STOCK MARKET WATCH, Thursday 16 February

[ozymandius]

Thursday February 16, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1068 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1883 DAYS
WHERE'S OSAMA BIN-LADEN? 1583 DAYS
DAYS SINCE ENRON COLLAPSE = 1544
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 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 February 15, 2006

Dow... 11,058.97 +30.58 (+0.28%)
Nasdaq... 2,276.43 +14.26 (+0.63%)
S&P 500... 1,280.00 +4.47 (+0.35%)
30-Year Bond 4.58% -0.02 (-0.44%)
10-Yr Bond... 4.61% -0.01 (-0.17%)
Gold future... 542.70 -6.20 (-1.14%)






GOLD, EURO, YEN, Dollars and Loonie


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 [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Mike Hartman

CHAIRMAN BERNANKE MAINTAINS CONTINUITY

Investors and market analysts have been waiting patiently for the new Chairman of the Federal Reserve, Ben Bernanke, to hear his testimony before Congress as they search for clues to determine the direction of interest rates and asset prices. Overall it appears Mr. Bernanke is demonstrating a continuation of the same policies we have seen by the Fed under Alan Greenspan. After two hours of testimony, stock prices are flat to slightly lower along with bond prices, the dollar is fractionally higher against most major currencies and commodity prices along with gold and silver are moving lower. The direction of asset prices is consistent with the expectation of higher interest rates to come.

Mr. Bernanke says the economic expansion in the U.S. remains on track, inflation expectation remain contained and he agrees with the last FOMC statement that some further firming of monetary policy may be necessary. The Fed mantra remains unchanged as they seek a smooth transition of leadership to create calm in the financial markets and reassure investors that everything is under control. Our new Fed Chairman cited the slowdown in the housing market as a potential problem for future economic expansion, but conditioned his remarks by saying that he expects a moderate softening in real estate to be more likely than a sharp contraction.

After earning the nickname “Helicopter Ben” by his comments of dropping money from helicopters to fight deflation, he came across today as more hawkish toward inflation. This is generally not what the markets wanted to hear; especially the bulls that would like to see stock prices continue higher. He identified high energy costs as a possible trigger to higher inflation along with elevated rates of resource utilization. The unemployment rate is calculated to be 4.7%, its lowest point in more than four years and a further decline in the rate could trigger wage inflation. While we would all like to see our paychecks get bigger, it will make the U.S. less competitive relative to global production costs.

-cut-

Let’s Hear It for the New Economy!

Mr. Bernanke continues with the same Fed mantra that the inverted yield curve (two-year Treasuries with a higher yield than ten-year Treasuries) does not indicate a near-term slowdown in the economy. He sounds like another new-waver economist that is saying “this time is different.” I don’t think so! There is a six to nine-month lag time of higher interest rates and a housing slowdown on the overall economy. In the fourth quarter our GDP growth was reported at the very low level of 1.1% growth, slower than the rate of inflation. The Fed is now saying their GDP forecast for this year should come in at the high end of the range. Last July they forecast GDP growth in the range of 3.25% to 3.5% and are reiterating their call for 3.5% GDP growth.

more...

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

[ozymandius]

2. Today's Reports

Feb 16 8:30 AM Building Permits Jan
Briefing Forecast 2060K
Market Expects 2068K
Prior 2075K

Feb 16 8:30 AM Export Prices ex-ag. Jan
Briefing Forecast NA
Market Expects NA
Prior 0.1%

Feb 16 8:30 AM Housing Starts Jan
Briefing Forecast 2040K
Market Expects 2023K
Prior 1933K

Feb 16 8:30 AM Import Prices ex-oil Jan
Briefing Forecast NA
Market Expects NA
Prior 0.0%

Feb 16 8:30 AM Initial Claims 02/11
Briefing Forecast 280K
Market Expects 285K
Prior 277K

Feb 16 12:00 PM Philadelphia Fed Feb
Briefing Forecast 9.0
Market Expects 9.2
Prior 3.3

[UpInArms]

13. 8:30 Reports in:

U.S. continuing jobless claims fall 39,000 to 2.511 million
8:30 AM ET Feb. 16, 2006 -

U.S. 4-week avg. jobless claims rise 6,250 to 283,000
8:30 AM ET Feb. 16, 2006 -

U.S. weekly jobless claims rise 19,000 to 297,000
8:30 AM ET Feb. 16, 2006 -

U.S. Jan. single-family starts up 12.8% to record 1.819mln
8:30 AM ET Feb. 16, 2006 -

Effects of warmest January ever seen in housing data
8:30 AM ET Feb. 16, 2006 -

U.S. Dec. housing starts revised up to 1.988mln vs. 1.933mln
8:30 AM ET Feb. 16, 2006 -

U.S. Jan. housing starts blow past 2.02mln forecast
8:30 AM ET Feb. 16, 2006 -

U.S. Jan. building permits rise 6.8% to 2.217mln pace
8:30 AM ET Feb. 16, 2006 -

U.S. Jan. petroleum prices rise 6.4%
8:30 AM ET Feb. 16, 2006 -

U.S. Jan. housing starts highest since 1973
8:30 AM ET Feb. 16, 2006 -

U.S. Jan. import price index rises 1.3% vs. 1.0% expected
8:30 AM ET Feb. 16, 2006 -

U.S. Jan. housing starts rise 14.5% to 2.276mln pace
8:30 AM ET Feb. 16, 2006 -

[UpInArms]

14. Jan. starts most since 1973; single-family homes set record

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD7E736F0%2DA53E%2D4864%2DA110%2D49E79D02CFFD%7D&siteid=mktw&symbol=

WASHINGTON (MarketWatch) - New construction of U.S. homes soared 14.5% in January to a seasonally adjusted annual rate of 2.276 million, aided by the warmest weather of any January on record.

It's the highest rate for seasonally adjusted starts since March 1973. The percentage gain was the largest in nearly 12 years, the Commerce Department said Thursday.

Housing starts were up 4% over the rate recorded in January 2005, which was also a relatively warm and dry month.

Starts of new single-family homes rose 12.8% to a record seasonally adjusted annual rate of 1.819 million in January.

The gain in housing starts far exceeded the 2.02 million pace expected by economists surveyed by MarketWatch.

<snip>

Markets and policymakers have been watching housing data carefully for signs of a collapse after years of robust construction and sales. But Commerce Department officials caution that the monthly construction data are extremely volatile and are subject to large sampling errors.

...more...

[UpInArms]

16. U.S. Jan housing starts soar to near 33-year high

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T132905Z_01_N15272627_RTRIDST_0_ECONOMY-HOUSING-URGENT.XML

WASHINGTON, Feb 16 (Reuters) - U.S. housing starts soared 14.5 percent in January to the highest level in nearly 33 years, as groundbreaking on new single-family houses hit a record, the government said on Thursday in a report showing unexpected strength in a market that had begun to slow.

The Commerce Department said January housing starts climbed to a 2.276 million unit annual rate -- faster than Wall Street economists' forecasts of a 2.0 million unit pace. December housing starts were revised up to a 1.988 million unit pace from an originally reported 1.933 million unit rate.

January's increase was the largest monthly percentage gain since March 1994, when starts rose 17.0 percent.

New construction of single-family homes increased 12.8 percent to a record 1.819 million unit pace in January while multifamily housing starts surged 21.9 percent to a 457,000 unit pace, the Commerce Department said.

<snip>

With mortgage rates rising, the U.S. housing market had begun to show signs of cooling after a five-year rally that shattered sales and construction records and sent house prices up more than 55 percent nationwide. But in the first three weeks of January, average 30-year fixed-rate mortgage rates dipped, according to data from Freddie Mac.

...more...

[hatrack]

19. And didn't mortgage apps fall for the third week in a row?

:eyes:

[JNelson6563]

33. I don't know. If they did

I may have to take up drinking to understand WTF is going on. :toast:

Julie

[UpInArms]

35. Looks like we're going to have to start drinking, Julie

US home loan applications fall 3rd straight week

NEW YORK, Feb 15 (Reuters) - U.S. mortgage applications fell for a third consecutive week as demand for loans to purchase homes dropped to its lowest level in over two years, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Feb. 10 decreased to 574.1, down 7.3 percent from the previous week's 619.3.

The MBA's seasonally adjusted purchase mortgage index, which is considered a timely gauge on U.S. home sales, fell 7.9 percent to 391.7 from the previous week's 425.1, its lowest level since the week ended Dec. 26, 2003, when it hit 390.1.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.25 percent, unchanged from the previous week. The 30-year rate, however, was at its highest level since the week ended Dec. 9, 2005, when it touched 6.28 percent.

The 30-year fixed-rate mortgage, the industry benchmark, is substantially above its 2005 low of 5.47 percent in late June of 2005, but hovering below its 6.33 percent high in the week of Nov. 11, 2005.

<snip>

The group's seasonally adjusted index of refinancing applications decreased 6.5 percent to 1,636.7 compared with 1,751.0 the previous week.

...more...

[UpInArms]

105. Mortgage Rates Rise 4 Weeks in a Row

Freddie Mac: 30-Year Mortgage Rates Rise

http://news.yahoo.com/s/ap/20060216/ap_on_bi_ge/mortgage_rates?_ylt=Al0dW7AV2mBz_JbtndX.5_WyBhIF?_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

WASHINGTON - Rates on 30-year mortgages edged up for a fourth straight week, rising to the highest level in two months, Freddie Mac reported Thursday.

The giant mortgage company said its nationwide survey showed that rates on 30-year mortgages rose to 6.28 percent, up from 6.24 percent last week.

It was the fourth consecutive increase and left the 30-year mortgage at the highest level since it stood at 6.30 percent the week of Dec. 15. Rates on 30-year mortgages had dropped as low as 6.10 percent in mid-January before beginning their latest increase.

Economists believe the path of mortgage rates this year will be heavily influenced by what the Federal Reserve does with the short-term interest rates that it controls.

New Federal Reserve Chairman Ben Bernanke in congressional testimony on Thursday left the door open for further rate hikes and many economists believe the Fed will raise rates at least once more at its March 28 meeting and possibly at a May 10 meeting as well.

...more...

[54anickel]

39. A firm belief in "If you build it, they will come"? Hey, if the don't

there's always these guys -

Q. Who usually sells their houses to HomeVestors?
A. Lots of different people!

People who have inherited property and need or want to sell it quickly;
People who have investment property with problem renters;
People who are relocating and need to sell their house quickly, particularly if their house needs repairs and they don't have the money, time and/or desire to make the repairs;
People going through a divorce and need to sell their house quickly;
People who are behind on payments and/or are facing foreclosure;
... people from all walks of life who share the need or desire to sell their homes, regardless of repairs needed, sell for cash, close quickly, and sell to a reliable company: HomeVestors, America's # 1 Home Buyer!

[UpInArms]

83. Housing-starts jump said fleeting

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B3FFD98E1%2D71D7%2D464E%2D9295%2DA9286AD27118%7D&siteid=mktw&symbol=

BOSTON (MarketWatch) -- The chief economist for the National Association of Homebuilders cautioned not to read too much into January's gain of nearly 15% in U.S. housing starts, saying Thursday that the better-than-expected data were the result of unseasonably warm weather and a brief pullback in long-term mortgage rates.

"I view the housing-starts and permit numbers for January as a temporary burst," said David Seiders in a media conference call.

Earlier, the Commerce Department said new construction of U.S. homes climbed 14.5% in January, reaching the highest seasonally adjusted rate in over 30 years. Meanwhile, building permits, a measure of future activity, rose 6.8%. See related story.

"We had unusually bad weather in many parts of the country in December, and the conditions in January were extraordinarily warm," Seiders said.

In that scenario, "you would expect to see the seasonally adjusted housing numbers jump up, but this is more than anticipated," he added, noting he had expected housing starts to increase between 5% and 6% for the month.

...more...

[54anickel]

67. Shelter Glut Could Prove to Be Bubble's Demise

http://www.thestreet.com/_tscana/markets/marketfeatures/10268762.html

Like it or not, most asset bubbles end the same way.

Back in 2000, the first signs of trouble surfaced when various tech-related firms grudgingly began to report overcapacity. After years of exponential growth, inventories were building faster than they were going out the door, which is to say, faster than consumers were consuming end-products.

In that respect, Thursday's report on January housing starts, which is a good indicator for inventories of new homes coming on the market, might shed some light on the state of the housing bubble.

Economists on average expect that construction started on an annualized 2.023 million new homes last month, compared with 1.933 million in December, according to a Reuters poll. Warmer-than-usual weather has helped homebuilders in January, just as it helped employment and consumption, economists believe.

Some may celebrate the pickup in housing starts as a sign that housing is cooling slowly, ensuring that the vast amounts of wealth consumers have been drawing out from ever-rising equities over the past few years won't disappear overnight.

In fact, all it means is that the inventories of new homes is going to get larger. How about demand?

more...

[AnneD]

71. Tell me if I am out of line but....

I see them building lots of McMansions that are way out of my budget. It is hard to find something within our budget. Yeh I could afford it if I took out an interest only loan---like that will happen. They are stuck with a bunch of overpriced homes they are trying to sell to folks that lost good paying jobs.

[UpInArms]

15. U.S. jobless claims rise to 297,000

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD67B639E%2DCA9E%2D4C12%2D819A%2DEB36CE568AD6%7D&siteid=mktw&symbol=

WASHINGTON (MarketWatch) -- First-time applications for U.S. unemployment benefits rose by 19,000 to 297,000 in the week ending Feb. 11, the Labor Department said Thursday.

The four-week average of seasonally adjusted new claims rose by 6,250 to 283,000.

