STOCK MARKET WATCH, Thursday August 23

Source: DU

Thursday August 23, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 518 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2421 DAYS
WHERE'S OSAMA BIN-LADEN? 2133 DAYS
DAYS SINCE ENRON COLLAPSE = 2094
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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

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

AT THE CLOSING BELL ON August 22, 2007

Dow... 13,236.13 +145.27 (+1.11%)
Nasdaq... 2,552.80 +31.50 (+1.25%)
S&P 500... 1,464.07 +16.95 (+1.17%)
Gold future... 668.70 +2.50 (+0.37%)
30-Year Bond 4.95% +0.01 (+0.22%)
10-Yr Bond... 4.62% +0.03 (+0.65%)






GOLD, EURO, YEN, Loonie and Silver

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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 actionpost@legitgov.org

For information on protests and other actions Citizens For Legitimate Government

---

Read more: DU

Proceed With Caution
BY CHRIS PUPLAVA

We are in a precarious position with the current credit crisis precipitated by the subprime mess. To see how the tentacles of the housing recession are spreading into the economy and financial markets and how serious things are, take a look at some of the headlines from this week alone.

Lowe's Lowers Outlook (08/20/07)

Despite the housing crunch, Lowe's smashed Wall Street's expectations in the second quarter. Bracing for tough times ahead, America's second-largest home improvement chain also lowered its full-year outlook on Monday.

Despite the strong quarter, management slashed its forecast for 2007, citing weakness in the housing market. Lowe's said it expects to earn $1.97 to $2.01 a share, down 2 cents from its previous range of $1.99 to $2.03.

Capital One to Close Wholesale Mortgage Unit; Charges Will Total $860M (08/20/07)

The company, which said about 1,900 positions will be eliminated due to the closing of the unit, added that it will "cease residential mortgage origination" at the unit, called GreenPoint Mortgage, effective immediately.

Countrywide Cuts 500 Mortgage Jobs (08/20/07)

Countrywide Financial Corp., the nation's largest mortgage lender, said Monday it has eliminated about 500 jobs as it tries to ride out problems from a credit crunch that has rocked the home loan industry.

Bank warning intensifies German disquiet (08/21/07)

The uncertainty gripping Germany’s banks intensified Tuesday after the chief executive of one of its leading lenders issued an unusually frank warning about the troubled state of the country’s banking industry.

“We sense in the markets that the readiness of foreign banks to extend credit lines to German banks has become difficult,” said Alexander Stuhlmann, chief executive of WestLB, the state-backed Düsseldorf-based Landesbank.

The country’s lenders were in a “not uncritical situation”, he added.

The comments came only days after a second German bank, Sachsen LB, had to be rescued after falling victim to exposure to the turmoil in the global credit markets.

The remarks added to perceptions that banks in Germany were particularly vulnerable.

July Foreclosures Up 93% From July 2006 (08/21/07)

The number of foreclosure filings reported in the U.S. last month jumped 93 percent from July of 2006 and rose 9 percent from June, the latest sign that homeowners are having trouble making payments and finding buyers during the national housing downturn.

There were 179,599 foreclosure filings reported during July, up from 92,845 during the same period a year ago,
Irvine-based RealtyTrac Inc. said Tuesday. There were 164,644 foreclosure filings reported in June.

-cut-

8:30 AM Initial Claims 08/18
Briefing Forecast 315K
Market Expects 320K
Prior 322K

10:00 AM Leading Indicators Jul
Briefing Forecast NA
Market Expects NA
Prior -0.3%

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

09. U.S. 4-wk. avg. continuing claims rise 7,750 to 2.55 mln
8:30 AM ET, Aug 23, 2007 - 9 minutes ago

10. U.S. continuing jobless claims rise 16,000 to 2.57 mln
8:30 AM ET, Aug 23, 2007 - 9 minutes ago

11. U.S. 4-wk. avg. initial jobless claims up 4,750 to 317,750
8:30 AM ET, Aug 23, 2007 - 9 minutes ago

12. U.S. weekly initial jobless claims fall 2,000 to 322,000
8:30 AM ET, Aug 23, 2007 - 9 minutes ago

01. U.S. budget deficit was $248 billion in fiscal 2006
10:07 AM ET, Aug 23, 2007 - 4 minutes ago

02. CBO: U.S. 2007 deficit to narrow to $158 billion
10:06 AM ET, Aug 23, 2007 - 5 minutes ago

SINGAPORE - Oil prices bounced back Thursday in Asia after slipping below $69.50 a barrel in the previous session.

Light, sweet crude for October delivery rose 12 cents to $69.38 a barrel in Asian electronic trading on the New York Mercantile Exchange, mid-afternoon in Singapore.

The contract closed at a new eight-week low of $69.26 a barrel, down 31 cents, after the U.S. Energy Department reported that crude inventories rose 1.9 million barrels to 337.1 million barrels last week.

The weekly report also said gasoline supplies fell by 5.7 million barrels, nearly 3 percent, to 196.2 million barrels. U.S. refineries lowered production last week by 0.2 percentage points compared to the previous week, running at 91.6 percent of total capacity.

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

POZA RICA, Mexico - Hurricane Dean flooded a major Mexican oil city Wednesday, but there was no known damage to any of the country's production facilities on shore or in the Gulf of Mexico, the state-owned company said.

Petroleos Mexicanos, known as Pemex, remained on alert after the storm swept past seven offshore oil platforms and lashed the coast of the oil-centric state of Veracruz.

After crossing the Yucatan Peninsula, Dean made landfall near the coastal town of Tecolutla with winds of up to 100 mph. It then blew through the oil city of Poza Rica, 30 miles inland.

-cut-

The rigs remained shut down Wednesday afternoon, suspending a daily production of 2.7 million barrels of oil and 2.6 billion cubic feet of natural gas.

http://news.yahoo.com/s/ap/20070823/ap_on_re_la_am_ca/tropical_weather_oil_3

Then I guess the oil companies will be giving back the money they gouged in
anticipation of wide scale damage as it was justified in the Corporate Media?

I crack myself up... :rofl:

the check is in the mail. Want another helping of Rainbow Stew. :rofl:

to be letting it rip today. I am sure we are having more fun here than they are on WS.:smoke:

LOS ANGELES - Countrywide Financial Corp. said Bank of America Corp. made a $2 billion investment in the company Wednesday as the nation's largest mortgage lender tries to weather a credit crunch that's rocked Wall Street and the mortgage industry.

"Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," Angelo R. Mozilo, Countrywide's chairman and chief executive, said in a statement.

Under the terms of the deal, Charlotte, N.C.-based Bank of America acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.

http://news.yahoo.com/s/ap/20070823/ap_on_bi_ge/countrywide_bank_of_america

http://www.nytimes.com/2007/08/23/business/23mortgage.html?ex=1345521600&en=f82ae4241d377448&ei=5088&partner=rssnyt&emc=rss

Expanding rapidly as the nation’s largest home mortgage company, Countrywide Home Loans quietly promised investors who bought its loans that it would repurchase some if homeowners got into financial difficulties.

But now that Countrywide itself is struggling, it may not be able to do so, making it even harder for troubled borrowers to reduce their interest rates or make other changes to their loans to avoid foreclosure.

The possibility that Countrywide may have to buy back mortgages that it sold comes on the heels of its announcement last week that the tightening credit markets had forced it to draw on its $11.5 billion line of credit from a consortium of banks, a move that sent the market plummeting.

<snip>

The repurchase obligations are discussed in Countrywide’s prospectuses and pooling and servicing agreements that cover about $122 billion worth of mortgages packaged and sold to investors from early 2004 to April 1 of this year.

...more...

yeah, that $2 billion from BoA really makes me feel so much better :eyes:

:donut: :donut: :donut:

After an early start - gotta run off for a few hours. See you later this morning.

Ozy :hi:

Your political cartoon is right on the money this morning, again. Thanks. :hi:

:donut: and lurkers. It should be a very interesting quarter for retailers etc. I have been working late getting my clinic organized for the new school year and all. Every place I go into or past is dead, dead, dead. Folks are really holding on to their money-if they have it. The bogus unemployment numbers should be interesting. Wonder when those laid off in the financial sector will show up.....probably the same time that the auto workers. Yeah right. We'll find Jimmy Hoffa's body before we find the real unemployment numbers.

We haven't even begun to see the depth of the bubble popping. In Houston, the real estate bubble affected us for 5-7 years. Cities will lose their tax base and lay off workers and cut services. States, already hurting for funds will cut jobs and services. It will just get more unpleasant around here. And that doesn't even begin to address the world wide economic situation, in relationship to the USA.

Happy hunting and watch out for the bears.

:hangover:

Someday I need to write a post about how an 'Investment Society' is unsustainable... For any sort
of market to work on the long term there has to be someone somewhere adding value. (read: producing
something) We can't all live off of Interest.

It's a classic case of the 'Tragedy of the Commons' on a global scale. Everybody wants to put an
extra cow in the pasture.

Well, have a great day. :)

And a G'day to you too. Let me getcha another cup :donut: Prag.

How 'bout this for our theme since the FED's want us to make happy.....

