STOCK MARKET WATCH, Tuesday September 1

[ozymandius]

Source: du

STOCK MARKET WATCH, Tuesday September 1, 2009

Bush Administration Officials Under Indictment = 2
Financial Sector Officials In Prison = 6

AT THE CLOSING BELL ON August 31, 2009

Dow... 9,496.28 -47.92 (-0.50%)
Nasdaq... 2,009.06 -19.71 (-0.97%)
S&P 500... 1,020.62 -8.31 (-0.81%)
Gold future... 953.50 -5.30 (-0.55%)
10-Yr Bond... 3.39 -0.05 (-1.45%)
30-Year Bond 4.17 -0.03 (-0.64%)

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

Market Conditions During Trading Hours

GOLD, EURO, YEN, Loonie, Silver and US$

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Handy Links - Market Data and News:
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    Google Finance    LayoffDaily    Bank Tracker    Credit Union Tracker

Handy Links - Economic Blogs:
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    Brad DeLong    Bonddad    Atrios    goldmansachs666

Handy Links - Government Issues:
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Handy Links - Videos:
The Coming Collapse of the Middle Class    Charlie Rose talks with Roubini    Charlie Rose talks with Krugman

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This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.

Read more: du

[ozymandius]

1. Market Observation

Investing For Retirement and Beyond
Start early and keep learning
BY TONY ALLISON

The cold reality is that millions of the 76 million-strong Baby Boom generation, now starting to reach retirement age, will be unable to retire. Ever. These boomers will reach their golden years without enough assets and savings to survive for long without a paycheck. Some will reach retirement age with little but debt and good memories. For others working into their 60’s and 70’s will be no big deal. They enjoy what they do and will continue for as long as they can. For many, perhaps too many, they will be forced to keep working to make ends meet, which is not a happy prospect, especially if health concerns are an issue. Social Security is likely to provide little security in an environment that seems destined for higher taxes of all kinds and higher inflation. The concept of “semi-retirement” may become the norm as aging boomers struggle to maintain an elusive quality of life.

Hopefully, many of you reading this article will have the time, assets and strategy to arrive at retirement age and actually be able to retire comfortably. Unfortunately, the statistics indicate that most boomers could be better prepared. I will offer some tips and point out some pitfalls that may be useful to those on the path to retirement. Some may seem obvious, but it never hurts to be reminded about retirement strategies, and it’s never too early! There are many elements to planning for a successful retirement of course, and I will cover others in future articles.

.....

The Big Three

According to the Society of Actuaries Risk and Process Retirement Survey, over 50% of retirees worry about three things:

*The cost of health care

*The effect of inflation on their nest eggs

*Being unable to maintain a reasonable standard of living for the balance of their lives.

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

[ozymandius]

2. Today's Reports

10:00 Construction Spending Jul
Briefing.com -0.3%
Consensus -0.2%
Prior 0.3%

10:00 ISM Index Aug
Briefing.com 49.7
Consensus 50.2
Prior 48.9

14:00 Auto Sales Aug
Briefing.com NA
Consensus NA
Prior 4.2M

14:00 Truck Sales Aug
Briefing.com NA
Consensus NA
Prior 4.2M

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

[Ghost Dog]

76. In great sign for economy, manufacturing rose in August

By Paul Wiseman, USA TODAY
Manufacturing grew in August for the first time in more than a year and a half, suggesting a broad, stronger-than-expected recovery from the worst recession since the 1930s.

The Institute for Supply Management reported Tuesday that its much-watched manufacturing index grew from July to August for the first time in 19 months, rising to 52.9, the highest level since August 2007. Anything above 50 signals that manufacturing is expanding.

The institute says the figure corresponds to an overall economy growing at an annual pace of 3.7%, about twice as fast as economists have been predicting.

"It's very good news," says John Canally Jr., investment strategist at LPL Financial in Boston. "And it wasn't just autos."

Economists had worried that recent signs of life in manufacturing may have been warped by the government's cash-for-clunkers program, which ignited car sales in August. But 11 of 18 manufacturing industries surveyed reported growth last month.

"Investors should smile at this number," says Joel Naroff of Naroff Economics Advisors.

But he cautions that the Federal Reserve may read the report as a sign it should reverse course and start raising interest rates to contain inflation as the recovery gains speed.

"This is a favorite report for many at the Fed, and if the members start believing the recovery story is real, then the decision to raise rates will not be too far behind," he says.

/... http://www.usatoday.com/money/industries/manufacturing/2009-09-01-manufacturing-economy_N.htm

¡HUGH!

[ozymandius]

3. Oil rises above $70 as investors watch stocks

SINGAPORE – Oil prices rose slightly to above $70 a barrel Tuesday in Asia as a rebound in regional stocks boosted investor optimism.

Benchmark crude for October delivery was up 38 cents at $70.34 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.

The contract Monday lost $2.78 to settle at $69.96 after a drop in stocks heightened investor concerns that the global economic recovery may be weaker than expected. China's benchmark stock index fell 6.7 percent Monday while the Dow Jones industrial average fell 0.5 percent.

.....

In other Nymex trading, gasoline for October delivery rose 0.81 cent to $1.82 a gallon and heating oil gained 0.70 to $1.82 a gallon.

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

[ozymandius]

4. Asian markets rebound after Chinese sell-off

SHANGHAI – Most Asian markets rebounded on Tuesday, with China's key index edging up after tumbling the previous day, as investors weighed prospects for a global economic recovery. European markets opened lower.

The drop in Shanghai's volatile market Monday triggered a wave of selling in markets around the world, adding to concerns stocks have rocketed too high, too fast since March. But Tuesday the mood was steadier in Asia, helped by data showing that China's manufacturing growth accelerated in August to its fastest rate this year.

.....

The Shanghai Composite Index rose 15.98 points, or 0.6 percent, to close at 2,683.72, following a 6.7 percent plunge Monday that took it to its lowest level in three months.

Hong Kong's Hang Seng climbed 148.11 points, or 0.8 percent, to 19,872.30, while Tokyo's Nikkei 225 stock average rose 37.53 points, or 0.4 percent, to 10,530.06.

In early European trading, Britain's FTSE 100 index fell 47.58 points, or 1 percent, to 4,861.32, while Germany's DAX slid 64, or 1.2 percent, to 5,400.57. France's CAC-40 dropped 0.7 percent to 3,629.96.

http://news.yahoo.com/s/ap/20090901/ap_on_bi_ge/world_markets_20

[ozymandius]

5. BofA offering to repay part of bailout: report

NEW YORK (Reuters) – Bank of America (BAC.N) is offering to repay part of the U.S. government bailout money, starting with the $20 billion it received in January to help with the acquisition of Merrill Lynch & Co, the Wall Street Journal reported on its website late on Monday.

The government is meanwhile pushing the bank to pay up to $500 million to end a tentative pact that would have had the government share Bank of America's losses on certain assets, added the report, which cited people familiar with the matter.

.....

The repayment of $20 billion, however, would remove the bank from the list of "exceptional" aid recipients, a designation that brings more congressional scrutiny.

http://news.yahoo.com/s/nm/20090901/bs_nm/us_bankofamerica_bailout

[Demeter]

13. Ah, Yes, Avoiding Congressional Scrutiny IS a Priority!

[ozymandius]

6. Major cigarette makers sue over new tobacco law

RICHMOND, Va. – Two of the three largest U.S. tobacco companies filed suit Monday to block marketing restrictions in a law that gives the U.S. Food and Drug Administration authority over tobacco, claiming the provisions violate their right to free speech.