The four-week average is considered a better gauge of new claims because it smoothes out one-time disturbances, such as holidays, intense weather and strikes.

Economists were expecting an increase in new claims to about 285,000 in the most recent week, according to a survey conducted by MarketWatch. See Economic Calendar.

<snip>

The most volatile time of the season is ending, and the longer new claims stay well below 300,000, the more believable it is that a new trend in the labor market has been established.

...more...

[ozymandius]

25. Jobless claims rise larger-than-expected

WASHINGTON (Reuters) - The number of Americans filing initial claims for unemployment benefits rose an unexpectedly large 19,000 last week but held below the 300,000 level for a fifth straight week for the first time in over five years, signaling a strong job market.

The Labor Department said on Thursday 297,000 first-time claims for state unemployment aid were filed in the week ended February 11, up from a revised 278,000 in the prior week.

Economists polled by Reuters looked for initial claims to rise to 285,000 from the 277,000 originally reported for the Fed. 4 week.

The increase pushed the four-week moving average of initial claims, which smooths weekly volatility to provide a better sense of job market conditions, up by 6,250 to 283,000.

more...

[Maeve]

27. While this is a decent number, I can't help wonder...

All those jobs squeezed out of the system over the past few years, with the self-employed(remember the great E-Bay job market?) unable to file for benefits...Having a memory is inconvenient in the world today.

[54anickel]

50. Outsourcing Is Climbing Skills Ladder

http://www.nytimes.com/2006/02/16/business/16outsource.html?_r=1&oref=slogin

The globalization of work tends to start from the bottom up. The first jobs to be moved abroad are typically simple assembly tasks, followed by manufacturing, and later, skilled work like computer programming. At the end of this progression is the work done by scientists and engineers in research and development laboratories.

A new study that will be presented today to the National Academies, the nation's leading advisory groups on science and technology, suggests that more and more research work at corporations will be sent to fast-growing economies with strong education systems, like China and India.

In a survey of more than 200 multinational corporations on their research center decisions, 38 percent said they planned to "change substantially" the worldwide distribution of their research and development work over the next three years — with the booming markets of China and India, and their world-class scientists, attracting the greatest increase in projects.

snip>

The study contended that lower labor costs in emerging markets are not the major reason for hiring researchers overseas, though they are a consideration. Tax incentives do not matter much, it said.

snip>

"The story comes through loud and clear in the data," said Marie Thursby, an author of the study and a professor at Georgia Tech's college of management. "You have to have an environment that fosters the development of a high-quality work force and productive collaboration between corporations and universities if America wants to maintain a competitive advantage in research and development."

Ahhh yes, the collaboration between business and higher education. The re-edumaction of Murikans must be expanded! They've molded and shaped the Business/Management/Marketing grads - now it's on to the scientist and engineers. We must all learn that mediocrity and questionable ethics are profitable and that all things profitable are good.

more...

[54anickel]

70. China, India attracting offshore R&D

Study: Corporations drawn not only by lower costs but also by opportunity to work with universities.

http://money.cnn.com/2006/02/16/smbusiness/offshore_rd/index.htm

NEW YORK (CNNMoney.com) - China and India will keep up their new role as magnets for corporate research in coming years not just because of their lower costs, but also because their universities are easy to partner with, a study said Thursday.

Emerging markets remain attractive locations for corporate R&D, despite their weak protection of intellectual property rights, according to the study sponsored by the Kauffman Foundation, an organization that promotes entrepreneurship.

The study surveyed more than 200 multinational companies, mostly headquartered in the United States and Western Europe, in 15 industries.

More than half of the U.S. companies in the study said they had either recently expanded or planned to locate research facilities in China and India, whereas one-fifth of the European companies surveyed by the study said they planned on expanding or locating new R&D facilities to the U.S.

snip>

"Industry and universities must be alert to removing obstacles to joint research, or emerging countries will overtake us in innovation breakthroughs, and the burst of discovery that has been driving our economy for the past half-century will be over," Lesa Mitchell of the Kauffman Foundation, said in a statement accompanying the study's release.

China and India will keep benefiting from R&D expansion over the next three years, the study said. But companies are still keeping their most cutting-edge research in developed countries, with only 22 percent of corporate research in emerging markets devoted to new science.

[lovuian]

72. This outsourcing is a joke... this doesn't scare the PHD's at all

I have a friend who is a scientist in oil additives (Top in his field).Top in his field with years of experiences had a manager tell him at the golf course that he had russian scientists 30 of them who could do his job. And for the pay that he is giving him...all the managers thought it was funny


(This a stupid dumb ignorant manager oblivious of how chemistry works and research works)

then the same manager came up to the scientist and wanted him to make a product for him

The scientist smiled well get your 30 Russian scientists to make it for ya... and smiled

The manager learned a lesson... Yes you can outsource but ideas and experience you can't...

It looks great on paper but in reality its BS...

Oh by the way that manager never did get that product made...

The Russians couldn't do it... and the scientist was so ticked off that hell would freeze over...

[UpInArms]

18. U.S. Jan. import price index up 1.3%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BAE9B5B84%2D40E0%2D4BFB%2DBB2A%2D1EF67A2B8350%7D&siteid=mktw&symbol=

WASHINGTON (MarketWatch) - Prices of goods imported into the United States rose by 1.3% in January as the price of imported petroleum rose 6.4%, the Labor Department said Thursday.

According to the MarketWatch survey, economists expected import prices to rise 1.0% in January after December's 0.1% decline. See Economic Calendar.

Prices of imports excluding petroleum rose 0.2% in January. Excluding all fuels, import prices increased 0.4%. Read the full report.

In the past year, import prices have risen 8.8%. Year-over-year, petroleum prices are up 48.3%.

Prices of imported industrial materials excluding fuels increased 1.6% in January. Prices of imported foods and feeds increased 1.2%.

<snip>

Prices of imports from the Middle East rose 5.9% after advancing 0.8% in December.

Prices of imports from China fell 0.2%. Prices of imports from the newly industrialized Asian nations fell 0.1% and are down 2.3% in the past year.

...more...

[AnneD]

36. Morning Marketeers,

:puke: Sorry to start the day off like that. Heard on the news that Houston was asked to submit a bid for the 2008 GOP Convention. We had it for GHWB about 12 yrs ago (Cokie Roberts made a few remarks and I have never liked her since). I can't remember if that was the year he lost or not. After I get over the shock, I am sure we can give them a warm welcome, (she said as she flicked her Bic). I have been to all kinds of fundraisers from both sides of the aisle. DEM'S are more fun AND better tippers. GOPS tend to be anally retentive....about everything. I mean we'll have to lock up our kids, our overstretched police (with whom we local protesters have a great relation) will be pulled for other duty, and they'll stiff us for all the OT or you'll wait forever for the check. Not to mention Mayor White...our DEM mayor will have do do those grip and grins (I'll offer him some hand sanitizer and will be watching so that his pocket doesn't get picked during the photo ops).

On a personnel note...While coming home from a friends house on Thanksgiving, my daughter and I were mugged at the door of our apartment complex. We fought the 2 guys but they still got some things and my index finger was broken. We complained about the apartments lack of security (no guard on duty). Well, last night hubby was returning from his language class. He was mugged outside of our apartment but at gunpoint. It was two guys again (he saw one and we are certain it is the same 2).Once again, there was no security guard on the premises. Again we have to go through the same mess. I am sure we are going to leave this complex asap. Crime has gone up here in Houston. Some of it is due to the evacuees (we got the good and the bad) but we have had a lot of officers retire. You see, they were screwed out of Social Security just like the teacher's were when they tweaked it last year. Many left and took jobs in the private sector. After 5 yrs, they can draw supplemental SS (and their spouses get survivor benefits). The district has had a time getting teachers because of this. Canada is looking better every day.

Happy hunting and watch out for the bears.

[ozymandius]

90. Good GOD Anne! I'm so sorry.

Is your husband alright? My thoughts go with you.

[UpInArms]

76. Philly Fed report @ 15.4 - employment sector drops to 11.3 (from 11.7)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T170741Z_01_N16434877_RTRIDST_0_ECONOMY-PHILLYFED-URGENT.XML

NEW YORK, Feb 16 (Reuters) - Factory activity in the U.S. Mid-Atlantic region recovered strongly in February to the strongest level since the summer as new orders firmed and price pressures moderated, a survey released on Thursday showed.

The Philadelphia Federal Reserve Bank said its business activity index jumped to 15.4 in February from a weak 3.3 reading in January, beating Wall Street forecasts for a rise to 9.0. It was the highest reading since August last year.

Any reading above zero indicates growth in the region's manufacturing sector.

The new orders index, a gauge of future growth, rose to 12.5 in February from 11.1 in January, while the jobs component slipped to 11.3 from 11.7.

A measure of prices paid by manufacturers dropped to 30.5 from 44.9 the month before as energy prices eased.

...more...

[ozymandius]

3. Oil Prices Rise Above $58 Per Barrel

SINGAPORE - Oil prices rose Thursday after a steep fall the previous day when OPEC said energy demand was weakening and the U.S. government said its domestic supplies of petroleum were rising.

-cut-

Until the rebound Thursday, crude futures had plunged by more than US$4 since the start of the week, settling below $58 a barrel for the first time in nearly two months.

"The recent falls have breached so many technical barriers, that it is hard to see where the new support level is. But we see very limited further downside for crude," said Lin Hui, senior analyst at China International Futures.

Oil market concerns about Iran, OPEC's No. 2 producer, have dissipated somewhat but have not entirely disappeared, and analysts say the mid-winter price drop could easily be followed by an early spring rally.

more...

[Roland99]

24. So, that explains the $0.30 jump in gas this morning

:eyes:

[wordpix]

29. any little excuse to raise price, while we're out $7 Bil in oil leases

[54anickel]

47. ..

[Roland99]

56. I knew something would happen. Gas had just dropped to $1.95.

It had dropped below $2 once before a bit over a month ago and within a day or two shot up like $0.40. Doing it again.

[UpInArms]

45. March Crude @ $58.25 bbl

March crude climbs 60c to $58.25/brl in early trading
10:07 AM ET Feb. 16, 2006

[54anickel]

65. Ethanol costs more than gas

http://www.freep.com/apps/pbcs.dll/article?AID=/20060216/BUSINESS01/602160488/1014/BUSINESS

The heavily promoted alcohol fuel called E85 might cut America's oil use and help support U.S. agriculture, but it's not reducing motorists' fuel bills. It's boosting them significantly.

The price of E85, a fuel that's 85% ethanol made from grain and 15% conventional gasoline, is higher than that of gasoline, even though E85 has only 72% as much energy. The U.S. Department of Energy says a vehicle has to use 1.4 times as much E85 as gasoline to go the same distance.

At some Nebraska stations, E85 was $2.19 a gallon Tuesday, while gasoline with 10% ethanol -- a common substitute for regular in the Midwest -- was $2.06. "This doesn't make sense," says Wayne Davis, a division manager at fuel company Bosselman, based in Grand Island, Neb. "Our customers are saying, 'I'm not going to buy E85, which is better for the environment and the economy, unless it's cheaper.' We're seeing E85 just sit."

snip>

Ford Motor and General Motors are working with fuel companies to boost the number of E85 stations in the Midwest. The two automakers say they will build about 600,000 vehicles this year with the special equipment needed to use E85. About 5 million already are on the road. All that emphasis could be negated by pricing.

more...

on edit:

I just had a flash back to when unleaded gas was first introduced - also more expensive but new cars required it. I had an old classic '67 Camero back in the '80s and had to purchase bottles of lead additive when I fueled up as leaded gas was already long gone by then. (Yeah, I'll admit I was a selfish, non-environmentalist back then - damn, it was a fun ride!) They could go through the same process to switch over, but I doubt the big oil companies would allow that to happen.

[UpInArms]

91. Natural-gas futures hold at $7 mark

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC490307E%2D24C0%2D452A%2DB772%2D2FC473D1B521%7D&siteid=mktw&symbol=

SAN FRANCISCO (MarketWatch) -- Natural-gas futures fell, holding tight to the $7 mark Thursday with traders eyeing the prospect that supplies may end the heating season at a record, but weary of steep losses in the March contract's price, which has touched one-year intraday lows everyday for almost a week.

"You might say that we have gas to burn," said James Williams, an economist at WTRG Economics.

Supplies in storage reported Thursday were 44% higher that the five-year average for the same time of year, and the market will "almost certainly end the heating season at with a record level of gas left in storage," he said.

Natural gas for March delivery climbed as high as $7.23 per million British thermal units on the New York Mercantile Exchange before pulling back to $7.02, down 4.6 cents.

Prices for the contract fell to $6.975 on Wednesday to mark a fresh one-year low. Every trading day from Feb. 9 through Feb. 15, they've touched intraday lows not seen since February of last year.

U.S. natural-gas stocks fell by 102 billion cubic feet for the week ended Feb. 10, the Energy Department reported Thursday.

Overall, estimates for the report ranged up to more than 100 billion, according to Fimat USA. But analyst Michael Fitzpatrick said Fimat had "significant doubt that those types of draws" would be seen, and was expecting a decline of only 59 billion.

...more...

[UpInArms]

123. March Crude closes @ $58.46 bbl - March NatGas @ $7.134 mln btus

March crude closes up 81c, or 1.4%, at $58.46/brl in NY

March natural gas closes at $7.134/mln BTUs, up 6.8c

March unleaded gas rises 2%, or 2.76c, to end at $1.4124/gal

[EuroObserver]

4. Tokyo: volatile Nikkei up 0.7%: bargain-hunting, foreigners seen exiting

Bargain-hunting lifts Tokyo stocks, but trading remains thin
(Kyodo) _ Tokyo stocks ended a volatile Thursday session higher on bargain-hunting, but trading activity was thin as a wait-and-see mood dominated the market ahead of Friday's release of Japan's October-December gross domestic product data. The 225-issue Nikkei Stock Average rose 110.84 points, or 0.70 percent, to 16,043.67, after shedding nearly 100 points at one point earlier in the day. The Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange was up 7.11 points, or 0.44 percent, to 1,631.39.