Rainbow Stew ....Merle Haggard

There's a big, brown cloud in the city,
And the countryside's a sin.
An' the price of life is too high to give up,
Gotta come down again.

When the world wide war is over and done,
And the dream of peace comes true.
We'll all be drinkin' free bubble-ubb,
Eatin' that rainbow stew.

When they find out how to burn water,
And the gasoline car is gone.
When an airplane flies without any fuel,
And the satellite heats our home.

One of these days when the air clears up,
And the sun comes shinin' through.
We'll all be drinkin' free bubble-ubb,
An' eatin' that rainbow stew.


I am really going back to the country for this one. I think I may have posted it before, but I just love the ridiclous 'wishful thinking' it embodies. It appeals to my sarcastic nature. Thanks Merle, you still have fans. Some of these new country singers just 'think' they're bad.:evilgrin:

Also, I'm grateful for the bowl of Rainbow Stew! ;)

:spray:

We'll find Jimmy Hoffa's body before we find the real unemployment numbers.

A number of times, to do shows, back during that downturn time. It wasn't a happy place. Have some of the restaurants and other franchise-type places started to close?

we are still in the early stages. There are still homes and condos being built and our economy is still a bit better than most. But folks are cutting back. Many of the builders that have been in this market since the '80's' are reading the signs and bought lots are not being developed. They are advertising more and offering upgrades even though new homes are still doing well. Used homes-on the other hand, are having a hard time selling.

Not that I am wishing him ill (well, maybe just a little :evillaugh: ) but genius ex decided to take his inheritance (and conned ex MIL out of some $$$ too I'd bet), and bought a house to rehab and flip. It has been sitting out on the market for 8 mos and he can't a buyer despite reducing the price twice. He can't even get renters (he just decided last month to try to rent). I suspect a large chunk of my support check has been paying for that folly. It should be interesting to see what happens in May of next year when my checks stop.

My daughter said, "Well, I didn't use your name, but I told him what you said about the housing market getting ready to crash and begged him not to buy it-but he didn't listen." This was a 1 1/2 years ago. She went on to say if she had a money question-she would come to me first cause I knew what I was talking about.:spray:

Many of us 'seasoned' Houstonians remember all to well what happened in the 80's and I think that is why some folks are cutting back so drastically. They couldn't give stuff away here and even if you had sterling credit-you couldn't get a loan back then. It was terrible times then and many learned their lesson.

Had to drive a friend over the hills for an errand. Now, I realize it was a Wed., and the town was Ukiah, CA, not exactly a booming metropolis... but Ross was almost empty, and Mervins had racks and racks marked "75% off- clearance"... there were few people in there either, and this is right before school starts.

Folks are not spending money, probably because they have none.

...a government agency these days. Which I know is a stretch.

The cynic in me would chock that up to economic belt-tightening rather than a success of eco-ideals:

http://www.eia.doe.gov/cneaf/solar.renewables/page/prelim_trends/rea_prereport.html

Mildly good news from an ecology perspective, but I bet the "growth" people aren't pleased.

http://www.marketwatch.com/news/story/boj-holds-short-term-rates-steady/story.aspx?guid=%7bF6414E5F-5299-425A-BD53-1838527E5E5B%7d&print=true&dist=printTop
BOJ holds short-term rates steady at 0.5%

By Chris Oliver, MarketWatch
Last Update: 12:40 AM ET Aug 23, 2007HONG KONG (MarketWatch) -- Japan's central bank kept interest rates on hold at the end of its two-day policy board meeting Thursday, as policy makers opted for more time to assess the economy and the impact upon domestic prices in the wake of the recent turmoil on global equity and credit markets.

Analysts had predicted the Bank of Japan would be unlikely to tighten monetary policy at a time when other central banks were injecting liquidity into the financial system to bolster credit conditions.
"In terms of risk/reward perspective it just does not make sense for the Bank of Japan to be hiking (interest rates) now as it could be accused of fueling market instability," said Hiroshi Shiraishi, chief Japan economist for Lehman Brothers.
BoJ Governor Toshiko Fukui along with policy board members voted 8-to-1 to "encourage the uncollateralized overnight call rate to remain at around 0.5%", the BoJ said in a statement posted on its Web site Thursday. Board member Atsushi Mizuno voted against the motion.
Analysts said attention will shift to Fukui's comments at a press conference later this afternoon for insight into policy makers' thinking on the economy and the direction of interest rates.
"They are pretty eager to normalize rates," Shiraishi said, "but it really depends on market conditions."
Following the BoJ's announcement, the futures market priced in a 39% percent chance of interest rate hike at the policy board's next meeting on Sept 19, according to calculations by Credit Suisse.
The Japanese central bank is ultimately targeting short-term interest rates at a "normalized" 2.5%, a level which reflects potential GDP growth of 1.8% plus inflation, Shiraishi said, adding he expects the BoJ to delay any hikes until November.
Many analysts had expected the BoJ to lift short-term interest rates from their current level of 0.5% at the August meeting, following what amounted to an unofficial freeze on monetary policy in the run-up to parliamentary elections in July. The BoJ lifted the overnight call rate a quarter percentage point in February, its second rate hike since ending its zero-interest-rate policy in July last year.
At its July policy board meeting, the BoJ's signaled it was ready to boost interest rates by a quarter percentage point if economic trends supported the case.
The yen has appreciated sharply in recent weeks.
The shockwaves that erupted on global markets in recent weeks likely shifted the BoJ from a rate-hiking bias to a softer stance, said Glenn Maguire, chief Asia economist at Societe Generale
"With consumer accounts having been wiped out by the recent moves in the yen, particularly the leveraged foreign exchange traders, there is gong to be significant wealth effects dampening consumption," Maguire said.
He added BoJ governor Fukui would be more likely to tip concerns towards a potential slowing in the economy during the his press conference Thursday afternoon.
"I would be looking for a modest downward revision to their growth and inflation assessment," Maguire said.
Japanese government data released Wednesday showed Japan's trade surplus fell 21.1% in July from a year earlier, as growth in imports outpaced the value of goods and services Japan sold to the rest of the world. Economists had expected the trade surplus to decline 10.2% in July, following a 53% surge in the June trade surplus.
Lehman Brothers' Shiraishi said in a research note Wednesday the trade data suggested the "momentum of export growth may be starting to soften."
Credit Suisse's chief Japan economist Hiromichi Shirakawa said the BoJ will delay any moves on interest rates until the fourth quarter, while a second round won't follow until the third quarter of 2008.
Shirakawa said the pace of rate hikes were going to slow in light of cooing U.S. economic growth next year. Credit Suisse revised downwards its forecasts for U.S. GDP growth by 0.1-percentage point to 1.9% for 2007, and 0.5-percentage points to 2.5% in 2008.
"A slowdown in the U.S. trend growth rate could weigh on the Japanese growth rate over the longer run, probably through fears of a softening of the U.S. dollar," Shirakawa wrote in a research note. "We believe that the interest rate normalization process in the country (Japan) will continue for some time, although the key policy rates are likely to end up at lower level than originally expected for the current forecasting period to the first quarter of 2009."
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
http://www.marketwatch.com/news/story/boj-holds-short-term-rates-steady/story.aspx?guid=%7bF6414E5F-5299-425A-BD53-1838527E5E5B%7d&print=true&dist=printTop

http://www.bloomberg.com/apps/news?pid=20601087&sid=arjoLlHgOE_4&refer=worldwide

Aug. 23 (Bloomberg) -- The yen fell against the euro and dollar on speculation investors resumed riskier bets financed by borrowing in Japan.

The Bank of Japan today kept its benchmark interest rate at 0.5 percent, the lowest among major economies, spurring gains in high-yielding currencies such as the New Zealand dollar. Countrywide Financial Corp., the biggest U.S. mortgage lender, received a $2 billion infusion from Bank of America Corp., reassuring investors the global credit rout is being contained.

``People are starting to think the credit crisis is coming to an end,'' said Richard Vullo, head of corporate foreign exchange sales in New York at Fortis Financial Services LLC. ``With all the good news, people are going back to carry trades, and the yen is falling.''

The yen dropped 0.72 percent to 157.34 per euro at 12:21 p.m. in New York. It fell 0.56 percent to 115.98 against the dollar.

Japan's currency pared its declines as the Standard & Poor's 500 Index retreated after Countrywide Chief Executive Angelo Mozilo told CNBC that recent losses in credit markets were ``one of the greatest panics'' he's seen and the housing slump may lead the country to a recession.

The yen dropped 1.3 percent against the New Zealand dollar and 1.2 percent versus Australia's dollar as investors returned to carry trades. Japan's benchmark rate compares with 8.25 percent in New Zealand, 6.5 percent in Australia and 5.25 percent in the U.S.

The yen last week posted the biggest increase against the euro since March 2000 as the subprime mortgage crisis spread through global credit markets.

more...

http://yahoo.reuters.com/news/articlenews.aspx?type=reutersEdge&storyID=2007-08-23T110759Z_01_N22178226_RTRUKOC_0_US-USA-STOCKS-RATECUT.xml&WTmodLoc=USNewsHome_R3_reutersEdge-1

By Ellis Mnyandu - Analysis

NEW YORK (Reuters) - Stock market players are clamoring for the Fed to cut interest rates, hoping that such a move by the central bank will rescue listing credit markets and restore investors' shaken confidence.