R.J. Reynolds Tobacco Co., maker of Camel cigarettes, and Lorillard Inc., which sells the Newport menthol brand, filed the federal lawsuit with several other tobacco companies.

.....

The tobacco makers claim provisions of the law "severely restrict the few remaining channels we have to communicate with adult tobacco consumers," Martin L. Holton III, senior vice president and general counsel for Reynolds, said in a statement.

The Family Smoking Prevention and Tobacco Control Act gives the FDA authority over tobacco for the first time and lets the agency reduce nicotine in tobacco products, ban candy flavorings and block labels such "low tar" and "light." Tobacco companies also must put large graphic warnings over any carton images.

.....

The tobacco makers name the FDA, the government and individual officials as defendants in the lawsuit, which seeks to put portions of the law on hold while the case is heard. Ultimately, they want the marketing provisions stripped from the law.

http://news.yahoo.com/s/ap/20090831/ap_on_bi_ge/us_tobacco_lawsuit

[Demeter]

18. No Free Speech for Corporations!

Put an end to Corporate Personhood!

And since when is selling Death in a box a free speech issue?

[ozymandius]

7. Strapped cities lay off workers, cancel projects

NEW YORK (CNNMoney.com) -- More than nine out of 10 cities are slashing spending this year as the recession wreaks havoc on their sales and income tax revenue, a new study found.

And the future looks even worse, as the housing market's steep declines continue cutting into property tax revenue, according to the National League of Cities, which issued the update on city fiscal conditions Tuesday.

.....

To combat declining revenues, 62% of cities are delaying or canceling infrastructure projects, the study found. That's a 20 percentage point increase from the league's February status report. Some two-thirds of cities are laying off workers or instituting hiring freezes, roughly the same figure as reported earlier this year.

.....

While income and sales tax revenues are expected to decline in 2009, property taxes are still projected to grow, albeit at a slower pace. That's because there is often a few years' lag in adjusting property tax assessments.

http://money.cnn.com/2009/09/01/news/economy/cities_financial_crises/?postversion=2009090103

[ozymandius]

8. EBay May Sell Skype in Deal to Be Announced Today, NYT Says

Sept. 1 (Bloomberg) -- EBay Inc. may announce today it will sell its Skype Internet phone unit to a group of private investors, the New York Times reported, citing two people familiar with the matter.

The buyers will probably include Andreessen Horowitz, a venture capital firm headed by Netscape co-founder Marc Andreessen, and Index Ventures, a private-equity firm that invested in Skype before EBay acquired it, the newspaper said. Silver Lake Partners is also expected to be involved, according to the newspaper.

The report didn’t have financial details of the deal. EBay said previously it wanted about $2 billion for Skype, which is predicted to post revenue of more than $600 million this year, according to the Times.

http://www.bloomberg.com/apps/news?pid=20601103&sid=ab7xSpT_oJAE

[ozymandius]

9. Wall Street Stealth Lobby Defends $35 Billion Derivatives Haul

Aug. 31 (Bloomberg) -- Wall Street is suiting up for a battle to protect one of its richest fiefdoms, the $592 trillion over-the-counter derivatives market that is facing the biggest overhaul since its creation 30 years ago.

Five U.S. commercial banks, including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp., are on track to earn more than $35 billion this year trading unregulated derivatives contracts. At stake is how much of that business they and other dealers will be able to keep.

.....

The Washington fight, conducted mostly behind closed doors, has been overshadowed by the noisy debate over health care. That’s fine with investment bankers, who for years quietly wielded their financial and lobbying clout on Capitol Hill to kill efforts to regulate derivatives. This time could be different. The reason: widespread public and Congressional anger over the role derivatives such as credit-default swaps played in the worst financial crisis since the Great Depression.

.....

In a bad omen for the industry, the Obama administration kept the details and timing of its plan to regulate the derivatives markets under wraps before making it public earlier this month.

.....

The five biggest derivatives dealers in the U.S. -- JPMorgan, Goldman Sachs, Bank of America, Morgan Stanley and Citigroup Inc. -- held 95 percent of the $291 trillion in notional derivatives value of the country’s 25 largest bank holding companies at the end of the first quarter, according to a report by the Office of the Comptroller of the Currency. More than 90 percent of those derivatives were traded over the counter, the OCC data show.

http://www.bloomberg.com/apps/news?pid=20601109&sid=agFM_w6e2i00

[ozymandius]

10. Ritholtz: Bailout Profits? Don’t Make Me Laugh!

“The government has taken profits of about $1.4 billion on its investment in Goldman Sachs, $1.3 billion on Morgan Stanley and $414 million on American Express. The five other banks that repaid the government — Northern Trust, Bank of New York Mellon, State Street, U.S. Bancorp and BB&T — each brought in $100 million to $334 million in profit.”
-New York Times

My definition of an investment profit is simple: You take the money you have invested, and if adds up to more that what you began with, well, then, you have a profit.

Let’s say on the other hand, you own 20+30 positions; 5 of them are higher than where you purchased them, and all the rest deeply in the red. Net net, your portfolio is down immensely. Most rational investors would hardly call that investment a “profit.”

Looking just at early TARP repayments means that we are ignoring a) the rest of the TARP; and b) the majority of other expenses, guarantees, loans capital injections, and outright spending that has taken place.

.....

What this is more appropriately described as is a return of capital; to call this a profit is to ignore trillions of dollars in taxpayer monies that have been spent, lent, guaranteed, drawn against and otherwise consumed in what will likely be the greatest transfer of wealth in the planet’s history.

http://www.ritholtz.com/blog/2009/08/bailout-profits-dont-make-me-laugh/

[ozymandius]

11. The Lasting Legacy of the Bush Tax Cuts

Contrary to popular assumption, stimulus spending under the American Recovery and Reinvestment Act has been a very small factor in the expansion of the federal budget deficit in 2009. Many policies that pre-date the Obama Administration, including Bush-era spending on the wars in Iran and Afghanistan, are key factors in the growing deficit.

Read full text of this publication in PDF format

Link found at Econbrowser

[Loge23]

33. "What Happened to the Depression?" (wsj)

Although I'm a regular reader of the WSJ, I normally skip the editorial pages to avoid rage. (except on Wednesday for Thomas Frank's column).
But today, I got sucked in by noted failed supply-sider, Allan Meltzer - who apparently is still quite bitter at seeing Krugman win the Nobel.
You all know about this guy - he served on the Council of Economic Advisors for...ummm, Oh! Kennedy and Reagan! What a coincidence! Also, got to love the "redistributing" remark! That road is strictly an einbahnstrasse for these guys.

"In their response to the recession, Congress and the administration were more interested in redistributing income than encouraging growth. They also ignored the lessons of the successful Kennedy and Reagan reductions in marginal tax rates. They added to their mistakes by enacting a temporary tax reduction as a main element of the $787 billion stimulus. Don't they know that Presidents Ford, Carter and Bush failed to stimulate spending with temporary tax reductions?"
If you have the stomach for it:

http://online.wsj.com/article/SB10001424052970204251404574342931435353734.html

Oh, the cries of the dinosaurs!

[Mojorabbit]

12. Good Morning

Insomnia again and it looks as if the sun is commencing to rise. Hope today will be a better day than yesterday.

