STOCK MARKET WATCH, Tuesday 29 March

DeLay is an easy target these days. Benson skewers him well.

Alright, now that the Fed has gotten everyone’s attention what happens next? Will the Fed begin raising interest rates aggressively abandoning its slow and easy approach to raising interest rates, or is this blustering on part of the Fed? The markets have been caught off guard and are now reacting to what was obvious all along. Inflation is on the rise and it should not surprise anyone, but it did. Certainly higher energy prices are a factor. Energy prices impact everything from the cost of factory output and the price of consumer goods, to the cost of food. Rising energy is only one factor. The costs of most raw materials have been rising for over three years. Since hitting a nadir in October of 2001 the CRB index went from 184 in October 2001 to 322 in March of this year. That represents a 75% increase in just three years.

-cut-

The Fed’s problem is that it has created myriad asset bubbles that are making it difficult for it to deflate, especially now given the huge debt burdens that keep building in the US economy. When asset values are appreciating faster than debt service costs as a result of declining real interest, not only are risk premia reduced but the incentive to borrow is magnified.

As long as real interest rates are kept below the rate of asset inflation, the debt pyramid will continue to grow. The only thing that could bring this to an abrupt halt would be a rise in real interest rates which now appears unlikely. As Stephen Roach has recently written, with inflation running at an annual rate of 3%, a neutral rate would be somewhere in the neighborhood of 5.75%. That is not going to happen. A federal funds rate of 5.75% would bring this debt-laden economy to its knees. It would end the “carry trade,” unwind the bond market bubble, send stock prices crashing, and puncture the real estate bubble.

-cut-

So where are we now? We are, in my opinion, in uncharted territory. Where we are heading is going to be a tough call to make precisely. My best guess is that it is stagflation that eventually turns into hyperinflation by the end of this decade. One reason I believe this is the “Law of exponential inflation.” It is a law of geometric progression. Every inflation must compound itself at a geometrically increasing rate in order to have the same beneficial effect as in the beginning. Once it begins it must get progressively worse. This can take place as long as paper wealth maintains its credibility. So far, monetary inflation has been reflected in rising paper wealth, rising stock prices and bond prices, and more recently, rising real estate prices. As long as this illusion persists with the people, all is well for the inflationist. As long as paper wealth continues to rise in value most individuals will see this as a bull market and not by its real identity, inflation. If confidence is maintained, then an exodus out of paper wealth can be forestalled temporarily. For if money wealth is repudiated then the supply of real values drops by the fall in paper wealth giving way to a rise in prices in real values. To some extent this is what has happened to real estate.

more...

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

fine job you do with this everyday. I look for this post everyday.

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

Last trade 84.33 Change -0.29 (-0.34%)

Dollar Drops as Technical Indicator Signals Gains Are Excessive

http://www.bloomberg.com/apps/news?pid=10000101&sid=aXD3cpCT7cRo&refer=japan

March 29 (Bloomberg) -- The dollar dropped against the euro in Asia after it last week had the biggest rally in 11, prompting some traders to bet the gain was excessive.

The currency fell the most in almost two weeks against the euro. It also erased a gain to a five-month high versus the yen as a technical indicator used to predict price swings pointed to weakness. The dollar is heading for its best quarter in more than three years versus the euro and yen on speculation U.S. growth is speeding up as the German and Japan economies struggle to expand.

``I wouldn't be a buyer of dollars at these levels,'' said Robert Rennie, a currency strategist in Sydney at Westpac Banking Corp. ``It's been a breathtaking move, and for the dollar to continue it's trend we're going to need continued better-than- expected U.S. economic data. There's a risk of getting ahead of ourselves.''

<snip>

The dollar is being buoyed by speculation that more investors see the Federal Reserve raising rates at all its meetings in 2005.

...more...

Majors Manage to Halt Dollar’s Advance

http://www.dailyfx.com/index.php?option=com_content&task=view&id=484&Itemid=39

EUR/USD - Euro managed to hold off the dollar advance as the price action paused around the 1.2900 figure with greenback bulls taking a break after a major move. Euro defenses remained intact with minor support remaining at 1.2890, created by the 78.6 Fib of the 1.2730-1.3482 euro rally. Euro maintained further defensive positions at 1.2850, an intermediate support formed by the Feb 10 -14 consolidation range low.

Major support at 1.2816, formed by the breakout of the Feb 7-10 consolidation, establishes the last line of defense for the euro before the dollar retests the 1.2730 level. A breakdown of the major support at 1.2730 may see the pair retest 1.2490, a 61.8 fib of the1.1760-1.3667 euro rally. Dollar bulls kept a tight lid on their defenses in case of the counter move by the euro. Euro bulls will encounter a minor resistance at 1.2923, a Feb 24-25 consolidation low, with further resistance seen at 1.3016, an intermediate resistance established by the 61.8 Fib of the Feb-Mar euro rally. If the single currency manages to push deeper into the dollar held territory, a major resistance at 1.3105, a 50.0 Fib of the 1.2730-1.3482 euro rally, will stand in the way of the advance. Oscillators are mixed with Stochastic oversold at 13.75 on the daily chart and is treading above the oversold level at 33.33 on the dealer (4HR) chart. RSI at 30.66 is moving closer to an oversold level on the daily and crossed above the oversold line at 33.09 on the 4-hour chart. MACD is crossing the zero line on the daily and is sloping toward the zero line on the dealer (4HR) chart.

<snip>

USD/JPY - Yen longs managed to halt the advancing dollar by putting up a minor resistance at 107.29, Nov 11 counter trend spike high, with intermediate resistance established at 107.58, a Jun 12 spike low. Major resistance remains intact at 108.38, a 50.0 Fib of the 114.51-101-68 yen rally. Dollar bulls established new lines of defense to protect captured territory with minor support seen at 106.58, Mar 24-25 consolidation high. Intermediate support at 106.34, a 5-day SMA, provides a further line of defense, with a major support at 105.63, a key 23.6 Fib of the 101.68-106.87 dollar rally, currently defending greenback's holdings. Indicators are signaling overbought conditions with Stochastic on the daily chart at 85.89 and continues to tread above the overbought level at 84.19 on the dealer (4HR) chart. RSI crossed into the overbought line on the daily at 72.93 and is dipping below the overbought line at 69.95 on the 4-hour chart. MACD continues to rise above the zero line on the daily chart and followed through with a bearish crossover above the zero line on the dealer (4HR) chart.

...more...