They should be careful what they ask for. If history's any guide, a rate cut by the Fed could sound the death knell for the bull market's run from late 2002.

At best, the cut in the Fed's benchmark rate would be seen as underscoring the central bank's intent to do everything it can to ease anxiety in the financial markets.


But to other investors, it may signal growing unease about slowing economic growth inside the Fed, whose policy-setters had until recently made fighting inflation the core of their policy thrust.

A cut would also show that losses stemming from the U.S. subprime sector have seeped deeper into the broader economy, causing the Fed to want to forestall the prospect for an even sharper slowdown, analysts said.

But as the turmoil from the subprime sector grows, what's deemed good for credit markets may not be so good for stocks.

"People are taking it for granted that the rate cut will help the stock market," said Rajeev Dhawan, director of the Economic Forecasting Center at the J. Mack Robinson College of Business in Atlanta, Georgia. Continued...

http://yahoo.reuters.com/news/articlenews.aspx?type=reutersEdge&storyID=2007-08-23T110759Z_01_N22178226_RTRUKOC_0_US-USA-STOCKS-RATECUT.xml&WTmodLoc=USNewsHome_R3_reutersEdge-1

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

Last trade 81.083 Change -0.148 (-0.18%)

US Dollar: Rising Layoffs Poses Big Risks to US Labor Market

http://www.dailyfx.com/story/bio1/US_Dollar__Rising_Layoffs_Poses_1187818083755.html

Today’s recovery in the US stock market, carry trades and bond yields brought optimism back into the financial markets. News that BNP Paribas will be reopening its three frozen funds and reports that four of the nation’s largest banks tapped the Fed’s discount window as a vote of confidence has been taken very positively by traders and investors. Even though the rebound today was strong, which means that we could see a bit more extension tomorrow, traders need to be cautious because this is nothing more than a reflex rally. There was as much bad news as good. All of the weekly reports including the ABC consumer confidence and mortgage applications fell sharply. Confidence saw the steepest drop in 20 years. Lehman Brothers became the first Wall Street bank to close down its subprime lending unit and will be laying off 1200 workers. In fact, layoffs are being announced on a daily basis. The estimated toll of subprime related job losses is approximately 37,000. Even for the companies that are not cutting back on their workforce, they are not likely to be hiring either. The word on the street is that many companies have instituted hiring freezes. With the costs of borrowing increasing and demand for corporate issued commercial paper falling, keeping profit margins steady is the top priority for most companies. On a consumer level, a weaker labor market could put a big strain on household finances. On top of the rising cost of mortgages, credit card lenders are also increasing their terms of credit. This includes higher interest rates, lower lines of credit and more stringent review of finances. This would of course spell weaker consumer spending and eventually weaker us growth.

...more...

Yen Dives as BOJ Stays Pat and Risk Appetite Returns

http://www.dailyfx.com/story/bio2/Yen_Dives_as_BOJ_Stays_1187866518072.html

Carry came back with a vengeance tonight as calming news from the sub-prime market and reluctance of BOJ to raise rates beyond the current 0.50% level revived demand for high yielding currencies across the board.

Talking Points

· Japanese Yen: BOJ holds still trader plow back into carry
· Pound: Benefits from risk appetite on quiet calendar day
· Euro: Final German GDP in line
· Dollar: Weekly jobless claims on tap

Yesterday’s announcement after the close ofUS equity trading that BoA purchased a 2 Billion dollar stake in Countrywide Mortgage alleviated trader’s fears that the country’s biggest mortgage originator was in danger of bankruptcy. Only a few days ago CFC was reduced to tapping it bank credit lines as the liquidity crisis reached its peak. The Countrywide news served as a critical catalyst in turning investor sentiment from risk avoidance to risk assumption.

In the currency market this dynamic translated into strong gains for the carry trade which was further aided by the BOJ decision tonight to keep rates steady at 0.5% preserving the interest rate differential against G10 high yielding currencies such as the pound and the Australian dollar. As a result USDJPY spiked to take out the 117.00 level as Japanese retail investors plowed back into the carry taking out stops along the way. The BOJ decision was clearly affected by the recent market volatility and Governor Fukui warned that “Distortions and the misallocation of resources could occur if interest rates are kept at levels inconsistent with the economy.'' His pointed rhetoric suggests that the Japanese central bank will be ready to resume tightening monetary policy next month if global financial markets remain calm.

...more...

http://www.kitcocasey.com/displayArticle.php?id=1553

I may have jumped the gun last week when I said that it looked like the carry trade was unwinding... Japanese Finance Minister OMI said it had "unwound"... Yen had rallied like there was no tomorrow, and the high yielders were getting taken to the woodshed... But a funny thing happened on the way to the "unwinding party"... It got cancelled!

I don't need no stinkin' Internet to tell me the carry trade is back on the books... Simply look at how yen has lost ground, and the high yielders, kiwi, krona, rand, and even Aussie dollars have all rallied once again.

Let me tell you something, though... If you have profits in these high yielders and your CD's are coming due, you might want to take advantage of this latest round of carry trades driving the high yielders higher... This could be the last hurrah... Or... Maybe it isn't...

Shoot Rudy, as long as the markets know the Fed is their White Knight, why not go back to the well and say Risk Aversion be damned! I had better stop there... No wait! I'm not going to stop there... I've had to respond to quite a few emails that didn't like what I said about the Fed the other day... Here's my response...

The Fed's job is to keep a lid on inflation, and maintaining an environment for healthy employment... If they did this, they would be providing to us... Price stability! It is not, and I repeat, not their job to bail out Wall Street every time they get greedy and overexposed... And with regard to injecting liquidity, my longtime friend and colleague Ed Bonawitz sent me his thoughts...

"When the Fed steps in to pump more money into our leaking system, the problem hasn't been fixed! Put another way, you break your arm and the doctor gives you a pain killer, you no longer hurt, is your arm all better?"

A longtime reader sent me a note last night, and I verified it... There were 4 major banks that borrowed from the Discount Window on Friday... They happen to be the top 4 banks in the amount of derivatives they have on their books... In case you're keeping score at home... They are: Bank of America, Citi, JPMorgan Chase, and Wachovia... They all borrowed $500 million each... For whatever reason... Probably something symbolic, eh?

So... The currencies have rebounded, except the usual funding currencies used for the carry trade... Japanese yen... And Swiss francs... The euro has rallied to the upper reaches of the 1.35 handle... And pound sterling is back to "2"... With sterling, the markets have come back to the rate hike talk... The markets sure are fickle, aren't they? Just a week ago, the markets claimed there would be no rate hike, and sterling got sold like funnel cakes at a state fair...

But now? Well... I guess they've forgotten that stance! So... Onward and upward for pound sterling, eh?

more...

:wtf: :crazy:

As far as I care about the Troll Bros. Land Rapist Co., they can rot in hell and go under. :puke:

Seems that no matter how badly they're doing, though, their stock is rising. WHY? :shrug:

snips:

third-quarter profit plunged 84.8 percent

quarterly cancellation rate rose to nearly 24 percent, greater than at any other point in the 21 years the company has been traded publicly

earnings for three months that ended in July sank to $26.5 million, or 16 cents a share, from $174.6 million, or $1.07 a share

Sales fell 21 percent

The company was forced to write down property at a cost of $88.5 million, or 54 cents a share, compared with $14.6 million, or 9 cents a share, during the quarter a year earlier

Toll Brothers shares rose $1.06, or 5 percent, to $22.15 on the New York Stock Exchange.

We are one of the last rural counties in NJ. Now, a lot of land here is protected by The Highlands Act, but not all, and Toll Bros., Hovanian and others have been sniffing around here and salivating over the large swaths of farmland for a long time. They have also been making noises about challenging the act in court.

Stuff like this ought to jerk their chain more than a little, which is a good thing, because from what I have seen, "responsibility" is just a word to them, nothing more.

It's interesting: We are about 70 miles due west of NYC, on Rt. 80. South of here is Rt.78. Every time there is an economic upturn, the developers try to wall to wall this county, but then the economy goes the other direction, the development halts in its tracks and foreclosures go up, up, up. They just don't grok that when you consider property taxes and all the other exigent costs of living in NJ, we are just too far from the jobs.

I do know that in my little town, a high-rise senior citizen compound, on the last piece of undeveloped land in the town, that the developer pulled out the ethical chocks to ram down out throats, hasn't shown one bit of movement in quite a long time. Our municipal officials bent over backwards, frontwards and to both sides for them too. After all the developer-generated drama and intrigue, it's still empty land, nothing but birds and animals. It's a lot better that way.

under Highlands Act, farmland preservation programs or other. Maybe get a land trust involved, too. A teeny tiny land trust in a very small town in my area just got their town to purchase a 120-ac farm the developers were salivating over.