Although the indexes erased early losses to end higher, retreating issues sharply led advancing ones 1,018 to 580, with 74 shares ending unchanged. Trading volume on the TSE's main section decreased to 1,746.08 million shares from Wednesday's 1,892.93 million shares.
...

But any sharp gains were prevented in Tokyo as the market was weighed down by increasing concern over a recent slowdown in buying by foreign investors, who were the largest buyers in 2005 when the benchmark Nikkei soared 40 percent, brokers said. According to a Finance Ministry report released Thursday morning, nonresident investors turned net sellers of Japanese stocks last week for the first time since September 2005. "Worries over foreigners' trading have been pressuring the market since last week, and the report added a blow," said Kazuhiro Takahashi, head of the equity planning and administration department at Daiwa Securities SMBC Co. Making domestic investors even more nervous, sell orders placed before the opening by foreign brokerages exceeded buy orders Thursday for the seventh straight trading day, brokers said.

Masayoshi Okamoto, equity strategist at Jujiya Securities Co., said Tokyo shares have had steep ups and downs in recent sessions, and any gains would be just part of the volatile trading for the time being. "With foreigners moving to take profits, fresh demand for Japanese stocks seems to be decreasing," Okamoto said. "The market is craving good figures in macroeconomic data to cheer up sentiment, so tomorrow's GDP will be very important," he added. ...more...


Tokyo stocks advance on overnight gains in U.S. shares
(Kyodo) _ Tokyo stocks ended a volatile Thursday morning session higher, as bargain-hunting took the upper hand following overnight gains in U.S. shares that lifted the Dow index to its highest level in four years and eight months. The 225-issue Nikkei Stock Average rose 111.28 points, or 0.70 percent, in the morning to 16,044.11. The Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange gained 5.18 points, or 0.32 percent, to 1,629.46.

Brokers said bargain hunters scooped up paper and pulp, insurance, bank and other recently battered stocks following the benchmark Nikkei's more than 1.5 percent drop the previous day.
...

Despite gains in the major stock indexes, declining issues led advancing ones 901 to 685, with 86 shares ending the morning unchanged. Major decliners included oil, mining, real estate and air transport issues. Trading volume on the TSE's main section fell to 887.66 million shares from Wednesday morning's 954.98 million shares. ...more...

[EuroObserver]

6. Data signal foreign retreat from Japan market

(FT) Overseas investors were net sellers of Japanese shares last week for the first time since September, hightening fears that foreign interest in the Japanese market may have peaked.

Strong buying by foreign investors was the primary reason for the sharp rise in Japanese stocks last year. But in the week ending February 11 foreigners sold a net Y252.9bn ($2bn) in Japanese shares, the highest amount since early June. They are also likely to be net sellers this week, as figures of daily orders placed with large foreign securities houses suggest overseas investors have continued net selling every day so far this week. Foreigners have not been net sellers of Japanese shares for two consecutive weeks since April, before last year’s stock market rally began in earnest.

Fears that foreigners may be leaving the market were sparked when Morgan Stanley declared last week that the Japanese equity market rally had come to an end and advised clients to reduce Japan weightings by a third. The market dropped sharply the next day.

Thursday’s data from the Ministry of Finance raise concerns that the market may lack new driving forces. Nervousness that the valuations of Japanese shares may be too high has made the market jumpy since the beginning of this year.

...more...

[EuroObserver]

11. Asian Shares Mostly Up On Lower Oil Prices

HONG KONG (AP)--Most Asian markets advanced Thursday, as investors reacted positively to falling oil prices and the U.S. Federal Reserve chairman's testimony.

...detail here...

[EuroObserver]

5. Europe: Bourses open happy: results

Swiss SMI up 0.51% at 7836.60 in Zurich 09:36:03 CET
Xetra Dax 30 opens up 0.4% at 5,789.04 in Frankfurt 09:03 CET
CAC 40 opens up 0.6% at 4,963.64 in Paris 09:01 CET
FTSE 100 opens up 0.2% at 5,804.4 in London 08:01 GMT
FTSE 250 up 0.1% at 9,339.2 in London 08:36 GMT



Bourses rise on busy results day
(FT) European bourses rose at the open on a busy results day after Wall Street finished in positive territory and the price of oil continued to ease. There were results from DaimlerChrysler, steel group Arcelor, financial ING, Zurich Financial and Societe Generale, and L’Oreal.

The FTSE Eurofirst 300 rose 0.2 per cent to 1,333.73 with the Xetra Dax in FRankfurt up 0.2 per cent to 5,777.09, the CAC-40 in Paris up 0.4 per cent to 4,953.52 and the FTSE 100 in London up 0.2 per cent to 5,800.5.
...

Zurich Financial Services advanced 3.1 per cent to SFr305.00. The chief executive said insurance premiums were firming, a sign the sector had not moved away from a hard market as analysts had warned. Zurich’s 2005 net profit rose 30 per cent to $3.214bn, compared to an average analyst forecast of $3.015bn. Rising investment income and recovering life insurance operations offset record hurricane claims.

Julius Baer climbed 6.3 per cent to SFr109 after the Swiss bank’s 2005 net profit fell to SFr145m, as expected. The company said there were numerous challenges ahead for it to complete last year’s ambitious merger plan, which reduced second half profit to just SFr15m. Assets under management rose by more than forecast to SFr304m but the dividend was cut to SFr1 from SFr1.60.

Societe Generale rose 2.4 per cent to €116.20 after it exceeded expectations with a 41.9 per cent rise in fourth quarter net profit to €1.131bn with analysts forecasting €955m on average. The French bank’s improvement was driven by higher revenues at its investment and retail banking units.

ING’s 2005 net profit rose 25.3 per cent to €7.21bn, beating analysts expectations, thanks to growth in its direct banking business. Analysts had been on average predicting a net profit of €6.86bn for the Dutch financial services group. ING added 0.3 per cent to €30.89.

ABB, the Swiss heavy engineering group, rose 2.9 per cent to SFr14.25, after beating expectations with its first profit in five years, thanks to high oil pricese boosting energy sector capital spending. Net profit for 2005 was $735m, ahead of expectations of $691m, and up from a net loss of $35m in the previous year.

In the European auto sector, new car registrations in Europe rose 2.6 per cent in January to 1.26m units, driven by an impressive sales performance for its largest carmaker, Volkswagen, according to industry data released this morning.

DaimlerChrysler beat expectations with fourth-quarter operating earnings of €1.048bn, up from €785m, helped by a surprise profit at luxury division Mercedes Car Group. Analysts had been forecasting €972m on average. The company said it expected an improvement in profitability in 2006. The stock eased 0.4 per cent oto €49.90. ...more...

[EuroObserver]

9. UK Jan Retail Sales fall at fastest rate in a year

LONDON (Reuters) - Retail sales fell by more than expected in January and at their sharpest rate in over a year, official data showed on Thursday, raising expectations the Bank of England will cut interest rates in coming months.
...

The Office for National Statistics said sales volumes fell 1.3 percent on the month. That was the biggest decline since December 2004 and sharply lower than analysts' forecasts for a 0.2 percent fall.

...more...

[EuroObserver]

10. EU scraps disputed services bill clause

STRASBOURG, France (Reuters) - The European Parliament voted on Thursday to throw out the most controversial part of a draft EU measure to open Europe's vast market in services to cross-border competition.

The lawmakers voted by a large majority to ditch the so-called "country of origin" principle which would have allowed service firms to operate anywhere in the 25-nation bloc according to their home country laws only.

The clause, included in the original bill proposed by the European Commission, had raised fears in western Europe of a "race to the bottom" in wages and labour standards due to an influx of lower-cost firms from central and eastern Europe.

...little more...

[EuroObserver]

94. Europe closed even happier.

Swiss SMI up 1.40% at 7906.58 in Zurich 17:31:15 CET
CAC 40 up 0.8% at 4,973.1 in closing exchanges in Paris 17:44 CET
Xetra Dax 30 up 0.4% at 5,789.3 in closing exchanges in Frankfurt 17:43 CET
FTSE 100 up 0.6 per cent at 5,828.9 in closing exhanges in London, a fresh 4-year high driven by resurgent mobile telecoms and banking stocks 16:51 GMT
FTSE Eurofirst 300 up 0.5% at 1,337.9 in closing London exchanges 16:47 GMT
FTSE Eurofirst 300 up 0.5% at 1,337.9 in closing exchanges in London 16:45 GMT
FTSE 250 up 0.4% at 9,368.9 in closing exchanges in London 16:42 GMT



Europe stocks hit 4-1/2 yr high as earnings cheer
LONDON, Feb 16 (Reuters) - Upbeat results from Zurich (ZURN.VX: Quote, Profile, Research) and Societe Generale (SOGN.PA: Quote, Profile, Research) helped drive European stocks to a 4-1/2 year high on Thursday, but investors bailed out of DaimlerChrysler (DCXGn.DE: Quote, Profile, Research) and others which disappointed.

Telecoms added to the positive tone, with Vodafone (VOD.L: Quote, Profile, Research) up despite a source shrugging off talk of a board reshuffle, while Diageo (DGE.L: Quote, Profile, Research) rose after reiterating its targets and Julius Baer (BAER.VX: Quote, Profile, Research) rallied on hopes for healthy growth.

The pan-European FTSEurofirst index of 300 leading shares <.FTEU3> gained 0.6 percent to close at 1,339.02 points, its highest since August 2001.

"The earnings picture in general is proving to be a lot better than people expected," said Mike Lenhoff, chief strategist at Brewin Dolphin. "The outlook for earnings is still very positive so these markets are doing exactly as you'd expect. There's no indication yet they're looking tired." ...more...


Bid talk boosts FTSE to highest since June 2001
LONDON, Feb 16 (Reuters) - Speculation that another big bid in the FTSE 100 <.FTSE> is on the cards boosted the blue chip index on Thursday, while mobile phone giant Vodafone (VOD.L: Quote, Profile, Research) bounced 3.8 percent on talk of a boardroom rejig.
...

The FTSE 100 closed 37.4 points or 0.7 percent higher at 5,828.9, its intraday peak and its highest level since June 2001.

"There's a lot of money out there in private equity funds and there's talk of an even bigger deal out there than the ones we've seen," said a trader. ...more...

[ozymandius]

7. Number crunching for stocks

NEW YORK (CNNMoney.com) - Tech stocks could get a lift from strong earnings reports in the sector in early trading Thursday, although investors in the broader market might by waiting to see the latest economic readings and how much oil prices will rebound.

U.S. stock futures were mixed, indicating a higher open for the tech-heavy Nasdaq but a slightly lower open for the blue chip S&P 500.

-cut-

Major markets inAsia closed mostly higher Thursday and major European markets were up slightly in early trading, although Germany's Dax was essentially flat after DaimlerChrysler (Research) posted increased earnings but gave guidance that was less optimistic than hoped.

Treasury prices were lower in early trading, lifting the yield on the benchmark 10-year note at 4.61 percent from 4.60 percent late Wednesday after Bernanke's testimony. The dollar was higher against the euro and the yen.

more...

http://money.cnn.com/2006/02/16/markets/stockswatch/index.htm

[ozymandius]

8. Bernanke: Look for more rate hikes

NEW YORK (CNNMoney.com) - Federal Reserve Chairman Ben Bernanke told lawmakers Wednesday that the economy was in good shape and suggested the central bank was likely to raise interest rates further in a bid to keep inflation under control.

In his first appearance before a Congressional panel as head of the central bank, Bernanke said in prepared remarks that while the economy had snapped back from a fourth-quarter slowdown, it could be in danger of overheating and causing an unacceptable increase in prices.

-cut-

Living up to expectations

Fed watchers and investors seemed to get what they were expecting from the new Fed chairman.

"Bernanke didn't really say anything people weren't expecting," said Drew Matus, senior economist at Lehman Brothers. "He basically said the economy is doing well."

more...

http://money.cnn.com/2006/02/15/news/economy/fed_bernanke/index.htm

[wordpix]

28. heckuva job, Bernanke: slow down the "booming" economy by raising rates

Not all of us are getting rich from this "roaring economy," even though * and his friends are.

[UpInArms]

30. Fed's new head declares U.S. out of fiscal slump

http://lfpress.ca/newsstand/Business/2006/02/16/1445255-sun.html

WASHINGTON -- U.S. Federal Reserve chairperson Ben Bernanke, delivering his first economic report to Congress, declared yesterday that the economy has snapped smartly out of an end-of-year lull, although inflation and other risks remain.

He left the door open to higher interest rates in the future.

Recent economic barometers on jobs, production, retail sales and other business activity in January "suggests that the economic expansion remains on track," Bernanke told the House financial services committee.

The expansion, he said, does have "a lot of staying power."

The economy in the final quarter of last year hit a rough patch, growing by an anemic rate of just 1.1 per cent, the slowest in three years, as lingering fallout from Gulf Coast hurricanes and the toll of high energy prices led to belt-tightening by consumers and businesses.

...more...

