STOCK MARKET WATCH, Wednesday August 29

[ozymandius]

Source: DU

Wednesday August 29, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 512 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2427 DAYS
WHERE'S OSAMA BIN-LADEN? 2139 DAYS
DAYS SINCE ENRON COLLAPSE = 2100
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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

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

AT THE CLOSING BELL ON August 28, 2007

Dow... 13,041.85 -280.28 (-2.10%)
Nasdaq... 2,500.64 -60.61 (-2.37%)
S&P 500... 1,432.36 -34.43 (-2.35%)
Gold future... 673.50 -2.70 (-0.40%)
30-Year Bond 4.86% -0.00 (-0.02%)
10-Yr Bond... 4.53% -0.07 (-1.44%)






GOLD, EURO, YEN, Loonie and Silver

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PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

Read more: DU

[ozymandius]

1. Market WrapUp

China, Commodities, & U308
BY FRANK BARBERA, CMT

It has been a difficult and challenging period of time in the investment markets over these last few weeks, as the Credit Markets have moved to center stage. Against this backdrop, what can we say about the outlook for Commodities going forward? To begin with, there are a couple of key points most investors need to be aware of. First off, a recession is as close to a ‘lock’ as it can probably be at the present, so the question must be posed, how will a broad economic slow down affect commodity markets. For most commodities, the answer is very likely to translate into downside price action as during a recession; aggregate demand slows, and commodity prices weaken.

Ah, but there is that question about the global economy, and the now ever present specter of China growing rapidly and providing the “permanent floor” to the global economic boom. Forgive us for blaspheming in public, but we are not ready to sign on that dotted line at the present time. Yes, we know the Chinese would like their economy to continue to grow at a rapid clip right into the 2008 Olympics. Yes, we know they will be building stadiums, and roads, etc… all the infrastructure to ‘look good’ next year. However, whether or not the Chinese economy can grow much longer at the present rapid pace is in our view, a very big question indeed.

-cut-

Another major factor at work in China is the deteriorating situation with Domestic Price Inflation. As can be seen in the following AP Article, Food Prices in China are on the rise and are driving domestic inflation rates toward 6%. To combat late cycle inflation, the Chinese government is raising interest rates, with the most recent hike representing the 4th hike this year (see below).

-cut-

China's Sharp Jump in Food Prices, Which Have Risen 15.4 Percent, Fuels Inflation Fears

BEIJING (AP) -- Grocery shopping has become a painful experience for Zhang Xueyi. Meat prices have risen 50 percent in the past year, and eggs and other products are not far behind, forcing the 31-year-old railway technician's family to spend a third of its $400 monthly income on food. "If prices go up more, we have to pay. We'll cut back somewhere else," said Zhang as he hefted bags of eggs, vegetables and rice from the market down a narrow Beijing lane. After a run that has seen sizzling growth top 10 percent for four years, analysts say China's supercharged economy is facing strains that could break out into an upsurge of inflation. So far the worst damage has been confined to food prices, which jumped 15.4 percent in July over the same month a year ago and drove overall inflation to a decade-high 5.6 percent. But wages are rising too, as are the costs of oil and electric power. Record-setting exports and a stock market boom are sending cash flooding through the economy, stoking demand for goods. The Chinese economy "might have entered a region where we should be on guard," said a central bank official, Zhang Tao, quoted last week by the state newspaper China Securities Times. If the trend goes unchecked, the impact could be felt abroad as consumers who depend on China as the world's low-cost factory have to pay more for appliances, shoes and other goods. Pinched Chinese consumers might spend less on foreign goods, widening a yawning trade surplus that has strained relations with Washington and other trading partners. Economists say the latest price spike is due mostly to temporary shortages of pork, the staple meat whose price soared 86 percent in July from a year ago.

-cut-

OK, so we have a runaway economic juggernaut that is generating accelerating price inflation, serious shortages, which in turn is now forcing the government to tighten the price of credit. Does this sound familiar to anyone -- the US in the 1970’s perhaps? Oh yes, I almost forgot, throw in a parabolic stock market with widespread participation from the Middle Class and completely unbridled speculation. Now we are starting to sound more like the US in 1929. In our view, the Chinese stock market, which has been to this point singularly immune to the problem besieging other capital markets, remains a serious accident waiting to happen. While some may argue that China is the next secular bull, and we have the field of view to potentially agree, in the closer time frame of the next 1 to 2 years, we still remain of the view that China will turn into a serious bust, with the stock market rolling over and taking back a large portion of the gains seen during the last two years.

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

[ozymandius]

2. Today's Report

10:30 AM Crude Inventories 08/24
Briefing Forecast NA
Market Expects NA
Prior 1890K

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

[ozymandius]

3. Crude oil falls in Asia

BANGKOK, Thailand - Crude oil futures fell Wednesday in Asia, extending declines from the previous session as refinery worries faded and OPEC suggested it sees no need to increase oil production.

Light, sweet crude for October delivery fell 12 cents to $71.61 a barrel in electronic trading on the New York Mercantile Exchange midmorning in Singapore. The contract dropped 24 cents to $71.73 a barrel Tuesday in the U.S.

Nymex gasoline futures rebounded 0.46 cent to $2.0200 per gallon in electronic trading after dropping 2.39 cents in the day session.

-cut-

Traders are now looking ahead to this week's inventory report due later Wednesday. Gasoline supplies are expected to have fallen 1.8 million barrels in the week ended Aug. 24, according to the average estimates of analysts surveyed by Dow Jones.

Crude oil inventories are expected to have fallen 800,000 barrels, and distillate stocks, which include diesel and heating oil, are forecast to have built 600,000 barrels. Refinery utilization rates are forecast to have remained unchanged at 91.6 percent.

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

[UpInArms]

18. Oil rises as investors watch economy

http://www.reuters.com/article/hotStocksNews/idUSSP5715420070829?sp=true

LONDON (Reuters) - Oil climbed higher on Wednesday as investors balanced concern over the health of the U.S. economy against the prospect of declining fuel stocks in the world's top consumer.

U.S. crude rose 49 cents to $72.22 a barrel by 8:42 a.m. EDT while London Brent was up 41 cents at $70.96.