I'm struggling to find a place that isn't destroyed. But I don't think people realize they're filling a demand. As much as I praise Judy Bary for stopping the cutting of redwood old growth, they cut trees to fill a demand. That demand is people. Billions of people. And that means the demand is still here. I see the slowdown as part of the baby boomers fulfilling their appetites.

Anyways, I wish I had a place to live. So far I've bought and sold four acreages because they all turned to crap as people moved to the country. So here I sit in a rental house. The only good thing about Pacific Lumber is they let me put all of my farm equipment in one of their empty mills.

Good luck holding the dam back. I would write a book on this, but what good would it do.

http://www.msnbc.msn.com/id/20393984/

She wasn't an investor. She didn't have a subprime mortgage. But when Jordan Fogal's house became uninhabitable, the 62-year-old grandmother says foreclosure became her best alternative.

Fogal's troubles began when she and her 72-year-old husband, Bob, moved to a new housing development near Houston in 2002. That first night in the new house, the dining room ceiling collapsed. Bob had pulled the plug in the Jacuzzi tub upstairs, and 100 gallons of water came crashing through the ceiling downstairs because the plumbing drains were not connected.

"That was a preview of coming attractions," Fogal says. Later, the roof and windows leaked, the yard flooded, the shower walls started bowing out, the floor in the kitchen started sinking, and mold began to grow all over the house. The smell was terrible, she recalls, and eventually Fogal's doctor ordered her to leave the house because of the dangerous mold levels. A construction company hired by the Fogals estimated that it would take $150,000 to repair everything. "I could afford my mortgage payment, but I couldn't afford $150,000 in repairs," says Fogal, who had a 30-year fixed-rate mortgage at the time. The home — appraised at $408,000 the day the couple bought it — ended up selling for $234,000 at a foreclosure auction.

snip>

More than a subprime problem?
Fogal's case is not an isolated incident. Greg Cole, a homeowner in Georgia who runs a gripe site at georgiamoldhome.com, says he is on the brink of foreclosure after dealing with structural problems and leaks that have led to elevated mold levels. He, his wife, and his two children now take antibiotics every day, he says, because of the high level of mycotoxins — a toxin produced by fungi — in their blood. Elizabeth Dziedzic, a Realtor in Orange Park, Fla., says the deficiencies in her home make it impossible to sell for the amount it would take to pay off her mortgage balance. "There are only few events that are as devastating to a family as the loss of the family home to foreclosure," she says. "I guess this would be a price my family will pay for trying to achieve the American dream."

Foreclosures are up 93% from last year, according to Irvine, Calif.-based Web site RealtyTrac. At the same time, questions are arising as to whether construction quality suffered as homebuilders worked at lightning-fast speed to keep up with demand during the housing boom. It has become increasingly common for homeowners across the U.S. to share personal stories about defective construction through Web sites and blogs.

snip>

Why not just sue your builder when an irreparable problem arises? Homeowners usually don't have the right to. Most new-home sales contracts state that the customer must go through arbitration before they can even think about bringing their complaint to court.

more....

Hmmmm, seems like slowly the turkeys of greed are coming home to roost....Truth in lending laws ignored, shoddy workmanship...all due to greed. :shakesheadindisbelief:

http://www.azstarnet.com/dailystar/197618

A bankruptcy court judge will decide when thousands of employees terminated suddenly by First Magnus Financial Corp. last week will receive their final paychecks.
After filing for Chapter 11 bankruptcy protection in Tucson Tuesday, the company asked the court for immediate permission to pay its remaining 159 employees, including payments of $8,333 to its five corporate officers.

First Magnus also requested that the more than 5,000 employees laid off by the company nationwide be paid when "adequate funds become available" through financing or the sale of assets. That process could take months, one expert said.

The company owes about $13 million in payroll and related expenses, according to court filings.

But in the meantime, the approximately 650 employees laid off in Southern Arizona will be getting some help in the form of $2,000 gift checks from First Magnus shareholders and executives, including CEO G.S. Jaggi, said First Magnus spokesman Gary Baraff. The checks are expected to be cut and mailed today, he said.

After losing their jobs with little notice, a number of former employees expressed outrage at being left without final checks to pay upcoming expenses, such as mortgage payments or rent.

snip>

"This is a personal gift from our CEO (and shareholders). He can't do that for 6,000 people," Baraff said. "But I really don't want to minimize the importance of the people out there."

Former employees in other parts of the country said they feel the company is being unfair.

more...

They're handing out free money!

"4.25 percent"

Darn pump just won't prime, I guess.

02. Futures markets still see two, maybe three, rate cuts by Dec
9:46 AM ET, Aug 23, 2007 - 10 minutes ago

03. Futures markets see one, not two, rate cuts by end of Sept.
9:46 AM ET, Aug 23, 2007 - 10 minutes ago

2 + 3 = 1?

What they're saying doesn't compute... :crazy:

Markets or the Fed?

The Fed may well end up slashing interest rates, but the Greenspan era of pumping up market bubbles with repeated cuts is over, predicts Fortune's Peter Eavis.

http:money.cnn.com/2007/08/22/magazines/fortune/eavis_fed.fortune/index.htm?postversion=2007082306

NEW YORK (Fortune) -- It may be the most important development to emerge from the recent market turbulence: The Federal Reserve, under Chairman Ben Bernanke, is going back to being a central bank.

Judging by its cautious and finely-calibrated responses through a very ugly August, the Fed appears keen to put the Alan Greenspan years firmly in the past and take a much more orthodox approach to monetary policy. While the Fed will probably cut interest rates as early as next month, its behavior in August strongly suggests that Bernanke will avoid using interest rates to deliberately spark big increases in lending, the high risk strategy pursued by Greenspan from 2001 to 2004.

"I think Greenspan would have cut rates already. So I do think things are beginning to look different at the Fed," says Paul Kasriel, economist at Northern Trust.

A change at the Fed would have far-reaching consequences for the U.S. economy and the stock market. Initially, a much less accommodating Fed will be perceived as a reason for bearishness. But, over the longer term, market players may well see a less dysfunctional central bank as a good thing that could begin the process of cutting borrowing levels in the U.S., something that has to happen if the American economy is not going to seize up every time interest rates rise.

Fed rate cut? Don't bet on it

So what is the actual evidence that Bernanke, who helped formulate monetary policy under Greenspan, is not following the same approach as his predecessor? One huge change: Bernanke's actions have made it clear that he won't be panicked into cutting its key interest rate - the Federal funds target rate - when markets get mauled.

True, Greenspan often said that a central bank should cut rates chiefly in response to weakness on Main Street, not Wall Street -- the same message that is coming out of the Fed at the moment. But from 1998 onward, Greenspan's actions were very much at odds with that position. In that year, the Fed slashed rates in response to market turbulence sparked by the collapse of a large hedge fund and devaluation of the Russian ruble.

more...

http://www.321gold.com/editorials/willie/willie082307.html

The US financial system is experiencing a combination of a heart attack (fibrillation from absent trade recycled surpluses), a massive hairball (subprime debt securities) working through the bank arteries, and a realization (like Wiley Coyote in cartoons) that no terra firma lies beneath the economic feet as the depths below are vividly apparent. Massive money printing constitutes a heart attack, now a crescendo since the Constitutional violation on gold backed currency. The mortgage bonds simply cannot work through the banking system, with hairballs leading to constipation and unspeakable intra-bank distrust. For ten years the USEconomy has relied upon rising stocks or rising home properties to sustain an entire economy, from a structural foundation of inflating assets. For any central bankers or leading economists working as policy maker counselors, this is a purely heretical strategy.

The US financial system is teetering. Its USDollar currency is losing global support, with some outright revolts in crucial territories. The chief private sector export from the US financial sector has been fraud-ridden asset-backed bonds and their toxic credit derivatives. What should anyone expect? For years an institutional dishonesty within all things financial in the United States has been engrained, spreading, and become integrated with high levels of the USGovt. The Wall Street hucksters exported fraud. The backlash might be more severe than the soft soap gurus anticipate. Look for an international boycott. The shock waves in the US financial markets are preliminary symptoms of bigger events soon to come. Stability identified is nothing but quiet between tremors.

The layers of denial are being stripped, with big names losing credibility. The icon institutions are being irreparably tarnished. Wall Street firms in all likelihood has negative book value here and now! My forecast of under-water US banking system is slowly coming to realization. The recent nonsensical sell-side mantra is that the tangible economy with consumers will lead the way, despite financial sector shock waves. No way! Last autumn the same goombas told us that US corporations would invest in capital expenditures to lead the way. No way! This here analyst does not accept a single thing they say. The US financial sector has been the tail wagging the dog for numerous years, and it will continue to do so. The credit distress (what an under-statement euphemism!) will lead to interruptions in credit flow and an absolutely certain USEconomic recession, even AFTER fraudulent official statistics.