[UpInArms]

12. daily dollar watch

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

Last trade 90.91 Change +0.33 (+0.36%)

Bernanke Pleases Dollar Bulls and Offsets Weak TIC Report

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/6771_bernanke_pleases_dollar_bulls_and_offsets_weak_tic.html

US Dollar - Just as we have promised, the combination of Ben Bernanke’s semi-annual testimony on monetary policy and the TIC data delivered a great deal of market volatility. The dollar first sold off following weaker economic data. The $60 billion magic number that we were looking for in the net foreign purchases or TIC report was actually breached, causing a state of alarm as foreigners limited their purchases of dollar denominated securities to $56.6 billion, which was far less than the market’s $76.2 billion forecast and short of the $65.7 billion trade deficit for the month of December. Industrial production also contracted unexpectedly by 0.2 percent last month as warmer weather decreased the need for utility usage while mortgage applications took another nose dive, falling 7.3 percent after a 1.2 percent drop the previous week. Overall, applications have fallen 11 out of the past 16 months. The only piece of good data that came out today was the Empire State manufacturing survey, which increased modestly from 20.1 to 20.3 – the market had actually expected the index to dip. However, the dollar’s losses were completely erased when Ben Bernanke began speaking. It was very interesting to watch the new Fed Chairman tread carefully as some members of the House could not refrain themselves from pushing for some straight answers, especially since it is the first time in 20 years that they have seen a new face in the hot seat. It was actually quite refreshing to hear some straightforward and easy to understand comments from the Fed Chairman. Overall the questions and answer session went rather respectfully. Bernanke said that “some” more rate hikes may be needed. The word “some” is usually defined as more than one, so we assume that Bernanke intends to proceed with a rate hike in March and May. He also felt that even though inflation was well contained, consumer spending could continue to fuel growth in the economy, which would ultimately lead to higher inflation and if that happens, more rate hikes may be needed. In terms of the housing market, Bernanke acknowledged that it poses a risk to growth, but like many, he felt that a cool down is more likely than a collapse. Overall, there were no surprises and the market got what it was looking for, which is a clearer outlook on interest rates. However, Bernanke’s time in the limelight this week is not over yet. He is slated to speak again to the Senate tomorrow, and as usual, the question and answer session will be the most interesting.

...more...

[UpInArms]

17. US Treasuries fall on sharp rise in housing starts

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T134413Z_01_NYG000134_RTRIDST_0_MARKETS-BONDS-HOUSING-URGENT.XML

NEW YORK, Feb 16 (Reuters) - U.S. Treasury debt prices fell on Thursday on a sharp rise in January housing starts fueling views the Federal Reserve is likely to raise interest at its next two meetings.

Housing starts rose 14.5 percent to a 2.276 million unit annualized rate, easily topping economists' expectations of a 2.000 million unit increase and December's upwardly revised 1.988 million unit reading. The sharp rise reflected relatively warm winter weather in January.

Ten-year notes <US10YT=RR>, a touch higher before the data, fell 2/32 in price to yield 4.612 percent, versus 4.600 percent on Wednesday.

Two-year notes <US2YT=RR> were steady for a yield of 4.700 percent, compared with 4.699 percent on Wednesday.

[UpInArms]

110. Treasurys down after data, Fed chief

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B274190E2%2D778F%2D4F54%2DAF17%2D9B9D63A26B84%7D&siteid=mktw&symbol=

NEW YORK (MarketWatch) -- Treasury prices were modestly lower late in Thursday's session, sending yields a bit higher, as investors reacted only minimally to robust data and a pronouncement by new Federal Reserve Chairman Ben Bernanke that future interest-rate moves will be heavily influenced by economic reports.

"The market is kind of in sleep mode," said Kim Rupert, fixed-income managing director at Action Economics.

The benchmark 10-year Treasury note last was down 2/32 at 99 4/32 with a yield ($TNX 46.06, +0.02, +0.0% ) of 4.612%, up from 4.605% in Wednesday's late trading.

Treasurys briefly sold off earlier Thursday, after new data showed that the nation's housing market remains robust and that inflation may be on an upswing.
Both developments support a case in which Fed policymakers would keep lifting interest rates, a scenario the fixed-income market does not wish to see.

Inflation eats into the value of fixed-rate investments.

...more...

[UpInArms]

119. Treasuries closed - yield curve still inverted

10-Yr yield ends at 4.594%; 2-yr Yield at 4.696%
3:07 PM ET Feb. 16, 2006 -

<$TNX> 10-Yr Treasury ends 2/32 higher at 99-8/32; Yield 4.594%
3:06 PM ET Feb. 16, 2006 -

[UpInArms]

20. Wamu to lay off 2,500 in cutbacks

http://seattlepi.nwsource.com/business/259659_wamu16.html

Washington Mutual Inc. said Wednesday that it plans to close 10 home-loan support offices around the country and lay off 2,500 employees as the Seattle-based consumer bank and mortgage company continues a corporatewide effort to cut costs.

None of the centers to be closed is in Washington, although 20 employees in the state will lose their jobs, Wamu said. Some work from the centers to be closed could be moved to home-loan processing centers in Seattle and Bellevue over time, the company added.

Wamu wouldn't say how many employees will be left in the remaining 16 home-loan support centers, which handle administrative and clerical tasks on loan applications. The company had 60,798 employees nationally at the end of 2005.

<snip>

Washington Mutual said at an investor conference in November and in its fourth-quarter earnings release in January that it wants to continue cutting expenses to improve its efficiency ratio -- a measure of how much of every dollar goes to expenses -- from about 60 percent now to below 50 percent.

It also has said one way it plans to achieve that is to move work to places in the United States where it costs less to operate, and to outsource work to offshore vendors. But a Wamu spokeswoman said the announcement Wednesday is not related to offshore outsourcing.

...more...

[loudsue]

21. What I Found Out Last Night About Credit Card Companies:

Good mornin' Marketeers! :hi:

:donut: Hope all is well with you guys!


Last night I was checking on a couple of credit cards to see what my interest rate was on each. I had several cards that I hadn't used in quite a while, so I didn't have any current statements.

Well......lo & behold! Most of them were at 17.99% and better. So, I asked for a quote on the lowest rate they could give me, and ... to the bank ... each one had to read their disclosure before changing the rate.

DID YOU KNOW >>>>> That if you pay your credit card off every month, you don't get charged interest, but if one month, you only pay PART of your balance, the next month when you are charged your bill, you are charged interest on THE ENTIRE PREVIOUS MONTH'S CHARGES...including how much you paid?

Let's say you bought a computer or something, and had lots of vacation expenses all in one month. So, your credit card bill is around $4,000.00. So, you pay $2,000 or $3,000 of it at the end of the month, and carry the other $1,000 or $2,000 forward.

Doesn't matter!! They charge you interest on ALL $4,000 THAT YOU ORIGINALLY OWED ON THE PREVIOUS MONTH'S BILL!!! Even though you wiped out most of it with your payment!

Even if you paid off ALL $4,000 of it, if they charge interest on a daily basis, you could have, say $3.00 in interest charges that WEREN'T shown on the statement, and THOSE INTEREST CHARGES could count toward having to pay interest on the ENTIRE $4,000, since they can say you didn't pay the entire balance.

REPUBLICANS passed this legislation!!!!! REPUBLICANS and Democrats who are IN BED WITH BANKING CORPORATIONS.

:argh: Sorry for the rant. I was simply blown away when all these people with VERY thick East Indian accents had to explain to me how I was being robbed. There was one who sounded like she was from this side of the pond. I said, "isn't it nice having REPUBLICANS in charge of the government?"

She was obviously one of them. She said "well, yes, it is."

I said good-bye and hung up.

:kick::kick::kick:

[JNelson6563]

34. Seems the more wide-scale the scam

the more legal it is. Ugh.

Thanks for posting this Loudsue. Debt is getting mroe and more costly to us mere mortals.

Julie

[54anickel]

37. Whoa! WTF? That's how they used to handle cash advance balances

so now they are doing it across the board for any and all charges? Years ago, the balance of cash advances was listed separately, and any payments would first go to any charges, then to the cash advance. They would apply payments to the cash advance last because it was at a higher interest rate. I knew cash advances were a bad deal from working at a bank and swore I'd never do that. But never say never. I had an emergency trip to FL, jumped into the rental car and headed for the turnpike when I suddenly realized I had NO cash on me for the tolls or incidentals. I whipped into the first bank I passed to pull out a cash advance. The whole trip was an emergency, everything went on my credit card and I was paying that sucker off for over two years (yeah, financially I was in a bad time). That cash advance balance just kept building up until I paid the damned credit balances off. When I finally started paying the cash advance part off, the interest continued to rack up based on the original $200 plus interest and fees. If I remember correctly, there was a .50 monthly fee as well.

[AnneD]

41. Bankers and CC companies pick your pocket...

with a pen, crooks use guns. Either way, your getting robbed. BUT, you have some control over weither or not you use a cc. I have been cc free for 2 years now. It can be done.

[4dsc]

63. Did you opt out??

Many credit card companies are sending notices to all customers of rates these rate increases. You have the option of accepting the rate increases or opting out which will result in the cancellation of your services.. I have cancelled many of the cards(yes I had too many).

[UpInArms]

22. Atlanta FHLB CFO resigns

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T140025Z_01_WEN0914_RTRIDST_0_FINANCIAL-FHLBATLANTA-URGENT.XML

NEW YORK, Feb 16 (Reuters) - The Federal Home Loan Bank of Atlanta said on Thursday that Lee Puschaver, its chief financial officer, had resigned to pursue other interests.

The home loan bank said it plans to search for a new CFO. It also said it plans to soon file its Form 10 with the Securities and Exchange Commission after completing its 2005 audit.

Does anyone else remember Edwin Gray?

"A Legal Bank Robbery" While an S & L was looted, the federal watchdog stood by

Last week the spotlight also fell on M. Danny Wall, picked by the White House in July 1987 to replace Edwin Gray as chairman of the Federal Home Loan Bank Board. Gray, a onetime captive of the savings and loan industry, lost his job when he began to speak out about the extent of the S & L fraud.

In 1988 Wall removed the Lincoln investigation from the bank board's San Francisco office to Washington, postponing the closing of the savings and loan by two years. That delay will add $1.3 billion to the taxpayers' cost of repaying depositors and unloading Lincoln's washed-out investments. "My responsibility was to see that this was not a lynch mob after Keating," Wall explained to TIME last week. "The San Francisco office has a history of being hysterical, overzealous, swept away by smoke where there is no gun." Yet ; Wall's Washington audit eventually confirmed San Francisco's warning to the Senators that Lincoln was a "ticking time bomb." Wall's auditors discovered a whole ticking arsenal, in fact, but not for two long years.

Unlike the Senators who seek campaign contributions from the likes of Keating, Wall had nothing to gain but the continued esteem of the thrift industry for his consistently low estimates of the extent of the savings and loan debacle. He is a stolid former city planner from Salt Lake City whose only extravagance seems to be his natty suits and monogrammed shirts. As the top aide to Republican Senator Jake Garn of Utah when Garn was chairman of the Senate Banking Committee, Wall became a favorite of S & L owners. Says Senator Leach of Wall's 1987 appointment: "The industry got to choose outright its regulator."

As staff director of the Banking Committee in 1981, Wall drafted the industry's dream deregulation bill, the Garn-St. Germain Act. That law created a new breed of thrift operator. In came highflyers like Keating who shifted their depositors' money (now insured for $100,000 instead of $40,000) from unexciting residential mortgages to potentially more lucrative but indisputably riskier shopping malls, resort developments, energy-generating windmills. The new breed awarded themselves seven-digit salaries, private jets, hunting preserves and yachts on which to entertain members of Congress. Keating and his associates took $21 million from Lincoln even as it was heading into receivership. Named head of the Office of Thrift Supervision in August, Wall now directs the agency established to solve the problems Garn-St. Germain helped create.

Wall will defend himself this week before the House Banking Committee. But its chairman, Henry Gonzalez, has already called for his resignation. Last week even George Bush left Wall to twist in the wind: "If part of the savings and loan problem proves to be management or regulation people that aren't aggressive enough, would ((I)) make a change? . . . The answer is yes."

"Bush is a lawyer, so he knows I'm innocent until proven guilty," Wall replies. He is wrong, of course: Bush is not a lawyer, and Wall, although he seems to lack the venality of other players in the Keating affair, is not innocent. Like a number of other legislators and Government officials, Wall paid more attention to cosseting the people he regulated than to safeguarding the depositors and taxpayers who depended on his vigilance. Although Wall says | he now sees Keating's "half-truths and obfuscations," more than a billion was lost while he dithered over closing the vault.

[54anickel]

57. He's only been there for a year!

http://www.fhlbatl.com/fhlb_content.cfm?lev1=7news&lev2=areleases&lev3=2005&lev4=20050201

ATLANTA, Feb. 1, 2005 - The Federal Home Loan Bank of Atlanta (FHLBank Atlanta) today announced Ernest (Lee) Puschaver will become the Bank’s new Chief Financial Officer, as part of a series of actions aimed at further strengthening the Bank’s risk management and customer service capabilities.

Puschaver will oversee the Financial Risk Measurement and Modeling, Accounting Services, Risk Assessment and Control, and Derivatives and Investment Operations departments. Prior to joining the Bank, Puschaver was director of finance and chief accounting officer for FleetBoston Financial Corporation from 2000 to 2004. Before then, he had been with PricewaterhouseCoopers for 28 years, specializing in the financial services industry.

snip>

These announcements follow the retirement in November 2004 of former chief financial officer, Gary Glass, who served for 30 years in a variety of roles in the Financial Management division, including the last 11 as CFO. Mr. Glass had management responsibilities for all the functions now to be divided between Puschaver and McMullan.