Awesome 'toon, Ozy! :thumbsup:

Nailed DeLay right where he exists :D

Have a Great Day Marketeers!

CNN/USA Today/Gallup Poll. March 21-23, 2005. N=1,001 adults nationwide. MoE ± 3.

"How would you rate economic conditions in this country today -- as excellent, good, only fair, or poor?"


Excellent Good OnlyFair Poor Unsure
3/21-23/05 2% 30% 43% 24% 1%

3/7-3/11 3% 32% 48% 16% 1%

http://pollingreport.com/consumer2.htm

and soon they will jump on the piratization plans - that's when you should see how happy they become /sarcasm

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid={345AD970-A6B6-4AF5-8E7F-E3681F87A32B}&dist=bnb

SAN FRANCISCO (MarketWatch) -- Insurer AIG (AIG) announced Monday evening that Hank Greenberg will formally retire as non-executive chairman on Wednesday or Thursday and director Frank G. Zarb will become chairman. The retirement comes as AIG's board was considering removing Greenberg, the insurance industry's most powerful figure for decades. AIG's board ousted Greenberg as chief executive earlier this month, but also installed him as non-executive chairman.

Mar 29 10:00 AM
Consumer Confidence Mar
report -
briefing.com 101.0
market 103.0
last report 104.0
revised -

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38440.4170711806-833642349&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- U.S. consumer confidence fell for the second straight month in March, the Conference Board said Tuesday. The consumer confidence index fell to 102.4 in March from 104.4 in February. Economists expected the index to inch lower to 103.0 from the earlier estimate of 104.0. The present situation index fell to 115.6 from 116.8, while the expectations index slipped to 93.7 from 96.1.

10:00am 03/29/05 U.S. MARCH CONSUMER CONFIDENCE JUST BELOW CONSENSUS 103

10:00am 03/29/05 U.S. MARCH CONSUMER CONFIDENCE 102.4 VS 104.4 IN FEB

Why would all these folks be plowing all this money into this thing and taking it private?
Specializing in computer disaster recovery (could that also be man made disaster :scared: )?

Posted on Tue, Mar. 29, 2005

Deal valued at $11.3 billion

By Akweli Parker

Knight Ridder

SunGard Data Systems said Monday that it is returning to private ownership in part so it can make business decisions without having to worry about Wall Street's reactions to its business moves.

Seven investment firms confirmed that they agreed to buy SunGard for $36 a share, or $11.3 billion, including the assumption of $500 million in debt.

The group, led by Silver Lake Partners of Menlo Park, includes some of the biggest names in the business of leveraged buyouts: Bain Capital, The Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Providence Equity Partners and Texas Pacific Group.

The announcement of the deal sent SunGard shares up $2.81, or about 9 percent, to $34.36 in New York Stock Exchange trading Monday.

SunGard employs 13,000 people worldwide.

Although some leveraged-buyout firms have a reputation for breaking up their targets and cashing out for a quick profit, SunGard and the buyout firms tried to assure customers and employees Monday that that's not their intention.
(snip)
http://www.mercurynews.com/mld/mercurynews/business/11256230.htm

Perhaps because a private corporation can make some longer-term business decisions that the stock market wouldn't approve of?

Bechtel is the first thing that comes to mind

http://www.publicintegrity.org/wow/bio.aspx?act=pro&ddlC=6

Bechtel Group Inc.

The Bechtel Group, one of the world's largest engineering and construction firms, comprises some 19 joint-venture companies and numerous subsidiaries. Its affiliates include Sequoia Ventures Inc., a private investment company; Bechtel Capital Partners LLC, which has formed other Bechtel ventures, such as energy consultants Nexant Inc.; and Bechtel National Inc., which handles U.S. government contracts. Because Bechtel is a private corporation, however, the total number of its branches and affiliated companies is not publicly disclosed. From 1990 to fiscal year 2002, the company received more than $11.7 billion in U.S. government contracts—the sixth largest amount received by any of the approximately 70 companies with contracts in Iraq and Afghanistan.

...more...

http://www.reachingcriticalwill.org/corporate/dd/bechtell.html

Bechtel Corporation
San Francisco, CA

"We are not in the construction and engineering business. We are in the business of making money."

--Steve Bechtel Sr.

From the most natural and essential resource on earth – water – to nuclear power and weapons that can potentially cause the extinction of all life, Bechtel Group has manipulated both elements to build a business empire. As one of the largest construction and engineering companies in the world, Bechtel Group develops, manages, engineers, builds and operates telecomunications projects, water systems, petroleum and chemical plants, pipelines, nuclear power plants, mining and metal projects and civil infrastructure projects.

Bechtel has offices in Argentina, Australia, Brazil, Canada, Chile, China, Egypt, France, India, Indonesia, Japan, Korea, Malaysia, Mexico, Oman, Peru, Philippines, Russia, Saudi Arabia, Singapore, Spain, Taiwan, Thailand, Turkey, United Arab Emirates, United Kingdom, the U.S. and Venezuela. Last year Bechtel booked $23.3 billion worth of new business and worked off $15.1 billion in revenue, increases of 75% and 20% respectively (1).

...more...

they are really gearing up for. The Perhaps because a private corporation can make some longer-term business decisions that the stock market wouldn't approve of? is probably only the half of it. The principles involved do not sound like the most wholesome of a groups from what I could tell.

It might be small potatoes to some of them, but with enough pieces of small potatoes you can grow a whole field of them.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1350699

Bechtel sees record revenue in 2004 (and says it's not because of Iraq)

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2005/03/29/BUGGABVRQ91.DTL&type=printable

Bechtel Corp., the San Francisco firm helping rebuild Iraq, on Monday reported record revenue of $17.4 billion in 2004, buoyed by the growing strength of the global economy.

The results mark Bechtel's second year in a row of record-setting revenue, topping the company's 2003 take by 6.4 percent. The privately held firm does not disclose its profit.

With projects scattered throughout the United States and the world, Bechtel appears to be profiting from improving economies around the world. Some of the businesses Bechtel serves, such as oil firms and power companies, are building new projects or expanding old ones. Governments, too, are spending both at home and abroad.

"We're seeing an upturn in mining and metals, a big upturn in oil and chemicals, a return in power," said Jude Laspa, Bechtel's executive vice president and deputy chief operating officer. "We're seeing a lot more development in areas that had cut back."

Bechtel did not provide details on the amount of revenue brought in by its work in Iraq, where the company's engineers have spent nearly two years trying to repair waterworks and electrical plants. Laspa said, however, that the job in Iraq did not significantly improve Bechtel's 2004 results and suggested that it represented no more than a low-single-digit share of the revenue.

