STOCK MARKET WATCH, Tuesday November 27

Source: du

STOCK MARKET WATCH, Tuesday November 27, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 421 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2506 DAYS
WHERE'S OSAMA BIN-LADEN? 2228 DAYS
DAYS SINCE ENRON COLLAPSE = 2189
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

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

AT THE CLOSING BELL ON November 26, 2007

Dow... 12,743.44 -237.44 (-1.83%)
Nasdaq... 2,540.99 -55.61 (-2.14%)
S&P 500... 1,407.22 -33.48 (-2.32%)
Gold future... 826.50 +1.80 (+0.22%)
30-Year Bond 4.28% -0.16 (-3.56%)
10-Yr Bond... 3.85% -0.17 (-4.11%)






GOLD, EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact actionpost@legitgov.org

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

Gold Poised to Move in 2008
BY TONY ALLISON

Events are aligning to provide a bullish fundamental foundation that could push gold significantly higher in 2008. While volatility will likely remain a feature of the metals market, the price could begin to march higher as the markets react to gold’s strong fundamentals. The cable channel “experts” keep calling for a top in gold, much as they have for oil all the way from $20 per barrel on up. Once again it appears this is wishful thinking more than analysis based on the fundamentals.

The Dollar

The dollar has been battered severely about the head and shoulders the past few years and remains fundamentally weak. The Federal Reserve is under enormous pressure to keep cutting rates to keep the economy out of recession and bail out the real estate market collapse. Give the presidential election cycle, the odds favor more rate cutting. The dollar should spiral lower with continued interest rate cuts, benefiting gold. The continual money printing and liquidity expansion is not limited to the Fed. Central banks around the globe are printing money at much higher rates than GDP growth, and much higher than the rate of growth in gold production.

-cut-

Credit Market Chaos

The banking and credit crisis, which started in the US and is spreading world-wide, is helping create demand for gold as a safe haven. As investors and institutions remain wary of the uncertainty and potential damage to come, gold provides many investors with a prudent diversification for a portion of their assets. If there are any significant bank failures down the line, gold’s safe haven status, now subdued, may move to the front pages.

-cut-

Sovereign Wealth Funds

According to analyst Stephen Jen of Morgan Stanley, Sovereign Wealth Funds currently have approximately $2.5 trillion available to invest. Jen estimates, conservatively, that the total for all SWF’s will reach $5 trillion before 2010 and hit $12 trillion by 2015. That is some serious wealth.

The implications are enormous. The massive shift of hundreds of billions and perhaps trillions of dollars from sovereign bond markets into other assets will have profound effects. Even if the SWF’s decide not to sell their Treasury bonds (and they might), but just cap new purchases, the effects will be harsh for the US treasury markets, and ultimately the US dollar. To feed our insatiable and endless appetite for borrowed foreign currency, the US will be forced to raise rates significantly to attract foreign capital. Or perhaps the Fed will just print the money and buy the bonds. Either path will lead to higher inflation.

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

Today's Market WrapUp 11.02.2007
The Fed, The Discount Rate and Manipulation BY TIM W. WOOD

In the wake of the recent Fed meeting and the worldwide attention that it
seems to gather these days, I want to address once again the Fed and the
Discount rate, but I also want to address manipulation.
First of all, I want to readdress the fact that despite popular opinion,
the Fed follows the lead of the short-term credit markets. The Trend
Indicator on my Fed model turned down in June, before the first rate cut
occurred. This downturn told us that we had entered into an environment in
which future rate cuts should occur. As the equity markets began to
decline into August, so did short-term interest rates.

In fact, the
3-month T-bill yield went from just over 5% earlier in the year to 4.63%
in mid-August. This widened the spread between the Discount rate and the
3-month T-bill rate to 1.62%.

It was at this time that the equity markets
began to get hit and the Fed stepped in to make the Discount and Fed Funds
rate cuts. The spin was and continues to be that they are doing this to
support the equity markets. Bologna! They are doing this because the
short-term credit markets are forcing them to. They want you to believe
that they are doing this to support the equity markets. Thereby, their
greatest tool is this perception. If one takes the time to actually stop
and study the relationship between the short-term credit markets, the
Discount rate and the stock market they would be far better off than just
buying the garbage that they hear on TV."

IF TW'S ASSERTION IS TRUE... what to make of the 3mo rate of 3.21 versus the FED rate 4.50
in the run up to the 11Dec FED meeting? the spread being 1.29 currently, versus the 1.62
in August that "inspired/directed(?)" the 50 basis point cut?

time will tell

how the Fed is purposely manipulating public opinion.

He pretends that everything is like it was a century ago. Then he utters disdain that events do not develop as he wishes them.

Cycles. Feh!

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

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

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2007-10-17 Wednesday, October 17 1.02712 USD
2007-10-18 Thursday, October 18 1.02743 USD
2007-10-19 Friday, October 19 1.03767 USD
2007-10-22 Monday, October 22 1.01926 USD
2007-10-23 Tuesday, October 23 1.03381 USD
2007-10-24 Wednesday, October 24 1.02987 USD
2007-10-25 Thursday, October 25 1.03381 USD
2007-10-26 Friday, October 26 1.03961 USD
2007-10-29 Monday, October 29 1.04745 USD
2007-10-30 Tuesday, October 30 1.04888 USD
2007-10-31 Wednesday, October 31 1.05307 USD
2007-11-01 Thursday, November 1 1.05296 USD
2007-11-02 Friday, November 2 1.06838 USD
2007-11-05 Monday, November 5 1.07101 USD
2007-11-06 Tuesday, November 6 1.0819 USD
2007-11-07 Wednesday, November 7 1.09075 USD
2007-11-08 Thursday, November 8 1.07492 USD
2007-11-09 Friday, November 9 1.06553 USD
2007-11-12 Monday, November 12 1.06553 USD
2007-11-13 Tuesday, November 13 1.03745 USD
2007-11-14 Wednesday, November 14 1.0408 USD
2007-11-15 Thursday, November 15 1.01999 USD
2007-11-16 Friday, November 16 1.02807 USD
2007-11-19 Monday, November 19 1.01636 USD
2007-11-20 Tuesday, November 20 1.01543 USD
2007-11-21 Wednesday, November 21 1.01071 USD
2007-11-22 Thursday, November 22 1.01071 USD
2007-11-23 Friday, November 23 1.01143 USD
2007-11-26 Monday, November 26 1.01245 USD
2007-11-27 Tuesday, November 27 1.00321 USD


Current values

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

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     1.0059 1.0073 1.0023 1.0023 -0.0108 -1.07% 
CD.Z07 Dec 2007 1.0082 1.0090 1.0014 1.0020 -0.0110 -1.09% 
CD.H08 Mar 2008 1.0086 1.0086 1.0032 1.0035 -0.0098 -0.97% 
CD.M08 Jun 2008 1.0125 1.0130 1.0125 1.0133 -0.0015 -0.15% 
CD.U08 Sep 2008 1.0080 1.0080 1.0055 1.0055 -0.0078 -0.77% 
CD.Z08 Dec 2008 1.0063        1.0063 1.0063 -0.0070 -0.69%
CD.H09 Mar 2009 1.0050 1.0050 1.0050 1.0050 -0.0083 -0.82% 