[54anickel]

58. The Banking Industry Struggles with SFAS 133

http://www.accountingweb.com/cgi-bin/item.cgi?id=101227

AccountingWEB.com - Aug-23-2005 - The Federal Home Loan Bank of Dallas (FHLB Dallas) and the Federal Home Loan Bank of Atlanta (FHLB Atlanta) announced plans Monday to restate their financial statements for the years 2001 through 2004 and the first quarter of 2005. The Federal Home Loan Bank of Indianapolis (FHLBI) had announced its intention to issue restatements for the same periods on Friday. All three regional banks in the Federal Home Loan Bank System, were found to have incorrectly applied a provision of Statement of Financial Accounting Standards 133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133).

Neither FHLB Dallas nor FHLBI anticipate that the corrections to their hedge accounting will have a material effect on their financial statements. In its statement, FHLB Atlanta said that once the review of all hedging transactions had been completed, the Bank may be required to make adjustments which could be material to the Bank’s financial statements.

“In the course of preparing for SEC registration we discovered accounting errors related to SFAS 133,” said Martin L. Ledger, President-CEO of FHLB Indianapolis, in the Bank’s statement. “We do not believe this correction detracts from FHLBI’s core strengths or its progress toward achieving FHLBI’s strategic plan.”

Lee Puschaver, Executive Vice President and CFO of FHLB Atlanta said in the Bank’s announcement, “While we took great care in implementing SFAS 133 in 2001, including a review by our independent auditors, SFAS 133 is a very complex accounting standard.”

more...

[ozymandius]

23. pre-open blather

09:15 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +7.0.

09:00 am : S&P futures vs fair value: +0.7. Nasdaq futures vs fair value: +6.5. Futures trade improves ever so slightly, now suggesting the S&P may join the Nasdaq in positive territory at the open. However, there is a lack of conviction among buyers of blue chips as investors continue to weigh more optimism on the earnings front and strong housing data against a rebound in oil prices and ongoing uncertainty about there being at least two more rate hikes on the horizon.

[ozymandius]

26. opening numbers

9:33
Dow 11,075.78 +16.81 (+0.15%)
Nasdaq 2,284.60 +8.17 (+0.36%)
S&P 500 1,281.75 +1.75 (+0.14%)
10-Yr Bond 45.94 -0.12 (-0.26%)
NYSE Volume 58,501,000
Nasdaq Volume 67,982,000

[UpInArms]

31. More airlines under scrutiny for price fixing

http://www.miami.com/mld/miamiherald/business/national/13882132.htm

More than a dozen airlines have now been drawn into a widening investigation by United States and European Union officials of whether there has been collusion in the air cargo industry to fix prices on surcharges for fuel, security and insurance.

<snip>

Among the costs, according to a statement from SAS, are surcharges on fuel; added security after the Sept. 11, 2001, attacks in the United States; and premiums for war-risk insurance after the start of the war in Iraq.

<snip>

Atlanta-based shipping giant UPS has been ''informally contacted'' by the Justice Department regarding the probe, company spokesman Norm Black said Wednesday.

<snip>

The largest U.S. airline, AMR Corp.'s American Airlines, said it has received a subpoena from the Justice Department but has not been told it was a target of the investigation, spokesman Tim Wagner said.

...more...

[AnneD]

42. Why are they scrutinizing airlines....

and letting the oil industry off the hook?

[wordpix]

93. yeah, save your scrutinizing for the oil robber barons!

[UpInArms]

117. It appears that only *Co can blame everything on 9/11

Airlines accused of using 9/11 as excuse to overcharge for freight

Airlines around the world have been accused of using the September 11 terrorist attacks as a pretext for overcharging cargo customers by imposing unnecessary surcharges to cover "security" costs.

The Office of Fair Trading confirmed yesterday that its staff in London were assisting the European commission and the US department of justice in a price-fixing investigation into major carriers. Competition authorities as far afield as Canada and South Korea are also taking part.

Virgin Atlantic revealed that it had received a request for information about its cargo operation. Its involvement came a day after raids took place on British Airways' offices in London and New York.

Details of the allegations have begun to trickle out. The Scandinavian airline SAS disclosed that the inquiry revolves around levies imposed on cargo by dozens of airlines around the world, which were attributed to the soaring cost of fuel and of clearing stringent security hurdles, particularly of the sort introduced by the US government.

<snip>

In the wake of September 11, BA joined other carriers in introducing an "exceptional handling charge" of 9p a kilogram of freight, which was justified by the need for greater security. It has added a fuel levy that is linked to oil prices through a sliding scale and which currently stands at 34p a kilogram. Both measures have become common in the industry.

...more...

[UpInArms]

32. SnowJob rolls out his Dog-and-Pony Show

Snow: It's time for further movement on Chinese yuan
9:48 AM ET Feb. 16, 2006 -

Snow on TV: We are not satisfied with Chinese forex policy
9:49 AM ET Feb. 16, 2006 -

Snow on TV: We will hold China to its commitment on forex
9:49 AM ET Feb. 16, 2006

[UpInArms]

38. SnowJob panhandles with tincup and pencils

Snow says Congress must raise U.S. debt ceiling soon

CHICAGO, FEB 16 (Reuters) - U.S. Treasury Secretary John Snow on Thursday said that Congress needs to lift the ceiling soon on the government's borrowing limit because the Treasury is already using extraordinary means to meet its obligations.

"We're already beginning to use the instruments we have to avoid hitting that ceiling," Snow said on CNBC television. "We'll be talking to the Congress now, it's time to lift that ceiling."

On Wednesday, Treasury announced it was suspending sales of state and local government nonmarketable securities, or SLGS, on Thursday to avoid hitting the $8.18 trillion statutory limit on government debt.

In response to questions, Snow declined to speculate on the dollar's future value, except to say: "The fundamentals of this economy are strong and ultimately currencies' exchange rates reflect fundamentals."

He said Treasury foresees a continued large role for the recently reintroduced 30-year bond in managing the government finances. Asked about the possibility of a 50-year bond, Snow laughed and replied: "I can never say never in this line of work."

[UpInArms]

54. US Treasury suspends fund payments (debt limit problems)

Treasury suspends fund payments to avoid hitting debt limit
10:45 AM ET Feb. 16, 2006 -

Snow says Congress must raise debt limit by mid-March
10:45 AM ET Feb. 16, 2006 -

[UpInArms]

61. U.S. curbs fund investments to avoid debt ceiling

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T160452Z_01_WBT004803_RTRIDST_0_ECONOMY-TREASURY-DEBT-URGENT.XML

WASHINGTON, Feb 16 (Reuters) - The U.S. Treasury said on Thursday it will not fully invest in two government funds effective immediately to avoid hitting the $8.18 trillion statutory limit on government debt.

In a letter to Senate Republican leader Bill Frist, Treasury Secretary John Snow said the Treasury would stop fully investing in the Government Securities Investment Fund and the Federal Employees' Retirement System in special interest-bearing Treasury securities.

Treasury spokeswoman Brookly McLaughlin said the government would have reached the debt limit had it not been for Treasury's action.

[ozymandius]

62. translation:

If this were you or me, we would be taking inventory of our household goods for a trip to the pawn shop.

[WhiteTara]

73. Chimpy is selling off our national resources

is that what you mean?

[ozymandius]

87. pretty much

Our government has been for sale going on years now. Now W has added our national forests, healthcare system, and the income of future working generations to the available inventory.

[UpInArms]

98. 2 days of avoidance now -U.S. curbs fund investments to avoid debt ceiling

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T190415Z_01_N16350599_RTRIDST_0_ECONOMY-TREASURY-DEBT-UPDATE-1.XML

WASHINGTON, Feb 16 (Reuters) - The Bush administration on Thursday moved for the second time in as many days to keep the federal government's borrowings from breaching the $8.18 trillion statutory limit on its debt.

Treasury Secretary John Snow, who urged Congress to raise the debt limit, has said that stop-gap measures such as those used by the Treasury in the past two days could keep the government from defauting on its financial obligations until mid-March.

In what is essentially a bookkeeping maneuver, the Treasury said it would effectively dip into a federal pension system fund by immediately curbing its daily reinvestments of it.

"Without this action, we would have hit the debt limit," Treasury spokeswoman Brookly McLaughlin said.

In a letter to Senate Republican leader Bill Frist, Treasury Secretary John Snow said the Treasury would stop fully investing in special interest-bearing Treasury securities the Government Securities Investment Fund, or "G-Fund," of the Federal Employees' Retirement System.

"The statute governing G-Fund investments explicitly authorizes the secretary of the Treasury to suspend investment of the G-Fund to avoid breaching the statutory debt limit," Snow said in the letter, which also went to other lawmakers.

...more...

http://www.publicdebt.treas.gov/opd/opdpenny.htm
(note: this is Government website)

Current           Amount

02/15/2006        $8,237,616,021,113.28

[UpInArms]

40. 10:11 EST numbers and blather

Dow 11,066.19 +7.22 (+0.07%)
Nasdaq 2,281.89 +5.46 (+0.24%)
S&P 500 1,281.36 +1.36 (+0.11%)
10-Yr Bond 4.600 -0.06 (-0.13%)

NYSE Volume 359,838,000
Nasdaq Volume 371,938,000

10:00 am : Equities are still on the offensive as the bulk of industry leadership remains positive. Energy is pacing the way higher, getting a lift from a recovery in crude futures and upbeat guidance from Baker Hughes (BHI 67.65 +1.48). Technology is also an influential leader to the upside, following strong earnings and upside guidance from HPQ, Applied Materials (AMAT 20.76 +0.30) and Network Appliance (NTAP 34.27 +3.11). Consumer Discretionary has also been in focus but recently inched below the flat line, as concern about Target's (TGT 54.94 -0.86) expenses offsets strength in homebuilding. The latter has benefited from Jan. housing starts, which surged 14.5% to 2.28 mln units, the highest rate since 1973. Weakness in Health Care and Industrials, though, has prevented the market from more aggressively extending two-days of gains. DJ30 +10.12 NASDAQ +4.89 SP500 +1.35 NASDAQ Dec/Adv/Vol 822/1600/282 mln NYSE Dec/Adv/Vol 890/1716/190 mln

09:40 am : Decent follow-through buying gives stocks a modest boost out of the gate, as investors embrace better than expected earnings. Hewlett-Packard (HPQ 33.13 +1.46) opening at a five-year high, after posting strong Q1 results and raising Q2 guidance, is acting as one of the biggest sources of early support. Also helping to offset a rebound in oil prices (+1.0%) following its biggest drop this year has been another batch of solid economic data.DJ30 +15.53 NASDAQ +9.84 SP500 +2.38 NASDAQ Vol 136 mln NYSE Vol 92 mln

[UpInArms]

43. Clear Channel moving their deck chairs around

Clear Channel names CFO Mays as president

NEW YORK (Reuters) - Clear Channel Communications Inc.Wednesday named its chief financial officer, Randall Mays, as president, effective immediately.

Mays, who will retain his role as CFO, assumes the title of president from his brother, Mark Mays, who remains chief executive officer of the nation's leading radio operator.

In May 2004, Mark Mays, already the company's chief operating officer and president, became interim CEO of Clear Channel after his father, Lowry Mays, underwent emergency surgery to relieve a blood clot and swelling in his brain.

In October 2004, the company officially named Mark Mays as CEO. The senior Mays, who built the company from a small radio operator into a huge media empire, has since recovered and remains chairman of the board.


Clear Channel, which owns and operates 1,200 radio stations, announced plans in 2005 to break up some of its non-broadcasting holdings.


In the latest quarter ended Dec 31, 2005, the company completed its realignment, spinning off a 10 percent stake in its outdoor advertising company, Clear Channel Outdoor Holdings Inc., with more than 800,000 display locations worldwide. It also fully divested itself of its live entertainment company, formerly Clear Channel Entertainment, which is now known as Live Nation.

...more...

Bush Connections

"The vice chairman of Clear Channel is Tom Hicks. ... When Mr. Bush was governor of Texas, Mr. Hicks was chairman of the University of Texas Investment Management Company, called Utimco, and Clear Channel's chairman, Lowry Mays, was on its board. Under Mr. Hicks, Utimco placed much of the university's endowment under the management of companies with strong Republican Party or Bush family ties. In 1998 Mr. Hicks purchased the Texas Rangers in a deal that made Mr. Bush a multimillionaire." <6>,

"In addition, Hicks steered a controversial scheme to use the University of Texas' $13 billion endowment for private investment. Among the beneficiaries were the Carlyle Group, the arms investment firm tied to both George Bush Snr and the bin Laden family, and George W Bush's controversial Harken Oil drilling project in Bahrain."<7>

Data released by the Center for Responsive Politics in early 2004 revealed that Clear Channel executives donated $42,200 to Bush compared to $1,750 to Democrat Presidental candidate John Kerry. Clear Channel's contributed 77% of their $334,501 in federal contributions to Republicans. <8>

[54anickel]

44. Hey Ozy, this one is in your neck of the woods - isn't it?

State hunts for NASCAR cash; House OKs tax break

http://www.ajc.com/business/content/business/stories/0215legisnascar.html

Georgia lawmakers are trying to win NASCAR's hall of fame for downtown Atlanta with millions of new dollars from Dale Earnhardt license plates and airport rental cars.

Leaders in Georgia's House will soon introduce legislation to shift additional money to the hall of fame project from Georgia's new NASCAR license plate and Atlanta's 10-year-old rental car tax. This would be on top of the $32 million in public incentives already on the table.

snip>

Brian France, NASCAR's chief executive, suggested to Georgia Aquarium benefactor Bernie Marcus last Wednesday that NASCAR was more comfortable with the large pool of public money behind Charlotte's bid — even though Atlanta was the right place for the attraction because of the greater number of potential visitors.