The deepening crisis in U.S. subprime mortgages -- loans made to high-risk borrowers -- has rattled financial markets and knocked U.S. consumer confidence to its lowest level in nearly two years.

Oil has held up comparatively well, but the U.S. benchmark has fallen from an all-time high of $78.77 on August 1 as some investors worry that a global credit crunch will take its toll on the wider economy and erode oil demand.

...more...

[ozymandius]

4. Asian markets tumble after U.S. sell-off

TOKYO - Asian markets dropped Wednesday following a plunge on Wall Street amid simmering concerns over global credit market turmoil and fears the U.S. Federal Reserve won't do enough to ease a credit crunch. European markets, meanwhile, were mixed in early trade.

Asian markets pared losses as the day progressed, with Korean shares recovering nearly completely, suggesting a measure of investor confidence.

Japan's Nikkei 225 index was 1.7 percent lower at the close after dropping as much as 2.8 percent earlier in the day. Hong Kong's key index was down 1.5 percent at its close after losing as much as 2.9 percent. And South Korea's benchmark finished just 0.2 percent lower after dropping as much as 3.1 percent.

http://news.yahoo.com/s/ap/20070829/ap_on_bi_ge/world_markets

[UpInArms]

5. dollar watch

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

Last trade 80.793 Change -0.073 (-0.09%)

US Fed: Rocky Market Conditions Could Drive the Fed to Cut in September

http://www.dailyfx.com/story/topheadline/US_Fed__Rocky_Market_Conditions_1188327519058.html

The release of the minutes from the FOMC’s August 7th meeting didn’t shed any new light on the central bank’s policy stance, as the meeting occurred just days before market volatility spiked and risk aversion started to reign on August 9th. However, the minutes did show that the FOMC was concerned enough about worsening financial conditions to say that they may need to take policy action. As a result, the FOMC’s policy decision on September 18th appears to be dependent mostly on how the financial markets perform until that time, leaving the door open to a potential rate cut.

This Week In Central Bank Speak:

US Fed: Rocky Market Conditions Could Drive the Fed to Cut in September
ECB: Will Trichet Assert Strong Vigilance On September 6th?
BOJ: Will A Determined Fukui Dare To Raise Rates This Year?

Yield Spread Analysis 08/21 – 08/28

As volatility has cooled throughout the markets during the past week, government fixed income instruments have followed suit and have sent short-term bond yields rocketing higher. However, 10-year yields have not been as fortunate, leading yield curves in the US, Europe, Canada, and the UK to invert quite a bit. The reason? Bonds with shorter maturity times are more sensitive to changes in monetary policy and have reacted to the fact that many central banks have turned from holding a hawkish stance to either neutral or slightly dovish stances following the spike in volatility.

Looking ahead, traders should be keenly aware of risk aversion trends, as this has been the main driver of price action in equities, bond, and forex markets. However, US event risk in the form of GDP on Thursday could shake up Treasuries, especially if it shows a sharp revision. Furthermore, Fed Chairman Bernanke will speak in Jackson Hole, Wyoming on Friday, and any comments on housing, credit markets, or inflation has the potential to spark major price action.

...more...

Dollar Yen Firmer on Japanese Retail Demand - Nothing But a Deadcat Bounce?

http://www.dailyfx.com/story/bio2/Dollar_Yen_Firmer_on_Japanese_1188381154420.html

After being driven lower all day long yesterday, USDJPY finally found its footing in the Asian afternoon session as Japanese retail demand for yield provided an offset the latest bout of risk aversion. A series of negative news stories including the downgrade of US broker dealers, the near 300 point decline in the Dow Jones Industrial index and the revelation of yet another US mortgage broker filing for bankruptcy combined to create a massive wave of carry trade liquidation spilling over into early Japanese trade with USD/JPY hitting a low of 113.85. However, strong demand from Japanese investment trusts to the tune of more than 180 Billion yen stemmed the tide of selling and pushed USD/JPY all the way to 114.90.

The trade action today suggests that appetite for yield from Japanese retail investors remains insatiable despite the continuous woes in global credit markets. One possible reason may be the considerably more dovish posture taken by the new Japanese Finance minister Fukushiro Nukaga. In contrast to his predecessor, Mr. Nukaga stated that he did not believe that deflation in Japan was completely over and furthermore urged the BOJ to carefully watch world economic and domestic data to avoid mistakes. Mr. Nukaga statements were a none too subtle attempt to caution the Japanese central bank from raising rates at the next monetary policy meeting in September. At the last meeting in August, BOJ Governor Fukui, hinted that the central bank may indeed do that if market conditions stabilize.

In short with Japanese rates unlikely to rise materially in the near future the interest rate differential between the yen and the high yielders for Japanese retail accounts was just too tempting to pass up and today’s rebound serves as a testament to the power of the carry trade despite the turbulence in other markets. Yet as the day progresses the pendulum may swing the other way if US equities see more selling pressure. Although these are the true dog days of summer, traders have seen no let up in volatility as markets remain jumpy and nervous. With little economic data on the calendar, the price action in currencies is likely to be dictated by sentiment of stock investors who are becoming increasingly concerned about the economic implications from the fallout in the credit markets.

In only other major news of the night, the Swiss KOF index of leading indicators missed expectations printing at 2.06 vs. 2.15. Today’s result remains consistent with the notion that Swiss economic growth may have peaked making it far more likely that the SNB may only hike rates once rather than twice for the remainder of the year. Overall the news should weigh on the Swissie if carry trade demand remains strong for the rest of the day.

...more...

[ozymandius]

19. Dollar firms amid volatile financial markets

LONDON (AFP) - The dollar posted slim gains against the euro and the yen on Wednesday as dealers looked to choppy global financial markets for direction.

In late morning deals, the euro eased slightly to 1.3598 dollars, from 1.3604 dollars in New York late on Tuesday.

The dollar edged up to 114.46 yen, from 114.25 yen on Tuesday.

With no major economic data slated for Wednesday, dealers digested volatile equity markets following Tuesday's US newsflow.