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

Market              Open    High     Low    Last   Change     Pct 
AUSTRALIAN $/CANADIAN $ (NYBOT:AS)
AS.Z07 Dec 2007 0.87540 0.87540 0.87540 0.86085 -0.00140 -0.16% 
AUSTRALIAN $/US$ (NYBOT:AU)
AU.Z07 Dec 2007 0.88150 0.88150 0.87600 0.87205 -0.00230 -0.26%  
CANADIAN $/JAPANESE YEN (NYBOT:HY)
HY.Z07 Dec 2007 109.020 109.020 109.020 109.005 -0.355 -0.33%  
EURO/AUSTRALIAN $ (NYBOT:RA)
RA.Z07 Dec 2007 1.68450 1.68450 1.68450 1.70535 +0.00805 +0.48%  
EURO/BRITISH POUND (NYBOT:GB)
GB.Z07 Dec 2007 0.71850 0.71850 0.71845 0.71845 0.00000 0.00%   
EURO/CANADIAN $ (NYBOT:EP)
EP.Z07 Dec 2007 1.47960 1.47960 1.47900 1.47900 +0.01085 +0.74%  
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.Z07 Dec 2007 160.26 160.53 160.26 160.53 +0.49 +0.31%   
EURO/US$ (LARGE) (NYBOT:EU)
EU.Z07 Dec 2007 1.48320 1.48360 1.48320 1.48715 +0.00305 +0.21%  

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

The December Canadian Dollar was slightly lower overnight as it extends last week's trading range and is challenging support marked by the 38% retracement level of this year's rally crossing at 100.75. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If December extends the decline off this month's high, the 50% retracement level of this year's rally crossing at 97.76 is the next downside target. Closes above the 20-day moving average crossing at 104.00 would temper the near-term bearish outlook in the market. First resistance is the 10-day moving average crossing at 101.75. Second resistance is the 20-day moving average crossing at 104.00. First support is the 38% retracement level crossing at 100.75. Second support is the 50% retracement level crossing at 97.76.


Analysis

Morning drive-in analysis placed it basically at prime. I'd like it a tiny bit higher just to the whole "the loonie went below prime - EVERYBODY PANIC" just 'cause it dipped a few 1000th of a percentage. However, the cattle farmers and other exporters will be happy.

Just as yesterday's report from the bot was nonsense because it was making bad assumptions, I'm starting to wonder if the mania 2-3 weeks ago was primarily caused by programmed buying/selling by bots who lacked clear instructions about what to do if things got strange.

It's supposed to be off the main thread.

10:00 AM Consumer Confidence Nov
Briefing Forecast 92.0
Market Expects 91.5
Prior 95.6

10:00 AM Existing Home Sales Oct
Briefing Forecast NA
Market Expects NA
Prior 5.04M

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

02. U.S. Nov. present situtation index falls to 115.4
10:00 AM ET, Nov 27, 2007 - 8 minutes ago

03. U.S. Nov.. expectations index falls to 68.7, 4-year low
10:00 AM ET, Nov 27, 2007 - 8 minutes ago

04. U.S. Nov. consumer confidence weaker than 90.2 expected
10:00 AM ET, Nov 27, 2007 - 8 minutes ago

05. U.S. Nov. consumer confidence falls to 87.3 vs. 95.2
10:00 AM ET, Nov 27, 2007 - 8 minutes ago

SINGAPORE - Oil prices fell Tuesday on growing expectations that OPEC ministers will agree to raise crude production during a meeting next week.

The sharp sell-off in U.S. stocks Monday also contributed to the decline in oil futures.

Crude's ascendancy has been stymied in recent weeks in part by conflicting signals from members of the Organization of Petroleum Exporting Countries about their willingness to add supplies to the global oil market.

Iranian Oil Minister Gholam Hossein Nozari appeared to remove one of the obstacles to increased OPEC supplies over the weekend when he said his country is willing to lift production if needed.

-cut-

Light, sweet crude for January delivery dropped 60 cents to $97.10 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract fell 48 cents to settle at $97.70 Monday.

In London, January Brent crude lost 46 cents to $94.86 a barrel on the ICE Futures exchange.

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

NEW YORK - Citigroup said late Monday that the Abu Dhabi Investment Authority will invest $7.5 billion in the nation's largest bank, offering needed capital to offset big losses from mortgages and other investments.

The cash from the sovereign investment fund of the Gulf Arab state, which has been a beneficiary of this year's surge in oil prices, will be convertible into no more than 4.9 percent of Citigroup Inc.'s equity. Citigroup characterized the investment as passive and said the fund will not be able to name any board members to the bank.

The Investment Authority would become one of Citi's largest shareholders.

The Abu Dhabi investment, which was expected to close within the next several days, will be considered Tier 1 capital for regulatory purposes, helping Citi reach its goal of returning to its target capital ratios in the first half of 2008, the bank said.

Citigroup's shares have lost about 45 percent of their value since the beginning of this year, wiping away $124 billion in market capitalization, as the drumbeat of bad news about its investment losses has mounted.

http://news.yahoo.com/s/ap/20071127/ap_on_bi_ge/citigroup_abu_dhabi

http://news.yahoo.com/s/nm/20071127/bs_nm/citi_abudhabi_dc

The dollar rose against the yen on the news, and Japanese bank stocks also rallied. In Tokyo trading, Citi shares fell 4.2 percent for the day, but had been trading even lower before news of the Abu Dhabi deal.

With the investment, Abu Dhabi will be Citi's largest shareholder. The investment reflects the increasing financial might of oil-producing countries, which have benefited from the five-fold increase in the price of petroleum over the last five years.

Dubai International Capital, a private equity firm owned by the ruler of Dubai, said on Monday it made a "substantial investment" in Sony Corp. It had said in July it was ready to spend up to $1.5 billion in Japan.

A separate Abu Dhabi entity earlier this month bought a stake in U.S.-based chip maker Advanced Micro Devices Inc.

Abu Dhabi Investment Authority manages the surplus revenues of the government of Abu Dhabi, the world's sixth-largest oil exporter. Standard Chartered estimated in September its assets were worth $650 billion. Both Dubai and Abu Dhabi are members of the United Arab Emirates Federation.

Sir Win Bischoff, Citi's interim chief executive said in a statement on Monday: "This investment, from one of the world's leading and most sophisticated equity investors, provides further capital to allow Citi to pursue attractive opportunities to grow its business."

State-run funds are keen for stakes in global banks, which can benefit from the development of emerging markets, a person familiar with the funds said.

Citi operates in over 100 countries, and has boosted its investments in emerging markets over the last 12 months, including buying a Turkish brokerage house and a commercial and retail bank based in El Salvador.

/...

http://www.bloomberg.com/apps/news?pid=20601101&sid=aDyOhhJ7uWEc&refer=japan

Nov. 27 (Bloomberg) -- Japanese stocks rose, rebounding from earlier declines, after Abu Dhabi Investment Authority's $7.5 billion investment in Citigroup Inc. restored confidence in banks facing investment losses.

Toyota Motor Corp. and Mitsubishi UFJ Financial Group Inc. led gains after the dollar strengthened against the yen and Globex S&P 500 futures rallied.