Marcus and Burkhalter spoke the next day, and Burkhalter, the speaker pro tempore, has been looking over the last several days for creative ways to pump more money into the local NASCAR effort.

The new incentives he's proposing would guarantee more taxpayer money will be in the local bid, which may calm NASCAR's fears that Atlanta's financial package has more promises than cash.

Burkhalter suggested he's probably not done, and there could be more public money for the NASCAR effort in the weeks ahead.

more...

I'm guess there will be a lot more of these babies selling to go with those special plates. Perhaps they should also increase the fine for tailgating - could provide quite a windfall! :evilgrin:

[ozymandius]

59. Yes 54anickel - that's my state and city they're talking about.

On a personal level, I do not like public money ventured for private gain. On a social/economic level: The same projected benefits from locating Nascar's hall of fame here echo the boondoggle promises of the 1996 Olympics. Sure it will generate cashflow and traffic through the area, for about a year. But do we really need Nascar to do that for Atlanta? The anticipated income from hotel and restaurant taxes for the local economy is a superfluous selling point. Atlanta already has enough events that fill downtown hotels several time annually.

The debate rages with the fury of your typical pissing contest, IMO.

[UpInArms]

46. Gold futures fall after Bernanke

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B2361F968%2DD3BA%2D4481%2D9724%2D5B00E08230E2%7D&siteid=mktw&symbol=

SAN FRANCISCO (MarketWatch) -- Gold futures fell Thursday, but traded above a six-week low as traders questioned the metal's outlook in the wake of comments from Federal Reserve chief Ben Bernanke that pointed to the likelihood of further hikes in U.S. interest rates.

In testimony to Congress Wednesday, "Bernanke made it clear that he intended to fight any increase in inflation, which was disappointing to those who were bullish on gold," said Steven Jon Kaplan, a senior editor of Truecontrarian.com. See Capitol Report.

As a rule, precious metals perform poorly when the Fed is raising interest rates to combat inflation," he explained.

But the contract made a "successful retest of the overnight low set on Tuesday ($537.80) with that support holding well," said Dale Doelling, chief market technician at Trends In Commodities.

For now, "it's too early to tell whether there's another ambush lurking on the trading floor," he warned.

...more...

[UpInArms]

66. April Gold @ $543.50 oz

April gold up 80c at $543.50/oz after 6-wk low of $538.80
11:21 AM ET Feb. 16, 2006

[UpInArms]

48. Calpine chiefs hike their pay 250% and cut 300 jobs

http://www.dailynews.com/business/ci_3513273

SAN FRANCISCO - Calpine Corp.'s directors voted to almost triple their salaries a week after the bankrupt power generator unveiled a cost-cutting plan that will fire 300 employees, or about 9 percent of its work force.

The raises disclosed Wednesday boost the base pay for six of Calpine's seven directors to $125,000 annually, up from $50,000 last year. The directors also will receive an assortment of other pay, based on their meeting attendance and board participation.

The raises exclude Calpine's chief executive, Robert May, who also sits on the company's board.

Since hiring May as its CEO two months ago, Calpine has paid him a $2 million signing bonus, guaranteed a $3.75 million paycheck this year and pledged an additional $12 million if he is able to lead the San Jose-based company out of bankruptcy proceedings.

The Calpine directors getting raises are: Kenneth Derr, William Keese, David Merritt, Walter Revell, George Stathakis and Susan Wang. As the board's chairman, Derr will receive an additional $125,000 to supplement his base pay, according to Wednesday's filing with the Securities and Exchange Commission.

...more...

[UpInArms]

49. (from last week) Oracle to cut 2,000 jobs

(okay - you might have heard this, but I was gone)

http://kutv.com/business/finance_story_041095649.html

(AP) SAN FRANCISCO Business software maker Oracle Corp. said Thursday that it will cut about 2,000 jobs, or more than 3 percent of its work force, as it digs for bigger profits from its recent $5.85 billion takeover of Siebel Systems Inc.

Redwood Shores, Calif.-based Oracle inherited 4,700 Siebel workers in the acquisition, but most of the cuts will be concentrated among employees on the company payroll before the deal closed last week, Chief Executive Larry Ellison told analysts during a conference call.

About 90 percent of Siebel's customer support, engineering and sales staff is being retained, Ellison said.

After the purge is completed, Oracle will employ about 55,000 workers worldwide, according to Safra Catz, Oracle's chief financial officer. The cost cutting should lower Oracle's expenses by at least $400 million annually, Catz said.

Oracle already has handed out pink slips to some of the affected employees and expects to complete most of the layoffs during the next few weeks, spokesman Bob Wynne said.

...more...

[UpInArms]

51. Dow, Rockwell should pay Colo. landowners $553M - plutonium contamination

http://www.azcentral.com/business/articles/0215Rocky-Flats-ON.html

DENVER - A federal jury recommended Tuesday that Dow Chemical Co. and the former Rockwell International Corp. pay $553.9 million to thousands of property owners who said their land was contaminated by plutonium from the former Rocky Flats nuclear weapons plant.

The jury concluded the two companies damaged private property around the site through negligence that caused "class members to be exposed to plutonium and (placed) them at some increased risk of health problems."

The lawsuit was filed in 1990 on behalf of 13,000 people. The jury in U.S. District Court in Denver also said the damage from the radioactive material may never go away.

<snip>

The now-defunct site made plutonium triggers for nuclear warheads for decades before it was closed in 1989. Much of the 6,240-acre site will be transformed into a wildlife refuge and last year, a contractor declared a 10-year, $7 billion cleanup project complete.

Milwaukee-based Rockwell, now known as Rockwell Automation, and Midland, Mich.-based Dow Chemical operated the plant at separate times under contract with the government.

The lawsuit claimed they intentionally mishandled radioactive waste and then tried to cover it up. Defense attorney David Bernick said claims of a cover-up were wrongheaded and that contamination offsite was minuscule and didn't harm property values.

...more...

[UpInArms]

52. Arab purchase of ports firm raises fears in U.S.

http://www.baltimoresun.com/business/bal-bz.port16feb16,0,3376820.story

WASHINGTON // The chairman of the House Homeland Security Committee urged the White House yesterday to question a sale that would give a company in the United Arab Emirates control over significant operations at six American ports.

Other U.S. lawmakers have expressed concerns about the sale's implications for maritime security.

Dubai Ports World's $6.8 billion acquisition of Peninsular & Oriental Steam Navigation Co. of London would create the world's third-largest port operator, with 51 terminals in 30 countries.

Dubai Ports World, a company owned by the emirate of Dubai, also is seeking a larger foothold in the booming trade between Asia and the United States.

Dubai belongs to the United Arab Emirates, a moderate federation of seven tiny emirates currently negotiating a free-trade agreement with the United States, according to the CIA Handbook.

...more...

[54anickel]

55. But isn't turn-about "Fair Trade". Murika is about to find out what it's

like to have a huge, foreign corporation take over a security linked resource. It's not always going to be US based multinationals being the highest bidder. Mega-corporations have no sense of loyalty or nationality. Hey, Free-Traders, get over it - this is what you asked for.

I always wondered if this could happen if we privatized much of our armed forces the way Rummy and friends have wanted. Suppose OBL, Inc. decided to buy out Hellaburnin?

[AnneD]

68. I have been to Dubai....

it is a really wonderful slice of heaven. Believe it or not, most of their money comes from trade and tourism. They are the most relaxed of the UAE. It has the reputation as the Moslem Rivera. Their airport is a stopover point for many international flights and they make no bones about wanting to expand. They are very security concious. I felt very safe while there and actually wouldn't mind working there on a contract. I think it a bit odd that there are no American port security co's or that it is not conducted through the city. I don't know who handles the Port of Houston but I think it still might be through the Port Authority. The jobs through the PA are good paying and they get quality people.

[UpInArms]

102. UPDATE 1-DP World sets $6.5 bln facility to fund P&O deal

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T191912Z_01_L16248119_RTRIDST_0_TRANSPORT-P-O-DUBAIPORTS-UPDATE-1.XML

LONDON, Feb 16 (Reuters) - Gulf state-backed Dubai Ports World said on Thursday it had arranged a $6.5 billion term loan and revolving credit facility to fund its takeover of Peninsular and Oriental Steam Navigation Co., (PO.L: Quote, Profile, Research) the U.K. ports and ferries group.

Dubai Ports World said it had chosen Barclays Capital, the investment banking division of Barclays (BARC.L: Quote, Profile, Research) and Deutsche Bank (DBKGn.DE: Quote, Profile, Research) to act as mandated lead arrangers and bookrunners to handle the financing for the purchase.

These include a $6.3 billion term loan facility and a $200 million revolving credit facility.

<snip>

The loan is part of a debt package that also includes a two-year Islamic bond issue that raised $3.5 billion last month -- the biggest Islamic bond in history -- via Barclays and Dubai Islamic Bank.

Shareholders in P&O voted on Feb. 13 in favour of the takeover bid by Dubai Ports, creating the world's third-largest ports group.

The takeover ends 165 years of U.K. ownership of P&O, which was formed at the height of Britain's sea power and gives Dubai control of P&O ports on six continents. (Additional reporting by Tessa Walsh)

...a bit more at link...

The plot thickens - earlier they were attempting to reassure because this was UK corp - it appears that is definitely about to change (after 165 years)

[54anickel]

103. So is this one of those so-called "hostile" take-overs? Heh, I love

that term "bookrunners" given to Barclays and Deutsche Bank. :evilgrin:

[UpInArms]

107. "Bookmakers" might have just as easily applied

:evilgrin:

[54anickel]

116. White House Defends Port Operations Sale

http://news.yahoo.com/s/ap/20060216/ap_on_go_pr_wh/port_security

WASHINGTON - The Bush administration on Thursday rebuffed criticism about potential security risks of a $6.8 billion sale that gives a company in the United Arab Emirates control over significant operations at six major American ports.

Lawmakers asked the White House to reconsider the deal.

The sale to state-owned Dubai Ports World was "rigorously reviewed" by a U.S. committee that considers security threats when foreign companies seek to buy or invest in American industry, National Security Council spokesman Frederick Jones said.

The Committee on Foreign Investment in the United States, run by the Treasury Department, took into account an assessment from U.S. intelligence agencies. The committee's 12 members agreed the sale did not present any problems, the department said.

more...

[UpInArms]

122. isn't there a pic somewhere of *Co kissing the Prince?

He never lets go of the hands that feed him. :eyes:

[UpInArms]

53. 8 Japanese duped into buying fake $1 million bills, report says

http://ap.brainerddispatch.com/pstories/20060216/3652771.shtml

TOKYO — Eight people in southern Japan forked over 150 million yen ($1.27 million) to a man who promised huge returns involving fake American $1 million bills and then disappeared with their money, a news report said Thursday.

The United States Treasury does not make $1 million bills.

<snip>

The investors were told that the U.S. government printed the bills in 1928 when Chiang Kai-shek was still in power in China to allow Americans to bring their assets back home, Asahi said.

The president showed them a thousand of the $1 million notes featuring a portrait of George Washington at a Tokyo hotel, according to Asahi. The investors were told the notes could be exchanged for smaller denominations in Hong Kong, but no exchange ever took place, it reported.

<snip>

Here's what I found interesting
The largest U.S. denomination ever produced was $100,000 between 1934 and 1935, according to the Treasury.

...more at link...

hmmmm.... 1934 and 1935 - wasn't that during the Great Depression? Why such large bills? :eyes:

[54anickel]

60. Heh-heh - better than a wheelbarrow for that loaf of bread and gallon

of milk. :evilgrin:

[trogdor]

69. In the old days before electronic funds transfers...

...large bills starting with $1000 and going up to $10,000 were used to ferry cash between banks. They were not used by the public. Incidentally, possession of an actual $100,000 bill is against the law.

[WhiteTara]

74. featuring a portrait of George Washington at a Tokyo hotel,

that should have been the tipoff right there. But maybe they didn't know George was in the US and not Japan.

[UpInArms]

78. ...

:rofl:

:hi:

[54anickel]

106. Can get 'em for around a buck on the Internets! Don't think they have

that picture on them though. :eyes:

I'm rather fond of this one - looks well aged and all.

[AnneD]

79. And our theme song for today is....

Damn it feels good to be a gangsta.......(I am invisioning some heads bobing in the cubicle at this very moment).

[54anickel]

64. Cisco Notes Go for Record $6.5 Billion

The deal was reportedly the largest-ever debut in the investment-grade corporate debt market.

http://www.cfo.com/article.cfm/5518674/c_5519385?f=home_todayinfinance

Cisco Systems Inc. said it raised $6.5 billion from the sale of three series of investment-grade notes. The networking-equipment maker reportedly had first sought to raise $5.5 billion from the underwriting.

Thomson Financial said the deal set a record for a debut in the investment-grade corporate debt market, according to Dow Jones. Heavily oversubscribed, the issuance was priced at the expensive end of the levels given when the deal launched, the wire service reported.

The offering consisted of $3 billion in notes that will mature in February 2011 and were priced to yield 5.294 percent, while $3 billion will mature in February 2016 and were priced to yield 5.560 percent. Further, $500 million will mature in February 2009 and will bear interest at an annual rate equal to three-month LIBOR plus eight basis points.

Cisco said it intends to use the net proceeds to fund its purchase of Scientific-Atlanta Inc. and for general corporate purposes. The commercial paper was rated A1 by Moody's Investors Service and single-A-plus by Standard & Poor's.

more...

[WhiteTara]

75. Hey, all you brilliant marketeers...I have a question

about Sun Microsystems and Intel. What's happening? Since Intel is making chips for Apple now, does this mean this might be a safe buy? What about Sun? I would appreciate any information possible as my beloved wants to waste--no I mean invest our money. Thanks for all your help.
Big :grouphug: of thanks for any answers.