-cut-

Uncertainty on global markets has led dealers to unwind their risky "carry trades" in which they borrow in Japan, which has ultra-low interest rates, to invest in higher-yielding economies such as Australia, Britain and Switzerland.

http://news.yahoo.com/s/afp/20070829/bs_afp/forexeurope_070829112512

[Ghost Dog]

27. Yen falls back as stable European stocks prompt revival in risk appetite

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=6c8ab74d-efd9-4921-8945-375598dcb3da

LONDON (Thomson Financial) - The yen fell back as European equity markets shrugged off yesterday's slump on Wall Street, prompting a revival in risk aversion.

Yesterday, US equities fell sharply, pushed down by a 3.2 pct fall in the S&P/Case-Shiller house price index during the second quarter - the biggest drop since it began in 1987.

The losses were then exacerbated by the release of the Federal Reserve's minutes to its August 7 rate-setting meeting which dented expectations that a September rate cut is on the cards. The minutes indicated that the deterioration in financial conditions might need a "policy response" but that the Fed is still concerned about inflation pressure.

However, while Asian equities followed Wall Street lower most European bourses are trading in the black.

"Following 2 pct losses for stocks in New York yesterday, there has been some degree of recovery in Europe today - European bourses were into modestly positive territory whilst the yen-crosses were enjoying a degree of stabilisation after suffering broad based losses through to the Tokyo afternoon," said Neil Mellor, currency strategist at Bank of New York.

/...

[AnneD]

43. Ghost Dog...

what is the feeling (or opinions) about what is going on-what is the man on the street thinking in Europe?

[mojavekid]

30. Daily Pfennig 8/29/07: The Fed Heads Just Don't Get It!

http://www.kitcocasey.com/displayArticle.php?id=1564

As each day goes by, I see stocks wilting in the August heat... Consumer Confidence did fall, and that didn't help stocks...

The reason I started off today's letter talking about stocks is that I think they tie into the theme I've talked about this week, and that is whether or not the markets are willing to take on risk... If stocks are getting sold, I believe that's an indication that Risk Aversion is back on the table, which leads to what I believe is a mass exodus from the carry trade!

But that's what happened yesterday and last night... Who knows what the markets have in store for us today, or tomorrow, or the next day?

Yesterday, though, we had classic carry trade unwinding signs... Japanese yen and Swiss francs were strong, while kiwi, and krona saw weakness.

Here's a reason for the move to Risk Aversion... Subprime jitters returned to the markets as it was reported that State Street is heavily exposed to asset-backed conduits. Then we had Merrill downgrading the stocks of Bear Stearns, Lehman, and Citigroup.

After the U.S. close, S&P reported that Cheyenne Capital Mgmt. Ltd., a $20 billion commercial paper program, might liquidate due to losses. Uh-Oh... This is looking like it's all going to unravel soon...

I just don't think the Fed Heads realize that their Discount Rate Cut didn't really do anything to alleviate the problems from the subprime mess and all the derivatives floating around the world...

The S&P/CaseShiller house prices data that I mentioned yesterday fell more than expected (-3.5% vs. -3.3% expected). This is an index for 20 metropolitan areas, which doesn't necessarily mean that house prices in your neck of the woods have fallen like that... But since it does represent 20 metro areas, this should be a good representation of what's going on.

I've talked till I was blue in the face about this... And how falling house prices were going to really play heck with those ARM's that are coming due, and home owners have taken all the equity out of their houses as they used them like ATM's... To me... The people that have fallen into that trap are in for some real shocks, and finding out their home is not worth what they thought it was is just one of them!

more...

[ozymandius]

32. Oh, but they do get it.

This is still the Greenscam Fed. Only the figurehead has changed. Bernanke was molded by the Greenscam years: virulent hostility toward the middle class; whorish succor to the corporate class. Greenscam wanted to destroy the middle class to put the levers of government power into the hands of the fewest individuals.

All levels of financial advice that could be deciphered from his zig-zagging verbiage follow a singular path: lead those who seek financial and social upward mobility down the opposite path. From Social Security piratization, to the $90k cap on SS payroll contributions, to Greenscam's thunderous cheer for adjustable rate mortgages: it all points in the same direction. The Fed has been instrumental in socializing losses and privatizing gains. Fiat currency, a printing press and a mouthpiece is all they need to express change in the economic system to benefit the few at the expense of the many.

I cannot find anywhere the sentiment that the Federal Reserve board and their employees are public servants. Anyone want to challenge me on this?

[AnneD]

42. Morning Marketeers.......

:donut: and lurkers. You won't get anyone taking up that bet here. And if their goal is keep inflation from getting out of hand, they are failing that too. They are in business for the banks, not for you. They have painted themselves into a corner and we will see the results of that soon enough.

Remember the Mel Brooks movie Blazing Saddle. The was a a scene where the Governor was meeting with his cabinet, At on point he said 'We've got to save our phony baloney jobs-hurumpft can I get a hurumpft' and all the cabinet started hurumpfting. That seems to be the extent of the Feds now. The sooner folks wake up, the better. But I think we will be shocked at how many big dogs loose their 'hard earned 'money too.

Happy hunting and watch out for the bears.

[mojavekid]

33. Bloomberg: Gold Rises as Stocks Rebound, Dollar Weakens; Silver Advances

http://www.bloomberg.com/apps/news?pid=20601012&sid=aHjAarFg9H.4&refer=commodities

Aug. 29 (Bloomberg) -- Gold rose in London for the first time in three days as stock-market gains and a weaker dollar spurred demand. Silver also increased.

Bullion erased an earlier decline as U.S. stock index futures and the benchmark FTSE 100 Index of U.K. shares climbed and the dollar fell against the euro for the first day this week. Gold has moved in the opposite direction to the dollar on a weekly basis since July, gaining 2.5 percent in that time.

Gold's gain ``looks to be related to the rebound in the equity market,'' said Mario Innecco, a futures broker specializing in precious metals and fixed income at MF Global Ltd. in London. ``The currencies are helping as well.''

Gold for immediate delivery climbed $3.45, or 0.5 percent, to $665.95 an ounce as of 12:44 p.m. local time. Earlier, it fell as much as 85 cents to $661.65. Silver rose 1.5 cents to $11.78 an ounce.

tiny bit more...

[UpInArms]

6. Home loan demand slumps despite lower rates

http://news.yahoo.com/s/nm/20070829/bs_nm/usa_economy_mortgages_dc

NEW YORK (Reuters) - U.S. mortgage applications fell for a second consecutive week, reflecting a drop in demand for home purchase and refinancing loans even as interest rates sank, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended August 24 decreased 4.0 percent to 615.2.