``Middle Eastern funds have been interested in U.S. banks, but this move symbolizes real commitment,'' said Hideyuki Ookoshi, who oversees $365 million at Chiba-Gin Asset Management Co. in Tokyo. ``If the external environment calms down, we'll see investors take a second look at Japanese stocks. The fundamentals are weak, but they're not horrible.''

Advances were limited by declines of commodity-related companies such as Mitsui & Co., after prices of oil and copper dropped.

The Nikkei 225 Stock Average rose 87.64, or 0.6 percent, to 15,222.85 in Tokyo, after falling as much as 2.2 percent. The broader Topix index gained 11.75, or 0.8 percent, to 1,478.78, rebounding from a 2.3 decline.

/...

http://www.bloomberg.com/apps/news?pid=20601080&sid=a3MzDrbLM_nw&refer=asia

Nov. 27 (Bloomberg) -- Asian stocks fell for the first time in three days after South Korea's president cleared the way for a probe into Samsung Group and Goldman, Sachs & Co. said HSBC Holdings Plc may have to increase writedowns.

Samsung Electronics Co., South Korea's biggest company, dropped the most in three weeks after President Roh Moo Hyun accepted lawmakers' demand for an investigation into bribery allegations. HSBC, Europe's biggest bank, fell to a 20-month low before paring losses.

``There's not much hopeful talk in the market,'' said Eom Giyo, who helps manage the equivalent of $3.2 billion at Woori Credit Suisse Asset Management Co. in Seoul. ``Writedowns are increasing at financial institutions, and now we hear allegations of bad accounting at Samsung Group.''

The MSCI Asia Pacific Index slid 0.1 percent to 158.30 as of 5:32 p.m. in Tokyo, trimming an earlier decline of as much as 2.1 percent.

/...

http://www.reuters.com/article/marketsNews/idINSEO28119520071127?rpc=611

SEOUL, Nov 27 (Reuters) - Seoul's main share index ended just firmer on Tuesday, recovering a loss of as much as 3.6 percent as investors welcomed U.S. financial giant Citigroup's plan to raise billions of dollars, and propelled by higher shipbuilders.

However, Samsung Group companies were weak after South Korea deepened investigations into allegations over a slush fund and bribes.

The Korea Composite Stock Price Index (KOSPI) (.KS11: Quote, Profile, Research) closed 0.24 percent higher at 1,859.79 points, after falling as low as 1,787.95 points.

Citigroup Inc's fund raising alleviated some worries about mortgage losses and may provide some support to global stock markets, analysts said, but they were doubtful how much the markets could gain further.

"Citi's sale may soothe investor concerns about the credit markets but that is not positive as it reflects the seriousness of the credit crunch situation," said Chang In-whan, chief executive and fund manager at KTB Asset Management.

"The credit issue is still ongoing, the market may rise further but that would still be just a technical rebound," he added.

Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research) was left out of the market recovery as president Roh Moo-hyun said he would not veto a parliament bill creating a special prosecutor to probe allegations of bribery. A number of group officials have been banned from travel abroad in the probes.

/...

http://today.reuters.co.uk/news/articleinvesting.aspx?type=hongkongMktRpt&storyID=2007-11-27T083016Z_01_HKG304356_RTRIDST_0_MARKETS-HONGKONG-STOCKS-UPDATE-4.XML

HONG KONG, Nov 27 (Reuters) - Investors sold off Hong Kong stocks on Tuesday as they fretted about what more would come from the credit crisis after HSBC Holdings (0005.HK: Quote, Profile , Research) sought to bail out its two structured investment vehicles with funding of up to $35 billion .

Caught in the sell-off was Bank of China (3988.HK: Quote, Profile , Research), which has reported the biggest subprime losses among mainland banks. Shares in the Beijing-controlled lender tumbled after a key shareholder sold a $567 million stake.

Analysts said to expect more damage from the U.S. subprime mortgage mess.

"The turbulence is far from over," said Daniel Chan, strategist at DBS Bank. "We have more downside risks. At the moment, the U.S. subprime (market) ... will continue to drag on global markets."

Also weighing on the market is the prospect of more tightening measures by China, which has depressed the mainland stock market, Chan said.

Hong Kong narrowed its losses on news that financial giant Citigroup (C.N: Quote, Profile , Research) had agreed to sell $7.5 billion worth of equity units, to be converted into common shares, to the Abu Dhabi Investment Authority .

The deal was a bid by Citigroup, which has been among the hardest hit by subprime mortgage defaults, to bolster its capital base.

The benchmark Hang Seng Index <.HSI> closed down 1.5 percent, or 416.41 points, to end at 27,210.21.

BANK OF CHINA

The China Enterprises index of H shares <.HSCE>, or Hong Kong-listed shares in mainland companies, fell 1.6 percent, or 263.03 points, to 16,279.34.

Mainboard turnover was HK$120.0 billion (US$15.4 billion), up from Monday's HK$110.1 billion.

Bank of China (3988.HK: Quote, Profile , Research), the day's most active stock, tumbled 5.2 percent to HK$4.02 after Singapore state investment agency Temasek Holdings sold part of its holdings in the bank at a 3.5 percent discount to their Monday close .

HSBC dropped 2 percent to HK$130.9, having earlier hit lows not seen since March 2006. As part of the move to bail out its SIVs, HSBC will also transfer $45 billion worth of assets from these funds onto its balance sheet.

/...

DETROIT - Rising foreclosures will lead to billions of dollars in lost economic activity next year in the nation's major metropolitan areas, but homeowners and financial institutions have the ability to work together to contain the effects, according to a report compiled for the U.S. Conference of Mayors.

The report was released Tuesday ahead of a meeting of mayors from across the country in Detroit, where they hope to create policy recommendations to help address the nation's housing crisis.

Prepared by forecasting and consulting firm Global Insight, the report said weak residential investment, lower spending and income in the construction industry and curtailed consumer spending because of falling home values will combine to hold back the nation's economic activity.

-cut-

The biggest losses in economic activity are projected for some of the nation's largest metropolitan areas. New York is expected to lose $10.4 billion in economic activity in 2008, followed by Los Angeles at $8.3 billion, Dallas and Washington at $4 billion each, and Chicago at $3.9 billion.

http://news.yahoo.com/s/ap/20071127/ap_on_bi_ge/mayors_foreclosures

ONTARIO, Calif.—JPMorgan Chase & Co. will lay off 91 employees at its mortgage operations center amid a downturn in the housing market and tighter lending standards.

Company mortgage division spokesman Tom Kelly said Monday that employees and government officials were notified in October about the cuts, which will take effect before the end of the year.

-very short-

http://www.mercurynews.com/news/ci_7563969?nclick_check=1

WASHINGTON -- The property value of U.S. homes will fall by $1.2 trillion, and "at least" 1.4 million homeowners will lose their properties to foreclosure in 2008, according to a study released Tuesday by the U.S. Conference of Mayors and the Council for the New American City.

The study, prepared by forecasting firm Global Insight Inc., predicts a widespread and deep economic impact from ongoing housing market problems, which many expect to stretch through next year.

-cut-

Local tax revenue is expected to be hit hard by falling home values. In California, property tax revenues are expected to have fallen by $2.96 billion last year, the study said. In Florida, property taxes revenues could fall by $589 million.