[UpInArms]

80. Hi BNL!

We, here at the SMW, cannot give investment advice - but we can give directions to sites that might help you with that -

I always look at www.karmabanque.com for a clear view on whether it is a company that is in good/bad graces.

Others here might be able to direct you attention to another site or two.

:hi:

[WhiteTara]

84. thanks so much for your help

I didn't really expect anyone to say buy or sell, but this is great help.
:hi: :hug:

[AnneD]

82. Hello BNL...

:hi: I enjoy your posts. We don't recommend per say 'cause....would you really take advice from total strangers, that is waasting your money. However there are places that you can look to get some ideas as to how they are doing and make your own informed decision.
I like to look at a stock's MAC-D (history), stockastics (supply and demand), and IDTI (moving average). The biggest thing I do is to put a stop loss on ALL my stocks (if they go below this cost they are sold, thus stopping your loss). It is fun to do this and money can be made....but money can be lost.

[WhiteTara]

85. Hi AnneD, thanks for your help

I appreciate any help yall can give. I sure know nothing (I refuse to go there...I think they are all crooks) but my partner love the idea of monetary increase. I'll send him to these places and let him work it out.
:hi:

[UpInArms]

77. Fitch cuts Reliant Energy deeper into junk (big *Co donor and crony)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T165722Z_01_N16335257_RTRIDST_0_ENERGY-RELIANT-FITCH.XML

NEW YORK, Feb 16 (Reuters) - Fitch Ratings on Thursday cut Reliant Energy Inc.'s (RRI.N: Quote, Profile, Research) overall credit rating deeper into junk status, citing higher risks of default and cash flow uncertainty.

Reliant is a riskier credit as it shifts to a predominantly merchant model for its U.S. wholesale generating business, Fitch said.

Reliant, which provides utility and energy services, may have limited ability to reduce debt and improve credit quality beyond the single-B range through 2008, Fitch said.

This view is based on a conservative natural gas price scenario and continued margin uncertainty at Reliant's retail power provider segment as the Texas market evolves from the current incumbent price-to-beat structure to a full competitive model in 2007.

Fitch cut the company's issuer default rating by one notch to "B" from "B-plus." A "B" rating is five steps below investment grade.

...more...

Bush Connections

Top Power Suppliers Gave Millions to Republicans; Two Key Power Companies Headed by Men With Close Ties to Bush

WASHINGTON, D.C. Nine power companies and a trade association that stand to gain the most from President Bush's hands-off policy in California contributed more than $4 million to Republican candidates and party committees during the last election, and some of the company heads have close personal ties to Bush, according to a new Public Citizen report.

Three of the companies Enron, Reliant Energy and Dynegy are based in Texas and gave more than $1.5 million to Bush s campaign, his inauguration committee, and the Republican National Committee, which served, in effect, as an arm of the Bush presidential campaign. Two companies Enron and Reliant Energy are headed or steered by Kenneth Lay and James Baker III, both close Bush advisors.

According to the report, the contributions and personal relationships could explain why the Bush administration has refused requests by bipartisan groups of eight western governors and 20 members of the California congressional delegation to intervene in the California and regional power crisis, and cap wholesale electricity prices. The companies and the association more than doubled their contributions in 1999-2000 compared to the last presidential cycles, as they pushed for deregulation in Congress and across the nation.

"It seems clear that the Bush administration is trying to return the favors done by friends and donors," Public Citizen President Joan Claybrook said. "Bush is helping out his buddies at the expense of every consumer in California, and his refusal to cap wholesale prices is threatening to wreak havoc on the entire western region of the United States."

<snip>

The top three contributing companies were Enron, Southern Company and Reliant Energy. The remaining seven entities are the Edison Electric Institute (an industry association), Williams Companies, Duke Energy, Arizona Public Service, Dynegy, AES Corp. and Calpine.

Enron's CEO is Kenneth Lay, a long-time Bush family friend and an architect of Bush s policies on electricity deregulation, taxes and tort reform while Bush was Texas governor. Baker, who serves on Reliant Energy s board of directors, is also a long-time Bush family adviser who oversaw Bush s legal efforts in the Florida election controversy. Baker Botts, the Houston law firm founded by Baker s great-grandfather and where Baker is a partner, was one of the largest contributors to the Bush campaign, contributing $113,621 in 1999-2000.

Further, two Reliant Energy top brass are members of the Bush "Pioneers," an elite group of people who pledged to raise at least $100,000 each to help launch Bush's presidential campaign. Bush Pioneer Don D. Jordan was CEO and chairman of Reliant Energy until June 1999 and December 1999 respectively. Pioneer Steve Letbetter, Reliant Energy s current CEO, is a long-time top corporate officer of the company. The company and its employees gave $47,000 to Bush's gubernatorial campaigns in 1994 and 1998, and gave Bush and the RNC $289,000 for last year's election.

[UpInArms]

81. 1:25 EST numbers and blather

Dow 11,067.71 +8.74 (+0.08%)
Nasdaq 2,287.27 +10.84 (+0.48%)
S&P 500 1,284.76 +4.76 (+0.37%)
10-Yr Bond 4.596 -0.10 (-0.22%)

NYSE Volume 1,300,617,000
Nasdaq Volume 1,169,265,000

1:00 pm : Range-bound trading persists as neither stocks nor bonds have budged much in the last hour. Bernanke's testimony is now over and the fact that there were no surprises has given investors little incentive to more aggressively move the markets one way or the other. The 10-yr note remains unchanged to yield 4.59%. DJ30 +20.15 NASDAQ +12.83 SP500 +5.47 NASDAQ Dec/Adv/Vol 1150/1708/1.08 bln NYSE Dec/Adv/Vol 1043/2119/872 mln

12:30 pm : Major indices continue to sport widespread gains, spearheaded by strength across the board in Technology, especially hardware, and a rebound in Energy. Separately, investors have sifted through the day's last economic report. The Feb. Philly Fed index more than rebounded to 15.4, the strongest level since August and reflective of continued improvement in manufacturing conditions, from January's unexpectedly fall to 3.3. The index also showed a decline in the prices paid component, which provides some relief on the inflation front. DJ30 +25.05 NASDAQ +13.45 SP500 +5.57 NASDAQ Dec/Adv/Vol 1128/1715/986 mln NYSE Dec/Adv/Vol 1048/2078/788 mln

[ozymandius]

89. flattening of the average stock price at 1:48

Dow 11,068.26 +9.29 (+0.08%)
Nasdaq 2,286.67 +10.24 (+0.45%)
S&P 500 1,284.52 +4.52 (+0.35%)
10-Yr Bond 46.02 -0.04 (-0.09%)]
NYSE Volume 1,388,814,000
Nasdaq Volume 1,245,139,000

[UpInArms]

86. Tampa GM call center closure will eliminate 400 jobs

http://www.kltv.com/Global/story.asp?S=4512113&nav=1TjD

TAMPA, Fla. A Tampa, Florida, General Motors call center will close by year's end, putting about 400 people out of work.

I-B-M, which took over a contract to run the center for G-M January first, told workers that their jobs would be gradually phased out until the facility closes in December.The center handles calls and e-mails from G-M car owners, dealers and prospective customers.

A G-M call center in Hillsboro, Oregon, is also slated to close, costing 600 jobs, and a staff reduction is planned at the 500-person call center in Austin, Texas. I-B-M spokeswoman Jenny Galitz says the work will now go to other centers in the global network of I-B-M and subcontractor Convergys, which employs the workers. G-M spokeswoman Ryndee Carney says the company picked I-B-M to handle its call centers and customer services and did not participate in the decision to shut the Tampa site.

...a bit more...

Sounds like more off-shoring is going to go on :eyes:

[UpInArms]

88. "Chopper" Ben welcomes Chinese ownership of USoA

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-02-16T184024Z_01_N16161821_RTRIDST_0_ECONOMY-BERNANKE-UPDATE-2.XML

WASHINGTON, Feb 16 (Reuters) - Federal Reserve Chairman Ben Bernanke, barraged with lawmakers' questions on Thursday over rising foreign ownership of U.S. assets, played down fears that China held enough dollars to endanger the U.S. economy.

In a second day of Capitol Hill testimony, the new central bank chief was pressed hard by Senate Banking Committee members about whether soaring U.S. trade deficits, financed by foreign borrowing, made the economy and the dollar vulnerable.

"I don't think that the Chinese ownership of U.S. assets is so large as to put our country at risk economically," Bernanke said, minimizing the possibility that China might suddenly dump some of its U.S. debt.

"It would be very much against their own interest to do so," he said, ducking a question whether these holdings gave Beijing a potential political lever over the United States.

Congressional anger toward China has grown along with soaring U.S. trade deficits that hit a record $725.8 billion in 2005 -- about 28 percent of that with China alone.

At the end of 2005, China held some $819 billion worth of U.S. assets, mostly in Treasury debt. Its U.S. holdings were surpassed only by Japan, which held $829 billion worth.

...more...

[54anickel]

113. US$ diversification myth exposed

http://business-times.asia1.com.sg/sub/news/story/0,4574,186249,00.html?


CENTRAL banks in Asia and elsewhere are developing a bigger appetite for risk, it seems, by shifting part of their huge forex reserves out of government securities and into corporate bonds and other paper assets. Yet the greatest risk by far that they bear comes from a huge overexposure to US dollar securities and, contrary to popular belief, Asian central banks are exposing themselves ever more heavily to this risk.


As if this (conscious and unconscious) pursuit of risk were not worrying enough, central bankers fear that currencies and interest rates may be in for a rough ride this year as new US Federal Reserve chairman Ben Bernanke settles into his stride. Their concerns emerge from a survey of central banks around the world conducted towards the end of last year by Central Banking Publications in London. 'There is little evidence of any widespread move out of the dollar on the part of Asian central banks,' the survey noted. 'Nearly one-half of the central banks that increased the proportion of dollars in their portfolio were from Asia, with the others from oil-producing and Latin American countries.' European central banks, on the other hand, have been accumulating more euros.

Grotesque notion

The fact that Asian central banks are continuing to add to dollar reserves at this point in time seems grotesque, and it runs counter to popular belief than Asian reserve managers are cannily getting out of the dollar while the going is still good. Possibly, this is because, at approaching US$2 trillion, Asian central bank reserves are so vast nowadays that they have nowhere to go but into dollars. This does not make the exposure any less disquieting.

Admittedly, the 13 Asian central banks (among 56 worldwide) that responded to the survey omitted some important players, given that the maximum size of reserves among those that replied was US$250 billion. Both Japan and China have official reserves approaching four times that size. But Japan remains an avid dollar fan for so long as it is tied to the US by a mutual security treaty, and China recently denied any move to dump dollars.

snip>

Central bankers are supposed to be too smart to be fooled by such sophistry - or could part of the problem be, as the survey notes, that central banks are increasingly contracting out management of their reserves to professional fund managers nowadays? The truth probably is that central banks have little place to go but the US dollar, and that is scary because it means the US can debauch its currency as much as it pleases because people still have to buy it.

more...

[UpInArms]

128. Foreign Banks (particularly Asia) own 1/4 of all marketable US securities

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T213013Z_01_NYG000135_RTRIDST_0_ECONOMY-FED-FOREIGNERS-URGENT.XML

NEW YORK, Feb 16 (Reuters) - Foreign central banks were huge buyers of U.S. debt in the latest week, purchasing large amounts of both Treasury and agency securities during the week of the Treasury Department's $48 billion quarterly refunding, Federal Reserve data showed on Thursday.

The Fed said its overall holdings of Treasury and agency debt kept for overseas central banks shot up by $25.778 billion in the week ended Feb. 15, to stand at $1.571 trillion.

The breakdown of custody holdings showed overseas central banks buying $14.281 billion in Treasury debt and $11.497 billion in securities from government-sponsored agencies like Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research).

Overseas central banks, particularly those in Asia, have been huge buyers of U.S. debt in recent years, and now own over a quarter of marketable Treasuries.

...more...

[ozymandius]

92. 1:58

Dow 11,062.64 +3.67 (+0.03%)
Nasdaq 2,280.70 +4.27 (+0.19%)
S&P 500 1,283.49 +3.49 (+0.27%)
10-Yr Bond 46.02 -0.04 (-0.09%)
NYSE Volume 1,436,599,000
Nasdaq Volume 1,297,369,000

[54anickel]

95. OT, but fun little stress reliever. New meaning to Bush in a Bubble

http://planetdan.net/pics/misc/georgie.htm

[WhiteTara]

100. I beat him up a bit, now I feel better

I just wish these balls had sharp edges, then I could really feel better.

[54anickel]

108. Personally, I'm waiting for the bird-shot version to come out...n/t

[WhiteTara]

109. oh, that is just delicious!

Yep, I'd love to "pepper" ole dickwad and chimpy! Come on animation artists!

[AnneD]

111. Needs

a satisfying splat.

[54anickel]

114. Or a bubble labeled The Hague that finally engulfs the lil bastard!

[UpInArms]

96. RadioShack CEO apologizes for resume errors(?) (LIES is more appropriate)

Errors - Misstatements?????

See what happens when the truth is discounted in the highest aspect of our nation! Now out-and-out LIES are called "errors" and "misstatements".

:grr:

http://www.cbc.ca/story/business/national/2006/02/16/radio-060216.html

The chief executive of Texas-based RadioShack Corp. has apologized after making "misstatements" on a job resume, which claims he earned two university degrees that his school cannot trace.

David Edmondson is also being investigated by the board of RadioShack, which said it is looking into the legal aspects of the situation.