Applications, however, were 10.5 percent above their year-ago level.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.41 percent, down 0.08 percentage point from the previous week. Interest rates were above year-ago levels at 6.39 percent.

...more...

[Roland99]

11. According to the 30-year fixed rate at Marketwatch, it's dropped 0.25% in a couple weeks.

It was up about 6.33% a couple weeks ago and is down to 6.08% now.

[UpInArms]

7. Subprime mortgage woes spreading to homes costing more than $500,000

http://news.yahoo.com/s/ap/20070829/ap_on_bi_ge/expensive_homes

NEW YORK - The subprime mortgage crisis is spreading to a somewhat unexpected place: homes costing more than $500,000.

As lending has rapidly gotten more restrictive for borrowers taking out large loans, sales of expensive homes have fallen sharply around the country during what should be one of the busiest seasons for buyers and sellers, mortgage bankers and real estate agents say.

To some degree the change is due to difficulty getting financing, as borrowers are finding fewer lenders willing or able to fund "jumbo" mortgages, loans for amounts greater than $417,000. Such loans are too big to be guaranteed by government-sponsored housing finance agencies Fannie Mae, Freddie Mac or Ginnie Mae.

Given the troubles in the subprime sector, investor appetite for all types of mortgage loans not guaranteed by housing finance agencies has nose-dived.

Banks until recently were able to offload the risk of many jumbo mortgages by selling the loans to investors. But now, as investors burned by the subprime debacle have become extremely picky about what they will buy, banks are having to keep more of these loans on their own books and as a result are charging higher rates.

...more...

[UpInArms]

16. CREDIT WRAPUP 4-Subprime inflicts new damage, banks seek cash

http://www.reuters.com/article/bondsNews/idUSL2911092820070829?sp=true

LONDON, Aug 29 (Reuters) - New evidence of damage wrought by the U.S. mortgage sector surfaced in the United States and Europe on Wednesday while banks demanded a record amount of cash at a euro zone money market auction.

Cheyne Finance Plc, a structured investment vehicle (SIV) managed by British hedge fund Cheyne Capital Management, said it was seeking to restructure after being forced to start selling assets to pay down debt. Standard & Poor's downgraded Cheyne Finance sharply. Just two weeks ago, the agency said ratings on SIVs -- including the Cheyne vehicles -- were weathering turmoil caused by defaults on U.S. subprime mortgage lending mainly to poor people.

Merrill Lynch on Tuesday downgraded Bear Stearns (BSC.N: Quote, Profile, Research) Citigroup Inc (C.N: Quote, Profile, Research) and Lehman Brothers Holdings (LEH.N: Quote, Profile, Research) to "neutral" from "buy" and lowered estimates for the banks' earnings, due to their credit and mortgage market troubles.

"The only thing that is certain is that more uncertainties in the direction of asset prices and volatility are on their way," Bank Julius Baer said in a report.

...more...

[UpInArms]

8. Cheyne sells assets as fears of SIV woes spread

http://www.reuters.com/article/bondsNews/idUSL2991216920070829?sp=true

LONDON (Reuters) - A structured investment vehicle (SIV) managed by British hedge fund Cheyne Capital Management said on Wednesday it was seeking to restructure after being forced to start selling assets to pay down debt.

The Cheyne Finance vehicle, which analysts say amounts to about $6.6 billion, is the latest in a string of funds to have come unstuck due to a strategy of borrowing short-term money and then investing in longer-term securities in the asset-backed bond market.

The ABS market has been one of the hardest hit by the U.S. subprime mortgage crisis.

Traders and analysts said there were concerns that more SIVs could come under pressure to unwind, leading to further sales of assets into an already jittery credit market.

<snip>

Data from Moody's as of March 31 show 87 percent of Cheyne's investments were in structured finance, with 51.5 percent in residential and commercial-mortgage-backed securities. Of the portfolio, 81 percent was invested in the United States.

...more...

[UpInArms]

9. SEC charges ex-KLA-Tencor, Juniper general counsel

http://www.reuters.com/article/businessNews/idUSN2830045620070828?feedType=RSS&feedName=businessNews&sp=true

WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission said on Tuesday it has charged the former general counsel of KLA-Tencor Corp (KLAC.O: Quote, Profile, Research) and Juniper Networks Inc (JNPR.O: Quote, Profile, Research) with fraudulently backdating stock options.

The SEC alleged Lisa Berry routinely backdated option grants from 1997 to 2003, causing the two companies to conceal hundreds of millions of dollars in stock option compensation expenses.

The investor protection agency also said it settled fraud charges with Juniper. The agreement enjoins the Sunnyvale, California-based information technology company from violating antifraud provisions and other portions of federal securities laws but contains no monetary penalty.

KLA-Tencor previously settled with the SEC over an options backdating scheme at the Silicon Valley semiconductor company. KLA-Tencor also avoided any monetary penalties.

<snip>

More than 180 companies have been investigated by U.S. authorities or have conducted their own internal inquiries into possible manipulation of option-grant dates.

...more...

[UpInArms]

10. Carlyle loans further $100m to fund

http://news.yahoo.com/s/ft/20070828/bs_ft/fto082820071455590771

Carlyle Group, the US private equity firm, apologised to shareholders on Tuesday for a "lapse in communication" after extending a second $100m (EU73m) loan to a mortgage-backed securities fund it listed last month on Euronext Amsterdam.

The apology and rescue loan - the second in as many weeks - were an attempt by Carlyle to draw a line under the crisis at Carlyle Capital Corporation (CCC), which has suffered a steady stream of bad news since floating on July 4.

Announcing a $900m asset sale to cover margin calls by lenders, the Guernsey-based fund said worried investors had asked for details of its asset portfolio, but received only press releases and website information in reply.

"Because CCC ... is subject to various rules and regulations pertaining to selective disclosure, we relied on our press releases and our website instead of communicating directly with individual shareholders," it said in an e-mail to investors on Tuesday.

...more...