...More…

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1350122

(The)Carlyle (Group) Closes Record Capital-Raising

(If you don't know who The Carlyle Group is, you should find out. I wonder if this is where all the "missing" billions are going? Hint: George H.W. is one of the major players.)

Carlyle Closes Record Capital-Raising

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=8022866&src=rss/businessNews

Tue Mar 29, 2005 07:40 AM ET

LONDON (Reuters) - The Carlyle Group has completed the world's largest corporate buyout capital-raising at $10 billion to finance mega-sized deals on both sides of the Atlantic, the private equity firm said on Tuesday. Carlyle's latest capital-raising was through two funds. The U.S.-focused Carlyle Partners IV got $7.85 billion of commitments, and European fund Carlyle Europe Partners II received $2.2 billion of commitments.

The massive fundraising comes amid press reports that private equity firms Warburg Pincus and Blackstone also are looking to raise up to $8 billion each. With equity returns in public markets essentially flat for most of last year and bond yields at low levels, investors have been flocking to private equity and other alternative investments to boost returns.

"There are lots of pension funds and other institutions with large funds that want exposure to private equity investments," said Chris Davison, a consultant for Almeida Capital. Private equity firms' demand for capital, meanwhile, is growing as firms are able to invest productively in larger and larger deals, Davison added.

On Monday seven private investment groups banded together to buy financial technology company SunGuard Data Systems Inc. for $10.8 billion in cash in the biggest leveraged buyout in more than 15 years. "We believe we have a level of capital that we can invest well over the next five years," said David M. Rubenstein, co-founder and managing director of Carlyle in a statement. Carlyle invests in buyouts, venture capital, real estate and leveraged finance in the U.S., Europe and Asia in industries ranging from aerospace and transport to energy, telecommunications and healthcare.

(more at link above)

SunGard and businesses like it set up data centers for clients so that the client can essentially move the bare-bones operation to a remote site in cases of disaster, and be up ad running with very little or no time lost.

When I worked in banking, we did disaster recovery testing twice a year, every year. On a daily basis we would back up all of our data and send a copy off-site for variable term storage. Some data got sent off-site for permanent storage, some for ten years, some for about a week. For DR testing, we would get the necessary tapes from the off-site storage location, and have them delivered to the DR site, then a small group of people would load all the data onto the system, ensure we could get everything up and running, and that we were able to process and have customer information available and accessible with very minimal lost time.

Usually, a DR site will be located in a different city; the site provides all the necessary hardware and connectivity for its customers. The customers provide the data. A DR site will usually be able to host several customers at one time.

If your bank burned down, would you be content to just let them be closed for several weeks, with your money inaccessible, while they recovered from the fire?

Any intelligent business using computers as the primary means of keeping track of its business records has a DR plan in place. I think in banking, it is a requirement. The idea of computer disaster recovery is old, and nothing to be scared of.

I know nothing about privatized v publicly held businesses, so can't offer anything on that subject,

9:00AM: S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -4.0. Expectations for a sluggish start for stocks remain intact as futures trade still denotes a negative tone... With very little in the way of market-moving news to extend yesterday's rebound, buyers have been reluctant to jump into the market ahead of data that could show a decline in consumption patterns... Not even falling bond yields and stabilizing oil prices have been enough to bolster sentiment

http://www.morganstanley.com/GEFdata/digests/20050328-mon.html#anchor0

Because of its currency peg, China does not have an independent central bank. Having elected to fix the renminbi to the dollar, the People’s Bank of China has all but abdicated control over its emerging financial system to America’s Federal Reserve. As the Fed now moves into the serious stage of its tightening cycle, that could pose a serious problem for an unbalanced Chinese economy. China may be preparing for precisely this possibility.

Despite nine months of measured tightening, America’s central bank remains well behind the curve, in my view. That is apparent if the “curve” is defined to delineate the setting of the policy rate that would be consistent both with the Fed’s inflation concerns as well as America’s current-account adjustment imperatives. The real, or inflation-adjusted federal funds rate currently stands at just 0.35% if the nominal funds rate (2.75%) is “deflated” by the year-over-year increase in the core CPI (2.4%); it is still slightly in negative territory if the headline CPI (3.0%) is used. An average of the two readings works out to a “zero” real federal funds rate -- underscoring the persistence of extraordinary monetary accommodation.

A year ago, when the balance of economic risks evened out after a very rocky recovery, I suggested that it would have been appropriate for the Fed simply to reset its policy rate quickly to a more neutral level (see my 27 February 2004 dispatch, “An Open Letter to Alan Greenspan” also published in Newsweek). Unfortunately, since the Fed has taken its sweet time, its efforts to recalibrate monetary policy have been largely offset by deteriorating conditions on four fronts -- mounting inflation risks, a runaway current account deficit, an emerging property bubble, and a profusion of speculative carry trades in fixed income markets. As a result, the US central bank can no longer afford to play it cute and seek a neutral policy stance -- the federal funds rate now needs to be pushed into the restrictive zone. We can argue over what that translates into insofar as a specific target for the nominal federal funds rate is concerned; my own view is that might be as high as 5.75% (see my 23 March 2005 dispatch, “The Test”). But even if I am guilty of exaggerating the upside to the funds rate, suffice it to say that the appropriate level is a number well above the current reading. If that’s not behind the curve, I don’t know what is.

Of equally great interest, of course, is what the Fed gets for this noble effort. The primary goal is inflation control, of course. I would add a secondary objective -- pushing up real interest rates to levels that are more compatible with America’s outsize international funding requirements; with the US current account deficit exploding to 6.3% of GDP in late 2004, the US needs $2.9 billion of capital inflows per business day. It is difficult to attract flows of that magnitude with a policy rate that remains at zero in real terms. Fed tightening also reins in the excesses in asset markets -- especially residential property but also the profusion of carry trades in risky assets such as high-yield and emerging-market debt.

more...

http://story.news.yahoo.com/news?tmpl=story&cid=1518&ncid=1518&e=7&u=/afp/20050329/bs_afp/chinaenergyoil_050329104339

BEIJING (AFP) - China, whose booming economy is expected to see record demand for oil this year, plans to expand its refining capacity by more than a third within the next five years, state media said.

By 2010, the country aims to add 100 million tonnes to its refining capacity, on top of its current nearly 300 million tonnes, the Xinhua news agency said, citing the China Petroleum and Chemical Industry Association.