There have already been a record number of homeowners entering the foreclosure process this year, and many have warned the problems will continue through 2008. One major reason for this is subprime adjustable-rate mortgages, many of which began with low teaser rates but grow into much higher monthly requirements after several years. A high concentration of these loans are expected to become more expensive next year, and both the banking industry and government leaders are trying to find ways to address it.

http://online.wsj.com/article/SB119615781800405134.html?mod=googlenews_wsj

Of Great Depression proportions.

:/

and likely to go on losing unless and until the war ends, the jobs come back, and universal single payer health care comes in. Nothing less will move this economy into positive territory. Oh, and progressive taxation returns.

:thumbsup:

Home prices falling everywhere: S&P
Down 4.5% nationally over past year, Case-Shiller says
http://www.marketwatch.com/news/story/home-prices-falling-everywhere-case-shiller/story.aspx?guid=%7BE0F209E8%2DB6B3%2D4352%2D8F24%2DED365FBA216D%7D

Informative, but, scary. :scared:

" ... nationwide house prices could fall from their previous peaks by as much as 25 per cent over the next several years." - Lawrence Summers


http://www.ft.com/cms/s/0/b56079a8-9b71-11dc-8aad-0000779fd2ac.html

25% would be if everything went right from now on---and you know Bush can't let that happen....

is not determined by the bank, nor the mortgage company, nor by the owner. The value is determined by what the buyer is willing or can afford. We still have a long way to go and the sooner some folks wake up to this fact-the better things will be.

:donut: and lurkers. Let me pour you second cup. I've been thinking a bit about the sub prime mess, the FEDS, and the outlook for the economy. I am ready to call bull shit on a few folks, here goes...

About the homeowner with an ARM.

You got screwed and tattooed-no doubt about it. While a home for most of us is our largest single investment-it really shouldn't be viewed as such. The only time it might be an investment is when you sell it-otherwise it is a liability-not a cash machine. And as a home with an unpaid mortgage is a liability and debt-DO NOT TAKE ON MORE DEBT THAN YOU CAN PAY FOR. Always remember-there is always someone out there scheming to part your from your money and more robberies take place down the barrel of a pen with robbers wearing 3 piece suits than ever from the barrel of gun with robbers wearing masks (per my Grandpa). Sometimes the even may the theft legal and call it the law-so always be alert.


About the mortgage lenders.

You guys got caught. You tried to maximize your profits buy 'selling a new product' both to customers and investors. You talked folks into sucker loans with low teaser rates to get them in the door then sucker punched them with usury rates at the back end of the loan. To investors you packaged these new 'investments' and offering a nifty prize of high yields at the bottom of the box. Well, even the treat isn't worth the risk from consuming the contents of the box. You seem to have forgotten that as a lender, it is your jobs to make sure not to make risky loans. You figured that just because you could sell those risky loans to investors and get your profit-you could wash your hands of the responsibility of making prudent loans.

About the FED's.

You are a bunch of educated morons. Do you really think these drops in the interest rates are helping anyone but your country club friends. Like an annoying neighbourhood flasher-you think that drooping your pants, or rates as the case may be, will fill us with awe and respect. It is a totally impotent gesture. It does not help the consumer (that is 2/3rds of this economy). It has been years since any kind of consumer loan had a basis on the FED interest rates. In fact, I will go so far as to say that it does further harm to the consumer buy weakening the economy.

About the Economy

With all this outstanding debt caused by the lack of Congressional leadership, the last 2 rate cuts have resulted in a lower dollar. Yes it makes our goods cheaper......BUT WE DON'T HAVE THE MANUFACTURING BASE THAT WE ONCE HAD-thank to off shoring that Congress approved via NAFTA, CAFTA, SHAFTA, etc. All we can sell are assets-not products. This does not benefit the real engine of the economy-the consumer-not the investor. Lowering the interest rates has the same effect on overseas investors as a fire sale in a brothel. Yeah, the rates are cheaper-but do you really want to take the risk?

An Answer to the Puzzle

Stop cutting the rates. That one trick pony isn't working. Things will be rough but it is better to take our lumps NOW than later. I am not saying raise the rates-but it think that might show some confidence and shore up the dollar a bit. I would also buy back some dollars while I was at it for the same reason.

Mortgage Lenders

Start working with those folks you suckered into the loans. Those that are coming to you for help....WORK WITH THEM. Practice prudent/best practices. Set up a fixed mortgage with realistic payments. Unfortunately there was a lot of fraud and it might not be possible. Learn to do short sales-it is sometimes your only option. Personally work with homeowners, better to get something than stuck with nothing.

Investors

Investment comes with risk. Sadly those investment packages you bought were all risk. I suggest you be willing/prepared to take just a profit rather than a gross profit. You might end up with no profit-but that is the nature of risk. The government is not and should not be in the business of guaranteeing your profit-but they should be regulating best practice and policy. I recommend court in cases of gross fraud as the proper recourse.

Well, that about finishes my second cup. I think these are fair suggestions. No one totally wins but no one totally looses either. A draw is sometimes the best you can hope for.

Happy hunting and watch out for the bears

:hangover:

Way past time to drive a stake into that one.

there just aren't enough stakes.

NEW YORK (Reuters) - Retail stocks such as Macy's Inc (M.N), Guess Inc (GES.N) and Urban Outfitters Inc (URBN.O) fell on Monday as investors digested conflicting, but largely bearish, reports about this year's holiday shopping kick-off.

-cut-

But shares rallied slightly on "Black Friday" -- the day after the U.S. Thanksgiving holiday, which unofficially marked the start of the holiday shopping season -- as crowds stormed malls across the country hungry for eye-popping deals.

That delirium came to a screeching halt end on Monday, as feedback from several analysts differed from the optimistic readings made this weekend. The Dow Jones U.S. Retail index (.DJUSRT) closed down 2 percent, erasing Friday's gain.

The National Retail Federation (NRF) trade group said on Sunday that there were 4.8 percent more shoppers out over the four-day holiday weekend, but the average customer spent 3.5 percent less, making the total spending "extremely similar" with last year.

http://news.yahoo.com/s/nm/20071126/bs_nm/retail_holiday_winners_dc

for each person on the list. Most didn't make it in time. The only stuff that was selling was selling as a loss leader.

Retailers who thought dangling this stuff out there to get people into the stores so they could pull the usual bait and switch were sorely disappointed by the results.

It's going to be that way all season. They'll be lucky to break even with last year.

You can't keep suppressing wages forever as prices continue to climb. Your customers tend to stop buying anything but the bare necessity of food when you do that, and that's what we call a depression.

The conservatives in both parties always think they can ignore demand side economics. This always happens when conservatives are in control too long, and ours have been in control in both parties since 1969.

to find my items on sale and there were none. The only thing I 'splurge bought' was a $79 dollar personal dvd player. It replaces a tv/vcr in our bed room. Does that count as a down size or an upgrade? It wasn't on my list.

The twin comforters duvets were only 20% off and the comforters were not on sale. So I just bought the comforters and was prepare to use them sans duvet covers (actually I may have my young design student make me some-it is actually half the cost even paying her-it is a win win deal). I found the duvet covers that the owner left in the RV so we are using them. We are making due.

I gave my Christmas money before Thanksgiving so everyone would have their money so they could bargain hunt on Black Friday.