[UpInArms]

20. Carlyle Capital has faced continuing margin calls - exec

02. Carlyle Capital focused on preserving client assets - exec
9:11 AM ET, Aug 29, 2007 - 12 minutes ago

03. Carlyle Capital has faced continuing margin calls - exec
9:11 AM ET, Aug 29, 2007 - 12 minutes ago

04. Carlyle Capital will post profit for last 9 mths - exec
9:11 AM ET, Aug 29, 2007 - 12 minutes ago

05. Carlyle Capital positioned to ride out credit crisis
9:11 AM ET, Aug 29, 2007 - 12 minutes ago

06. Credit crisis "took us by surprise" Carlyle Capital Chairman
9:11 AM ET, Aug 29, 2007 - 12 minutes ago

07. Retained assets have good credit quality-Carlyle Capital
9:08 AM ET, Aug 29, 2007 - 15 minutes ago

[Demeter]

36. Wouldn't It Be Ironic?

If W took out Carlyle Corp with his antics--Poppy would take him out himself, I'd wager.

[Roland99]

12. Stocks set for bargain-hunting bounce after sharp fall

http://www.marketwatch.com/news/story/stocks-set-rise-bargain-hunting-after/story.aspx?guid=%7B741AC017%2D1543%2D4B08%2DB7A5%2DFFF7F3EE4580%7D

U.S. stocks are positioned to open higher Wednesday, as traders are expected to fish for bargains following the steep decline in the previous session and no economic news on the calendar.

"What we're seeing here is some bargain-hunting after the sharp fall yesterday," said Peter Cardillo, chief market economist at Avalon Partners.

Futures for the Dow Jones Industrial Average rose 50 points at 13,145. Futures for the S&P 500 index gained 4.50 points to 1,442 and Nasdaq 100 futures rose 6.50 at 1,914.

"Yesterday's declines were a bit exaggerated since the FOMC minutes indicated that the Fed would be there if necessary," Cardillo said. "We're looking at an early bounce here on short-covering."

But how long will that bounce last?

[54anickel]

24. Heh-heh, they're considered bargains again? What's that piping through the

Muzak at the Fed building? Is that I'll Be There that I'm hearing?

Shop till you drop folks....

[ozymandius]

13. DaimlerChrysler profit falls 14 percent

FRANKFURT, Germany - Automaker DaimlerChrysler AG said Wednesday its overall profit fell 14 percent in the second quarter, but that profits rose from its Chrysler Group and the related financial services business in North America.

The entire company posted a profit of 1.85 billion euros ($2.53 billion) in the April-June period compared with 2.15 billion euros a year earlier.

Its profit from continuing operations was 1.4 billion euros ($1.91 billion) compared to 1.8 billion euros a year earlier.

Overall sales fell to 23.8 billion euros ($32.52 billion) from 24.6 billion euros last year.

http://news.yahoo.com/s/ap/20070829/ap_on_bi_ge/earns_germany_daimlerchrysler

[54anickel]

14. Calls grow louder for international overview of U.S. markets

http://www.iht.com/articles/2007/08/28/business/reg.php

Loan crisis blamed on lax regulators

Politicians, regulators and financial specialists outside the United States are seeking a role in oversight of American markets, banks and rating agencies in the wake of recent problems related to subprime mortgages.

Their argument is simple: The United States is exporting financial products, but losses to investors in other countries suggest that American regulators are not properly monitoring the products or alerting investors to the risks.

"We need an international approach, and the United States needs to be part of it," said Peter Bofinger, a member of the German government's economics advisory board and a professor at the University of Würzburg.

While regulators in the United States have not been receptive to the idea in the past, analysts said that Europe and Asia have more leverage this time around. Washington might have to yield if it wants to succeed in imposing bilateral regulations on state-owned investment funds from emerging economies.

"America depends on the rest of the world to finance its debt," Bofinger said. "If our institutions stopped buying their financial products, it would hurt."

more...

[54anickel]

17. U.S. Congress split on solution to subprime crisis

http://www.iht.com/articles/2007/08/28/business/mortgage.php

WASHINGTON: Faced with a possible tidal wave of home foreclosures beginning this autumn, Democrats and Republicans in the United States are battling over a philosophical question that has huge practical implications: Should the government ride to the rescue?

Both the administration of President George W. Bush and Democratic leaders in Congress agree that legions of homeowners could be overwhelmed in the next 18 months, when low teaser rates expire on more than two million adjustable-rate mortgages, and monthly payments increase sharply.

More ominously, falling real estate prices and a pullback among mortgage lenders are expected to make it more difficult for overstretched home buyers to refinance their way out of trouble or simply sell their houses.

"This is really just the beginning," said Karen Weaver, director of securitization research at Deutsche Bank. "There's a big wave of defaults coming over the next 12 to 18 months."

From a political perspective, the wave would be crashing during the primary and general election campaigns next year.

snip>

The proposals would expand the program of insuring home loans under the Federal Housing Administration, part of the Department of Housing and Urban Development; create a national fund for "affordable housing"; expand the ability of Fannie Mae and Freddie Mac, the government-sponsored finance companies, to buy renegotiated subprime mortgages; and give bankruptcy judges more power to order easier terms for borrowers.

The Bush administration, with the Treasury Department leading the efforts, is looking for more limited solutions. Administration officials are working on their own ideas to let the FHA insure slightly more expensive homes, which could make it easier for people with low incomes or weak credit to switch out of subprime mortgages and into more traditional fixed-rate loans.

Robert Steel, under secretary of the Treasury for domestic finance, has been put in charge of developing other ideas, but administration officials have said little about what those might be.

For the past six years, administration officials have followed a laissez-faire approach, saying they did not want to restrict innovative mortgage products.

more...

[ozymandius]

15. Subprime inflicts new damage as banks seek cash

LONDON (Reuters) - New evidence of damage wrought by the U.S. mortgage sector surfaced in the United States and Europe on Wednesday while banks demanded a record amount of cash at a euro zone money market auction.

Cheyne Finance Plc, a structured investment vehicle (SIV) managed by British hedge fund Cheyne Capital Management, said it was seeking to restructure after being forced to start selling assets to pay down debt.

Standard & Poor's downgraded Cheyne Finance sharply. Just two weeks ago, the agency said ratings on SIVs -- including the Cheyne vehicles -- were weathering turmoil caused by defaults on U.S. subprime mortgage lending mainly to poor people.