"Fast-growing domestic demand for finished oil products has given full play to the surplus refining capacity that had lain idle for a dozen years," said Tan Zhuzhou, president of the association.

"It has been top of the agenda for the country's oil giants to develop and expand oil refining capacity," Tan said.

China processed a record 273 million tonnes of crude oil last year, up 13.7 percent from the year before, marking the fastest growth rate in three decades.

more...

http://story.news.yahoo.com/news?tmpl=story&cid=1518&ncid=1518&e=3&u=/afp/20050329/bs_afp/usasiaenergy_050329084140

WASHINGTON (AFP) - Several Asian countries are pushing ahead with their long held objective of establishing a regional oil market for cheaper supplies, despite warnings such an initiative could backfire.

"If you look at both production and consumption, Asia feels shortchanged," Debnath Shaw, an Indian diplomat, said Monday at a conference organized by the Center for Strategic and International Studies (CSIS), a Washington-based think tank.

Most of the world's supplies are controlled by members of the Organization of Petroleum Exporting Countries (OPEC). The main oil consumers -- North America, Europe and developed Asia -- in turn have formed their own grouping, the International Energy Agency (IEA), to protect their interests.

Being latecomers to the industrialization process, developing countries like India, China and the Southeast Asian economies "find they have no space for themselves" because the so-called oil market "is already divided between the producers and the users," Shaw said.

For example, Asian nations pay an extra 1.50 to 2.00 dollars for every barrel of oil from a refinery in Saudi Arabia compared to North American and European customers, he said.

more...

http://www.nytimes.com/2005/03/29/business/worldbusiness/29joust.html?

NAHA, Japan - Midway between Okinawa and China, the Ramform Victory, a Norwegian seismic ship, is performing routine survey work, trawling with long seismic cables and using sound waves to create three-dimensional images of oil and gas deposits. But nothing is routine when Japan commissions a survey of what is hidden below the contested waters of the East China Sea.

Chinese coast guard ships treat the surveyors as spies, radioing warnings to leave and shadowing the ship for days on end. On one occasion, the Chinese ships nearly collided with the vessel. Japan's trade minister, flying in a Japan coast guard plane, conducted an ostentatious survey, circling over the bright yellow gas production platform that China is building a mile west of waters claimed by Japan.

Confronting the Chinese face to face, the trade minister, Shoichi Nakagawa, later sat in front of a Chinese negotiator, dropped two straws in a glass of orange juice, and, forgoing customary Japanese politeness, complained that China was about to "suck out Japan's resources with a straw." The seismic ship, he said, according to ministry officials, found that two deposits under development by China extend into Japanese economic waters.

In days of sharply higher energy prices, long-dormant border disputes have suddenly come alive for Japan, the world's second-largest energy-consuming nation after the United States. Galling Japan is a realization that large deposits of oil and gas lie on the nation's watery fringes. Long cocooned by these water buffers, Japan is suddenly bumping shoulders over undersea oil and gas resources with China, South Korea and Russia.


more...

but I think if you actually look at the chronology Britain was the dominant power in the world before it adopted economic liberalism and free trade. For example, the repeal of the protectionist corn laws in the 19th century did not occur until two decades after the defeat of Napoleon. Indeed, there is more than a little evidence to suggest that free trade actually sowed the initial seeds of the decline of the British Empire by encouraging the growth in the economies of rivals such as Germany and the USA. The naked competition that free trade encourages can lead to the breakdown of international relations as nations engage in an ever more desperate search for markets and resources. The ultimate result may just be war. This is the exact opposite effect to what most of its supporters claim.

I went looking for this distingushed author's credentials and found this:

http://www.internetional.se/erdman9812.htm

US ECONOMY: Downwards lurch

DECEMBER 10 1998 Lex

The US current account deficit took another lurch downwards yesterday. It is now running at over $60bn a quarter, or about 2.8 per cent of gross domestic product.

In theory, the need to finance such a massive gap with foreign capital puts upward pressure on US interest rates and downward pressure on the dollar. In fact, the dollar strengthened on the news.

For the past few years, the US has been in the happy position that the world has wanted to buy its assets to take advantage of the country's strong growth and open economy.

How long can this continue? The deficit will grow even larger next year, topping 3 per cent of GDP. The economy is slowing, while political rumblings over impeachment continue.

...more...

Wonder how he feels now? :eyes:

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38440.3861864352-833640606&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) - Burlington Northern Santa Fe Corp. (BNI) said Tuesday it would become the first railroad to start adding fuel surcharges based on the number of miles freight travels, replacing a percentage calculation of the total bill. BNSF said the change would be more accurate and direct method of accounting for the rising cost of diesel. The railroad said the charges would be applied to about 75 percent of its freight volume. Shares fell 73 cents to $54.96 Monday.

guess all those containers of cheap imports are going to start costing more :eyes:

President Bush's proposal to add private investment accounts to Social Security is beginning to create controversy within the one group that has most forcefully embraced the idea in theory: the conservative intelligentsia.

Under Bush's approach, personal accounts "are complicated," wrote Alex J. Pollock, a finance expert at the conservative American Enterprise Institute, in a paper he will present at AEI today. "To many people, they are downright confusing and even frightening, and they require diverting a portion of payroll taxes away from the U.S. Treasury."

Conservative Harvard University economist Robert J. Barro broke with the White House in the April 4 issue of Business Week, writing, "Overall the accounts are a bad idea." Tyler Cowen, a free-market economist at George Mason University, has linked his Web log, Marginal Revolution, to Barro's dissent, declaring, "Robert Barro agrees with me on Social Security."

snip..
"There is no good reason to go beyond the minimum standard; that is why I view personal accounts as a mistake -- they enlarge a Social Security program that already promises too much," Barro wrote

Pollock takes a different tack. As personal accounts are envisioned, most people will see them as too risky and complicated. And the government's upfront borrowing costs are simply too high, he said.

snip..