[ozymandius]

14. Good morning everyone.

:donut: :donut: :donut:

Time for me to move toward the door. Take care of yourselves.

:hi:

[Demeter]

31. Thank You Ozy! You Take Care, Too.

Happy September everyone--ready or not, here it comes. I'm sure not ready!

The roofers have pulled the roof off my garage this morning....hope it will be back on tonight. It will be great, when this massive rebuilding project is over. We are not only doing maintenance, we are fixing design errors made 30+ years ago. It's an upgrade!

[Demeter]

15. Nomura lands six-year London rent break

http://www.ft.com/cms/s/0/540a648e-9665-11de-84d1-00144feabdc0.html

Gee, how special is that? Any business would KILL for 6 years rent-free in the most desirable location in the City of London, but this is for a Japanese bank that bought Lehman Bros.

"The landlord, Oxford Properties, is the property arm of an Ontario pension fund and UBS. It was advised by Knight Frank and CBRE...The deal positioned Oxford to move forward with further acquisitions in the London market, said Paul Brundage, Oxford vice-president. "

Just in this one small article I glimpse a world so far above my level, it might as well be in the Andromeda galaxy.

[Ghost Dog]

50. I suspect the UK commercial property market

increasingly consists of sharks preparing to circle a potential bloodbath.

[Demeter]

16. AIG and former executives agree arbitration

http://www.ft.com/cms/s/0/6519e736-9688-11de-84d1-00144feabdc0.html


"The insurer (AIG) said it would work with Hank Greenberg, former chief executive, and Howard Smith, former chief financial officer, to arbitrate (more than $1bn) claims related to suits filed by shareholders who claimed they lost money because AIG restated its financial results during the time Mr Greenberg and Mr Smith led the company...In August, Mr Greenberg and other former executives of the company agreed to pay $115m to settle lawsuits by shareholders who claimed they lost money after AIG restated five years of profits in 2005. Mr Greenberg also agreed to settle a civil lawsuit by the Securities and Exchange Commission for $15m, neither admitting nor denying SEC allegations that involved AIG’s accounting. "

As long as there's a bone to fight over....

[Demeter]

17. Television executives reach for reset button

http://www.ft.com/cms/s/0/d9286d90-9643-11de-84d1-00144feabdc0.html

An existential crisis is gripping TV executives, who now prefer to call their output “video”. They face what newspaper executives witnessed a decade ago – big cash cow businesses in inexorable decline.

The consumption of broadcast media has fragmented across hundreds of cable channels, countless mobile phones, the YouTube broadcasting website, as well as TV’s own digital ventures, such as Hulu and the BBC iPlayer. This all leaves the broadcast business at a critical moment."


....................
Well, that's what happens, when the newspapers and the TV and radio outlets get bought up into big conglomerates to tightly regulate the "Official" propaganda of the day.

People bought newspapers to find out what was happening: ie; NEWS. They got tripe, lies, and jingoism, and cancelled their subscriptions and turned to TV and the Internet.

Now on TV they are getting tripe, lies, jingoism and horrible entertainment: stories of mindlessly sadistic predators; instead of news and family entertainment. Is it any wonder that people would rather watch reruns than what passes for "entertainment" in the modern movie mills?

The "corporately controlled culture" is a vile and worthless thing. It isn't educational, entertaining, or even particularly addictive. It is corrupting, for those susceptible to corruption of that sort. But for functional adults, it is a total waste of time.

Hell, even the commercials aren't entertaining, anymore!

[Demeter]

23. Sacrifices made in hunt for new model

http://www.ft.com/cms/s/0/02888152-958b-11de-90e0-00144feabdc0.html


"From the morning paper to the evening news, the media industry is in crisis. After a decade struggling with internet-enabled changes in consumer behaviour, a precipitous slide in advertising and consumer spending has humbled media owners from Hollywood to Fleet Street.

The litany of woe is now familiar: companies as diverse as Setanta Sports, the sports broadcaster, and Reader’s Digest, the magazine publisher, have tumbled into bankruptcy proceedings, while publications from Portfolio magazine to thelondonpaper have folded."


whine, whine, whine

You know, it was 1989 when Ms Magazine, frustrated by the control advertisers wanted to exert over editorial content, went ad-free. It was pricey, but it sold and I and many other women bought it...until the editorial content deviated from the foundations of equality (jobs, families, legislation) and went into the la-la land of PETA, Veganism, and other truly unsustainable fringe topics, in pursuit of the fickle "youth" readers.

So, ad-free CAN work, if one stays true to the demands of the market.

The new media business model must lean towards sustainability, though. The pursuit of growth is what distracted Ms. from its mission, and lost it the base of its readership. The media that lasts is the media that sticks to its last, and spreads the information that its audience needs and wants and is willing to pay for...

[Ghost Dog]

51. Ah, yes. Sustainability (ding ding) vs. Growth as viable economic philosophies.

Good to see more such comment, even from ditto-heads.

[Demeter]

55. Ahem. That Was MY Commentary, GD

From the whine, whine whine and down.

And I am not, nor have I ever been, a dittohead. If I do show signs, please euthanize me.

[Ghost Dog]

66. Sorry, Demeter: I wasn't referring to your commentary, nor to SMW folks in general,

but to the fact that I'm hearing/reading more and more MSM commentators ("lowly hacks") at least slipping in between the lines these ideas that are spreading - even at the level of Reuters (not to mention the FT).

One aspect of the rumbling (intellectual) revolution I hear coming. :hi:

[Festivito]

19. Debt: 08/28/2009 11,718,758,941,630.90 (DOWN 6,718,894,459.95) (Mixed.)

(Debt up about an eighth of a billion, FICA side down well over six billion.)

= Held by the Public + Intragovernmental(FICA)
= 7,394,008,706,466.14 + 4,324,750,235,164.76
UP 123,059,531.85 + DOWN 6,841,953,991.80

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 307-Million person America.
If every American, man, woman and child puts in $3.25 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.76, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 10 seconds we net gain a another American, so at the end of the workday of the report, there should be 307,297,461 people in America.
http://www.census.gov/population/www/popclockus.html ON 08/24/2009 13:24 -> 307,261,605
Currently, each of these Americans owe $38,134.9.
A family of three owes $114,404.71. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 24 reports in the last 30 to 31 days.
The average for the last 24 reports is 4,418,812,338.91.
The average for the last 30 days would be 3,535,049,871.13.
The average for the last 31 days would be 3,421,016,004.32.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 153 reports in 220 days of Obama's part of FY2009 averaging 7.09B$ per report, 4.96B$/day so far.
There were 228 reports in 332 days of FY2009 averaging 7.43B$ per report, 5.10B$/day.

PROJECTION:
There are 1,241 days remaining in this Obama 1st term.
By that time the debt could be between 13.4 and 18.1T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
08/28/2009 11,718,758,941,630.90 BHO (UP 1,091,881,892,717.82 so far since Obama took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 1,694,034,044,718.50 so far this fiscal year, broken down below:
Borrowed in FY2009: 0,602,152,152,000.59 in part from time during Bush reign.
Borrowed in FY2009: 1,091,881,892,717.82 in part since Obama takes over.


LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
08/10/2009 +000,222,135,743.03 ------------******** Mon
08/11/2009 +000,246,752,500.45 ------------********
08/12/2009 +000,081,638,592.29 ------------*******
08/13/2009 +004,096,319,823.99 ------------*********
08/14/2009 +000,017,806,259.60 ------------*******
08/17/2009 +012,224,191,599.44 ------------********** Mon
08/18/2009 +036,282,270,009.21 ------------**********
08/19/2009 +000,703,521,737.77 ------------********
08/20/2009 +001,088,553,104.23 ------------*********
08/21/2009 +000,333,547,281.04 ------------********
08/24/2009 +000,472,040,908.69 ------------******** Mon
08/25/2009 +000,287,748,587.67 ------------********
08/26/2009 -000,466,043,865.86 ---
08/27/2009 +008,131,449,864.04 ------------*********
08/28/2009 +000,123,059,531.85 ------------********

63,844,991,677.44 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008 while Bush was in power JUST BEFORE fiscal year end.
Bush admin borrowed $962,245,245,654.01 in those last 124 days in office crossing two fiscal years.
$360,093,093,653.42 in last 12 days of FY2008, and $602,152,152,000.59 in subsequent 112 days before leaving office.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4039738&mesg_id=4039804

[Demeter]

20. Brazil ready to infringe US drug patents

http://www.ft.com/cms/s/0/34e946be-9580-11de-90e0-00144feabdc0.html

"in retaliation against subsidies for US cotton farmers, according to the Brazilian press.

The World Trade Organisation is expected to rule on Monday that Brazil can contravene the drug patents, say the reports."


Well, it may take outside pressure to end Agribusiness welfare, but it will be worth it! This argument has been running since 2002, and the US has lost every round, but still refuses to comply with WTO rulings...of course. Rules are for other people.

[Demeter]

21. Swiss Bank Secrecy Turning Into Swiss Ceese

(France's) Tax evaders’ bank secrecy ‘rolled back’

http://www.ft.com/cms/s/0/7a4c8dd0-958d-11de-90e0-00144feabdc0.html

Sarcozy's keeping a list, and checking it twice...and the amnesty program expires end of year...Germany previously went after its evaders, and then there is the US:


Swiss banks expect to avoid witch-hunt

http://www.ft.com/cms/s/0/d69ef3a0-9585-11de-90e0-00144feabdc0.html

"Switzerland’s top private bankers are convinced they can avoid a damaging witch-hunt over their activities by US authorities, in the wake of UBS’s tax row."

Well, we will see.

“It’s like we’ve been driving in a 60kph zone and after you’ve passed it, someone tells you it was 30. The interpretation of the rules has changed,” said Mr Collardi. “It’s a very unpleasant position to be in, but the most important thing is that we won’t compromise on fishing expeditions or banking secrecy.”

Or it's like suddenly rules are being enforced....

[PassingFair]

26. Total bullshit.

“It’s like we’ve been driving in a 60kph zone and after you’ve passed it, someone tells you it was 30. The interpretation of the rules has changed,” said Mr Collardi. “It’s a very unpleasant position to be in, but the most important thing is that we won’t compromise on fishing expeditions or banking secrecy.”


More like "We got caught, it couldn't have been WRONG if
you didn't stop us before this..."

:puke:

[Demeter]

27. They Had to Make a Token Protest, At Least

It works for the GOP, after all....

[Demeter]

22. GM to make light trucks in China

http://www.ft.com/cms/s/0/54ed9714-9588-11de-90e0-00144feabdc0.html

"The partnership with FAW, called FAW-GM Light Duty Commercial Vehicle Co, will be GM’s third joint venture with a local vehicle maker but the first to produce trucks. GM’s other Chinese joint ventures produce passenger cars and mini commercial vehicles. GM passenger car sales in China rose 52 per cent year-on-year in July, traditionally a weak month, according to figures from JD Power, the car consultancy."

[Demeter]

24. A New Model for the World Economy by Bill Bonner

http://dailyreckoning.com/a-new-model-for-the-world-economy/


We have to remember that the world economy has never, ever been in a fix like this. We don’t know where it will lead.

The big picture is that the credit cycle – expanding since the end of WWII – seems to be contracting.

“The joy of buying falls victim to recession,” says a headline in today’s International Herald Tribune. The article tells us how people are planting gardens again...saving money...making do.

This is likely to be a fundamental shift, not a transient one. But – humility! – what do we know?

What we suspect is that the upward trends of the last half a century have now reversed. We’re in a period when the excesses and mistakes of the boom/bubble period must be corrected. A new model for the world economy must be found – because China can’t continue to sell products to Americans if Americans can’t continue to buy them.

But there’s more to this big picture. Never before in history have so many government officials been so sure they could stop a correction. And never before have they had more ammunition at their disposal. The numbers are all over the place. And they’re huge. The Obama administration, for example, expects to run $9 trillion in deficits over the next 10 years – and that number is based on a recovery! Imagine what will happen if the economy doesn’t recover?

Here at The Daily Reckoning, we don’t expect a recovery, not now...not never. Because the old model no longer works. Debt got too big...too expensive...too risky. Something had to give.

But what gives now? What happens when a world economy of $50 trillion per year tries to correct and governments try to stop it? What gives when the world’s largest debtor borrows $9 trillion trying to prevent nature from taking her course?....

Banks in the United States are having a tough time...and that’s putting it lightly. One in four US banks have announced an unprofitable quarter.

“Friday’s edition of The Wall Street Journal picks up on the theme of the long road of pain ahead for bank shareholders in the US,” colleague Dan Amoss tells us. “In ‘Banks on Sick List Top 400,’ the WSJ details several ugly highlights from the latest FDIC Quarterly Banking Profile, published last Thursday.

“Here are a few:

“1. The FDIC’s Deposit Insurance Fund is now promising to insure $6.2 trillion in deposits with just $10.4 billion in reserves. Expect to see another “special assessment” cutting a few billion dollars out of bank earnings later this year.

“2. Credit card losses are at a record: 9.95%

“3. 416 banks, or 5% of the nation’s banks, are on the ‘problem’ list.

“4. FDIC-insured banks are sitting on $332 billion in loans more than 90 days past due, up from $290 billion in the first quarter.

“5. Nonperforming loans now make up 2.77% of the entire banking industry’s assets. This is up from 1.4% in June 2008 and 0.47% in June 2006. As these loans get ‘worked out’ in today’s credit environment, the market will start to realize how severe net charge-offs will be.

“In this new report, the FDIC published updated figures for the combined noncurrent loans and loan loss allowance at all FDIC-insured institutions. Here is an updated version of the chart we published in the Aug. 14 alert. The new figures – the moves from December 2008 to June 2009 – are highlighted in the dotted lines at the far right of this chart:




“You can see how problem loans are increasing at a much faster rate than the rate at which the banking industry is adding to its loss allowance. This means that published capital ratios are misleadingly high.”

[Name removed]

25. Deleted message

Message removed by moderator. Click here to review the message board rules.

