is one of several companies that Lehman has been in discussions with in recent weeks, a person familiar with the negotiations said, declining to name the other potential bidders.

...

The New York-based bank was also continuing talks with private-equity firms including Kohlberg Kravis Roberts & Co. and Carlyle Group about selling its asset-management business, which includes fund manager Neuberger Berman, the person familiar with the negotiations said before Lehman released its statement yesterday.

http://www.bloomberg.com/apps/news?pid=20601103&sid=ar0AJEUTtQ0A&refer=us

[UpInArms]

37. Analysts see Bear Stearns-like fate for Lehman at worst

well, that was before Lehman posted its results :eyes:

http://www.reuters.com/article/businessNews/idUSBNG33379920080910?feedType=RSS&feedName=businessNews

(Reuters) - The most attractive option for Lehman Brothers Holdings Inc is to reduce troubled assets and raise capital, according to at least two analysts, who see a Bear Stearns-like bailout for Lehman in a worst case scenario.

Not ruling out a buyout by the management, Fox-Pitt Kelton's David Trone said, in a note dated Sept 9, that Lehman could sell its investment-management unit and fund the entire tender.

The management would surely be willing to pay more than a strategic buyer as they know Lehman's "problem" assets better than anyone, said Trone, who believes that Lehman needs $5 billion in net capital.

In any event, Trone believes deal scenarios would have current shareholders getting $10 a share to $15 a share.

Banc of America's Michael Hecht also said the "best case" scenario for common equity holders is that Lehman "limps along" and gets by with a partial reduction of its troubled asset exposure by raising dilutive capital and selling a portion of its investment-management unit.

Widening his third-quarter loss-per-share view by 39 percent to $4.80, Hecht said in a research note on Tuesday that a Bear Stearns-like bailout will likely leave little value for common stockholders of about $2 per share.

...more...

[Tansy_Gold]

45. What happens when there's no more capital to be raised?

Just asking. . . . . . .




Tansy Gold

[UpInArms]

46. I guess it will mean there really is an end to the sucker pool

:hi:

[Tansy_Gold]

49. And maybe then it will collapse only it will be a really, really,

REALLY ugly collapse?

:hi:

[UpInArms]

36. Lehman posts $3.9 billion loss, selling assets

http://www.marketwatch.com/news/story/lehman-has-39-billion-quarterly/story.aspx?guid=%7B0840CF0A%2DE668%2D4624%2D9FE2%2D8CF61AF92693%7D&dist=TQP_Mod_mktwN

SAN FRANCISCO (MarketWatch) -- Lehman Bros. Holdings on Wednesday said it lost $3.9 billion in the third quarter after taking a gross mark-to-market loss of $7.8 billion.

The company also said it cut its quarterly dividend to 5 cents a share from 68 cents a share and will spin off its commercial real-estate holdings to shareholders while selling a majority stake in its Neuberger Berman investment-management division.

Lehman's third-quarter loss amounted to $5.62 a share.

Analysts surveyed by FactSet Research had been looking for the company to report a loss of $2.81 a share, while Morgan Stanley predicted the financial firm would post a loss of $2.80 a share, on the back of a $3.5 billion write-down.

The firm said late Tuesday that it would report third-quarter results before the open Wednesday, a week earlier than had been anticipated, in a bid to calm investors shaken by a session that wiped out nearly half of the brokerage firm's market.

Shares of Lehman (LEH: 7.79, -6.36, -44.9%) , which had been scheduled to report results on Sept. 18, fell about 45% on Tuesday, plunging to $7.79. It was the company's biggest one-day percentage decline ever, dragging the share price down 85% from where it stood a year ago.

...more...

[Ghost Dog]

44. Lehman credit default swap spreads soar after loss-RBC

NEW YORK, Sept 10 (Reuters) - The cost of protecting Lehman Brothers' (LEH.N: Quote, Profile, Research, Stock Buzz) debt with credit default swaps soared after the bank reported a third-quarter loss and disappointed investors by failing to announce deals to raise capital.

Five-year credit default swaps on Lehman Brothers climbed 116 basis points to trade at 590 basis points on Wednesday, or $590,000 a year to protect $10 million of debt, according to T.J. Marta, a fixed-income strategist at RBC Capital Markets in New York.

"This is scary because during the Bear Stearns crisis it only went up to 450 basis points," he said.