"If the White House doesn't have a plan soon," Hassett said, "it's very unlikely the White House will win."




http://www.washingtonpost.com/wp-dyn/articles/A8000-2005Mar28.html

They already offer personal savings accounts they are called IRA's leave SS th *uck, alone. IMHO

Dow 10,477.30 -8.35 (-0.08%)
Nasdaq 1,990.64 -1.88 (-0.09%)
S&P 500 1,173.49 -0.79 (-0.07%)
10-Yr Bond 4.599 -0.25 (-0.54%)

NYSE Volume 101,371,000
Nasdaq Volume 115,821,000

(edited for html)

Dow 10,477.44 -8.21 (-0.08%)
Nasdaq 1,989.69 -2.83 (-0.14%)
S&P 500 1,174.04 -0.24 (-0.02%)
10-Yr Bond 4.599 -0.25 (-0.54%)

NYSE Volume 248,056,000
Nasdaq Volume 244,089,000

10:00AM: Equities remain on the defensive as selling remains widespread across most areas... Technology has been weak across the board, with Semiconductor (-0.6%) failing to take advantage of upbeat analysts comments... Utility, Consumer Staples, Industrials and Health Care have also been influential leaders to the downside... Health care facilities (+4.7%), however, has paced the way to the upside following upside Q1 guidance from HCA Inc (HCA 52.43 +3.56) while Energy has been strong as oil prices have inched higher...

Separately, March Consumer Confidence just checked in at 102.4, down from a revised figure of 104.4 in February... While the data has had little impact on stocks, bonds have extended early morning gains in response, as the 10-year note is now up 12 ticks to yield 4.58%... NYSE Adv/Dec 1099/1501, Nasdaq Adv/Dec 1127/1317

9:40AM: Stocks open on a downbeat note ahead of data that could show consumer confidence slipped in March due to higher energy prices... With an economic calendar full of influential data this week and with inflation concerns officially on the radar following the Fed's policy statement last week, investors have so far been hesitant to buy stocks ahead of today's only economic release... At 10:00 ET, the Conference Board will release March consumer confidence (consensus 103.0)...

(edit: updated blather)

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=41607

The noise on the issue of national accounts is deafening. Every politician, economist, and goofball analyst with access to an editorial page seems to have an opinion. Here we offer an anti-opinion. Our purpose is neither to explain the current account more clearly nor to guess about what will happen to the dollar. No, we set a much lower goal for ourselves; we only want to show that almost all the commentators and policymakers are numbskulls.

We begin by reminding readers that the U.S. trade deficit hit a new record in January, at $58.3 billion, an amount that “exceeded everyone’s worst expectations,” said the New York Times. The deficit reached more than $650 billion last year, requiring 80% of the entire world’s savings to finance it. The world has never seen such a huge red number in international trade and doesn’t know what to make of it. It is a sign of the “decline of the American empire,’ say some of the commentators. Others take as an emblem of America’s strength.

Whence cometh this trade deficit?

It ariseth when Americans buy more from non-Americans than they sell to them. Each day that passes, Americans buy (net) about $2 billion more in foreign imports than they make in overseas sales. That U.S. businesses are more profitable than their Asian counterparts makes no difference. That the American economy is the most dynamic, flexible and delicious confection ever put up on God’s green earth is as irrelevant as tree rings. That foreigners want a piece of America is flattering, but it is also as much a non-sequitur as hemorrhoids.

Nor does it especially matter why Americans overspend. They have their reasons. But even if they didn’t, the result would be the same. Each day, including weekends, more goes out than comes in. Ships, plying their routes from East to West - that is, leaving North American ports headed for China, Japan and the rest of the Far East - glide across the water. They are lightly charged with lumber, raw materials, tools, and food. Some are empty. As they make their way across the broad Pacific, they cross other ships headed in the opposite direction. These ships leaving the Orient on their way to Seattle or Long Beach ride lower in the water, for they are full up to the gunnels. There are cell phones, TVs, toys, gadgets, trinkets, clothes, and appliances - all the flotsam and jetsam upon which America’s standard of living now rests.

more...

http://www.kansascity.com/mld/kansascity/business/11253604.htm

Escalating health-care costs pose a greater threat to future living standards for today's children than would any proposed tax increases for Social Security, a think-tank report says.

The Center for Economic and Policy Research said last week that health-care cost growth over the next 10 years would be four times as large as the tax increase that Social Security trustees say is needed to keep Social Security solvent for the next 75 years.

Or, looking at a different projection, the think tank said health-care cost growth would be 10 times as large as the tax increase that the Congressional Budget Office estimates is needed to keep Social Security solvent over the 75-year planning period.

The research organization said the cost of health care would continue to grow faster than per capita gross domestic product growth and faster than real wage growth.

“The loss of wages, net of health-care spending, due to excessive health-care costs over the period from 1980 to 2004 was 12.6 percent,” the report said. “This means that workers on average had 12.6 percent less money in 2004 to spend on nonhealth-care items, than if health-care costs had only risen in step with per capita GDP over this period.”

more...

Brazil announced Monday that it will not renew the stand-by credit agreement it signed with the IMF in September 2002 because the good shape of the national economy makes it superfluous

Brazil, the IMF's largest debtor, said improved fiscal controls and external accounts, combined with the best economic growth in a decade, had cut its vulnerability to foreign financial shocks and improved its creditworthiness.

Brazilian President Luiz Inacio Lula da Silva, a longtime critic of the IMF before becoming president, said the decision to end support showed his unpopular spending cuts and commitment to orthodox fiscal policy had paid off.

-cut-

Over six years ago, Brazil turned to the IMF just before currency devaluation caused its debt load to spike and raised doubts about the country's ability to pay its foreign debt.
Since then, the country has weathered a series of foreign financial shocks, thanks in part to the support of the IMF.

more...

http://www.falkland-malvinas.com/Detalle.asp?NUM=5351

For standing up to the IMF,cutting spending and having a good fiscal policy.

Here are some great pictures
http://forum.skyscraperpage.com/showthread.php?s=53a9e7bcec33b02beb1c958538ded36f&threadid=61420&highlight=Brazil

Dow 10,497.77 +12.12 (+0.12%)
Nasdaq 1,995.76 +3.24 (+0.16%)
S&P 500 1,176.83 +2.55 (+0.22%)
10-Yr Bond 4.591 -0.33 (-0.71%)

NYSE Volume 436,710,000
Nasdaq Volume 410,683,000

10:30AM: Market lifts off its worst levels but shows little signs of wholeheartedly rallying... Meanwhile, March consumer confidence slid for the second consecutive month amid rising gasoline prices; but the widely expected decline of 102.4, which basically matched forecasts, has had little impact on the market as investors prepare for much more influential economic data over the next three days...