If I am typical-these folks are in deep do do-and I am one of the folks that are better off!

DJIA FV up near 110 early this morning.

Things are tempered now:

S&P 500 +5.80 1415.10 11/27 7:52am
NASDAQ +9.75 2009.75 11/27 7:51am
Dow Jones +33.00 12805.00 11/27 7:51am

had them starting off the day with the clouds possibly swept away. Apparently some traders who got the scoop early about the investment made bundles. At one time making outrageous amounts of money off "insider tips" was a "no..no." How times have changed. :eyes:

Rumors that Abu Dhabi might have invested in Bank of America...and maybe Fannie and Freddi were also out there with the CNBC crowd.

As if that is going to even make a dent in the markets.

And how many times this morning have the commentators asked the question "Is this the bottom of the credit problem"?

CNBC is a hoot.

(_|_) <--- ?






( :rofl: Sorry, couldn't resist. )

that just prior to 7am, when all the talking heads were going insane, the Fed must have pumped a few billion into the system through their famous check kiting scheme.

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

Last trade 74.963 Change +0.148 (+0.20%)

Forex News: US Dollar Edges Higher, Citibank Gets Some Help From Abu Dhabi

http://www.dailyfx.com/story/dailyfx_reports/top_fx_market_movers/Forex_News__US_Dollar_Edges_1196164808985.html

• USDJPY – Citigroup received a $7.5 billion capital infusion from the Abu Dhabi Investment Authority, which will make them one of Citi's largest shareholders. The Nikkei 225 Index and carry trades like USDJPY rallied on the news.
• USDCHF – The Swiss producer and import price index rose less than expected in October at a rate of 0.2 percent from the month prior and 2.7 percent from a year earlier. However, import price inflation and solid consumption may still lead the SNB to normalize rates in December while banks like the Fed and BOE consider cutting rates.
• EURUSD – The German IFO business climate survey surprisingly rose in November to 104.2 from 103.9, putting an end to six consecutive months of declines.
• GBPUSD – The BOE’s Chief Economist Charles Bean issued hawkish commentary, saying, “The backdrop to our attempts to keep inflation in line with target is less favorable than it has been…If the imported component of inflation is somewhat higher, the domestically generated component needs to be somewhat lower to compensate, and that may mean we have to run a tighter monetary policy for a while to get that domestic inflation down.”



...more...

US Dollar Tries to Recover, But Upcoming Housing and Sentiment Data Could Reverse the Gains

http://www.dailyfx.com/story/bio2/US_Dollar_Tries_to_Recover__1196162325951.html

News during the Asian trading session that the Abu Dhabi Investment Authority would invest $7.5B in Citibank led the Nikkei to rebound, and pushed FX carry trades like USDJPY and GBPJPY to rocket higher as well. While the positive sentiment waned over the following few hours, the greenback remains stronger than yesterday, with pairs like EURUSD and GBPUSD down slightly from Monday’s highs near 1.49 and 2.07, respectively. Nevertheless, as London traders started to come into play, better-than-expected German sentiment data along with disappointing forecasts for today’s US economic data reignited the Euro.

Indeed, the German IFO business climate survey surprisingly rose in November to 104.2 from 103.9, putting an end to six consecutive months of declines. Current assessments remained buoyant as well, suggesting that investors are still relatively optimistic despite instability in the financial markets and the tightening of credit conditions. However, the expectations component fell back to 98.3 from 98.6, signaling some hesitance regarding the outlook as the European Central Bank cites downside risks to growth. The figures will underpin the case for the ECB to stay on hold in the near term as the economy remains stable and price pressures mount, but if we see the Federal Reserve give into market expectations and cut rates in December – despite inflation risks – the move could give Trichet the green light to at least consider making monetary policy more accommodative. The same may be said for the Bank of England, which already has two MPC members – Gieve and Blanchflower – in favor of reducing rates by 25bp, as reflected in the November meeting minutes. However, the dissenters may have some persuasive work to do, as seven policy makers remained in favor of leaving rates unchanged, including the BOE’s Chief Economist Charles Bean who said recently, “The backdrop to our attempts to keep inflation in line with target is less favorable than it has been…If the imported component of inflation is somewhat higher, the domestically generated component needs to be somewhat lower to compensate, and that may mean we have to run a tighter monetary policy for a while to get that domestic inflation down.”

...more...

http://www.ireland.com/newspaper/breaking/2007/1127/breaking18.htm

French business confidence rose unexpectedly in November, data showed on today, in a sign that a round of transport strikes, the strong euro and high oil prices have not dented bosses' optimism.

A survey of company leaders by national statistics office INSEE said confidence improved to 110 in November from 108 in October. This was higher than a reading of 107 that had been expected in a poll of analysts.

President Nicolas Sarkozy has said two weeks of strikes by transport workers in November could hit the economy.

Recent data showed an acceleration in French growth to 0.7 per cent in the third quarter but analysts have been looking for the momentum to slow in the fourth quarter of the year as the euro's strength and high oil prices bite.

A separate report from the housing ministry today showed housing starts rose 10.5 per cent in the three months to the end of October.

/.

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20071127\ACQRTT200711270332RTTRADERUSEQUITY_0138.htm&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top
&mkt=WORLD&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.nasd

(RTTNews) - Swiss producer and import prices rose 0.2% month-on-month in October, the statistical office said Tuesday. Economists expected 0.4% rise in October. Producer and import prices were up 2.7% from the prior year, while economists were looking for 2.9% increase.

The producer price index remained stable on month and climbed 2.5% on annual basis. Import prices moved up 0.7% from the prior month, while annual growth stood at 3.1%.

/.

http://today.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-11-27T131328Z_01_L27680908_RTRIDST_0_MARKETS-EUROPE-STOCKS-FALL-URGENT.XML

PARIS, Nov 27 (Reuters) - European stocks extended losses on Tuesday afternoon as oil shares tracked crude prices lower and banks trimmed gains made after Barclays (BARC.L: Quote, Profile , Research) reassured investors on its outlook.

At 1311 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was down 1.2 percent at 1,450.66 points, with techs and miners also prominent losers.

Oil groups fell, with BP (BP.L: Quote, Profile , Research) down 0.4 percent, Total (TOTF.PA: Quote, Profile , Research) down 1.2 percent and Royal Dutch Shell (RDSa.L: Quote, Profile , Research) down 1.2 percent. Crude was trading 2 percent lower at $95.54 a barrel.

After rallying in early trade, the DJ Stoxx European bank index <.SX7P> fell back in the red, down 0.2 percent, though Barclays was still up 2.6 percent.

Miners moved lower, along with metal prices. Xstrata (XTA.L: Quote, Profile , Research) lost 1 percent, while Anglo American (AAL.L: Quote, Profile , Research) dropped 2.7 percent.

/.

http://news.yahoo.com/s/ft/20071127/bs_ft/fto112720071242425453;_ylt=AsCpaIgDy_15Or0op1WqB.v2ULEF

Banks were buoyant in London on Tuesday after a reassuring trading update from Barclays (NYSE:BCS), but falling miners and retailers ensured heavy losses for the FTSE 100.

The FTSE 100 closed 0.6 per cent lower at 6,140.7. The mid-cap FTSE 250 was down 1.5 per cent at 10,291.5.