/. http://www.reuters.com/article/marketsNews/idUSN1027130820080910

[UpInArms]

52. Lehman credit spreads soar to new record-Phoenix - now at 610

http://www.reuters.com/article/bondsNews/idUSN1050626520080910

NEW YORK, Sept 10 (Reuters) - The cost to protect Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) debt against default soared to a new record on Wednesday after the bank reported a $3.9 billion third-quarter loss, Phoenix Partners Group said.

Five-year credit default swaps on Lehman Brothers rose 135 basis points to a record 610 basis points on Wednesday, or $610,000 a year to protect $10 million of debt, according to Phoenix Partners Group data.

[Ghost Dog]

11. Cuba to restart nickel production halted by Ike

HAVANA, Sept 9 (Reuters) - Cuba said on Tuesday that Hurricane Ike did no serious damage to its nickel mines and processing plants and it expected to restart production of its top export in a few days.

...

Cuba is one of the world's top nickel producers and operates three mines, one in association with Canadian firm Sherritt International (S.TO: Quote, Profile, Research, Stock Buzz).

It shut production at the nickel facilities on Sunday before Hurricane Ike made landfall with 120-mile-per-hour (195-kph) winds in the eastern province of Holguin, where the mines and plant are located.

The government did not say what the damages were, but the Communist Party chief in the province of Holguin, where the mines are located, said on radio the Ernesto "Che" Guevara plant had suffered roof damage.

/.. http://www.reuters.com/article/marketsNews/idCAN0935044720080910?rpc=44

[Joe Chi Minh]

21. Wow. What a buzz it gives, reading that "the Ernesto 'Che' Guevara plant ....",

even if it was followed by mildly negative news about its damaged roof. I think some of "Ernesto"'s input would be gratefully received on both sides of the pond before long.

[ozymandius]

15. Fannie, Freddie Takeover Jolts Preferred Market as Prices Fall (all of them)

Sept. 10 (Bloomberg) -- Treasury Secretary Henry Paulson's takeover of Fannie Mae and Freddie Mac is roiling the market for preferred securities.

Prices of fixed-rate preferred stock fell an average of 9 cents to 71.5 cents on the dollar this week, according to Merrill Lynch & Co. index data, the biggest two-day drop in more than a decade. The 11 percent decline compares with a 1.4 percent drop in the Standard & Poor's 500 index over the same time.

....

Paulson's ``actions have damaged the preferred market,'' said Thomas Hayden, the investment strategist for Liberty Bankers Life Insurance in Dallas. ``Somebody is going to be looking at an issue of Fannie or Freddie preferred shares that were rated AA up until a few months ago. If that's not money good then what about the small regional bank in some part of the country?''

....

Paulson tried to calm preferred stock investors when he announced the rescue of the government-sponsored enterprises and said the takeover shouldn't have negative implications for the wider market.

http://www.bloomberg.com/apps/news?pid=20601103&sid=a2eUYQafZCU8&refer=us

---

As usual, Paulson is 100% wrong.

[UpInArms]

47. Bailout shows waning of U.S. financial power: James Saft

http://www.reuters.com/article/reutersComService4/idUSL851968720080910?sp=true

LONDON (Reuters) - American financial hegemony -- the United States' ability to borrow at attractive rates despite its spiraling debts -- ain't what it used to be.

When he introduced the first bailout of Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) back in July Hank Paulson thought his pledge of government support, if needed, would be enough to ease investor pressure on the now-nationalized lenders.

"If you have a bazooka in your pocket and people know it, you probably won't have to use it," the U.S. Treasury Secretary told a Senate Banking Committee hearing on July 15.

Time was, that would be enough for America's global creditors.

But Paulson's pledge turned out to have more in common with Chekhov's gun, which the writer said once introduced into a story must inevitably be fired.

<snip>

Think about it: the U.S. Secretary of the Treasury effectively said he'd sort it out if it went bad and the world said that wasn't good enough. The move to take the two into conservatorship is really an earth shaking event.

...more...

[ozymandius]

17. S&P Cuts WaMu Outlook to Negative

Standard & Poor's Ratings Services late Tuesday ... lowered the outlook on Washington Mutual ... to negative from stable. ... "The outlook revision reflects the increasingly challenging housing and mortgage markets and their impact on WaMu's core mortgage franchise,"

What a surprise!

Link from Calculated Risk with comments

[UpInArms]

53. WaMu stock down 22 percent over accounting rules

http://www.reuters.com/article/ousiv/idUSN1043525320080910

NEW YORK (Reuters) - Washington Mutual Inc (WM.N: Quote, Profile, Research, Stock Buzz) shares slumped 22 percent on Wednesday on fears that new accounting rules may dissuade potential buyers for the distressed savings and loan.