Merrill Lynch on Tuesday downgraded Bear Stearns (BSC.N) Citigroup Inc (C.N) and Lehman Brothers Holdings (LEH.N) to "neutral" from "buy" and lowered estimates for the banks' earnings, due to their credit and mortgage market troubles.

http://news.yahoo.com/s/nm/20070829/bs_nm/economy_credit_dc

[ozymandius]

21. EarthLink to cut 900 jobs

ATLANTA - Shares of EarthLink Inc. climbed more than 6 percent Tuesday after the Internet service provider said it would cut 900 jobs — or about half its work force — and close four offices in an effort to reduce operating costs.

The company also said it will repurchase $200 million of its stock as part of the plan, said Rolla P. Huff, the Atlanta-based company's president and chief executive. More cuts could be announced before the year's end, he said.

-cut-

EarthLink said it expects to save from $25 million to $35 million through the rest of the year because of the restructuring. The company currently employs about 1,900 people.

http://news.yahoo.com/s/ap/20070828/ap_on_bi_ge/earthlink

[UpInArms]

22. Even the rich are losing optimism over this economy

http://www.marketwatch.com/news/story/even-rich-losing-optimism-over/story.aspx?guid=%7BCBBBC2F9%2D32B7%2D4C43%2DB57E%2DA23C3A09B062%7D

SANTA MONICA, Calif. (MarketWatch) -- Affluent retirees are expressing concerns about the stock market, with many believing that they won't have enough money to last them through their lives.

In its semiannual "Advisor Outlook" study, Schwab Institutional reports that the affluent are "anxious about retirement and their optimism about the economy is waning."

These concerns bleed into the stock market and overall confidence in the economy. Interestingly, the study comes via the standpoint of advisers, so the findings create a double worry: If affluent clients are concerned, their advisers likely are concerned too.

"Some 61% of financial advisers say that having sufficient retirement savings to maintain their desired lifestyle is a constant concern of their clients. Another 35% of advisers say their clients worry about this at least some of the time," the study reports.

Indeed, almost 60% of the affluent people surveyed say they are pursuing a new (second) career -- not out of interest but out of need.

...more...

[54anickel]

25. Ewww, love the last 2 paragraphs.....

However, I found what advisers won't be investing more insightful: Financials, the third sector choice of advisers in January at 34%, fell to seventh place, with just 17% of advisers citing it as a future top-performing sector.

This should be worrisome to us all, whether we are retired or plan to someday: the place where the money is made in the capital markets is getting a vote of no confidence by the people who actually work in it.

on edit...

Now I've got Simply Red stuck in my head....

Moneys too tight to mention
Oh money money money money
Moneys too tight to mention
I cant even qualify for my pension

Were talking bout reaganomics
Oh lord down in the congress
Theyre passing all kinds of bills
From up there on capitol hill, weve tried it

Moneys too tight to mention
Oh money money money money
Moneys too tight to mention
Cutbacks!

Were talking bout the dollar bill
And that old man whos over the hill
Now what are we all to do
When moneys got a hold on you

[ozymandius]

23. bidness being dealt

9:33
Dow 13,129.48 Up 87.63 (0.67%)
Nasdaq 2,520.67 Up 20.03 (0.80%)
S&P 500 1,441.82 Up 9.46 (0.66%)
10-Yr Bond 4.52% Down 0.01
NYSE Volume 43,473,000
Nasdaq Volume 45,314,000

09:15 am : S&P futures vs fair value: +7.2. Nasdaq futures vs fair value: +10.5.

09:00 am : S&P futures vs fair value: +8.3. Nasdaq futures vs fair value: +9.8. The stage remains set for stocks to recoup some of yesterday's sizable losses when the opening bell sounds in 30 minutes. Nasdaq 100 futures are exhibiting a more convincing rebound than S&P 500 futures.

Apple (AAPL) is up 2.0% in pre-market action after confirming a special media event on September 5th to introduce new products. Amgen (AMGN) is enjoying a similar advance and providing an early boost after it got a favorable patent ruling. Albeit not a Nasdaq-listed name, Seagate Technology (STX) boosting its Q1 outlook is offering some reassurance about the tech sector’s growth prospects. Shares of STX are up 5%.

[ozymandius]

26. blather

09:40 am : As expected, a sell-off yesterday that was exacerbated by short sellers benefiting from a lack of bids following outdated FOMC minutes is being viewed as an overreaction. The sense that stocks are oversold has prompted a short-covering bounce that leaves all 10 sectors trading sharply higher right out of the gate.

Even though the Fed's attitudes clearly changed by August 17, when the Fed cut the discount rate at an unscheduled meeting, and the August 7 minutes reflected what policy makers used to think, intraday declines on the Dow, S&P 500 and Nasdaq basically doubled over the ensuing two hours after the report's release Tuesday.

That left all three major indices down roughly 2.3% on average for the session, erasing all of last week's sizable gains that amounted to the market's best weekly performance in several months. DJ30 +96.69 NASDAQ +24.25 SP500 +11.69 NASDAQ Vol 86 mln NYSE Vol 28 mln

[UpInArms]

28. Fed Pumping Again: Fed injects $2 billion in overnight repo at 5.37%

09. Fed injects $2 billion in overnight repo at 5.37%
9:45 AM ET, Aug 29, 2007 - 22 minutes ago

[nadinbrzezinski]

31. Color me surprised

[Demeter]

38. Bless You, Of Course They Are

All those little fairies flappng their wings as hard as they can...Clap if you believe in fairies!

[AnneD]

45. Ok....

but I doubt it will help

:eyes: :applause: :applause: :applause: :sarcasm:

[wordpix]

39. where the hell is the Fed getting this $$? Anyone know? Are they just printing it?

[librechik]

41. exactly

that's why the worry about the Fred "not doing enough." The markets want more, but the Fed knows their printing presses will only lead to rampant inflation.

What do the rich traders and corporations care if Milk and bread become unaffordable? They'll still be able to buy--at "market prices" --

by the wheelbarrow, if necessary.

[Amonester]

46. The "unknown" money "makers" don't care about the poor, just the

riches (like themselves)

http://video.google.com/videoplay?docid=-515319560256183936&q=money+masters&total=1272&start=0&num=10&so=0&type=search&plindex=0

they're certainly not "honest" nor "honorable" ...