[UpInArms]

28. dollar watch

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

Last trade 78.267 Change +0.119 (+0.15%)

Currencies Fail to Hold Early Gains; USD Rallies

http://www.dailyfx.com/story/market_alerts/fundamental_alert/Currencies_Fail_to_Hold_Early_1251806343008.html

Any currency gains seen early on were easily wiped out with the USD the prime across the board beneficiary on a reduction in risk appetite, brought on by lower equity prices and weaker overnight data. Talk that a hedge fund was in trouble also did not help the cause with the Euro breaking down to fresh daily lows below 1.4300 into the US open. The Australian Dollar has been hit the hardest on the day, with the single currency suffering from the pullback in risk appetite, a discouraging current account number and most importantly a more dovish than expected accompanying monetary policy outlook from the RBA following the decision to leave rates on hold at a record low 3.00% as widely expected. Sterling has also been one of the weaker currencies with the pound suffering from the much softer than expected August manufacturing PMI result. Some better than expected Eurozone August PMI and steady unemployment failed to materially factor into price action, although the Euro did manage to find fresh bids on the Eur/Gbp cross. Elsewhere, Swiss data releases were impressive with not as bad GDP and better PMI. Looking ahead, US ISM manufacturing (50.5 expected), pending home sales ( 1.6% expected) and construction spending (0.0% expected) are all due at 14:00GMT. US equity futures point to a lower open by some 0.50%, while commodities are marginally offered.

...more...

British Pound Pares Gains as Consumer Credit Falters, Euro Weakens as Unemployment Hits 10-Year High

http://www.dailyfx.com/story/bio1/British_Pound_Pares_Gains_as_1251802055566.html

The British pound failed to push back above the 50-Day moving averaged and pared the overnight advance following the unexpected drop in consumer credit, and the GBP/USD may continue to retrace the advance from earlier this year as the prospects for a sustainable recovery remains uncertain. Net consumer credit unexpectedly slipped to -0.2B in July to mark the first decline since April 1993, and households may continue to lower their temperament to take on secured debt as they face a weakening labor market paired with fears of a slower recovery.

At the same time, mortgage approvals in the U.K. rose to a 15-month high of 50.1K in July from a revised reading of 47.9K in the previous month, while the M4 money supply grew 1.5% during the same period amid an initial forecast for a 1.0% rise, and banks may continue to increase their willingness to lend throughout the second half of the year the Bank of England takes unpredicted steps to ease the flow of credit. However, manufacturing unexpected contracted in August, with the PMI reading falling back to 49.7 from a revised reading of 50.2, and the data reinforces fears of a slower recovery as businesses continue to scale back on production and employment. As the economic outlook remains highly uncertain, the downturn in the interest rate outlook is likely to weigh on the exchange rate going as the Bank of England maintains a dovish policy stance, and we may see the GBP/USD fall towards the 100-Day SMA at 1.6020 over the week as it fails to cross back above the 50-Day moving average.

The euro pushed to an intraday high of 1.4380 against the greenback following the better-than-expected data from Germany but failed to hold ground as the annual rate of unemployment in the Euro-Zone increased to 9.5% in July from 9.4% in the previous month, which is the highest since June 1999. As investors continue to weigh the outlook for future policy, we may see the euro-dollar continue to trend sideways throughout the week as the European Central Bank is widely expected to hold the benchmark interest rate steady at the record-low of 1.00% on Thursday, and the commentary following the rate decision is likely to shake up the currency market as investors anticipate the central bank to tighten policy over the next 12 months.

U.S. dollar price action was mixed during the overnight session, with the greenback advancing against most of its currency counterparts however, the EUR/USD is likely to face increased volatility going into the North American trade as economists forecast manufacturing activity to expand for the first time since November 2007. The ISM manufacturing index is widely anticipated to increase to 50.5 in August from 48.9 in the previous month as businesses look to replenish their stockpiles of unsold goods, while the gauge for prices paid is forecasts to increase to 57.8 from 55.0 in July. Moreover, pending home sales is expected to rise1.6% in July to mark the sixth consecutive monthly increase, while construction spending is anticipated to hold flat during the same period after growing 0.3% in June. The data is likely to encourage an improved outlook for growth and inflation as businesses look to boost their rate of production, and the rebound in home sales

...more...

[UpInArms]

29. U.S. credit card satisfaction down amid higher rates: poll

they had to take a poll to find this out???

http://www.reuters.com/article/businessNews/idUSTRE5802IM20090901?feedType=RSS&feedName=businessNews

NEW YORK (Reuters) - U.S. consumers satisfaction with credit cards plummeted in 2009, driven by anger due to fees and higher interest rates, according to a J.D. Power and Associates poll released on Tuesday.

The poll showed around 20 percent of customers reported an increase in their interest rates since 2008, with the largest decline in satisfaction among revolvers, those card holders who carry a balance from month to month.

In addition, 18 percent of customers complained about various fees, up from 10 percent a year earlier.

The customer satisfaction index fell 7 points to 703 points in a 1,000-point scale, its lowest level since J.D. Power, a unit of McGraw-Hill Cos (MHP.N), began conducting the survey in 2007.

The decline was "a little more than we thought," said Michael Beird, director of banking services at J.D. Power and Associates. "Rates and fees clearly had the largest impact ... We saw a decline in satisfaction among all types of cardholders in that category."

Overall satisfaction among credit card customers remains the lowest across the financial services industries, including insurance, banking and investment services, he said.

In the last year, credit card companies have been raising fees and interest rates and slashing rewards to cushion record high loan losses.

...more...

[Po_d Mainiac]

30. Guess they'll just have to flog us some more, till our attitudes improve n/t

[Demeter]

32. I Got Out of the Game in 1998

when debit cards came into being, and my NH house sold and I could pay off the hospital debt. Never looked back.

[Warpy]

34. I've been living without a credit card since 1991

I use an ATM on a junk account for online purchases. If it gets hacked, they won't get much.

You can live without credit cards.

Debt really is poison. Income can vary, but that damned debt is always there, the creditor's hand outstretched for a payment even when you're doing without essentials.

[AnneD]

58. Card less since 2003.....

As time has gone by...the money I have saved from not paying credit card interest has really added up. Having a credit card in your wallet is like having a pick pocket in your wallet.

[Hugin]

35. The Market Indexes seem to have taken a turn for the worse this morning.

Dow 9,337.95 -158.33 (-1.67%)
S&P 500 1,005.09 -15.53 (-1.52%)
Nasdaq 1,983.08 -25.98 (-1.29%)

NEW YORK (TheStreet) -- Wall Street "sold the news" Tuesday after data showed growth in the manufacturing sector and improvement in pending home sales, as investors squirmed into September. The Dow Jones Industrial Average was down 145 points, at 9351, while the S&P 500 gave up 15 points, to 1006. The Nasdaq Composite fell 25 points, to 1984.
"I think we're seeing a fear factor that we're in the first day of September -- the worst month of the year for equities -- and of course, the fact that everyone is talking about a correction certainly is weighing on the market," says Peter Cardillo, chief market economist at Avalon Partners. "There's been light volume, so it's very easy to make a case for buying the rumor and selling on the fact, and this market has already discounted that the economy is moving out of a recession."

Discussion: http://www.thestreet.com/story/10592932/1/dow-takes-a-tumble.html?cm_ven=GOOGLEN

[Robbien]

36. WSJ saying Japan's new PM Hatoyama is an anti-capitalist

How the WSJ defines anti-capitalist:

He stands for agricultural protectionism, higher minimum wages, higher taxes in the name of environmental responsibility and more handouts to the elderly, parents and unemployed. He wants to protect small- and medium-sized businesses from competition. His pledges to cut taxes are minimal; his goal to cut fat from the budget, vague; and his commitment to free trade, marginal. The phrase "economic growth" scored nary a mention in his campaign pledges

http://online.wsj.com/article/SB10001424052970203706604574381700306393382.html?mod=googlenews_wsj


As if the last fifty years of pure capitalism has worked for Japan.