"There are rumors of potential suitors walking away," said Tim Backshall, chief analyst at Credit Derivatives Research in Walnut Creek, California, referring to new Financial Accounting Standards Board rules on acquisition targets being valued at market prices. The rules are weighing on many of these potential buyers, he added.

The stock dropped 73 cents to $2.57 on the New York Stock Exchange.

Also Wednesday, the cost of protecting Washington Mutual debt with credit default swaps surged to a record high Wednesday as investors bet more heavily that the lender would default on the debt.

The credit default swaps surged to 43 percent of the amount insured in upfront costs, up from 32 percent on Tuesday, plus 500 basis points in annual premiums, according to data from Phoenix Partners Group.

Swaps at those levels indicate the market saw about an 85 percent chance that Washington Mutual defaulting within the next five years, according to Tim Backshall, chief analyst at Credit Derivatives Research in Walnut Creek, California.

...more...

[UpInArms]

65. Washington Mutual tumbles 30 percent to 17-year low

http://news.yahoo.com/s/nm/20080910/bs_nm/washingtonmutual_dc

NEW YORK (Reuters) - Washington Mutual Inc (WM.N) shares sank 30 percent to a 17-year low and the perceived risk of its debt soared on worries the largest U.S. savings and loan will not find a buyer or raise enough capital to combat soaring mortgage losses.

The stock closed down 98 cents at $2.32 on the New York Stock Exchange, and are down 44 percent in the last two days. It fell earlier to $2.30, the lowest since January 1991, according to Reuters data.

Analysts attributed the decline in part to anxiety that potential buyers might walk away because of a pending accounting rule requiring they value the assets of targets at market prices, and perhaps the need to raise capital.

They also pointed to Lehman Brothers Holdings Inc (LEH.N), which said earlier on Wednesday it plans to sell a majority stake in its asset management unit and spin off commercial real estate, and posted a $3.93 billion quarterly loss. The shares of Lehman, Wall Street's fourth-largest investment bank, fell 7 percent.

"Lehman failed to find anyone to invest capital. With Washington Mutual potentially needing some in the future, the market is taking the opportunity to punish that company," said Jaime Peters, a banking analyst at Morningstar Inc in Chicago.

...more...

[ozymandius]

19. The Budget Disaster

This is a good post at Calculated Risk that goes beyond a tiny snippet from a news article and a one sentence comment.

---

From MarketWatch: Federal budget deficit to remain near $400 billion, CBO says

With the economy weakening and spending on the war rising, the federal government's budget deficit is expected to more than double this year compared with last year, the Congressional Budget Office estimated Tuesday. The federal deficit is projected to hit $407 billion in the fiscal year that ends Sept. 30 ...

The assumptions in the CBO report are very optimistic, and the structural budget deficit will likely be worse than their forecast.

Also, to be accurate, this is the Unified Budget deficit. The General Fund deficit (the responsibility of the President) will be over $600 billion this year. This will put the National Debt close to $10 Trillion when the next President takes office in January 2009 (not counting any impact from the Paulson Plan for Fannie and Freddie).

What ever happened to that Joshua B. Bolten guy? (Yes, I know he is now Chief of Staff). Bolten kept telling us the budget deficit would be cut in half by the time President Bush left office.

"We have arrived at this point largely because of this President’s and this Congress’ pro-growth policies, especially tax relief. Those policies have strengthened the economy, which is now producing better-than-expected tax revenues."

Joshua B. Bolten, July 2005

That statement was never accurate. Tax revenues increased in 2005 primarily because of the housing and credit bubble, and the improvement was a short term illusion. Now we are left with a massive structural budget deficit.

http://calculatedrisk.blogspot.com/2008/09/budget-disaster.html

[ozymandius]

23. FWIW - futures at 6:30 ET

S&P futures vs fair value: +10.60.
Nasdaq futures vs fair value: +25.80.

[Robbien]

24. Bear Stearns to Pay $28 Million to Settle Loan Complaint (violated consumer lending laws)

The Bear Stearns Companies and its mortgage servicing unit agreed to pay $28 million to settle federal charges it had deceived subprime borrowers and had engaged in abusive loan practices before the investment bank’s collapse.

. . .