[UpInArms]

29. Goldman's subprime car lender Triad to cut jobs

http://www.reuters.com/article/bondsNews/idUSN2932582420070829

NEW YORK, Aug 29 (Reuters) - Subprime auto lender Triad Financial Corp., partly owned by Goldman Sachs (GS.N: Quote, Profile, Research), plans to cut 124 jobs in California next month, according to a notice filed with that state's department of labor.

Triad of Huntington Beach, California specializes in financing auto loans for people with weak credit. During the first half of the year, Triad's delinquencies increased to 11.2 percent, up from 9.5 percent at the end of 2006, even though it usually sees improved collections during that period, the company said in its quarterly financial statement.

The planned layoffs in California represent nearly 10 percent of the company's total work force of more than 1,300.

...more...

Didn't Goldman say they had no exposure in the subprime area?

[ozymandius]

34. Markets experiencing some sort of "yeehaa" effect.

11:52
Dow 13,178.17 Up 136.32 (1.05%)
Nasdaq 2,532.68 Up 32.04 (1.28%)
S&P 500 1,448.63 Up 16.27 (1.14%)
10-Yr Bond 4.52% Down 0.01
NYSE Volume 852,979,000
Nasdaq Volume 634,634,000

11:30 am : Stocks are off their recent highs but sontinue to sport hefty gains across the board. As evidednced by the Nasdaq turning in the best performance among the majors, it's not surprising to see Technology (+1.4%) now leading the charge among the 10 sectors catching a bid.

Other sectors up at least 1.0% include Industrials, Energy, Telecom, Utilities, and Materials, while the Financial sector's ability to find support in positive territory is also noteworthy. DJ30 +115.90 NASDAQ +26.83 SOX +1.7% SP500 +13.25 NASDAQ Dec/Adv/Vol 860/1872/532 mln NYSE Dec/Adv/Vol 575/2522/362 mln

11:00 am : The major averages are extending their reach to the upside, getting a boost from, of all things, higher oil prices. Crude for October delivery is now up 1.5% near $72.80/bbl following much larger than expected declines in weekly crude and gasoline supplies. As a result, the Energy sector (+1.6%) now ranks among today’s best performers and, with its leadership, has helped the Financial and Health Care sectors turn the corner.

The return of their leadership is especially crucial to the sustainability of today's bounce since both sectors collectively account for more than 30% of the total weighting on the S&P 500. DJ30 +106.65 NASDAQ +26.49 SP500 +11.77 XOI +1.6% NASDAQ Dec/Adv/Vol 979/1707/412 mln NYSE Dec/Adv/Vol 734/2306/272 mln

[mojavekid]

35. Mogambo: Drug Induced Inflation Allowance

http://www.dailyreckoning.com/Writers/Mogambo/DREssays/MG082807.html

The doors of the Secret Mogambo Backyard Fortress (SMBF) clanged shut when the Bureau of Labor Statistics reported that recent inflation data showed that there is roaring inflation in food prices, which (as a group) rose by 4.1% for the 12 months ending in June!

I was so busy battening down the hatches at this horrible inflation news that I almost did not catch the details, which are frightening. For example, whole milk was up 13.3% (to a new record high price!), egg prices are 19.5% higher, chicken was up 10%, dried beans were up 11.5%, and white bread rose by 9.6%!

The "good" news (I am led to believe) is that prices for all goods and services, lumped together and an average taken, were up "only" 2.7% over the past 12 months. And since the prices for all these goods and services is also equal to the gross incomes of the people who sold all those goods and services, then not only is average price rising at alarming levels, but yet everybody's incomes were up less than the rise in the price of food! Yikes!

snip...

Mogambo sez: For various reasons, the dollar has gained a little strength lately. Use it to buy more gold and silver, whose gleaming brightness will be very comforting, as it gets really dark and stormy, and much more bizarre, from here on out, where the light at the end of the tunnel is the U.S. dollar ablaze and turning to ashes.

more...

[TrogL]

37. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



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




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

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

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

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

2007-07-18 Wednesday, July 18 0.958313 USD
2007-07-19 Thursday, July 19 0.959233 USD
2007-07-20 Friday, July 20 0.957854 USD
2007-07-23 Monday, July 23 0.956938 USD
2007-07-24 Tuesday, July 24 0.964134 USD
2007-07-25 Wednesday, July 25 0.959417 USD
2007-07-26 Thursday, July 26 0.952018 USD
2007-07-27 Friday, July 27 0.944287 USD
2007-07-30 Monday, July 30 0.935541 USD
2007-07-31 Tuesday, July 31 0.938438 USD
2007-08-01 Wednesday, August 1 0.946522 USD
2007-08-02 Thursday, August 2 0.949848 USD
2007-08-03 Friday, August 3 0.950029 USD
2007-08-06 Monday, August 6 0.951203 USD
2007-08-07 Tuesday, August 7 0.947598 USD
2007-08-08 Wednesday, August 8 0.952653 USD
2007-08-09 Thursday, August 9 0.946432 USD
2007-08-10 Friday, August 10 0.948947 USD
2007-08-13 Monday, August 13 0.951656 USD
2007-08-14 Tuesday, August 14 0.940291 USD
2007-08-15 Wednesday, August 15 0.930579 USD
2007-08-16 Thursday, August 16 0.929887 USD
2007-08-17 Friday, August 17 0.940291 USD
2007-08-20 Monday, August 20 0.94518 USD
2007-08-21 Tuesday, August 21 0.943307 USD
2007-08-22 Wednesday, August 22 0.94162 USD
2007-08-23 Thursday, August 23 0.946432 USD
2007-08-24 Friday, August 24 0.950119 USD
2007-08-27 Monday, August 27 0.951022 USD
2007-08-28 Tuesday, August 28 0.941974 USD

Current values

Loonie:

Last trade 0.9438 Change +0.0023 (+0.24%)
Previous Close 0.9414 Open 0.9427
Low 0.9415 High 0.9453


Other combinations:

AS.M07 AUSTRALIAN $/CANADIAN $ Sep (NYBOT) 0.8649 -0.0060
HY.M07 CANADIAN $/JAPANESE YEN Sep (NYBOT) 107.565 -2.340
RA.M07 EURO/AUSTRALIAN $ Sep (NYBOT) 1.66190 +0.01595
GB.M07 EURO/BRITISH POUND Sep (NYBOT) 0.6787 -0.0018
EP.M07 EURO/CANADIAN $ Sep (NYBOT) 1.4488 +0.0012
EJ.M07 EURO/JAPANESE YEN Sep (NYBOT) 154.90 -0.79
EU.M07 EURO/US$ (LARGE) Sep (NYBOT) 1.3635 -0.0019


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

None.