Barclays was one of the biggest gainers, up 5.4 per cent to 519p, as the bank reassured it would meet analysts' profits expectations. It expected 2007 earnings would be "broadly in line" with market expectations of 68.8p per share despite the turbulent market conditions that led to a £1.3bn writedown at its investment banking business.

News that Citigroup had raised $7.5bn in new capital at a coupon of 11 per cent from the Abu Dhabi Investment Authority in an attempt to shore up its overstretched balance sheet helped lift some of the gloom in the banking sector across Europe.

The high cost of the new funds highlights Citi's determination to meet its commitments to strengthen its balance sheet and carry on investing while maintaining its dividend.

Royal Bank of Scotland rose 2.2 per cent to 412p and HBOS was 2.9 per cent firmer at 750½p. Northern Rock, meanwhile, rose a further 7.8 per cent to 117p after a consortium fronted by Sir Richard Branson's Virgin Group was selected as preferred bidder for the troubled bank.

However, stubborn talk that Alliance & Leicester was poised to reveal significant credit market writedowns saw it lose a further 2.9 per cent to 600½p.

The cost of lending between banks remained high on Tuesday. The three-month sterling Libor rate rose to 6.561 per cent from 6.554 per cent on Monday, the highest level since September 18.

The main weight behind the FTSE 100's losses, however, were mining stocks, falling in response to lower metals prices. Vedanta Resources was down 3.9 per cent to £19.90, while Anglo American shed 3.1 per cent to £28.01 and Antofagasta lost 3.9 per cent to 658½p.

Retailers were hit by a bigger-than-expected fall in consumer confidence in the US, while a report on the sector by ratings agency Standard and Poor's said inflation threatened to dent profitability.

/...

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

Nov. 27 (Bloomberg) -- European stocks retreated for a second day, led by basic-resource producers and technology companies, on concern an economic slowdown in the U.S. will curb profit growth.

ArcelorMittal and Rio Tinto Group paced declines by commodity producers after Goldman Sachs Group Inc. said the likelihood of a U.S. recession has risen to as much as 45 percent. ThyssenKrupp AG dropped after Goldman downgraded Germany's biggest steel company. Nokia Oyj, the world's largest mobile-phone maker, fell for the first time in four days.

The Dow Jones Stoxx 600 Index lost 0.4 percent to 354.27. The index has dropped 8.8 percent in November, heading for its worst month since 2002, on expectations losses tied to U.S. subprime mortgages will drag down the global economy.

``We have a very cautious stance with portfolios at the moment,'' said Jane Coffey, head of equities at Royal London Asset Management, where she helps oversee about $11 billion. ``As far as the credit crunch goes, we have to downgrade earnings forecasts for the future.''

The Federal Reserve will cut its benchmark interest rate to 3 percent by the middle of next year to fend off a recession, Goldman wrote in a report today. The risk of the economy contracting for two straight quarters has risen to between 40 percent and 45 percent, Goldman said.

National benchmarks retreated in all but four of the 18 western European markets. The U.K.'s FTSE 100 dropped 0.6 percent, and Germany's DAX lost 0.5 percent. France's CAC 40 slipped 0.4 percent.

ArcelorMittal

Sweden's OMX Stockholm 30 Index fell 0.4 percent to 1,058.63, for a decline of 19.3 percent since it reached a seven- year high in July. Earlier the gauge lost as much as 1.5 percent in intraday trading, a retreat exceeding 20 percent from the July peak. A 20 percent drop for a benchmark is commonly considered to mark the beginning of a bear market.

The Stoxx 50 fell 0.1 percent, and the Euro Stoxx 50, a measure for the euro region, sank 0.3 percent.

ArcelorMittal, the world's biggest steelmaker, fell 2.9 percent to 47.25 euros. Rio Tinto, the third-largest mining company, lost 1.3 percent to 5,166 pence. ThyssenKrupp sank 1.2 percent to 37.3 euros. Goldman cut its recommendation on the shares to ``neutral'' from ``buy.'' Salzgitter AG, Germany's second-biggest steel company, lost 4 percent to 100.09 euros. Goldman Sachs lowered its price estimate for the stock to 130 euros from 158 euros.

``Continued imports into Europe due to high prices may lead to dangerously high inventories and reduced customer orders in the new year, a real risk to steel prices should the economic outlook in Europe worsen,'' analysts including London-based Peter Mallin-Jones wrote in a report dated Nov. 26.

/...

http://today.reuters.co.uk/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-11-27T135417Z_01_N27471599_RTRIDST_0_MARKETS-FOREX-UPDATE-5.XML

NEW YORK, Nov 26 (Reuters) - The dollar surrendered early gains against most currencies other than the yen on Tuesday despite news that Citigroup Inc. (C.N: Quote, Profile , Research) will sell a stake to the Abu Dhabi government.

The dollar initially posted gains after Citigroup said it would sell a $7.5 billion stake to the Abu Dhabi Investment Authority, the investment arm of the Abu Dhabi government, providing funds to one of the banks hardest hit by the global credit crunch triggered in August by defaults on U.S. mortgages.

Investors interpreted Citi's move as a sign that financial institutions were repairing the damage from a meltdown in the U.S. subprime mortgage market and the resulting credit crunch, which has been a big factor behind recent dollar weakness.

"Although markets remain too volatile to judge whether underlying sentiment in U.S. assets has changed, the temporary boost to risk appetite was notable," said UBS in a research note. "As such, a sustained shift in favour of dollar denominated assets would dampen dollar negative sentiment."

The dollar pulled away from a 2-1/2-year low against the yen touched on Monday to trade at 107.90 <JPY=> in early New York trade, earlier having climbed as high as 108.80, according to Reuters data. The yen fell broadly as news of the Citi stake sale prompted a recovery in the Nikkei share average, warming demand for risky carry trades.

But as traders reached their desks for the New York session, colder realities prevailed.

"The Citi development is simply the result of one (large) investor's judgement and does nothing to suggest that the economic outlook is any less fraught with risk, and we expect that its effect will prove fleeting," said Steve Malyon, a currency strategist at Scotia Capital in Toronto in a note to clients.

/...

http://today.reuters.co.uk/news/articleinvesting.aspx?type=goldMktRpt&storyID=2007-11-27T133800Z_01_L27561683_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-5.XML

LONDON, Nov 27 (Reuters) - Gold tumbled on Tuesday as investors took profits on the back of lower oil prices and a firmer dollar, but analysts expected prices to head higher soon and test recent highs.

Spot gold <XAU=> was down at $815.20/816,50 a troy ounce by 1045 GMT from $824.70/825.40 late in New York on Monday, when it touched a 2-week high of $836.70. Earlier it fell to $810.95.

Earlier this month the precious metal touched $845.40, its highest level since January 1980 as investors piled in seeking refuge from a sliding dollar and financial market turbulence.

"There is some small long liquidation, probably because of the stronger dollar and weaker euro," said Frederic Panizzutti, analyst at MKS Finance. "We expect gold to find some support around current levels and to go back up at some stage ... Market sentiment remains positive, but as we move towards the end of the year, liquidity issues could mean more erratic trading."