The companies imposed unauthorized charges such as fees for late payments, property inspections and loan modifications, the commission said. The companies are also accused of misrepresenting to borrowers what they owed on mortgages.

Many of the loans acquired by Bear Stearns and EMC were subprime mortgages, including interest-only loans, and some were made with little or no documentation of the borrowers’ income, the F.T.C. said. As of last September, EMC serviced more than 475,000 mortgage loans that had an unpaid balance of $80 billion, the agency said.

The commission said the practices had occurred before JPMorgan acquired Bear Stearns for $2.3 billion. Bear Stearns, once the fifth largest securities firm in the nation, was forced to sell after its collapse during the credit crisis.

A JPMorgan spokesman, Joseph Evangelisti, declined to comment on the settlement.

The $28 million payment will help consumers who were injured by the illegal conduct, the F.T.C. said. The company also agreed to obey all relevant laws, including the Truth in Lending Act.

http://www.nytimes.com/2008/09/10/business/10bear.html?ref=business

[ozymandius]

25. Have a nice day everyone.

:donut: :donut: :donut:

Time to go to work.

:hi:

[Demeter]

29. Ditto From Demeter!

[Dr.Phool]

31. Y'all come back now, Y,heah.

[Ghost Dog]

32. Americans Deep in 'Culture of Recession' (survey finds...)

Economists may debate when the economy officially enters a recession, but Americans have been living in a "Recession Culture" for months, with significant impact on all major lifestyle indicators, according to a survey by Faith Popcorn's BrainReserve (via Retailer Daily).

"Out on the street no one is asking if we are in a recession, they're asking when will it all end and where will we be," said Faith Popcorn, whose BrainReserve tracks 17 trends comprising Faith Popcorn's TrendBank.

Below, some of the study findings.

Inclined to Stay Home, Buy Less Stuff

* Straightened budgets due to higher prices for basic commodities are driving people back into their homes: 72 percent spend a good deal of time at home, which is why consumer electronics is still a bright spot.
* In virtually every other category, consumers are rapidly turning off spending, with 84 percent of those surveyed (90 percent female, 79 percent male) "inclined to buy less stuff."
* As the cost of basics jumps, nearly everyone (90 percent) is considering opting for a simpler life.
* But a sizable minority (35 percent, concentrated among younger people) uncertain times are a signal to cut loose: Nearly one of five (17 percent) are drinking and smoking more; 19 percent are having more sex.

/... http://www.marketingvox.com/americans-deep-in-culture-of-recession-040861/?camp=rssfeed&src=mv&type=textlink

edit: Figures. And that's just the younger ones... :silly:

[Robbien]

43. The other day over at CNBC, an analyst from India gave her update on international trade

and kept talking about whether or not EU/UK would be following the US into recession. Kept referring to the US as a recession economy.

CNBC US producers quickly got that analyst off the air and she hasn't been back on since.

With the rest of the world and the US little people all knowing the US economy is singing the recession blues, it makes one wonder if the US elites will ever acknowledge that fact.

[UpInArms]

33. dollar watch

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

Last trade 79.528 Change +0.063 (+0.08%)

US Dollar Remains Overbought - Prone to Reversal?

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_Remains_Overbought___1221003844711.html

Indeed, according to COT forex positioning, the dollar is extremely overbought, suggesting we may be nearing a point where risk/reward warrants selling the greenback. We’ve seen some incredibly volatility in the currency, as the EUR/USD and GBP/USD pairs traded in more than 100 pip ranges. When it comes down to it though, the dollar still ended Tuesday up very slightly versus most of the majors (though it fell against the Japanese yen). Looking at the economic data on hand, US pending home sales fell 3.2 percent, as fewer Americans signed contracts to buy homes. Such a decline is not incredibly surprising, as demand for homes remains extremely weak given the US economic slowdown and more stringent lending standards. Meanwhile, wholesale inventories rocketed 1.4 percent in July while wholesales sales slipped 0.3 percent, suggesting that lackluster demand is leaving firms stuck with excess supplies. This does not bode well for this Friday’s advance retail sales release, especially given the continued deterioration in the US labor markets as indicated by last week’s US non-farm payrolls (NFPs) report.

...more...