[Hugin]

37. It's going to be interesting watching the events unfold in Japan.

Oddly, I didn't hear there was even an inkling of a power shift there... Until it happened.

[Robbien]

47. Jobless recoveries can be a bitch

We can only hope US's TPTB are watching Japan's reaction to theirs and are taking note.

[Ghost Dog]

52. Hmmm. Oddly, US MSM doesn't appear to inform its users

very well :). What economics/business media do you follow or scan, Hugin, if I may ask?

This shift was well signalled in advance, I think, even in Spanish mainstream press.

[Hugin]

53. Well, it's a pretty eclectic assortment...

Usually, via Google Finance.

But, apparently there's a kink in the pipe somewhere... Wall Street? :shrug:

[Ghost Dog]

71. Hmmm. I've noticed Google, Yahoo and others tend to filter data

according to where they think you're coming from.

Just look at the difference between CNN (US) and CNN (International) in satellite TV world, for example, next time you've a spare hour to kill in some lost-in-translation hotel room, as a superficial example.

Work the net, though (especially if you can read several languages) and you will see.

This, in my long-exiled out-of-UK experience. Having never set foot in the USA.

[Joe Chi Minh]

63. It would be really something if Japan went back to McArthur's blueprint - the

rest of the world, too, for that matter. Japan certainly prospered under it. No CEO getting more than 12 times the salary of the lowest-paid worker... something like that.

[Tansy_Gold]

38. have I told you lately how much I love SMW?

It's so civilized here.



:grouphug:

[Demeter]

40. The Feeling is Mutual

A very precious commodity. I poke my head up in other places, occasionally, and add to my IGNORE collection.

[DemReadingDU]

44. It's a great place!

I read a few posters in various forums, but most time spent reading here.

:hi:

[DemReadingDU]

39. CNN: Ford says vehicle sales rose 17% in August,

I think someone is trying to prop up the market, it is down 177 at 12:30
*****

CNN: Ford says vehicle sales rose 17% in August, benefiting from the Cash for Clunkers trade-in program.


edit for link

9/1/09 Clunkers rush lifts Ford sales

Ford sales rose 17% as Clunker incentives and good economic news brought buyers back. Will sales remain strong now that Cash for Clunkers is history?

Ford Motor reported a sharp increase in U.S. sales in August, thanks to a three-week spike in demand sparked by the popular Cash for Clunkers program. But sales dropped sharply in the last week of August -- after Cash for Clunkers ended.

Ford (F, Fortune 500) reported Tuesday that sales rose 17% compared to August 2008, its biggest jump in sales in four years.

Although the company did not mention the Cash for Clunkers program specifically in its release, Ford director of sales analysis George Pipas told CNNMoney.com Monday that sales were helped by the program, which rewarded purchases of more fuel efficient vehicles such as Ford's popular Focus model.

Ford said in its release that sales were also lifted by signs of recovery in the U.S. economy overall. Sales of trucks and vans, for example, rose 12%.

more...
http://theautomaticearth.blogspot.com/2009/08/august-31-2009-like-dolphins-can-swim.html

[Demeter]

41. Ew! Pretty Ugly for a Monday

Looks like GS is sweating it with the HFT scam...

[DemReadingDU]

46. Monday?

:P

[Demeter]

54. Well, that Explains EVERYTHING Today!

(Checks calendar, computer, watch and cell phone). No wonder I'm so far off! a

It is a common market pattern for a Tuesday, actually.

[Hugin]

42. Secretly...

I've been harboring this suspicion that C4C was Ford's cut of the bailout pie.

But, I had difficulty finding a motivation for Ford to be treated differently than GM or Chrysler.

[DemReadingDU]

45. Interesting, n/t

[Robbien]

48. August Car Sales Sucked!

Jeez. Here we were thinking that the auto companies would come out with good numbers today, but that they'd need a big asterisk due to Cash-for-Clunkers.

But nope. They were just bad. Ford (F) missed lofty expectations, and Chrysler's monthly sales actually showed a dip, when analysts were expecting a gain.

Cash-for-Clunkers sure was a hit, but mainly for the foreign automakers it seems.

http://www.businessinsider.com/august-car-sales-sucked-2009-9

Details of Ford's sales:

Among the sale figures for August, compared with August 2008:

• Ford Explorers, made at the Louisville Assembly Plant, declined 15.5 percent to 4,650 units.

• The Mercury Mountaineer, also made at Louisville Assembly, dropped 28.2 percent to 402 units.

• F-Series pickup trucks, including Super Duty trucks made at the Kentucky Truck Plant, rose 12.8 percent to 45,590 units.

• Ford Expedition SUVs, which began production at Kentucky Truck Plant in April, declined 56.7 percent to 1,676 units.

• Lincoln Navigator, also made at Kentucky Truck Plant, dropped 49 percent to 471 units.

Among other vehicles, big sales gains were recorded by the Ford Focus, up 56 percent; Ford Fusion, up 132 percent; Ford Escape, up 49 percent; and the Mercury Mariner, up 50 percent.

http://www.bizjournals.com/louisville/stories/2009/08/31/daily13.html


The big money makers (and big gas guzzlers) just didn't sell.

[Demeter]

56. Can't Sell What You Don't Have

[DemReadingDU]

43. Lee Adler: Forbes Polls the Wackosphere and Gets An Earful

9/1/09 Forbes Polls the Wackosphere and Gets An Earful by Lee Adler

.
.
But it’s not gonna be all right. In fact, things are getting worse as we speak, and they will continue to get worse for the short term, the intermediate term, and the long term– for as long as the same people are in charge who caused this mess in the first place; for as long as the media continues to give a platform to those same people who were responsible for all the–let’s call them what the are–crimes– that put us where we are. For as long as those in power in Washington give those same people the same power they have always had, rather than punishing them for their “mistakes”, we are going to be in this mess.

So now we have transferred trillions of bad debt, some of it completely worthless paper, on to the books of the Fed and the Federal Government. What can the outcome possibly be? Ultimately default? Devaluation? Hyperinflation? Slow motion economic collapse such as that which is currently under way? Even finally the collapse of government and society? Anything is possible, given how insane these policies are and how clueless our policy makers have been and continue to be.
.
.
Meanwhile lending institutions and now the government pretend that the losses don’t exist, reporting unbelievably, that the money supply hasn’t collapsed along with everything else. They have no choice. They have to keep the con going, lest there be one final, fatal run on the banks and/or the money market funds.
.
.
As for the economy, over the next year, it will get worse, for all the reasons enumerated above. How much worse, I have no clue. I’m not an economist, thank goodness. What an embarrassment that would be. Obviously they have no clue either. They pretend. That’s all. They missed the biggest collapse in the last 75 years. Knowing what’s likely to happen is not their job. Their job is to talk a good game so that Wall Street can continue its game.

Ripping off the rest of us.

So Good Night, and Good Luck.

You’re going to need it.

lots more to read, and lots of graphs too...
http://wallstreetexaminer.com/2009/08/31/forbes-polls-the-wackosphere-and-gets-an-earful/

[AnneD]

49. Will You Finally Be Able to Sue Your Broker?

In this great litigious nation, you can sue just about anyone – your doctor, your mechanic, even your dog walker. Just not your stockbroker. Angry brokerage customers – and these days, there are plenty of them – have long been forced to take their complaints before a panel of arbitrators, a process, critics say, that is far from consumer-friendly.