My expectation is for an eventual global boycott of US$-based bonds, gradually gathering like a storm, widening eventually to include even the USTreasurys. The USTBond complex continues to act like a safe haven, but it is the broad fire next to the frying pan. In time, the onliest buyers of USTBonds will be the corrupted compromised and desperate central bankers, who must sustain the system. The biggest red herring story in the banking system these days is not so much official US Federal Reserve action, as the cratering of money market funds supposedly safe as rain and apple pie. The French AXA infection is one of several stories to litter the landscape in that regard. The funds bought subprime mortgage bonds for the added juice of higher yield, only to find the juice has laden with hydro-chloric acid. Or was it more deadly sulfuric acid? Imagine a poison being peddled at the store front for banks, where the public walks up to their windows. The bank run process is at the doorstep. Savers will pull their money from banks if they hear that a 30% haircut is coming, just from a money market account!!! Depositors should not feel safe with their money in banks, especially in a nation which defrauds as a policy in almost every level in the hierarchy.

USFED RATE CUT COMING NEXT

snip>

THE GRAND INFLATION BIND
The USFed has no acceptable attractive policy choices. They incessantly harp about their concern over price inflation. They are victims of the dog they have fed, bred , and misled. If truth be known, the USDollar money supply is rampaging upward, skyrocketing by an annual growth rate of nearly 14%. So they chatter like noisy gongs about inflation when they oversee monstrous monetary inflation. They cannot DEFINE inflation, let alone measure it. Their spoken concern about price inflation is a disguised dreaded fear and desperation over the unleash of higher prices from a declining USDollar. They talk of inflation, but focus upon the currency risk. They cannot openly direct policy and discuss the US$ currency, by charter. The nearest evidence of imminent outbreak of price inflation can be found in the Treasury Yield Spreads. What was once inverted for over a year in 2005 and 2006 has now reverted to the normal upward tilting spread. Worse, the spread between the 2-year TBill yield and the 10-year TNote yileld is a ripe 50 basis points. The stochastix are not even overbought yet, which means a wider spread is coming very soon. The spread between the long-dated Treasury and the shortest short-term Treasury is huge! The signals are two-fold, screaming of that ugly STAGFLATION, since both recession and price inflation are the strong messages growing louder with each passing week. This is the worst of worlds for any central banker, and the bitter fruit of the unequaled King of Inflation, who left town, knighted and revered, despite his actual role as serial inflation engineer. This is Greenspan's nightmare delivered to Bernanke's office desk.

more,,,

"They call it the American Dream cause you have to be asleep to believe it." God, what year did he do that. I just love him-he's so subversive and cerebral.

edited to add I can't get Youtube here but I bet I know which one your posting.

01. Financial-sector commercial paper falls $17 billion
9:58 AM ET, Aug 23, 2007 - 7 minutes ago

02. Asset-backed commercial paper falls $77.1 billion
9:58 AM ET, Aug 23, 2007 - 7 minutes ago

03. Outstanding commercial paper falls $90.2bln in latest week
9:58 AM ET, Aug 23, 2007 - 7 minutes ago

04. Outstanding commercial paper plunges 2nd week in a row
9:58 AM ET, Aug 23, 2007 - 7 minutes ago

http://www.themoneyblogs.com/TheMessThatGreenspanMade/my.blog/the-end-of-the-liquidity-party-.html

The End Of The Liquidity Party?
Posted on 03/26/2007 08:46:16 | Link | Post Comment

Adventure capitalist and commodity investor Jim Rogers is down on just about everything according to this report yesterday from Reuters. He's predicting a none-too-pleasant conclusion for the latest asset bubble and fears the end of the liquidity party is at hand.

Doesn't he realize that Ben Bernanke, Hank Paulson, and the Federal Reserve Bank of New York will do whatever they need to do to keep asset prices inflated?

Well, not all assets, but the one's that they want to keep inflated they'll try their darndest to keep propped up.

What's the alternative? To let the malinvestments work themselves out?

Didn't they try that once before? Oh yeah, in the 1930s.

snip>

In times of financial panic, the Fed stands ready to do whatever needs to be done to prevent this whole thing from unraveling.

After 35 years of pure fiat money, there is one truism when it comes to responding to crises, "When you get in trouble, print more money".

Of course, at some point, this will no longer have the desired effect.

Dow 13,246.37 10.24 (0.08%)
Nasdaq 2,541.27 11.53 (0.45%)
S&P 500 1,463.78 0.29 (0.02%)
10-Yr Bond 4.653% 0.033

NYSE Volume 486,280,000
Nasdaq Volume 348,884,000

are now trading in split fashion as the Fed announcing its third repo this morning prompts investors to question the sustainability of yesterday's sizable gains and this morning's early rally. The Fed has now injected a total of $17.25 bln in reserves and said outstanding commercial paper plunged for a second week in a row, leaving participants struggling to grasp the extensiveness of the credit turmoil and again wondering if borrowers are in fact getting the credit they need. That was evidenced by Financials (-0.4%) becoming the first sector to turn negative and the end of a safe-haven unwinding in Treasuries.

The Nasdaq, which enjoyed four straight days of gains and outperformed the Dow and S&P 500 with a 4.2% advance compared to their respective 3.0% and 3.7% gains, has been the first of the majors to turn negative. A reversal in Technology has contributed to its downturn as growth stocks dependent on borrowing become less attractive. DJ30 +15.38 NASDAQ -4.96 SP500 -0.33 NASDAQ Dec/Adv/Vol 1286/1222/164 mln NYSE Dec/Adv/Vol 686/2166/46 mln

09:40 am : As expected, stocks open to the upside as investors get a vote of confidence about lingering credit concerns from the nation's second largest bank. Last night, Bank of America (BAC 52.08 +0.43) said it made a $2.0 bln equity stake in beleaguered Countrywide Financial (CFC 24.05 2.23). Yesterday, shares of the nation's largest mortgage lender closed flat but more than 50% below their 52-week high of $45.26 in late January. This morning, CFC shares are surging 10% and were up as much as 20% in pre-market trading.

http://online.wsj.com/article/SB118782990016305978.html?mod=yahoo_hs&ru=yahoo

>>
You may not be able to get a mortgage from Countrywide Financial Corp., but the troubled lender -- the nation's largest seller of home mortgages -- will pay you substantially higher rates than many other banks on savings accounts and certificates of deposits.

This past Friday, its Countrywide Bank unit raised the rates on its online savings account, called SavingsLink, to 5.5% for minimum deposits of at least $10,000, from a previous range of 5.25% and 5.4%, while also bumping up rates across many of its CDs to as high as 5.65% for its 12-month CD.
>>

think some of this risk will be quietly transferred to the GSEs....Smart move actually. Sort of like a stealth bailout from John Q. Public whether he realizes it or not. :freak:

on their pensions... The workers, as taxpayers, help fund their own screwing.

re-edumacation camp! ;-)

let it go on for too long without taking advantage of an occassional humor release valve.
Been there, done that...life's too short.

54, I think that is why we have so many funnies here today. You can only stand so much grim news. That's why medical folks have such wicked senses of humour-it's a coping mechanism.

I just find myself lately playing the piano and visiting the theater a lot more than I used to. You can only take so much of this insanity.

a while. Music is one of my favorite outlets as well (guitar- obviously). Moving this old body in the great outdoors has become another regular outlet for me since I quit smoking...don't know what the hell I'm gonna do come winter. :freak:

People & Power - Money Geyser- 05 Aug 07 - Part 1


http://uk.youtube.com/watch?v=JjglR2KYz5o

http://www.kitcocasey.com/displayArticle.php?id=1553

Good day... It's a Tremendous Thursday! Well... I may have jumped the gun last week when I said that it looked like the carry trade was unwinding... Japanese Finance Minister OMI said it had "unwound"... Yen had rallied like there was no tomorrow, and the high yielders were getting taken to the woodshed... But a funny thing happened on the way to the "unwinding party"... It got cancelled!

I don't need no stinkin' Internet to tell me the carry trade is back on the books... Simply look at how yen has lost ground, and the high yielders, kiwi, krona, rand, and even Aussie dollars have all rallied once again.

Let me tell you something, though... If you have profits in these high yielders and your CD's are coming due, you might want to take advantage of this latest round of carry trades driving the high yielders higher... This could be the last hurrah... Or... Maybe it isn't...

Shoot Rudy, as long as the markets know the Fed is their White Knight, why not go back to the well and say Risk Aversion be damned! I had better stop there... No wait! I'm not going to stop there... I've had to respond to quite a few emails that didn't like what I said about the Fed the other day... Here's my response...

The Fed's job is to keep a lid on inflation, and maintaining an environment for healthy employment... If they did this, they would be providing to us... Price stability! It is not, and I repeat, not their job to bail out Wall Street every time they get greedy and overexposed... And with regard to injecting liquidity, my longtime friend and colleague Ed Bonawitz sent me his thoughts...

"When the Fed steps in to pump more money into our leaking system, the problem hasn't been fixed! Put another way, you break your arm and the doctor gives you a pain killer, you no longer hurt, is your arm all better?"

A longtime reader sent me a note last night, and I verified it... There were 4 major banks that borrowed from the Discount Window on Friday... They happen to be the top 4 banks in the amount of derivatives they have on their books... In case you're keeping score at home... They are: Bank of America, Citi, JPMorgan Chase, and Wachovia... They all borrowed $500 million each... For whatever reason... Probably something symbolic, eh?

more...