"The contents of my resume and the company's website were clearly incorrect," Edmondson said in a statement Wednesday. "I clearly misstated my academic record, and the responsibility for these misstatements is mine alone."

RadioShack Corp. is a U.S. company that used to be named Tandy Corp. It has little connection with the Canadian stores of the same name.

<snip>

Edmondson, 46, joined RadioShack in 1994 and has been CEO since May. He had claimed he received degrees in theology and psychology from Pacific Coast Baptist College in California, which moved in 1998 to Oklahoma and was renamed Heartland Baptist Bible College.

The school's registrar told the Fort Worth Star-Telegram that records showed Edmondson completed only two semesters, and that the school never offered degrees in psychology.

...more...

:banghead:

[54anickel]

99. Ya know, I hate to throw out stereo-types and all - but this just screams

"Typical Fundie Hypocrisy!" Weren't they referred to as Pharisees in "Biblical Times"?

[54anickel]

97. Why USFed Hikes, Unspoken (Willie)

http://www.321gold.com/editorials/willie/willie021606.html

Preface: Welcome, Chairman Bernanke. May you ward off price inflation from reaching the core CPI. May you enact policies that continue to export inflation to Asia. Embrace those faulty statistics. You make me laugh with your explanation of the inverted Treasury yield curve. Your reason #1 of reduced inflation expectations and stable economy is self-serving, but it ignores the monstrous influence of outsourcing on job creation and cancerous transformation to a consumption economy centered on malls and retail chains, filled by omnipresent cheap imported products. Your reason #2 of a prevalent global savings glut ignores identification of the $700 billion trade deficit imbalance as a problem. You tell us as clearly as you can that the USFed will continue rate hikes. Your solution for the massive trade gap and current account deficit is to improve savings in the United States, lift spending in foreign economies, and make more flexible the currency exchange rates. How incredibly shallow for a central banker!!! A college student with an introductory economics course under his or her belt could recite such a trivial solution. How about another shallow solution: import less and export more, which the public will understand better???

The US Federal Reserve has several motives to continue in its interest rate tightening cycle. However, we have entered the hidden agenda realm. The Greenspan Fed might have delivered on more transparency, but the institution surely holds dear its hidden motives, secret objectives, replete with clandestine activity. Someday their convenient partnerships will be better known. The best way to be safe is not to discuss them, but rather to be aware of their existence, and to anticipate the effect of their activity. Generally, one can confidently claim that the USFed is no better, no worse, than the lying thieves who deceive and line their own pockets on Wall Street. The umbilical cord connecting Wall Street to the USFed is the giant banks, who have large brokerage arms under their corporate umbrellas, permitted since the repeal of the Glass Steagall Act. Since 1999, big banks, brokerage houses, and insurance firms have been permitted to work together, sleep together, share agendas together, deceive together, profit together, and perhaps someday go down together. Such is the pathogenesis of the cancerous encroachment which contradicts the supposed independence of the central bank. Enough, the USFed will hike rates more. They don't need to offer a reason to justify their actions. However, if the financial markets (stocks, bonds, currencys) are to retain confidence in the US$-based systems, our central bank must give reasons, even if those reasons are pure fiction and full of the same lard tossed onto the masses during these heyday chapters written on economic mythology.

STATED OFFICIAL REASONS
The USFed actually states they can afford the luxury of additional interest rate hikes because the USEconomy is robust and strong. It is amazingly resilient, provided a convenient bubble can be inflated in a major sector within that economy. An exaggerated growth rate and rising inflation pressures (housing, CPI, employment costs) are the spoken motives for further 25 basis point increases. They speak of a tight labor market, one where the jobless rate ignores all those who cannot find work or collect unemployment insurance. They talk about "full employment" of 4.9% jobless amidst rampant unemployment. Include the jobless and we see a 7.4% jobless rate.

The USFed cannot be honest, since its credibility would be shattered. Go figure. They must defend their position of strength, and continue to describe the USEconomy as strong. They must maintain the notion that their monetary policy has managed to keep the economy robust, healthy, balanced, flexible, and full of vitality. And yes, expert monetary policy under the near perfect aegis of Alan Greenspan has enabled the USEconomy to avert a recession since 1990. What is the best device to avoid a recession in the world of public reality? Basically, FRAUD & LIES.

snip>

THE UNSPOKEN REASONS
The US Federal Reserve cannot discuss the real problem, since that would alert the world to our gaping shortcomings, our giant warts, our horrid financial odor. The stench of spinning credit gears and rotting debt on the vines is acrid and shocking. They cannot expose or highlight the crippled dependence upon inflated asset bubbles (or their reversal), nor the revolt underway by those foreign central banks who feel betrayed, nay drowning in a sea of USDollar liquidity.

more...

[54anickel]

101. Derivative players to report progress at Fed meet

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T141915Z_01_N16296012_RTRIDST_0_MARKETS-DERIVATIVES-NYFED.XML

NEW YORK, Feb 16 (Reuters) - Fourteen of the largest derivatives players are likely to report that they are on track to meet an end of April deadline in resolving half their trade confirmation problems when they meet for the second time with the New York Federal Reserve on Thursday.

The dealers will also report to the Fed on Thursday that they have achieved their first deadline of fixing 30 percent of the unconfirmed trade backlog by the end of January, said several sources that were familiar with the dealers' preparations for the meeting.

The meeting, scheduled for 3 p.m. (2000 GMT), has been called by the New York Fed in response to its concerns that delays in confirming trades could lead to confusion if the market comes under stress, and potentially spill into other markets.

Back office operations of trading desks have not kept pace with volumes in credit derivatives, which surged at an annual growth rate of 128 percent to around $12 trillion in mid-2005.

The absolute number of backlogs continued to rise in 2005, despite bank efforts to fix the problem, though as a percentage of the total they fell, pricing provider Markit said in January.

more...

[UpInArms]

104. AIG and GenRe Insurance Execs Plead Not Guilty to Fraud

http://news.yahoo.com/s/ap/20060216/ap_on_bi_ge/general_re_aig_indictments;_ylt=Ar3uCfw.yFRVzi26K2W3qNayBhIF;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

ALEXANDRIA, Va. - Four former top executives of insurance giants General Re and American International Group pleaded not guilty to federal fraud and conspiracy charges Thursday and pledged $1 million in bond each as their trial was set for May.

The Justice Department has accused the four of orchestrating an audacious fraud, putting together a sham reinsurance transaction that allowed AIG to falsely report some $500 million in reserves against losses and thereby mislead shareholders, Wall Street and regulators. The charges against the executives come as the government's investigation of the insurance industry widens.

The alleged conspiracy, using phony contracts and a secret side deal, was designed to make it appear that AIG's loss reserves were growing so as to inflate the company's stock price in 2000 and 2001, prosecutors say.

Appearing in federal court in Alexandria were: Ronald Ferguson, who was chief executive of Berkshire Hathaway Inc.'s General Re; Elizabeth Monrad, its former chief financial officer; Robert Graham, the company's former assistant general counsel; and Christian Milton, who ran the reinsurance division of AIG.

By turns, they stood before U.S. District Judge Gerald Bruce Lee and replied "Not guilty" when asked how they were responding to the charges. They also said they wanted a jury trial rather than a hearing with only a judge.

Each pledged a $1 million bond and surrendered his or her passport. Lee set a trial date of May 22, saying it likely would last about 16 days.

...more...

[UpInArms]

112. Poole-the-Tool: Fed will stop rate hikes if economy slows

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T194220Z_01_NAT002008_RTRIDST_0_ECONOMY-FED-POOLE-RATES-URGENT.XML

LITTLE ROCK, Ark., Feb 16 (Reuters) - The Federal Reserve would have to see signs the economy was "really slowing down" and inflation pressures easing to end its tightening campaign, St Louis Federal Reserve President William Poole said on Thursday.

He stressed that policy depends on the path of incoming data.

"We would have to see a string of new data observations that (are) coming in on the low side of expectations and we regarded as indicating that the economy (was) really slowing down and inflation pressure coming off," Poole said in response to a question about what it would take for the Fed to stop raising interest rates.

He noted that recent economic news including retail sales and housing starts have come in above expectations.

"Fed policy is going to be unpredictable ... we cannot predict those economic events that are ultimately driving policy," he said after a speech.

:rofl:

Like I would trust these wankers to know when the economy is doing anything!

[AnneD]

115. Useless bags

of mainly water:eyes:

[54anickel]

118. Lawmakers lash high-tech giants

Companies express distress over censorship

http://www.chron.com/disp/story.mpl/business/3662630.html

WASHINGTON - Four U.S. high-tech companies on Wednesday found themselves branded collaborators with the Chinese government in suppressing dissent in return for access to a booming Internet market.

House members contended that Microsoft Corp., Yahoo, Cisco Systems and Google sought to explain their business practices in China only after a recent crush of negative media and government attention.

"Your abhorrent actions in China are a disgrace," said Rep. Tom Lantos, top Democrat on the International Relations Committee. "I simply don't understand how your corporate leadership sleeps at night."

Yahoo's senior vice president and general counsel, Michael Callahan, said his company was "very distressed" at having to comply with Chinese law.

Elliot Schrage, vice president of global communications and public affairs for Google, said Google's decision to censor its Chinese Internet search engine was "not something we did enthusiastically or something we're proud of at all. ... We have begun a path that we believe will ultimately benefit our users in China."

more...

[UpInArms]

120. Silly "house members"!

Obviously they haven't read your quote, 54anickel.

"The corporation cannot be ethical, its only responsibility is to make a profit".......Milton Friedman

[54anickel]

126. Not part of the "in crowd" - anything for a buck, give the customers what

they want, the customer is always right.

Where's all that "Free Trade" preachin' these days?

[ozymandius]

121. 3:16 numbers and blather

Dow 11,080.82 +21.85 (+0.20%)
Nasdaq 2,286.34 +9.91 (+0.44%)
S&P 500 1,285.41 +5.41 (+0.42%)
10-Yr Bond 46.00 -0.06 (-0.13%)
NYSE Volume 1,789,520,000
Nasdaq Volume 1,618,530,000

3:00 pm : Stocks still mired in relatively tight trading ranges, showing little reaction to the fact that the commodities market is closed. Even though prices were higher across the energy complex, crude oil's 1.7% rebound from its lowest level of the year still leaves it off more than 12% this month, comforting news for consumers. The fact that Energy continued to take notice, pacing the way up 1.4% is also providing a source of support. DJ30 +5.04 NASDAQ +6.89 SP500 +4.03 NASDAQ Dec/Adv/Vol 1328/1659/1.55 bln NYSE Dec/Adv/Vol 1188/2049/1.25 bln

[moroni]

124. Subpoenas issued to the DTCC

NAKED SHORTING TARGETED
By RODDY BOYD NY Post

February 16, 2006 -- Two state securities regulators have issued subpoenas to get at the trading records of Wall Street's largest firms in a quest to stamp out the controversial practice of naked short-selling, sources said.
Naked shorting — the tactic of selling shares short without properly borrowing them first in order to bet on a stock's fall — has been a concern of state securities regulators during the past year.

Utah and Connecticut regulators' first line of attack will be to get Wall Street firms' trading records via the Depository Trust & Clearing Corporation, which tracks and settles all stock trades. Regulators will be looking for the trading and customer ledgers of Bear Stearns, Morgan Stanley and Goldman Sachs, which all have large and highly lucrative clearance operations.

Connecticut's subpoena asked for information on four companies "with a strong connection to the state," sources said.

Utah, on the other hand, requested a large amount of market-wide data regarding alleged naked short sales.

<snip>

http://www.nypost.com/business/61958.htm


For more information on naked short selling (illegal by the way)
go to http://www.thesanitycheck.com.

Do your own due diligence. This is a very involved issue. I have been following it for some time.
Anyone that owns stock really should investigate this. An eye opener.


Blessings to all,

moroni

[ozymandius]

125. Wow! What a turnaround in the witching hour.

Dow 11,120.68 +61.71 (+0.56%)
Nasdaq 2,294.63 +18.20 (+0.80%)
S&P 500 1,289.38 +9.38 (+0.73%)
10-Yr Bond 45.96 -0.10 (-0.22%)
NYSE Volume 2,240,516,000
Nasdaq Volume 1,940,425,000

3:30 pm : Major averages get a late-day lift, perhaps using recent comments from St. Louis Fed President Poole regarding the market's correct interpretation of the Fed's intentions as a catalyst to extend market gains for a third straight day. A turnaround in drug stocks within the last hour, as Merck (MRK 35.99 +0.70) of all names inches toward a 52-week high, has also provided a boost. DJ30 +28.90 NASDAQ +10.57 SP500 +6.12 NASDAQ Dec/Adv/Vol 1258/1728/1.69 bln NYSE Dec/Adv/Vol 1076/2189/1.38 bln

[UpInArms]

127. Buying Spree Progress: UAE company takes stake in Time Warner, hires Icahn

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-16T215105Z_01_WAT004891_RTRIDST_0_MEDIA-TIMEWARNER-ISTITHMAR-URGENT.XML

WASHINGTON, Feb 16 (Reuters) - United Arab Emirates-based media investment company Istithmar PJSC, through $2 billion in participation notes issued by UBS AG, now controls 2.39 percent of Time Warner Inc.'s (TWX.N: Quote, Profile, Research) stock and has hired one of Carl Icahn's entities as its advisor, according to a regulatory filing on Thursday.

The notes give Istithmar effective control over and economic exposure to over 109 million Time Warner shares, the filing with the U.S. Securities and Exchange Commission said.

Under the agreement, UBS does not have economic exposure or control over the shares.

[54anickel]

129. Wow, there really IS a blue light flashing over the USofA!!! Hope it's

not one of those "Fire Sales".