But that may be changing, and faster than anyone anticipated. Since the financial crisis began, the practice of forcing consumers into mandatory arbitration has come under increasing public and legal scrutiny. Most recently, Bank of America (BAC: 16.75*, -0.84, -4.77%) announced it would no longer force credit-card customers into arbitration if they had a dispute.

The move by banks and others to back away from arbitrations on credit-card conflicts has inspired calls for similar action regarding securities arbitration. Investor advocates have long complained about the process; now the issue has champions on Capitol Hill as well. “Forced arbitration is becoming less and less acceptable to the American public,” said Sen. Russ Feingold (D., Wisc.), a sponsor of the Arbitration Fairness Act, which would ban mandatory arbitration. “The customers of securities brokers deserve to have the option of taking disputes to court if they want to.”

Even some in the brokerage industry are starting to waver. Chase, which last month stopped sending new credit-card disputes to arbitrators, is reevaluating its use of arbitration in all areas, including its brokerage businesses, a spokesman for the bank says.

The problems with broker mandatory arbitration are nothing new, of course, but the financial crisis has drawn them back into the spotlight. Almost 4,500 complaints against brokers were filed through the end of July – an increase of 140 percent since 2007. For years, consumer advocates have argued that the process unfairly favors companies in part because one person on every three-member panel comes from the securities industry. The panel isn’t required to explain its rationale, either. When the process is over, all a customer gets is a “thumbs up” or a “thumbs down.” Less than half of the cases are decided in favor of the customer.

more.........



http://www.smartmoney.com/investing/stocks/Will-You-Finally-Be-Able-to-Sue-Your-Broker

There are some good pros and cons but you should always be able to seek redress.

[Ghost Dog]

60. Take that kind of protection away from 'brokers'

and give it to doctors.

[AnneD]

57. Dentists Drill for Dollars

When the economy turned sour last year, some experts said they thought the recession might actually be good for the country’s roughly 160,000 dentists. After all, people would be grinding, gritting and damaging their teeth as they sweated about layoffs and plunging portfolios. But grinding or no grinding, the business boom didn’t materialize for many dentists, as cost-conscious consumers decided that when times are tight, tooth care can be optional.

The most recent annual survey by the American Dental Association found that 48 percent of dentists said their net income was dropping. This summer the Kaiser Family Foundation, a health-research group, reported that more than one in three consumers were putting off dental care and checkups because of cost. And some cosmetic dentists—those once-popular crafters of Julia Roberts–style pearly whites—say their revenue has sunk 30 percent.

Mark A. Babbitt, a dentist in Ventura, Calif., says that three or four years ago, he took it for granted that new patients would always be streaming through his door, many of them looking for expensive cosmetic treatments like porcelain veneers. Now he goes whole mornings without appointments and reads inspirational books to stay positive. If he can book somebody, he’ll even work during his lunch break—doing the cleanings while his dental hygienists eat. And that’s why he recently decided for the first time in his 13-year career to send out care packages to loyal patients, each one featuring a coffee mug with his name emblazoned on it and a handwritten note reminding his customers to refer friends. “Sometimes it feels like 28 Days Later,” Babbitt explains, referring to the zombie flick. “The world’s ended, and all the people disappeared.”

Welcome to the apocalypse—or something that feels a little like it to many dentists. Their financial pinch is playing out in strange ways for patients. Some dentists have taken on unfamiliar roles, filling in for their own assistants and striking bargains with customers. Others are offering the kind of freebies and reward points that seem less “serious medical office” and more “all-inclusive Cancun getaway.” But some are putting their patients in uncomfortable positions. The Better Business Bureau says dentists are among the top 50 professions consumers complain about, topping even lawyers. Last year the number of complaints rose 9 percent, to 3,570. Consumer advocates say some desperate dentists are up-selling their patients, telling them they need $1,000 crowns and tooth sealants they could easily do without. “It’s a very vulnerable place you sit in as a patient,” says Anika Ball, executive director of the American Society of Dental Ethics—and some dentists may be taking advantage.

more.....

http://www.smartmoney.com/personal-finance/health-care/dentists-drill-for-dollars/?cid=1230

I need some work done and hadn't thought about it...maybe I can get a deal. One dentist (that ex used)told my daughter that she had 5 cavities after she had her braces removed. Wanted to do them right then. My 15 yo daughter at least had the smarts to tell her not only no but hell no. If you knew how often she cleans her teeth, you'd know that was impossible. When I took her to my dentist...she was fine. Not a cavity in those pretty teeth.

[Dr.Phool]

59. How would you like to be a dentist in West Virginia?

It's like the old joke,

What has 128 arms, 128 legs, and 16 teeth?

The first 3 rows at the Grand Ole Opry.

[AnneD]

62. HAHAHAHAHAHAHAHA....

You slay me Dr Phool.

You are a redneck if somebody tells you that you've got something in your teeth, so you take them out to see what it is!


A redneck died and left his entire estate in trust for his beloved widow.
However, she can't touch it until she turns 14.

The minimum drinking age down home has been raised to 32.
It seems they want to keep alcohol out of the high schools

Dr Phool, you might be a redneck if....

You take your dog for a walk and both use the same tree.

[CatholicEdHead]

64. But the article makes no mention of general practice dentists

who are probably just fine, doing the basics and not the fancy cosmetic dentistry.

[Hugin]

61. Well, the Markets are now done for the day. (PLUS! Two FREE articles!)

Dow 9,310.60 -185.68 (-1.96%)
S&P 500 998.04 -22.58 (-2.21%)
Nasdaq 1,968.89 -40.17 (-2.00%)

____________________________________________________________________________________________________________________________

American Intl. Group, Inc AIG 36.00 -9.33 (-20.58%)

"AIG CEO regrets sharp criticism of Cuomo" (Reuters)

By Adam Tanner

BELGRADE (Reuters) - Robert Benmosche, the new CEO of American International Group Inc, said he regrets tough comments he made about New York's attorney general, saying he was trying to bolster a demoralized AIG work force.

"You can characterize me as a goon or you can characterize me as somebody who is attempting to deal with a complex issue of a very demoralized employee force and said those things to them in confidence to reassure them that they no longer have to be afraid that they are going to be attacked again," Benmosche told Reuters in an interview on Tuesday.

During a closed-door staff meeting in Houston, Texas, last month, Benmosche said New York Attorney General Andrew Cuomo "doesn't deserve to be in government" and had acted like a "criminal."

Cuomo's office declined to comment on the incident or on Benmosche's subsequent comments.

In March, New York's top lawman issued subpoenas following news that AIG had paid $169 million in bonuses to employees in its money-losing financial products division. The payments sparked congressional and public outrage, as AIG has received more than $180 billion of federal aid.

Read the rest of the mia culpa issued from the Bankster's hideout... http://www.reuters.com/article/newsOne/idUSTRE5803AQ20090901

___________________________________________________________________________________________________________________________________

"Banks Lead Decline in U.S. Stocks on Concern Over More Losses" (Bloomberg)

By Lynn Thomasson

Sept. 1 (Bloomberg) -- U.S. stocks fell for a third day, the longest losing streak for the Standard & Poor’s 500 Index since June, as concern banks will post more losses overshadowed manufacturing and housing data that topped economist estimates.