Japanese Economy Headed For a Recession, Says Cabinet Office

http://www.dailyfx.com/story/dailyfx_reports/top_fx_market_movers/Japanese_Economy_Headed_For_a_1221045572559.html



• GBPUSD – The growth outlook remains bleak for the U.K. economy as National Institue for Economic and Social Research estimates GDP to have fallen 0.2% in the three months to August. The NIESR also revised their previous growth estimate lower to -0.1% from 0.1%, signaling that economic activity may continue to deteriorate for the rest of the year. Meanwhile, the trade deficit improved slightly as the headline figure slipped to GBP -7.66B from GBP -7.68B in June. The depreciation in the British pound has helped export demands to reach its highest level in two years, which may help to support economic growth for Europe’s second largest economy.

• USDJPY – The Japanese leading index improved slightly to 91.6 from 91.3 in June, but failed to meet expecations of a rise to 91.9. As a result, the lack of improvement in the world’s second largest economy has led the Cabinet Office to hold a dour outlook as they noted that ‘the chances of a recession is high’ for Japan. Meanwhile, the current account surplus narrowed for the fifith consecutive month in July as import costs increased on the back of higher energy costs. On a lighter note, wholesale inflation cooled for the first time in almost a year as the index slipped to -0.1% in August. The unexpected decline came as a result of falling commodity prices, and should help to ease inflationary concerns for the Japanese economy.

...more...

[Ghost Dog]

55. Dollar index vaults to fresh one-year peak,euro sags

* Dollar index touches fresh one-year high

* Euro drops to new 11-month low versus dollar

* Dollar recovery theme continues to dominate

NEW YORK, Sept 10 (Reuters) - The dollar rose on Wednesday, scaling a new one-year peak against a basket of currencies as it was fueled by retreating crude oil prices and as market focus reverted to softening growth outside the United States.

Analysts said U.S. investors were liquidating their positions in overseas equity and bond markets, repatriating the money back home and lending support to the dollar.

The greenback largely shrugged of news that Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz), the fourth-largest U.S. investment bank, recorded a third-quarter loss and failed to announce firm deals to raise desperately needed capital.

...

The ICE Futures U.S. dollar index, which measures the dollar's value against a basket of six currencies, climbed as high as 79.976 .DXY, a level that was last seen in September 2007. It was last at 79.863, up 0.6 percent on the day.

Those gains came as the euro tumbled to a fresh 11-month trough of $1.4013 on a combination of softening crude oil prices and worries that growth in the euro area could slow more sharply than previously anticipated.

...

Analysts said despite the poor growth outlook, it was unlikely that the European Central Bank would cut interest rates anytime soon, while the Federal Reserve's aggressive easing put the U.S. economy on a recovery path.

Retreating oil prices were also seen aiding the recovery process. U.S. crude oil futures tumbled to fresh five-month lows around $101.36 per barrel.

...

The dollar rose against the yen, with analysts citing market talk of possible downgrading of Japan's sovereign debt. The dollar was last up 0.9 percent at 107.80 yen <JPY=>. It climbed 0.7 percent to 1.1340 Swiss francs <CHF=>.

"Other that what it did to the Dow, I don't think Lehman had that much of an impact," said CIBC World Markets' Fazio.

...

Traders showed limited reaction to European Central Bank President Jean-Claude Trichet, who on Wednesday told the European Parliament it would be naive to think markets will return to their pre-turbulence state. .

/... http://www.reuters.com/article/marketsNews/idINN1046302420080910?rpc=44&sp=true


Comments at link indicating USD has further to rise, with US economy on the mend. On the other hand there's also plenty of comment out there on the 'overbought' side. Is this the power of 'cooked' numbers such as US GDP vs. European & world market belated 'realism'? Is the dollar's rise due to the sell-off in commodities? Has there been further international central bank intervention? :shrug:


Here's some blogger comment:

Massive Opportunity to Short the Dollar

Recent interventions in commodity markets, which has been a combination of short selling in the Gold market, and large institutions taking profit in a multi-year bull market in hard commodities such as Oil, has caused a short uptick in the dollar. The fed didn't raise interest rates, and US economic data did not get any better. Nor was there any watershed event or even a clear indication that the US economy is improving.

There is no other reason the dollar is up, other than the previously mentioned factors.

34% of the world's wealth (calculated in dollars) is still USD based, so any sell off in stocks, commodities, and bonds (meaning a return to cash) means a boon for the USD.