However, an upward revision to last month's figure (to 104.4 from 104.0) further signals that the overall index, albeit having little correlation with consumer spending, has been trending slightly higher over the past two years... NYSE Adv/Dec 1440/1402, Nasdaq Adv/Dec 1304/1335

Dow 10,508.56 +22.91 (+0.22%)
Nasdaq 1,998.68 +6.16 (+0.31%)
S&P 500 1,177.61 +3.33 (+0.28%)
10-Yr Bond 4.601 -0.23 (-0.50%)

NYSE Volume 611,826,000
Nasdaq Volume 567,449,000

11:00AM: Major indices climb to their best levels of the morning as oil prices fall to session lows... Crude oil futures ($53.75/bbl -$0.30), which had stabilized around $54/bbl after OPEC agreed to suspend talks on boosting output quotas, have succumbed to further profit taking...NYSE Adv/Dec 1827/1180, Nasdaq Adv/Dec 1571/1170

Dow 10,494.89 +9.24 (+0.09%)
Nasdaq 1,995.60 +3.08 (+0.15%)
S&P 500 1,176.50 +2.22 (+0.19%)
10-Yr Bond 4.603 -0.21 (-0.45%)

NYSE Volume 854,633,000
Nasdaq Volume 755,188,000

12:00PM: Market maintains modest gains midday, despite a slight decline in consumer confidence, amid falling oil prices, upbeat guidance and lower bond yields... While March consumer confidence fell to 102.4 (consensus 103.0) from a revised Feb read of 104.4, investors have discounted the widely expected decline ahead of this week's more influential economic data... Modest profit taking in crude oil futures ($53.75/bbl -$0.30) has improved sentiment while upbeat guidance from HCA Inc (HCA 63.35 +3.25) and Monsanto (MON 52.56 +3.69) has provided a modest boost to stocks heading into earnings season...

Declining bond yields have also acted as a contributing factor, as the 10-year note is up 11 ticks yielding 4.59% ahead of 2-year auction results... News that former American International Group (AIG 58.98 +1.96) CEO Maurice "Hank" Greenberg will step down as chairman has helped Financial (+0.6%) gain ground while Telecom Services (+0.6%) has been strong following MCI Inc.'s (MCIP 23.81 +0.87) decision to accept Verizon's (VZ 35.42 +0.70) sweetened $7.6 bln bid...

Follow through in Software (+0.4%) and strength in Networking (+0.3%) following the MCI-VZ news has helped Technology join other influential economic sectors like Health Care, Consumer Staples and Energy to the upside... A 2.5% sell off in Steel, however, has added pressure to Materials (-0.2%) while Utility, Drug, and Transportation have also been weak...

Dow
10,492.97
+7.32
(+0.07%)

Nasdaq
1,992.22
-0.30
(-0.02%)

S&P 500
1,175.54
+1.26
(+0.11%)

10-Yr Bond
4.597
-0.27
(-0.58%)

NYSE Volume
943,799,000

Nasdaq Volume
826,313,000

12:35PM: Sellers show some resolve, as the indices now struggle to gain traction above the flat line... Providing some modest support for blue chips, however, has been a recent surge in shares Hewlett-Packard (HPQ 20.35 +0.56), which has finally selected a new CEO... Reports suggest that current NCR Corp (NCR 35.76 -2.14) chief executive Mark Hurd will succeed former HPQ chairman and CEO Carly Fiorina... HPQ shares had traded higher earlier amid speculation that it could become the next buyout target following yesterday's surprising SunGuard Data Systems (SDS 34.47 +0.11) deal... NYSE Adv/Dec 1748/1412, Nasdaq Adv/Dec 1448/1476

(does that headline remind anyone else of SNL comedy?)

http://www.forbes.com/home/retirement/2005/03/29/cx_da_0329topnews.html

NEW YORK - One of the many features of the wave of financial scandals early in this decade was the chief financial officer acting as star salesman--instead of making sure the numbers were right, folks like Scott Sullivan and Andrew Fastow broke the traditional mold, won awards and became darlings of Wall Street for making the numbers look pretty.

Andy Fastow, meet John Snow.

Snow, the U.S. secretary of the Treasury, is, by many accounts, no longer a player in crafting economic policy. But he is selling it. Currently, Snow is in the middle of the "60 Stops in 60 Days" tour in which he and other Bush Administration officials are "crisscross the nation to take the President's message of strengthening Social Security to the American people."

Snow, to be sure, isn't the only one on what they call "the blitz." President George W. Bush, Vice President Dick Cheney and other Cabinet members have made stops. But Snow has been the most frequent traveler, and he is still going a week after the president has quietly started to downplay or at least revise his plan.

Last week, Snow's press office announced he had participated in the 60th event of the 60-day tour in Kennett Square, Pa. Since then, he has moved on to Wilmington, Del. and Portland, Ore. The tour is supported by an entity called the Social Security Information Center. While the SSIC is part of the Treasury Department, it has been given a new name and apparently employs a separate staff. "We hired some new staff to help out, and we named them the SSIC," says Treasury Department spokesman Robert Nichols.

While no one is suggesting that Snow is cooking the books, there is a serious question as to whether Snow has stopped making policy and is no longer the watchdog of America's finances. He has been left simply to sell the plan, which is rapidly being revised with him out of town.

...more...

now?

Insight Magazine:

http://www.globalpolicy.org/ngos/analysis/1101moon.htm

excerpt:

5. Media and Cultural Properties

In the mid-1970s, Moon founded News World, a New York City newspaper. Then in May 1982, during the early period of Ronald Reagan’s US presidency, he founded the Washington Times, a conservative daily that is the second most important newspaper in the US capital. (35) The paper has always been highly ideological and it has fueled the prejudices of conservative members of Congress and their counterparts in conservative think-tanks and the executive branch. More than any other institution in Washington, it promotes hostility towards the United Nations.

The Washington Times regularly warns its readers that the UN wants to set up a standing army, that it is planning a global tax, that its membership overflows with dictatorships and “America-haters,” that it tramples on religion and the family and that it fosters sexual license and depravity. (36) The paper described a recent UN conference as a “left-wing hootnanny” and a recent article on the UN was entitled “Biting the Hand that Feeds It.” (37) The paper builds its UN news stories on quotes from Senator Jesse Helms, Senator Trent Lott, and other conservatives hostile towards the UN and multilateral cooperation.