A rising U.S. currency makes dollar-denominated metals more expensive for holders of other currencies, while gold used as a hedge against inflation often moves in the opposite direction to oil prices, which slipped on Tuesday.

...

Platinum <XPT=> hit a high of $1,475 an ounce before falling to $1,460/1,464, from $1,467/1,472 on Monday. Traders think prices will be firmly underpinned by falling supplies from South Africa, the world's biggest producer.

That was reinforced by news that South Africa's National Union of Mineworkers (NUM) had been given the go-ahead by authorities to stage a one-day nationwide strike on December 4 to highlight safety issues at mines.

Palladium <XPD=> was firm at $354/358 an ounce from $353/358 on Monday and silver <XAG=> slid to $14.53/14.58 from $14.77/14.82.

/...

http://news.yahoo.com/s/afp/20071127/bs_afp/germanyeconomyinflation_071127181826;_ylt=AjInMy7xpaUZe1CtKJITXKOmOrgF

FRANKFURT (AFP) - German inflation reached its highest level since 1994 in November, spiking to 3.0 percent according to provisional data released Tuesday.

On top of rising oil prices, the soaring cost of food items such as dairy products and cereals pushed inflation sharply higher as the country approaches the start of winter.

While the trend of rising prices is similar in other eurozone countries, German inflation is the first to reach the symbolic 3.0 percent threshold, exceeding a consensus analyst forecast of 2.8 percent.

The rise in consumer prices comes amid signs of slowing economic growth in Germany, the biggest economy in the eurozone, and presents the European Central Bank with "quite a challenge," UBS economist Martin Lueck noted.

Analyst Sylvain Broyer at investment bank IXIS-CIB added: "The ECB has now to deal with an extremely uncomfortable kind of baby-stagflation with an evident conflict of objectives."

Policymakers from the ECB, which has an official inflation target of close to but below 2.0 percent, will gather on December 6 in Frankfurt for their regular rate-setting meeting.

The German government has lowered its growth forecast to 2.4 percent this year and 2.0 percent in 2008, down markedly from the brisk 2006 pace of 2.7 percent.

/...

http://news.yahoo.com/s/ft/20071127/bs_ft/fto112720071312575462;_ylt=AscEnyqWoQF8.doUGsCniD_2ULEF

Soaring inflation in the 13-nation eurozone is threatening fresh difficulties for the European Central Bank as it fights to calm tensions in financial markets that are casting a shadow over economic growth.

Energy and food prices pushed inflation in Germany this month to the highest level since at least 1995, prompting economists to forecast the annual eurozone figure, released on Wednesday, will reach 3 per cent or more for the first time in more than six years. That would pose a serious challenge to the ECB, which pledges to keep inflation "below but close" to 2 per cent.

Jean-Claude Trichet, ECB president, said earlier this month that the inflation "hump" was proving larger and longer-lasting than expected. But the bank's room for manoeuvre on interest rates has been constrained by threats to growth from the euro's record strength and the global credit squeeze.

Analysts expect interest rates to hold steady at 4 per cent well into 2008, with some expecting a cut as the next move.

On Tuesday the ECB pumped an extra EU30bn ($44.4bn, £21bn) into money markets - far more than would have been usual in its regular weekly operations - following its pledge last week to keep up such emergency help until at least the end of the year.

Julian Callow, economist at Barclays Capital, said "the ECB is well and truly boxed in", with little scope for raising its main interest rate even though "the inflation hump is proving more of a hillock".

The ECB put further interest rate increases on hold in September, pledging first to assess the macro-economic impact of the credit squeeze.

French and German business confidence indicators on Tuesday showed unexpected rises for this month. The Munich-based Ifo institute said the rise in its business climate index, from 103.9 in October to 104.2, showed growth slowing only "gradually" from a high level. But the Ifo index had fallen in the six previous months, and ECB officials have struck a decidedly more pessimistic tone in recent days.

/...

--> And thus is inflation when you're accounting in Euros...

http://news.yahoo.com/s/afp/20071127/ts_afp/eufarmcommoditiescerealstrade_071127165755

BRUSSELS (AFP) - The European Union, traditionally a major cereals exporter, sought on Tuesday to ease tight supplies by agreeing to suspend imports duties.

The European Commission proposed suspending import duties for this marketing year, ending June 30, 2008, which won unanimous support from EU farm ministers meeting in Brussels, the bloc's Portuguese presidency said.

In the face of dwindling cereals supplies but soaring prices and demand, Portuguese Agriculture Minister Jaime Silva said: "There was unanimous approval for the proposal."

The suspension of import duties, which would apply to all cereals but oats, could be implemented in December once some technical issues are dealt with and it gets formal approval.

The measure is one of several actions the EU is taking in response to the tight cereals market along with suspending a requirement that farmers leave some land fallow each year.

EU Agriculture Commissioner Mariann Fischer Boel said that although import duties were low, running at less than 10 percent of prices, the suspension would provide relief to a tight market. "We have seen a modest harvest in Europe and high prices both at home and on world markets," Boel said ahead of the decision. "Border protection for cereals is relatively low, but import duties still apply to certain cereals which are key to assuring EU market balance," she added.

For years, Europe has produced more cereals than it needs, leaving the EU to buy up the excess and discourage more planting in order to stop prices collapsing and farmers going out of business. But Europe became a net importer of cereals this year amid a global commodities boom, driven by surging demand in fast-growing developing countries including China.

The increasing use of farmland to grow crops for biofuels and drought in major farm producers such as Australia has added further pressure on the market, driving food prices ever higher and pinching supplies for raw ingredients.

/..

http://news.yahoo.com/s/ft/20071127/bs_ft/fto112720071157565446;_ylt=Aij_kS7yC9b_ohzb81SCIKj2ULEF

Chinese and European policymakers agreed on Tuesday to co-operate in preventing big exchange rate fluctuations, as the first high-level economic talks between Beijing and the 13-nation eurozone began.

China's central bank said the two sides had expressed a willingness to "take comprehensive measures to enhance structural economic adjustments, avoid big swings in currency movements and make respective contributions to an orderly adjustment of global imbalances".

While the brief statement left the nature of any action vague, it constituted progress for the Europeans in that it marked Chinese recognition of their difficulties with an ever-rising euro and an ever-expanding Chinese trade surplus.

The statement was issued after Zhou Xiaochuan, China's central bank governor, held talks with Jean-Claude Juncker, chairman of the eurozone finance ministers' group, Joaquín Almunia, European monetary affairs commissioner, and Jean-Claude Trichet, president of the European Central Bank.

The Europeans were hoping to persuade their counterparts in Beijing that it would be in China's interests to rebalance its rapid economic growth from exports to domestic demand, in order to curb inflationary pressures at home and undercut protectionist sentiment in Europe.

China's trade surplus with the EU rose 25 per cent in the first eight months of this year to EU70bn ($103bn, £49bn), and some EU policymakers expect the surplus to balloon to more than double that size, generating ever louder calls from politicians for restrictions on imports.

/...

:eyes:

http://www.cnbc.com/id/21972822

CNBC still needing some wiggle room so they hedge by saying: "now officially in a correction." like the weather guy does when it's 85 on the first day of Autumn.....even tho it's 85 out there, it's now officially Fall. What the hell does that mean anyway?