/... http://seekingalpha.com/article/94784-massive-opportunity-to-short-the-dollar

[UpInArms]

38. A $75 trillion fright fest - Eight megahorror debts chilling America

http://www.marketwatch.com/news/story/75-trillion-fright-fest-8/story.aspx?guid=%7B1E95D857%2D7CB8%2D46AD%2DB26C%2DD3732D93FD06%7D&dist=TNMostRead

ARROYO GRANDE, Calif. (MarketWatch) -- America's out of control, drowning in debt, gorging: $75 trillion and getting worse. Now we're dumping Fannie and Freddie on America's balance sheet. Every year we pile trillions more on future generations.

<snip>

But with "I.O.U.S.A." America's debt will haunt you for years. It already totals about $150,000 for every single household. Worse yet, it's metastasizing $1.9 billion each and every day on the National Debt Clock. So who will go see the film? Few:

Liberals. Maybe a small contingent of lefties. But they already know the story about America's lethal addiction to living on borrowed money.

Conservatives. No way. They actually love big deficits and big federal debt. That money comes out of taxpayers' wallets, pays for their wars and all the profitable deals with China and oil producers that make neocons personally rich.

Main Street. The other 95% of Americans are too focused on their own personal problems; gas, food, rent, foreclosures, inflation, teen pregnancies, credit-card fees, outsourced jobs, and so much more. They'll go to the new Bond film, or stay home and watch the new fall shows, like "Terminator," "Prison Break" and "Fringe."
Sorry folks, but while I recommend this new film starring Walker, it's no "Dark Knight," "Tropic Thunder" or "Ironman." If Congress turned a deaf ear to Walker's "Fiscal Wake-up Tours," this film won't work either. Great message but doomed to the art-theater circuit.

So what will wake up America? Only one thing: A major disaster. Another 9/11 attack? More likely another, bigger financial meltdown during the next presidential term, crippling an already weakened U.S. Treasury and Federal Reserve, set up by more leadership failures in Washington, driving America deeper into debt hell.

...more...

[ramapo]

58. I thought Bush would trigger the mother of meltdowns

Looks like he'll be let off the hook although he's not done yet. I like to think Obama could prevent it and that McCain would deserve it.

[UpInArms]

39. Berkshire tightens insurance for bank deposits: report

http://news.yahoo.com/s/nm/20080910/bs_nm/berkshirehathaway_insurance_dc

(Reuters) - Billionaire investor Warren Buffett's Berkshire Hathaway Inc (BRKa.N) has told one of its units to stop insuring bank deposits above the amount guaranteed by the U.S. federal government, the Wall Street Journal reported.

The subsidiary, Kansas Bankers Surety Co, is notifying about 1,500 banks in more than 30 states that it will no longer offer a program called "bank deposit guaranty bonds."

The order was made on Monday by Buffett, Berkshire Hathaway's chief executive, two people briefed on the matter told the Journal.

KBS is an 18-employee subsidiary of Berkshire Hathaway, according to the parent firm's 2007 annual report. It is one of a handful of firms that offer such insurance, a big selling point for banks trying to attract wealthy customers.

...more...

[masmdu]

41. SP Emini ...IF we don't start Up now... Down to 1173

Not advice

[UpInArms]

42. Fannie and Freddie - Mortgage giants axed from stock index

http://www.marketwatch.com/news/story/mortgage-giants-axed-stock-index/story.aspx?guid=%7BEF15CB95%2D5A10%2D4929%2D8BF4%2D138EEF41DA99%7D

AN FRANCISCO (MarketWatch) - Freddie Mac and Fannie Mae will be removed from the S&P 500 stock index due to their depleted market values, Standard & Poor's said Tuesday.

Freddie Mac (FRE: 0.88, 0.00, 0.0%) will be removed after the close of trading Wednesday, and its place will be taken by business software company Salesforce.com Inc. (CRM: 52.10, -2.75, -5.0%) , Standard & Poor's said.

Freddie Mac's market capitalization on Tuesday fell to roughly $614 million, far short of the $5 billion necessary to be eligible for admission to the index.

Fannie Mae (FNM: 0.98, +0.25, +34.3%) will be also removed from the S&P 500 after the close of trading Wednesday, and its place will be taken by Fastenal Co. (FAST: 52.20, -0.35, -0.7%) . Fannie Mae's market capitalization fell on Tuesday to roughly $1.04 billion, shy of the minimum necessary for admission to the index.

...more...

[Tandalayo_Scheisskopf]

50. I think it's time to open a book.

When will it break $100?