The Washington Times runs at a large loss, currently estimated at $50-100 million per year. (38) In 1992, at the tenth anniversary celebration of the paper, Moon said that he had “invested” “close to $1 billion” in the paper in the first 12 years. (39) Moon has said he wanted to make the newspaper "an instrument to save America and the world." (40)

In mid-1996, Moon launched a conservative weekly newspaper for the Spanish-speaking market in Latin America called Tiempos del Mundo. This big and very expensive multi-country venture is estimated to have cost hundreds of millions of dollars for the start-up and annual losses. (41) The paper’s web site proclaims that it seeks to “strengthen the family” and it announces that the paper is printed and distributed in 15 Latin countries as well as the United States and Canada, joining a “hemispheric” section of 64 pages to a national edition. (42) According to a Latin American source, the paper has not yet found a significant readership. (43) The Moon organization controls Tiempos del Mundothrough its media arm, News World Communications (named after the defunct New York paper). News World also owns the Washington Times and a daily newspaper in Uruguay, Ultimas Noticias.(44)

In May 2000, News World Communications acquired control of the US news wire service United Press International, better known as UPI.(45) News World also controls Insight Magazine, The World and I, and Middle East Times (Cyprus). (46) The Moon organization also controls a monthly publication, Our Canada, and daily newspapers in Japan (Sekai Nippo) and Korea (Segye Ilbo), as well as video production facilities in New York, Washington and Tokyo and the Paragon House publisher. (47) Universal One television station in Tokyo is a Moon property as well. (48) And Moon owns a controlling interest in the cable Nostalgia Channel. (49)

...more...

I apologize, I should drink only the Kool-Aid offered by the "approved sources." LOL -- whattacrock.

sometimes the facts seem to get in my way :D

wasn't "dissing" your news report - just doing my "organizational fact check".

:hi:

(The Bear's Lair is a weekly column that is intended to appear each Monday, an appropriately gloomy day of the week. Its rationale is that, in the long '90s boom, the proportion of "sell" recommendations put out by Wall Street houses declined from 9 percent of all research reports to 1 percent and has only modestly rebounded since. Accordingly, investors have an excess of positive information and very little negative information. The column thus takes the ursine view of life and the market, in the hope that it may be usefully different from what investors see elsewhere.)

It fits my model to a T. Still predicting major slowdown and possible cataclysmic event third quarter, 2005. And Moon doesn't own me.

Further, a check of ownership and political contributions/party affiliation of nearly every media source on DU will indicate Republican owners. That does NOT transfer directly to content in the vast majority of cases. To believe it does is just that -- a belief, not a fact.
:D

sometimes I come off (I am assuming this based on your posts) as brusque and rude and unaccepting.

If you have read many of my posts or follow-ups, I usually include information regarding the subject or the source.

Just my way of being, not meaning to poke sticks in your cage (and that is something I truly hate to have happen to me and don't intend to do to others)

:)

The potential breakup of General Motors was mentioned in the earlier piece deemed unacceptable to DUers due to its source. Further information follows.

CAUTION TO CLOSE MINDED READERS: This CNN/Money article is sourced from "The New York Post."

NEW YORK (CNN/Money) - Kohlberg Kravis Roberts & Co. is in advanced talks to buy a majority stake in the commercial mortgage business at General Motors' finance arm, GMAC, for at least $1 billion, according to a published report.

The New York Post reported Tuesday that as part of the negotiations, KKR is also expected to assist GMAC in refinancing some $3 billion to $4 billion.

GM, the world's leading auto manufacturer, has been hit with losses at its core automotive operations but has been helped by strong results from GMAC. The commercial mortgage business is only a small part of GMAC's line of business, which also includes auto finance and home mortgages.

GM reached an agreement last year to sell the commercial mortgage unit to Deutsche Bank AG, the Post reported, but the sale fell through. GM is now under pressure to sell the unit in an attempt to shrink its $300 billion in debt and avoid the risk of a credit downgrade. Earlier this month, the company warned of an unexpected steep loss in the first quarter.


http://money.cnn.com/2005/03/29/news/fortune500/gmac_kkr/

http://www.kkr.com/about/who_we_are.html

KKR, founded in 1976, is one of the world’s oldest and most experienced private equity firms. KKR specializes in management buyouts, and has established itself as the largest and most active participant in the industry. KKR’s investing activities are made on behalf of itself and its investors. These institutional investors include state and corporate pension funds, banks, insurance companies, other financial institutions, and university endowments.

KKR is managed as one firm, with investment teams located in New York, Menlo Park and London, supported by an organization in which process, communication and collaboration are priorities. KKR has 60 professionals dedicated to sourcing, analyzing, executing and managing investments, including 14 Members, 10 Directors and 36 Associates and other executives. The 14 Members have an average of 16 years with the Firm. Together, they have considerable expertise in the evaluation and oversight of companies in a variety of industries, through various economic and business cycles. Since its founding, KKR has completed more than 120 transactions involving in excess of $136 billion of total financing.

As a recognized leader and innovator in the private equity world, KKR has, through its 29-year history, accomplished numerous industry-wide firsts and achievements, including:
The first billion-dollar buyout transaction
(Wometco Enterprises, 1984)

Two of the largest buyout transactions ever
(RJR Nabisco, 1989, $31.4B; Beatrice, 1986, $8.7B)

The first buyout of a public company by tender offer
(Malone & Hyde, 1984)

The largest leveraged buyout ever in France
(Legrand, 2002, €4.94B)

Two of the largest Canadian buyouts
(Shoppers Drug Mart, 2000, C$2.5B; Yellow Pages Group, 2002, C$3.1B)

The development of the leveraged build-up model
(PRIMEDIA, 1989; KSL, 1993)

The pioneering use of private equity in highly complex and regulated industries such as banking, insurance, utilities, and heathcare

...more...

http://www.hoovers.com/kkr/--ID__40268--/free-co-factsheet.xhtml

The barbarians at the gate are now knocking politely. The master of the 1980s buyout universe, Kohlberg Kravis Roberts (popularly known as KKR) has shed its hostile takeover image for a kinder, gentler, buy-and-build strategy. In short, KKR assembles funds from institutional and wealthy investors to buy low and sell high. An active investor, the firm supervises or installs new management and revamps strategy and corporate structure, selling underperforming units or adding new ones. KKR profits from fund and company management fees as well as its direct interests. Cousins Henry Kravis and George Roberts are the senior partners in KKR, which is part of a group buying Toys "R" Us.

...more...

(should I change my sig line to reflect my "closed mind"?)