Wells Fargo & Co. slid the most in two weeks even after saying it will pay back government bailout funds soon. Bank of America Corp. declined 6.4 percent to lead the Dow Jones Industrial Average lower. American International Group Inc. plummeted 21 percent and MetLife Inc. tumbled 7.4 percent after analysts said the insurers’ shares have risen too far, too fast. Europe’s benchmark stock index retreated 1.8 percent.

The S&P 500 lost 2.2 percent to 998.04 at 4:04 p.m. in New York, its steepest decline since Aug. 17 and first close below 1,000 since Aug. 19. The Dow industrials fell 185.68 points, or 2 percent, to 9,310.6. The Russell 2000 Index of small companies sank 2.5 percent.

“The future for the banks is not as muddy as it was two quarters ago, but it’s still not clear,” said Don Wordell, the Orlando, Florida-based manager of the RidgeWorth Mid-Cap Value Equity Fund that has outperformed 94 percent of rivals in the past five years. “The market can’t sustain these huge moves.”

Read the rest of it here... http://www.bloomberg.com/apps/news?pid=20601087&sid=a7aSk0Ni0nh0

[Tansy_Gold]

65. Back when I started posting on SMW

I wondered, and even asked aloud -- or in what passes for aloud in cyberworld -- what the Dow should really be at in terms of real-world values. I think the estimates ran from 3500 to maybe 6000; doesn't really matter other than we're still a long way from there.

House prices may be going up, but I suspect -- gut feeling -- that we're seeing a lot of speculation in that. It's not new families buying their first homes; it's the well-off who are picking up a second or third home for investment or rental purposes because they've got the money and prices are good.

Jobs aren't coming back, and until that happens, nothing's going to recover.

If I were a betting person, I'd be betting against the Dow over the next six months. Maybe even over the next six weeks.



Tansy Gold

[Demeter]

68. October is Just Around the Corner

Truly the cruelest month for the Markets....(except lately, it seems like all months with or without an R in them are bad for markets!)

[Ghost Dog]

69. From the Bloomberg piece above:

"...The surge in the S&P 500 left the index valued at about 19 times the profits of its companies as of the end of last week, the most expensive level since June 2004.

...

“Given the run that we’ve seen, where people could clearly care less about the fundamentals of the companies that were bid up, any dose of reality has to have a very chilling effect,” said Brad Golding, the New York-based managing director at Christofferson Robb & Co., which oversees $1.5 billion. “The financials have run so far, so much that they’ve gotten to levels that cannot be sustained in a choppy economy.”

...

Paul Tudor Jones’s Tudor Investment Corp., Clarium Capital Management LLC and Horseman Capital Management Ltd. are among funds betting that Goldman Sachs Group Inc. and Morgan Stanley got it wrong in declaring the start of an economic recovery. The firms oversee a combined $15 billion in so-called macro funds, which seek to profit from economic trends by trading stocks, bonds, currencies and commodities. "

(Gambling in not a little anger, I confess I picked up a slice of an S&P 500 INVERSE ETF first thing this morning (your time)). Will probably get burned. :(

[ozymandius]

72. December 1st: housing gets a hangover

The $8k incentive to "new" home buyers expires on 11/30. Take out the seasonally adjustment and the contrast between incentive and non-incentive months will be jarring. Speculation may play into these stats to a degree. However I'm betting on TALF to make the largest difference.

[Demeter]

67. Sounds Like Mafiosi to Me

With a name like that, he's probably Israeli?

[Ghost Dog]

70. China Tightens Grip on Rare Minerals

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4041315#4041793

I'd just like to call SMWers' attention to this subject and surrounding (very large) issues.

If China is a dictatorship then so are we all. Although the brainwashing is sometimes more entertaining (and thought-provoking) when it comes from media run by our Jewish friends and allies.

As for the merits of attempts at intelligent humanity-oriented long-term planning as opposed to knee-jerk immediate benefits for the terminally-greedy already rich, well...

Oy vey.

[DemReadingDU]

73. Jesse: Rumour du Jour

9/1/09 Rumour du Jour - a Large US Bank Is In Trouble

As they say on the financial infomercial channels, "US equities appear to be out of favor today."

There are rumours swirling the trading desks that a large US bank is in trouble, and will need some help getting itself re-organized.

The name Wells Fargo has been mentioned, and there is an associated six percent drop in the stock, with a groundswell of put option activity. It does seem like a 'setup' to us. There are also rumours that Cerberus is in trouble (and there is plenty of smoke on that one.)

There is a contrary view that this is a 'setup' to suck in the shorts and help to trigger a massive rally when the Jobs numbers are reported on Friday.

There is a flight to safety into the dollar and treasuries, but interestingly enough also gold and silver, as 'investors' exit US stocks.

So far we are holding a key support level around 995 on the SP futures, and we tend to discount most rumours that make it to bubblevision rather heavily. If there is any real news it should come out in the evening.

Let's see what happens. We're hedged to the short side which is where we have been coming into the day, anticipating a pullback to key support. We're there now.

There was 'good news' today, and the market ignored it and went sharply lower. That may be significant but it is too soon to tell for sure. A breakdown in equities from here would be more significant to our minds.

In sum, this is a highly manipulated market, full of speculation and hot money. The Obama Administration is failing badly to reform the US financial system, and so here we are, trading on hot money and rumours.

http://jessescrossroadscafe.blogspot.com/2009/09/rumours-du-jour.html

:eyes:

[Ghost Dog]

75. "and so here we are, trading on hot money and rumours"

with a large pinch of salt.

[Ghost Dog]

74. Recent Concentration of Volume in Financial Stocks: Coordinated Capital Infusion?

By Steenbarger - August 31st, 2009, 2:30PM

I just wanted to add some color to my recent post regarding why the NYSE TRIN indicator might be broken

Reader Brian adds a very interesting perspective, indicating that he’s watched TRIN and C side by side and has seen a very strong correlation. When C flips from up to down (or vice versa), there is a corresponding huge move in TRIN. This could only be the case if a stock like C comprised a large share of total NYSE volume, which indeed seems to be the case, as noted by The Big Picture blog.

Above I took C, FNM, and FRE and expressed their *composite* volumes (e.g., the volumes transacted across all exchanges) as a fraction of NYSE volume. What we see is that, early in 2007, those three stocks accounted for only 1-3% of NYSE volume. During the financial crisis of late 2008 and again as the market was bottoming in early 2009, that ratio skyrocked to well over 50%.

Recently, however, the volume in these three stocks has hit astronomical levels relative to total NYSE trading, as all three have made phenomenal percentage gains during August. Indeed, the composite volume of these three stocks alone has recently doubled total NYSE volume. If we look at just the NYSE trading of these firms, they are accounting for about 40% of NYSE volume. It is not surprising that Brian would notice TRIN flipping up and down as these stocks change direction.

Again, the question is what all this means. There is no way that mom and pop trader and investor are involved in any meaningful way in generating these kind of daily trading volumes. Nor are proprietary trading shops capable of generating volumes that exceed those of the entire New York Stock Exchange. While I have no doubt that the algorithmic trade close to the market is participating in this movement, the directionality of the involvement suggests that large financial institutions are systematically buying the beaten-up shares of the poster children for TARP: C, FNM, FRE, AIG, and the like.

/... http://www.ritholtz.com/blog/2009/08/the-recent-concentration-of-volume-in-financial-stocks-coordinated-capital-infusion/