CLV08.NYM Crude Oil Oct 08 101.66 11:35am ET Down 1.60 (1.55%)
HOV08.NYM Heating Oil Oct 08 2.8749 11:35am ET Down 0.0498 (1.70%)
NGV08.NYM Natural Gas Oct 08 7.275 11:35am ET Down 0.26 (3.45%)
PNV08.NYM Propane Gas Oct 08 1.60 11:22am ET 0.00 (0.00%)
RBV08.NYM RBOB Gasoline Oct 08 2.6301 11:35am ET Down 0.0225 (0.85%)

[Tandalayo_Scheisskopf]

54. More Timely Numbers:

PRICE* CHANGE % CHANGE TIME
Nymex Crude Future 102.18 -1.08 -1.05 13:23
Dated Brent Spot 97.95 -.57 -.58 13:53
WTI Cushing Spot 102.28 -.98 -.95 12:13


PETROLEUM (¢/gal)
PRICE* CHANGE % CHANGE TIME
Nymex Heating Oil Future 288.82 -3.65 -1.25 13:23
Nymex RBOB Gasoline Future 264.32 -.94 -.35 13:23


NATURAL GAS ($/MMBtu)
PRICE* CHANGE % CHANGE TIME
Nymex Henry Hub Future 7.32 -.21 -2.79 13:23
Henry Hub Spot 7.29 -.41 -5.32 09/09
New York City Gate Spot 7.72 -.46 -5.62 09/09


ELECTRICITY ($/megawatt hour)
PRICE* CHANGE % CHANGE TIME
Mid-Columbia, firm on-peak, spot 56.50 -2.89 -4.87 09/09
Palo Verde, firm on-peak, spot 56.13 -5.19 -8.46 09/09
Bloomberg, firm on-peak, day ahead spot/West Coast 65.66 -5.29 -7.46 09/09

Are your electric bills coming down? If not, why aren't you squawking to your BPU?

[Dr.Phool]

57. I knew somebody was getting screwed by the oil companies.

Oil officials given sex, gifts, investigators say
13 Interior department employees handled billions in energy royalties

updated 17 minutes ago

WASHINGTON - Government officials handling billions of dollars in oil royalties engaged in illicit sex with employees of energy companies they were dealing with and received numerous gifts from them, federal investigators said Wednesday.

The alleged transgressions involve 13 Interior Department employees in Denver and Washington. Their alleged improprieties include rigging contracts, working part-time as private oil consultants, and having sexual relationships with — and accepting golf and ski trips and dinners from — oil company employees, according to three reports released Wednesday by the Interior Department's inspector general.

The investigations reveal a "culture of substance abuse and promiscuity" by a small group of individuals "wholly lacking in acceptance of or adherence to government ethical standards," wrote Inspector General Earl E. Devaney.

http://www.msnbc.msn.com/id/26644351/

[DemReadingDU]

59. ooooh, Sex Scandal!

media loves these,
:crazy:

[Tandalayo_Scheisskopf]

62. Just the tip of the tip of the iceberg.

But remember: Repukes are *always* the models of probity, ethical behavior and virtue. In case this article has left you a bit confused. :eyes:

Man, 2008 and the losers were still horning up Texas Gag Rails. How trite. How unseemly. How utterly over. Note: I spent 27 years in the music business. I heard rumors about that "cocaine" stuff, you know? ;-)

[ozymandius]

60. Let's close the day.

Dow 11,268.92 Up 38.19 (0.34%)
Nasdaq 2,228.70 Up 18.89 (0.85%)
S&P 500 1,232.04 Up 7.53 (0.61%)
10-Yr Bond 3.641% Up 0.045
NYSE Volume 6,612,880,500
Nasdaq Volume 2,324,768,500

The stock market posted a solid gain Wednesday in a roller coaster session. Much of the volatility was fueled by a third quarter earnings preannouncement from Lehman Brothers (LEH 7.24, -0.55).

The S&P 500 rose 1.6% with one hour left in the session, but settled with a gain of 0.6% following a late surge in broad-based selling interest. Eight of the ten economic sectors posted a gain.

Lehman reported a third quarter loss of $5.92 per share, or $3.9 billion, which missed the consensus estimate that called for a loss of $3.35 per share. In addition, Lehman is cutting its common stock annual dividend to $0.05 per share from $0.68, plans to sell 55% of its asset management business, will spin off its commercial real estate assets and is in talks with BlackRock (BLK 216.79, +5.99) to sell roughly $4.0 billion of Lehman's UK residential mortgage portfolio.

LEH rose as much as 19%, but the advance dissipated with the stock settling at session lows with a 7% loss.