My Favorite Master Artist: Karen Parker GhostWoman Studios

How long before we hear the words "surprise correction" tumble from the lips of some talking mannequin?

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-21237716.htm

(At the top of the Greatest page) "Carlyle + 300 Bush Cronies control 50% of ALL "bear shares" on US markets -- using offshore accounts" - http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x2351114#2353977

NOT.....

I love my Mom, but she listens to Faux too much...but last night she was telling me something last night-and she was geuinely supprised. She had heard the 'last President of Mexico' say that he and Bush had talked about one currency but the USD was valued too high. She said this guy gave dates and all about their talks and this was well before the recent drop, etc. She was definently starting to connect the dots and she was shocked. I asked her if she rememberd ANYTHING of my conversations about the BFEE. Of course she tried to minimalize it, but you do that at your own risk with these folks.

I still haven't heard an apology or ackowlegement that I was right (although she has learned both from her own retirement and from the housing bust in Pheonix that she ignores my advice at her own peril). I always tell her that just because I am not flush with cash doesn't mean I don't know what to do with it- I just haven't had a few breaks at the right junctures. The karmic wheel is finally turning and injustices will be corrected and that which was taken away will be restored.

How can some folks listen to so much news and still be uninformed.

Even the CNBC cheerleaders are not all giddily cheerleading this jump. Looks of confusion and fear on their faces each time they take a look at the ticker.

It's just my Legally Mandated Mutual Retirement Fund buying on a high... As usual. :eyes:

http://news.yahoo.com/s/nm/20071127/bs_nm/usa_economy_goldman_dc;_ylt=AtOiz5Shdwdz4ZhUhGDl7Oi573QA

NEW YORK (Reuters) - Goldman Sachs (GS.N) on Tuesday slashed its target for the expected trough in U.S. benchmark interest rates by a full percentage point, citing an increased probability of recession and the likelihood of a prolonged period of sluggish performance for the U.S. economy.

The U.S. investment bank said it expects the Federal Funds rate to bottom out at 3 percent in the next six to nine months, down from an earlier forecast of 4 percent. Meanwhile, the unemployment rate is likely to reach 5.5 percent by the end of 2008, the bank said, up from the current rate of 4.7 percent.

Goldman also said chances of a recession are pushing up to between 40 percent and 45 percent. Even without an outright contraction, Goldman said U.S. gross domestic product growth will be well below trend for an extended period.

/.

http://news.yahoo.com/s/nm/20071127/bs_nm/usa_fed_plosser_dc;_ylt=Ah5uParBOoW49_fUz_q.Mdm573QA

ROCHESTER, New York (Reuters) - Federal Reserve Bank of Philadelphia President Charles Plosser said on Tuesday he expects economic growth to slow over coming months, while the central bank's rate cuts increase the risk of higher inflation.

"In the current environment, providing insurance through a reduction in the fed funds rate creates its own set of additional risks," he said in a speech to the Rochester University Simon Graduate School of Business.

"A lower funds rate creates a risk that inflation may be exacerbated and inflationary expectations may begin to rise."

The Fed has lowered its benchmark federal funds rate target by a cumulative 75 basis points since September. Markets expect another cut when the Fed holds a rate-setting meeting on December 11.

Plosser, known as one of the more hawkish members among Fed policy-makers, will become a voting member of the Federal Open Market Committee next year.

He reiterated he would not change his economic outlook or his view on interest rates unless merited by significantly weaker economic data.

In a New York Times interview earlier this month, Plosser said he would not be surprised if fourth-quarter U.S. economic growth was 1 percent to 1.5 percent, and that growth would have to be less than that for him to consider cutting rates again.

In the speech, Plosser said recent market turmoil as investors reassessed the value of financial instruments could not be solved by the Fed.

"In some circumstances, lowering interest rates may prolong the painful process of price discovery," he said.

/...

all the news has been pessimistic

https://personal.vanguard.com/VGApp/hnw/VanguardViews?FW_Event=vviewsnewsletters&chunk=/freshness/News_and_Views/news_ITVautumn2007_ALL_subprime_ALL.html&Season2=Autumn&Year2=2007

Prime Money Market fund invested in appx 21% commercial paper
https://personal.vanguard.com/VGApp/hnw/funds/holdings?FundId=0030&FundIntExt=INT


Total Bond Index fund invested in 37% Government Mortgage-Backed
https://personal.vanguard.com/VGApp/hnw/funds/holdings?FundId=0084&FundIntExt=INT


These funds still make me nervous, and with the dollar declining, my bank savings buys less & less. I'd convert to Euros, but I need those dollars in America to buy food and necessities.

Dow 12,958.44 Up 215.00 (1.69%)
Nasdaq 2,580.80 Up 39.81 (1.57%)
S&P 500 1,428.23 Up 21.01 (1.49%)
10-Yr Bond 3.9440% Up 0.0970
NYSE Volume 4,273,844,000
Nasdaq Volume 2,220,407,250

4:20 pm : There was another large swing in stock prices Tuesday, only this time they swung higher thanks to gains in the financial sector (+2.6%) that were forged on the back of news that Abu Dhabi Investment Authority is going to invest $7.5 billion for a 4.9% stake in Citigroup (C 30.32, +0.52).

The Citigroup news, and word from Barclays (BCS 43.87, +3.49) that it expects to report 2007 earnings broadly in-line with expectations, got the market started on a positive note, yet the bullish bias was soon tested by a weaker than expected consumer confidence reading for November. Specifically, the Conference Board reported that its confidence reading dipped to 87.3 (consensus 91.0) from 95.2 in October.

Stock prices retreated as the confidence number hit the wires, but they shook off the headline disappointment knowing that (a) the decline wasn't really that surprising given the negative headlines of late and (b) Thanksgiving sales reports exposed the weak link between confidence and actual spending activity.

A noticeable dip in oil prices (-3.4% to $94.42), which was driven by talk of increased production from OPEC, provided a measure of support that helped prop up a number of beaten-down discretionary and transportation stocks.

Homebuilding stocks, which showed strength earlier in the session after Pulte Homes (PHM 9.08, -0.08) reaffirmed its fourth quarter outlook, ended up as notable laggards again. A contention from fellow builder D.R. Horton (DHI 10.41, -0.17) that 2008 will be worse than 2007, and the S&P/Case-Shiller Home Price Index showing a 4.5% year-over-year decline, succeeded in undoing the early rebound effort.

Overall, the market showed good resilience to selling activity that picked up again in the afternoon trade. Unlike Monday, it closed near its highs for the day thanks to late buying interest.

The financial sector led the charge, but had plenty of company. Altogether there were seven sectors that registered gains in excess of 1.0%. The only sector to lose ground today was energy (-0.5%), which moved lower in conjunction with oil prices.

In expected fashion, the stock market rally took some wind out of the Treasury market as some risk aversion trades came off. The 10-year note was down 27 ticks when stocks closed for the day, bringing its yield up to 3.94%.DJ30 +215.00 DJTA +1.9% NASDAQ +39.81 NQ100 +2.2% R2K +1.1% SP400 +1.1% SP500 +21.01 NASDAQ Dec/Adv/Vol 1317/1693/2.20 bln NYSE Dec/Adv/Vol 1089/2212/1.60 bln

...with a bit of sweat on the brow.