People & Power - Money Geyser- 05 Aug 07 - Part 2
http://www.youtube.com/watch?v=MPRoQ7OxZAQ

He has posted on DU a few times this summer with other videos.

have loved to have him.

around these parts. Sort of happy to have a real life again, but always hate missing out on stuff as it happens here. Just thankful I can always look back and have folks like you to point me to the "good stuff". :hi:

I just found more videos on youtube...

http://www.youtube.com/maxkeiser

p.s. each video is about 10-12 minutes long

http://www.bloomberg.com/apps/news?pid=20601080&sid=aJJl4PDrAGpo&refer=asia

Aug. 23 (Bloomberg) -- Bank of China Ltd., the nation's second-largest bank, said it holds almost $9.7 billion of securities backed by U.S. subprime loans, the most of any Asian company.

The Beijing-based bank set aside 1.15 billion yuan ($152 million) against possible losses on asset-backed securities and collateralized debt obligations backed by loans to borrowers with poor credit histories, it said in a statement today. The bank today announced first-half net income of 29.5 billion yuan.

Losses related to subprime loans may damp enthusiasm for Bank of China on a day when it reported a better-than-expected 51 percent increase in profit. The perceived risk of owning the company's bonds increased.

``It's not good news,'' said Winson Fong, who helps oversee $2.5 billion at SG Asset Management and declined to say whether he owns the stock. ``But compared with the profit, the impairment charge is manageable.''

The collapse in securities backed by subprime mortgages has caused losses at lenders from Japan to Australia, helping send Asian banking stocks lower in the past month. Bank of China, which accounts for more than two-fifths of foreign currency advances by Chinese banks, was also weighed down by 1.2 billion yuan in foreign-exchange losses in the period.

more...


Asia's sensitivity to U.S. woes declines :eyes:
http://www.usatoday.com/money/markets/2007-08-22-asian-markets_N.htm?loc=interstitialskip

HONG KONG — You can't blame Asian investors and exporters for being jittery about bad economic news from across the Pacific Ocean: Asian exports vaporized in the face of the U.S. dot-com crash five years ago.
Worries about the U.S. housing market hammered stock markets across Asia last week.

But many economists argue the fears are overblown and outdated: They say Asia isn't as sensitive to the ups and downs of the U.S. economy as it was just five years ago.

Banking giant HSBC this summer raised its forecasts for Asian economic growth despite worries that falling housing prices will force U.S. consumers to cut spending. "Asian exports have been diversifying away from dependence on U.S. demand," HSBC concludes.

The word the economists are arguing over is "decoupling" — a break in the link between Asian exports and U.S. consumers. "Even if the U.S. consumer does go into recession, the overall impact on Asian exports should still be much lower than the last time around," investment firm UBS Securities Asia said in a report last week.

more...

11:49
Dow 13,212.31 Down 23.82 (0.18%)
Nasdaq 2,539.04 Down 13.76 (0.54%)
S&P 500 1,459.69 Down 4.38 (0.30%)
10-Yr Bond 4.653% Up 0.033
NYSE Volume 977,464,000
Nasdaq Volume 651,835,000

11:30 am : Stocks have taken a turn for the worse. Countrywide Financial (CFC 23.09 +1.27) CEO Angelo Mozilo recently saying in an interview on CNBC there is still a tremendous liquidity problem and that he thinks the housing slump will lead us into a recession has removed what little momentum the blue chips were trying to muster. The Dow has slipped into negative territory for the second time today.

Home Depot (HD 34.04 -0.73) was already the Dow's weakest link, amid concerns the pending $10.3 bln sale of its supply unit may not close today as planned; but the stock has been dealt another blow following Mozillo's "recession" mention. Home Depot's 2.1% decline accounts for all six points of the Dow's modest pullback. Home Improvement Retail (-2.1%) has been among the three worst performing S&P industry groups all morning.DJ30 -5.91 NASDAQ -11.49 SP500 -1.65 NASDAQ Dec/Adv/Vol 1728/1058/562 mln NYSE Dec/Adv/Vol 1378/1768/442 mln

11:59
Dow 13,186.14 Down 49.99 (0.38%)
Nasdaq 2,532.31 Down 20.49 (0.80%)
S&P 500 1,455.31 Down 8.76 (0.60%)
10-Yr Bond 4.647% Up 0.027
NYSE Volume 1,039,594,000
Nasdaq Volume 699,222,000

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/21/AR2007082101662.html?nav=rss_politics

Not that they're worried or anything. But the White House evidently leaves little to chance when it comes to protests within eyesight of the president. As in, it doesn't want any.

A White House manual that came to light recently gives presidential advance staffers extensive instructions in the art of "deterring potential protestors" from President Bush's public appearances around the country.

Among other things, any event must be open only to those with tickets tightly controlled by organizers. Those entering must be screened in case they are hiding secret signs. Any anti-Bush demonstrators who manage to get in anyway should be shouted down by "rally squads" stationed in strategic locations. And if that does not work, they should be thrown out.

But that does not mean the White House is against dissent -- just so long as the president does not see it. In fact, the manual outlines a specific system for those who disagree with the president to voice their views. It directs the White House advance staff to ask local police "to designate a protest area where demonstrators can be placed, preferably not in the view of the event site or motorcade route."

The "Presidential Advance Manual," dated October 2002 with the stamp "Sensitive -- Do Not Copy," was released under subpoena to the American Civil Liberties Union as part of a lawsuit filed on behalf of two people arrested for refusing to cover their anti-Bush T-shirts at a Fourth of July speech at the West Virginia State Capitol in 2004. The techniques described have become familiar over the 6 1/2 years of Bush's presidency, but the manual makes it clear how organized the anti-protest policy really is.

more...

They were "trespassing" on state property. They just won $80K in a lawsuit.

Bill of Rights, be damned, the Const.'s "just a goddamned piece of paer," according to King Gorge.

how his opposition is treated over there...pretty much the same...they aren't allowed to speak out either. First think I thought was hey, no big deal - we do about the same here....then it hit me....HEY, WE DO THE SAME HERE AS IN RUSSIA - WTF?!!!!

Like I said, it was late night - took a while to sink in.

http://www.bullnotbull.com/bull/node/38



I was up in Nashua, NH today to see Ron Paul. He gave a great speech, and then he stayed around for over an hour after the event talking to supporters outside. When I got to talk to him, he told me - no joke - "I was reading the latest Mogambo Guru and I saw that he mentioned you, and I thought, 'Hey, I know Michael Nystrom!'" He looked at me with a big grin, laughed and said, "Hey, you're famous!"

That's the kind of guy Ron Paul is. He reads the Mogambo Guru, too! He's kind and funny and jokes around. But he also knows his stuff, and he is serious about spreading the message of liberty.

He said more and more people are waking up to this issue of fiat money and the unlimited government spending that it makes possible, and that the internet is a great place for people to learn about it. I told him that he gives people the courage to know that they are not alone out there - that there are many others with the same thoughts and ideas. He said that for him, it was reading Ludwig von Mises and others (all those years ago) that gave him that same feeling - that he was not alone.

Dr. Paul is a hero precisely because he has protected the fragile flame of liberty, keeping it alive during very dark times. In one interview I heard online, he mentioned discussing with some other old timers - colleagues in the cause of liberty - what would happen when they all passed away? Who would carry these ideas on to future generations?

There is no need to worry about that now. As Dr. Paul says, it is the young people who energize this campaign, and they could be seen in full force today! Ever humble, Dr. Paul often says he feels so honored to be a part of "our" revolution. In his speech, he says this is not so much a new revolution as a continuation of an old revolution...What we need in order to restore the liberties we've lost is to legalize the Constitution!

Dr. Paul joked around with me that I'm famous, but he is the famous one, and growing more so everyday. He says hundreds of new supporters join the campaign every day. Today's event was a GOP fund raising event, but it was completely dominated by Ron Paul supporters. In his speech he said to thunderous applause, "1913 was a bad year. We need to repeal that entire year!" It is amazing to find so many people so knowledgeable about the significance of that year in American history. I thought it was just me and a few other Bull! Not bull readers who knew that 1913 was the year that both the Federal Reserve and the income tax were established.

more...

http://www.atimes.com/atimes/Global_Economy/GI14Dj01.html

Sep 14, 2005

The Kansas City Federal Reserve Bank annual symposium at Jackson Hole, Wyoming, is a ritual in which central bankers from major economies all over the world, backed by their supporting cast of court jesters masquerading as monetary economists, privately rationalize their unmerited yet enormous power over the fate of the global economy by publicly confessing that while their collective knowledge is grossly inadequate for the daunting challenge of the task entrusted to them, their faith-based dogma nevertheless should remain above question. That dogma is based on a single-dimensional theology that sound money is the sine qua nonof economic well-being. It is a peculiar ideology given that central banking as an institution derives its raison d'etre from the rejection of a rigid gold standard in favor of monetary elasticity.

In plain language, central banking sees as its prime function the management of the money supply to fit the transactional needs of the economy, instead of fixing the amount of money in circulation by the amount of gold held by the money-issuing authority. Thus central bankers believe in sound money, but not too sound please, lest the economy should falter. Their mantra is borrowed from the Confessions of St Augustine: "God, give me chastity and continence - but not just now."