Financials as a whole saw a great deal of volatility, trading between a range of -2.6% and +1.6% before ending the day with a 0.7% decline. The regional banks group fell 3.2% after Keefe Bruyette downgraded several regional banks, citing valuation. Washington Mutual (WM 2.36, -0.94) dropped 28% on reports that at least three potential acquirers are no longer interested in the company due to an accounting rule change.

In other corporate news, Texas Instruments (TXN 21.86, +0.15) tightened its third quarter outlook, which remains in-line with expectations. Some analysts expected that TXN would reduce its forecast, so shares advanced on the news. The tech sector rose 0.7%.

FedEx (FDX 87.87, +3.12) posted a solid advance of 3.7% after the company raised its fiscal first quarter earnings guidance to $1.23 per share from its previous guidance of between $0.80 and $1.00. The company reaffirmed its full year outlook. The raised guidance is not as good as it seems, as the unexpected drop in fuel costs prompted the move, not increased demand. The company said slowing economic growth trends in the U.S. are extending into other areas of the global economy.

On a related note, the European Union cut its 2008 growth forecast for the European economy to 1.4% from 2.0%, and forecast that the U.K., Germany and Spain will enter a recession.

The news gave a boost to the dollar, which rose 0.9% against a basket of currencies, with the euro plunging 1.2%.

The strength in the dollar spurred a decline in commodities (-0.7%), with gold falling 3.8% and oil retreating 0.2% to $102.96 per barrel. Oil’s decline came in the face of reports that OPEC plans to stop producing above its previously agreed quota of 27.3 million barrels per day, which means output will be reduced by about 500,000 barrels per day. In addition, the Department of Energy reported larger-than-expected declines in crude oil and gasoline inventories.

Despite the drop in oil and commodity prices, the energy (+3.6%) and materials (+1.9%) sectors rallied, benefiting from a rebound bid following the sectors' declines over the previous eight sessions of 16% and 12%, respectively.

[Tandalayo_Scheisskopf]

63. Thankfully, I finished my evening coffee a few minutes ago. So I didn't snork it through my nose.

38.19 is a "solid gain"? Man, do these people work for Bubba Odom's Asshole & Colon Custom Smokers?

I propose new dress regulations for pundits and financial writers: cheerleader uniforms, saddle shoes and pompoms.

Rah. Rah. Sis. Boom. Fucking. Meh.

[UpInArms]

64. knee pads and a gimp suit?

[ozymandius]

67. Greenspan has been loaning his out.

[Dr.Phool]

66. Clown shoes, big red noses, and Don King wigs.

[Tandalayo_Scheisskopf]

68. Your Average Market Pundit and/or Commentator:

[UpInArms]

69. eeeekkk!

[Demeter]

61. Bush Administration Chooses McCain National Finance Chairman To Take Over Fannie Mae

http://thinkprogress.org/2008/09/08/mccain-herbert-allison/


The Bush administration has named a close ally of Sen. John McCain (R-AZ) to take over Fannie Mae. Herbert Allison has worked at Merrill Lynch and TIAA-CREF. However, he also served as McCain’s 2000 national finance chairman.

On Feb. 27, 2000, the Austin-American Statesman noted the close relationship between McCain and Allison, saying that they “regularly” talked:

McCain is a one-man polling operation, each day soliciting the opinions of dozens of people who don’t even know they’re advising him. … McCain soaks up anecdotal advice and ideas from all walks of life. He talks regularly with publisher and analyst William Kristol; journalists Charles Krauthammer and R.W. Apple; high-tech executive Andy Grove; money man Herbert Allison; telecom executive Sol Trujillo; foreign policy luminaries such as Henry Kissinger, Jeane Kirkpatrick and Brent Scowcroft; and even people such as actor Warren Beatty (who suggested that McCain’s campaign accept no money at all).

On Jan. 24, 2000, Fortune reported that if McCain won the election, the “best bet” to become his Treasury Secretary was Allison. In 1999, Allison told Crain’s New York Business <12/20/99> that he had been “tremendously impressed by McCain,” who “has courage and high integrity, and he believes in campaign finance reform.”

[Tandalayo_Scheisskopf]

70. Well...

Isn't THAT a list of the best and brightest in scumbags, wastes of skin and gravity and cannibals.

[Dr.Phool]

71. And the pain continues in the Asian markets

Nikkei down 1.2%

Hang Seng off 1%

So far.

http://finance.yahoo.com/intlindices?e=asia