Dow 10,455.43 -30.22 (-0.29%)
Nasdaq 1,985.63 -6.89 (-0.35%)
S&P 500 1,171.30 -2.98 (-0.25%)
10-Yr Bond 4.596 -0.28 (-0.61%)

NYSE Volume 1,135,397,000
Nasdaq Volume 958,613,000

1:00PM: More of the same, as stocks continue to trade around the unchanged mark, but market internals have slipped... Advancers on the NYSE hold a slim 16 to 15 advantage over decliners while declining issues on the Nasdaq hold a 15 to 13 margin over advancing issues... The ratio of up to down volumes also suggests a rather lackluster sentiment at both the Big Board and the Composite, as investors remain hesitant to own equities ahead of the rest of this week's potentially market-moving economic reports...NYSE Adv/Dec 1653/1537, Nasdaq Adv/Dec 1375/1572

Dow 10,424.03 -61.62 (-0.59%)
Nasdaq 1,979.03 -13.49 (-0.68%)
S&P 500 1,168.30 -5.98 (-0.51%)
10-Yr Bond 45.93 -0.31 (-0.67%)

NYSE Volume 1,355,916,000
Nasdaq Volume 1,128,233,000

2:00PM: Indices continue to languish near their lows of the session as oil prices spike to their highs of the day... While the recent 0.6% rise in the commodity ($54.40/bbl +$0.35) has not been substantial by any means, it has been enough of an inflationary deterrent to keep buyers on the sidelines heading into all of the uncertainty surrounding top-tier economic reports over the next few days... NYSE Adv/Dec 1348/1877, Nasdaq Adv/Dec 1088/1912

1:30PM: Renewed wave of selling interest knocks the indices to their worst levels of the day... Broad-based profit taking in the Materials sector (-1.0%), in particular Steel (-4.7%) and Diversified Metals & Mining (-2.7%), as well as selling pressure in Oil Services (-1.5%), appears to have weakened an already deteriorating sentiment... Meanwhile, the Dow and S&P have found modest support above key technical levels of 10440 and 1168, respectively, but the Nasdaq continues to test last week's low and initial support near the 1985 mark... NYSE Adv/Dec 1452/1755, Nasdaq Adv/Dec 1193/1767

Red is good isn't it? :popcorn::sarcasm::woohoo::sarcasm: :rofl:

Really with all the negatives it is surprising that isn't lower :shrug:

Dow 10,426.54 -59.11 (-0.56%)
Nasdaq 1,977.74 -14.78 (-0.74%)
S&P 500 1,168.11 -6.17 (-0.53%)
10-Yr Bond 4.589 -0.35 (-0.76%)

NYSE Volume 1,713,575,000
Nasdaq Volume 1,416,271,000

3:00PM: Bearish bias remains firmly intact as buying interest remains scarce across the board... Minimizing losses on the Dow, however, have been strong performances from HPQ (+7.9%) and AIG (+2.5%), following major management changes at both... Investors have also taken note of strength in VZ (+1.3%); but losses in excess of 1.0% from 10 other components, such as AA, CAT, DIS and PFE to name a few, have pushed the blue chip index to a two-month low over the last 30 minutes... NYSE Adv/Dec 1130/2132, Nasdaq Adv/Dec 892/2154

2:30PM: Selling remains the name of the game as a widespread negative tone continues to weigh on the proceedings... Treasurys, however, have remained strong amid a decline in consumer confidence and weakness in Asian markets... Last night, disappointing government reports in Japan raised concerns about an economic slowdown... A flight to quality among market participants has lifted bonds to their best levels of the day, as the 10-year note is now up 14 ticks to yield 4.58%... NYSE Adv/Dec 1199/2033, Nasdaq Adv/Dec 974/2037

Dow 10,414.20 -71.45 (-0.68%)
Nasdaq 1,974.28 -18.24 (-0.92%)
S&P 500 1,166.50 -7.78 (-0.66%)
10-Yr Bond 4.591 -0.33 (-0.71%)

NYSE Volume 1,881,374,000
Nasdaq Volume 1,540,455,000

Will the fairies come out and play today?

Will it end up under 10,400?

Stayed tuned to the bell rings for these and more answers :evilgrin:

:crazy:

Dow 10,398.38 -87.27 (-0.83%)
Nasdaq 1,969.10 -23.42 (-1.18%)
S&P 500 1,163.87 -10.41 (-0.89%)10-Yr Bond 4.591 -0.33 (-0.71%)

NYSE Volume 2,076,739,000
Nasdaq Volume 1,706,907,00

but it is up above 10,400 at close :shrug:

Could only imagine what was going on there.

I am just kind of wondering if the republicans are starting to run out of stories to tell. The joke they thought was funny about Dem's having no answers to fix S.S. sounds more like projection to me.

What seems to be really going on is that they had no plan on helping or working with America's businesses, just a lot of plans on how to get more graft and kickbacks from it.

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38440.6291749421-833650061&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

DALLAS (MarketWatch) -- Crude and its products closed higher Tuesday on the New York Mercantile Exchange, as OPEC's decision not to boost output outweighed expectations of a rise in U.S. crude supplies. May crude closed up 18 cents at $54.23 a barrel, May gasoline was up 0.03 cent to close at $1.573 a gallon, and May heating oil added 0.87 cent to close at $1.5563 a gallon.

disappointed because OPEC is not going to boost output for the third time in 10 days? sheesh!

Hollinger Inc. Commences Action Against Ravelston And Black Entities And Certain Former Directors

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050329005852&newsLang=en

TORONTO--(BUSINESS WIRE)--March 29, 2005--Hollinger Inc. (TSX:HLG.C)(TSX:HLG.PR.B) announced today that it has issued a Statement of Claim in the Ontario Superior Court of Justice to commence a legal action against The Ravelston Corporation Limited, Ravelston Management Inc., Moffatt Management Inc. and Black-Amiel Management Inc. as well as former directors and officers Conrad M. Black, F. David Radler, Jack A. Boultbee and Peter Y. Atkinson.



The Claims:

Claims made are for monetary damages from all defendants jointly and severally in the amount of $550 million as well as reimbursement of certain amounts owing to Hollinger by the Ravelston defendants in the amount of approximately $86 million plus accrued interest and costs.

The monetary damages include management fees and non-competition payments misappropriated to Ravelston and the individual defendants during a period since 1998, as well as reimbursement of fees and costs including those related to the current inspection by Ernst & Young Inc. and the now withdrawn going private transaction. Other bases of the claims include diversion of corporate opportunities, breach of fiduciary duties and oppression.

...more...

I feel a certain sadness that Richard Perle was not named in that suit :(

When I get home, I am going to call my Repukelickin' Senators and demand that Social Security needs to enjoy the same kind of success as the Dow.

Ahem.

If the past two weeks are not enough to blow a hole in Bush's SS broadside...

talking about. I mean we are on the verge of going under 10400, I thought that 10600 was supposed to be the resistance.

I'll bet this get a mention in tomorrow's WrapUp.