This year, the annual august gathering in August took on special fanfare as it marked the final appearance of Alan Greenspan as chairman of the US Federal Reserve Board of Governors. Among the several interrelated options of controlling the money supply, the Federal Reserve, acting as a fourth branch of the US government based on dubious constitutional legitimacy and head of the global central-banking snake based on dollar hegemony, has selected interest-rate policy as the instrument for managing the economy all through the 18-year stewardship of Alan Greenspan, on whom many accolades were showered by invited participants in the Jackson Hole seminar in anticipation of his retirement early next year.

Greenspan's formula of reducing market regulation by substituting it with post-crisis intervention is merely buying borrowed extensions of the boom with amplified severity of the inevitable bust down the road. The Fed is increasingly reduced by this formula to an irrelevant role of explaining an anarchic economy rather than directing it towards a rational paradigm. It has adopted the role of a cleanup crew of otherwise avoidable financial debris rather than that of a preventive guardian of public financial health. Greenspan's monetary approach has been "when in doubt, ease". This means injecting more money into the banking system whenever the US economy shows signs of faltering, even if caused by structural imbalances rather than monetary tightness. For almost two decades, Greenspan has justifiably been in near-constant doubt about structural balances in the economy, yet his response to mounting imbalances has invariably been the administration of off-the-shelf monetary laxative, leading to a serious case of lingering monetary diarrhea that manifests itself in runaway asset price inflation mistaken for growth.

...more...

http://money.cnn.com/2007/08/23/pf/credit_card_credit_crunch/index.htm?postversion=2007082312

>>
Fallout from the mortgage mess and lower home prices may have started to creep into the credit card arena, judging from July payments and some initial moves by issuers to tighten the screws on cardholders.

After falling for three consecutive months, delinquent payments on credit cards -- defined as more than 30 days late - increased slightly in July, to 4.64 percent from 4.62 percent in June, according to CardWeb.com. A year ago, the delinquency rate was 4.18 percent.

The amount of credit card debt consumers are paying off, meanwhile, has fallen. The portion of outstanding balances paid in July slipped to 18.3 percent from 18.4 percent a month earlier.
>>

Edit to "get the red out".

Dow 13,184.75 Down 51.38 (0.39%)
Nasdaq 2,532.20 Down 20.60 (0.81%)
S&P 500 1,455.06 Down 9.01 (0.62%)
10-Yr Bond 4.633% Up 0.013
NYSE Volume 1,334,245,000
Nasdaq Volume 882,950,000

12:30 pm : Not much has changed as traders begin making their way through the New York lunch hour. The major averages are off their recent lows; but the temptation to take some money off the table, following gains that lifted the major indices 1.2% on average yesterday, remains the day's theme as the afternoon session begins.

It is worth noting, though, that equity losses are modest at best as the market, which is on better footing thanks to the Fed's actions on Friday, is able to weather worrisome news regarding the lingering credit turmoil much better this week than has been the case in weeks past. DJ30 -38.36 NASDAQ -15.45 SP500 -6.49 NASDAQ Dec/Adv/Vol 1821/1074/762 mln NYSE Dec/Adv/Vol 1698/1496/626 mln

12:00 pm : After initially building on yesterday's sizable gains, mixed news about the underlying credit crisis has left investors questioning the sustainability of the market's recent recovery efforts and leaves the major averages hitting fresh session lows midday.

Before the bell, reports that Bank of America (BAC 51.80 +0.15) made a $2.0 bln equity stake in beleaguered Countrywide Financial (CFC 23.03 +1.21) gave investors an initial vote of confidence. Given Bank of America's stature and its assessment that the market has been underestimating the value in Countrywide's operations and assets, the news helped ease the worst of fears about a possible credit crunch and served as an extension of the Fed's recent actions to ensure a smooth flow of credit in the financial markets.

However, that was before the Fed stepped in again, with three infusions totaling $17.25 bln in reserves, and also saying that outstanding commercial paper plunged for a second week in a row. That news left participants feeling less convinced that Bank of America's investment in Countrywide suggests the worst is behind us and marked the end of a temporary safe-haven unwinding in Treasuries.

Adding to the market's skepticism about signs of stability in the troubled housing market anytime soon were comments from Countrywide CEO Angelo Mozilo. In a recent interview on CNBC, Mozilo said he thinks the housing slump will lead us into a "recession" and that there is still a tremendous liquidity problem. While the Fed's move to cut the discount rate last Friday temporarily reduced the downside risk to the stock market, the founder of the nation's largest mortgage lender suggesting a significant decline in economic activity has left investors rethinking whether a short-term bottom has been established.

Of the nine sectors now in negative territory, Materials (-1.4%) paces the way; but that's not overly surprising given its 3.2% surge yesterday to lead all 10 sectors to the upside. The economically-sensitive Industrial sector is turning in the next worst performance with a 1.1% decline while the most heavily weighted of them all, Financials (-0.8%), ranks third as the flight-to-quality in Treasuries returns after a one-day hiatus. BTK +0.1% DJ30 -43.29 DJTA -1.6% DJUA -0.3% DOT -0.7% NASDAQ -20.12 NQ100 -0.7% R2K -0.9% SOX -0.8% SP400 -0.7% SP500 -7.83 XOI -0.3% NASDAQ Dec/Adv/Vol 1752/1086/672 mln NYSE Dec/Adv/Vol 1513/1662/558 mln



Artist: Lovett Lyle
Song: If I Had a Boat

.....

And if I had a boat
I'd go out on the ocean
And if I had a pony
I'd ride him on my boat
And we could all together
Go out on the ocean
Me upon my pony on my boat

And if I were like lightning
I wouldn't need no sneakers
I'd come and go wherever I would please
And I'd scare 'em by the shade tree
And I'd scare 'em by the light pole
But I would not scare my pony on my boat out on the sea

And if I had a boat
I'd go out on the ocean
And if I had a pony
I'd ride him on my boat
And we could all together
Go out on the ocean
Me upon my pony on my boat

2:02
Dow 13,208.73 Down 27.40 (0.21%)
Nasdaq 2,540.73 Down 12.07 (0.47%)
S&P 500 1,459.76 Down 4.31 (0.29%)
10-Yr Bond 4.616% Down 0.004
NYSE Volume 1,644,559,000
Nasdaq Volume 1,065,398,000

1:30 pm : Sellers show some resolve since the last update, pushing the major averages toward their worst levels of the afternoon. The Nasdaq continues to lead the way lower among the majors (-0.8%) after failing to find technical support above the 2537 level. The Dow has found initial support near 13170; its low of the day is 13170.53.

The S&P 500's ability to continuously find support around its 200-day moving average (1455), even as the Financial sector (-1.0%) extends its reach to the downside, remains noteworthy. The broader market's resilience also suggests that today's weakness is primarily the reuslt of some modest profit taking as opposed to an overall shift in sentiment from the much improved tone and sense of normalcy stocks have exhibited over the last few sessions. Keep in mind, the Financial sector was down as much as 14% on the year during last Wednesday's losing session and, as of yesterday's close, was down only 6.4% year to date. DJ30 -61.88 NASDAQ -20.48 SP500 -8.95 NASDAQ Dec/Adv/Vol 1868/1043/966 mln NYSE Dec/Adv/Vol 1762/1477/792 mln

The mystery masked man was smart
He got himself a Tonto
'Cause Tonto did the dirty work for free
But Tonto he was smarter
And one day said kemo sabe
Kiss my ass I bought a boat
I'm going out to sea

And if I had a boat
I'd go out on the ocean
And if I had a pony
I'd ride him on my boat
And we could all together
Go out on the ocean
Me upon my pony on my boat


http://www.youtube.com/watch?v=kZm2B52h2_4&mode=related&search=

http://www.reuters.com/article/bondsNews/idUSN2325878220070823

WASHINGTON, Aug 23 (Reuters) - The U.S. Treasury said the $43 billion 3-month and 6-month bill offering announced on Thursday is the largest ever combined offering for those maturities.

The combined auction, scheduled for Monday, surpassed the previous record of a $40 billion offering on March 16, 2006, the Treasury's Bureau of the Public Debt said.

The record offering comes during a rally in short-term Treasuries fanned by credit market turmoil that has driven investors to safe-haven U.S. government debt, pushing down yields and borrowing costs for the federal government.

On Monday, the three month bill <US3MT=RR> yields staged their biggest one-day drop since October 1987 and touched a record low before closing at 3.27 percent. They were down 2 basis points on Thursday at 3.55 percent.

A Bureau of Public Debt spokesman declined to comment on the reasons for the record offering announced on Thursday.

...more...

AAAAARRRRRGGGGGHHHHHH!!!!!!

What does this mean?

Does it mean that the government needs more money to bail out the credit crunch, so the gov offers lots of short-term Treasury bills for people/countries to buy our debt?


edit add: With so many more Treasury bills, does this indicate the yield will go even lower?

and other financial responsibilities (remember there are a lot of things that are "off budget" i.e. the wars....)

So these are the exact instruments that go directly to the bottom line of the Federal Debt


http://www.brillig.com/debt_clock/

here's one of my favorite links for this type of number:

http://www.321gold.com/fed/temp_bank_res.html

this type of behavior make that person (who runs that website link) almost as insane as it makes me :crazy:

Thanks for asking these great questions - it gives me the opportunity to brush up on my thought processes :D

:hi:

What if they had a T-bill sale.....and nobody came.:hide:

Sometimes, I am so totally clueless

:eyes:

Thanks for your thoughts!

DRDU, you aren't the only one that seems to have forgotten we have a budget. :spray:
Maybe you should change your party affiliation and run for Congress.

15. Fed discount loans average $1.2 bln daily over week
4:30 PM ET, Aug 23, 2007 - 5 hours ago

16. Fed discount window loans total $2bln on Wednesday
4:30 PM ET, Aug 23, 2007 - 5 hours ago

17. No further banks go to discount window, Fed data show
4:30 PM ET, Aug 23, 2007 - 5 hours ago

My baby is hosting a radio show on a local channel now. It is a world music show.

http://houston.kpft.org/site/PageServer?pagename=listen_live

Some one shot at the window of the station last week but everyone shows up anyway. She has more cajones than most.

Edited to add she has been doing an intership this summers and the guy with her is a family friend and recently had a heart attack and is still recovering. They were laughing and telling me that they have some wood up and they are broadcasting from their bunker.

Edit to add the 3:30 blather

Dow 13,230.52 Down 5.61 (0.04%)
Nasdaq 2,541.90 Down 10.90 (0.43%)
S&P 500 1,462.44 Down 1.63 (0.11%)
10-Yr Bond 4.618% Down 0.002
NYSE Volume 2,169,605,000
Nasdaq Volume 1,400,373,000

3:30 pm : Stocks have spiked higher within the last 10 minutes, enough to briefly inch the Dow and S&P 500 above the flat line. Spearheading the renewed buying interest has been a turnaround in Technology, led by a 0.9% advance in Computer Hardware (e.g. HPQ +2.2%, IBM +1.2%).

Oil prices spiking into the close of trading on the NYMEX earlier and finishing near session highs (+0.8%) has given the Energy sector (+0.8%) a noticeable lift and, in turn, provided an added leg of support for the bulls to view the market's latest dip as a buying opportunity. DJ30 +7.23 NASDAQ -10.11 SP500 -0.50 NASDAQ Dec/Adv/Vol 1849/1147/1.35 bln NYSE Dec/Adv/Vol 1683/1594/1.08 bln



3:00 pm : So much for the bulls trying to get buying momentum back on track as the market's knack for selling into strength erases an hour's worth of recovery efforts. One aspect of today's breather that's worth noting is the lack of conviction on the part of sellers' efforts to take some money off the table.

As evidenced by the NYSE not surpassing 1.0 shares until recently, total volume is very light, which is typical for a Thursday in late August. Today's worst performers -- Materials (-1.2%), Industrials (-1.1%), and Financials (-0.7%) -- are also among the biggest winners of late.DJ30 -36.26 NASDAQ -16.02 SP500 -5.84 NASDAQ Dec/Adv/Vol 1833/1132/1.23 bln NYSE Dec/Adv/Vol 1565/1696/1.03 bln

2:30 pm : The indices are still sporting widespread losses, but continue to claw their way back toward the flat line. The Dow even turned positive, but barely (and briefly). Among the biggest headlines restoring some confidence among buyers has been a report that the asset management arm of French banking giant BNP Paribas plans to resume trading next week in the three funds it had suspended in the midst of the U.S. subprime credit crisis. Advancers outpace decliners on the NYSE for the first time in about three hours.

If you'll recall, reports on August 9 that BNP Paribas was halting withdrawals from three funds due to its inability to fairly value holdings piqued concerns about the subprime contagion effect. The news also sparked a 50-basis point jump in LIBOR to its highest level in six years and prompted the most concerted efforts among central banks everywhere to add liquidity since the aftermath of the 9/11 attacks.

That day, the Dow logged its second worst performance (-387 points; -2.8%) this year while the S&P 500 posted its worst one-day decline (-3.1%) since March 2003. DJ30 -8.46 NASDAQ -9.45 SP500 -1.54 NASDAQ Dec/Adv/Vol 1714/1235/1.15 bln NYSE Dec/Adv/Vol 1630/1619/880 mln

Dow 13,235.88 Down 0.25 (0.00%)
Nasdaq 2,541.70 Down 11.10 (0.43%)
S&P 500 1,462.50 Down 1.57 (0.11%)
10-Yr Bond 4.618% Down 0.002
NYSE Volume 3,036,883,000
Nasdaq Volume 1,652,377,000

16:20 ET
Market Takes a Breather
Dow -0.25 at 13235.88, Nasdaq -11.10 at 2541.70, S&P -1.57 at 1462.50

With the Dow, S&P 500, and Nasdaq up 2.9%, 4.1%, and 3.8%, respectively, one week after officially marking the long-awaited market correction, it wasn't surprising to see stocks take a breather Thursday.

Of the five sectors trading lower, Materials (-0.9%) paced the way. That was understandable after the sector surged 3.2% Wednesday to lead all 10 sectors higher. That advance was in addition to the 4.4% it gained over the prior three sessions.

Industrials (-0.7%) ranked second among today's laggards. It too was coming off a strong performance (+1.9%) on Wednesday.

Before the bell, reports that Bank of America (BAC 51.80 +0.15) made a $2.0 bln equity stake in beleaguered Countrywide Financial (CFC 21.94 +0.12) gave investors an initial vote of confidence. Given Bank of America's stature and its assessment that the market has been underestimating the value in Countrywide's operations and assets, the news initially helped ease the worst of fears about a possible credit crunch.

However, that was before Countrywide CEO Angelo Mozilo said in an interview on CNBC that there is still a tremendous liquidity problem and that he thinks the housing slump will lead the economy into a recession. While the Fed's move to cut the discount rate last Friday temporarily reduced the downside risk to the stock market, the founder of the nation's largest mortgage lender (CFC) talking about a significant decline in economic activity gave sellers an added excuse to take some money off the table.

Financials (-0.5%) lagged on the day and, without its leadership, the broader market struggled all day to get back into positive territory. Keep in mind, though, that over the previous five days, the Financial sector had rallied 7.8%. CFC shares soared as much as 12% early on, but only closed up 0.6%. The pullback contributed to the sector's inability to revisit opening highs.

The Nasdaq, which enjoyed four straight days of gains and outperformed the Dow and S&P 500 with a 4.2% advance compared to their respective 3.0% and 3.7% gains, was the first of the majors to turn negative Thursday and never did revisit positive territory.

The Technology sector (+0.20%) actually closed higher, though, garnering much of its support from Hewlett-Packard (HPQ 47.46 +1.04) and IBM (IBM 111.40 +1.40). They were the day's best performing Dow components, surging 2.2% and +1.3%, respectively. Neither are listed on the Nasdaq, which explains why the tech-heavy Composite failed to extend its winning streak to five sessions.

renewable resource energy, anti-pollution, recycled products and other good-for-people-and-the-environment companies?

Whoops, I forgot---b/c BushCo is in power. :puke:

Everything you named would be making something. For the future. If it's not silly busy work like shuffling money from one place to another in a 19th century industrial idiom, collecting a fee on top of it, then that's not really progress.

Fie!

:silly:

of if you believe the cat to be alive in the box before you open it, then it must be alive even if the box is closed.

http://www.phobe.com/s_cat/s_cat.html

:D

I think that Schrodinger smoked too much. Or maybe I didn't smoke enough.

:hi:

mix quantum physics and economics?

I'm saying I'm going to get a glass of wine.

which basically states that the energy of an atom cannot possess more energy than the spin of the attraction of its gravitational equivalent.

In college I sucked at the hard sciences. Physics & black holes & atomic energy & Shrodinger's cat had me hitting the bong.

so sad...

never leave me...

I only ever want more geeks that have that scienfic bend to the economic theories

and I now promise to only post my very boring very dry pavement wilting

reports

lots of spin(hot air), very little energy (liquidity)... but when will the Market pass beyond the (blue) event horizon?

...that sucking sound we hear is a black hole, swallowing its minions...

quantum physics is cool... and the cat is using telepathy to ask for dinner...
:evilgrin:

only when the Fed refuses to print more dollars

UpInArms already posted a bit of this, but I think it needs wider circulation.

Foreign central banks net sellers of U.S. debt-Fed

NEW YORK, Aug 23 (Reuters) - Foreign central banks were net sellers of U.S. Treasuries last week, Federal Reserve data showed on Thursday.

The Fed said its holdings of Treasury and agency debt kept for overseas central banks plunged $10.56 billion in the week ended Aug. 22, to a total of $1.98 trillion.

The breakdown of custody holdings showed overseas central banks dumped $14.18 billion in Treasury debt, bringing the total to $1.21 trillion.

However, the foreign institutions bought securities from government-sponsored agencies like Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research), adding $3.62 billion to their holdings, for a total of $769.4 billion.

...more...

really, no, no... REALLY