Analysis

Look at the graphs at the top level post. They're all over the damn place and going in opposite directions. The loonie's relatively stable (at least at this writing) compared to yesterday.

The blather appears to be generated by a script, which appears to have changed. I'm thinking the numbers look so crazy it went beyond what the script was capable of and just plain broke.

[wordpix]

40. still positive but market heading downward at 1:53 pm

Intraday Chart
Dow 13,128.50 +86.65
Nasdaq 2,524.54 +23.90
S&P 1,443.25 +10.89

[catmandu57]

44. Up down up down up down

can someone explain in plain speak just what the hell is happening, are we going to be seeing people jumping from windows? Am I going to need a wheelbarrow to buy bread? From what I can figure out by all rights we should be on a greased track to the bottom.

[Amonester]

47. It's the "day-trading" casino phenomena...

Some go up while many go down...

[ozymandius]

48. Close: as though yesterday never happened

Dow 13,289.29 Up 247.44 (1.90%)
Nasdaq 2,563.16 Up 62.52 (2.50%)
S&P 500 1,463.76 Up 31.40 (2.19%)
10-Yr Bond 4.553% Up 0.023
NYSE Volume 2,739,168,000
Nasdaq Volume 1,682,411,000

4:20 pm : In stark contrast to Tuesday's sharp sell-off, the major averages bounced back in noticeable fashion Wednesday as a sense that stocks were oversold helped investors recoup almost all of Tuesday's losses and close at session highs.

The Nasdaq, in fact, wiped out its 2.4% pullback from a day earlier while 146 out of 147 S&P industry groups traded higher, underscoring the broad-based nature of today's bounce. Yesterday, only one S&P industry group closed higher.

Today's rally validated Briefing.com's assertion this morning that the selling related to disappointment over the August 7 FOMC minutes was overdone, and frankly, misinterpreted by many market watchers.

All 10 economic sectors finished sharply higher, paced by a 3.1% surge in Energy. Already this year's best performing sector (+16%), everything from Drillers to Refiners rallied in sympathy with a 2.5% surge in oil prices. Crude for October delivery closed at $73.51/bbl following much larger than expected declines in weekly crude and gasoline supplies.

Telecom (+2.9%) and Consumer Discretionary (+2.8%) turned in the next best performances, with the latter sector staking claim to the Dow's third biggest winner -- Home Depot (HD 36.52 +1.47).

Technology (+2.7%) sporting a similarly strong performance was more noteworthy since it carries a larger weighting than the aforementioned sectors. Apple (AAPL 134.08 +7.26) led the charge, soaring 5.7% after confirmation of a special media event left investors optimistic about new product offerings.

Seagate Technology (STX 25.44 +0.98) boosting its Q1 outlook offered some added reassurance about the tech sector's growth prospects while a nearly 5% surge in shares of Dow component Intel (INTC 25.09 +1.13) gave chip stocks a huge lift.

The Financial sector's resilience in the face of another Fed infusion, reports that a London-based hedge fund (Cheyne Capital) may liquidate its commercial paper unit, and an analyst downgrade on Bear Stearns (BSC 107.10 -1.32) for the third time in as many days amid more earnings uncertainty, reflected the market's appetite for picking up bargains.

The financial sector (+1.8%) was hit the hardest a day earlier (-3.2%), but got some help today after Moody's said leveraged loan commitments of major US investment banks do not have negative rating implications as liquidity remains sufficient and marking down the commitments is "manageable."

A restoration of confidence in the S&P 500's most heavily weighted sector was a key to the sustainability of today's recovery efforts. The S&P 500 is now up 3.2% for the year. Today's 2.2% advance nearly erased Tuesday's 2.4% sell-off.

With all eyes on Bernanke this week ahead of his opening remarks at a Fed symposium on Friday, news that the Fed Chairman reportedly told Senator Schumer the Fed is ready to "act as needed" gave stocks an added boost of confidence late in the day.

The renewed wave of buying interest helped the S&P 500 break above its 200-day moving average for good. Even though the letter to Schumer was dated on Monday, the focus on most things positive today augmented the move to the upside as investors on the wrong side of the tape continued to run for cover.

On the NYSE, where trading curbs again went into effect 30 minutes before the close, advancers outpaced decliners by a 5-to-1 margin. Volume was once again below average, but that is typical in the week leading up to the Labor Day holiday. While that suggests there wasn't a tremendous amount of conviction behind the buying efforts, market bulls will no doubt be pleased with the quick payback from Tuesday's losses. BTK +1.1% DJ30 +247.44 DJTA +2.2% DJUA +2.3% DOT +2.7% NASDAQ +62.52 NQ100 +2.9% R2K +2.5% SOX +2.8% SP400 +2.4% SP500 +31.40 XOI +3.2% NASDAQ Dec/Adv/Vol 679/2299/1.66 bln NYSE Dec/Adv/Vol 462/2854/1.21 bln

[UpInArms]

49. Wall St rallies after Bernanke pledge

http://news.yahoo.com/s/ft/20070829/bs_ft/fto082920071910490978

Wall Street stocks rallied strongly on Wednesday after Ben Bernanke offered reassurance that the Federal Reserve was "closely monitoring developments" in financial markets and was "prepared to act" if required.

Investors were heartened by the assurances from the Fed chairman in a letter to Senator Charles Schumer that was circulated on Wednesday in Washington.

The gains for US stocks followed a run of losses and a return of the volatility that has stalked investors since the seizure in credit markets this month, which was triggered by the crisis in the subprime mortgage market.

Mr Bernanke, who will gather with the world's leading central bankers in the Wyoming resort of Jackson Hole on Thursday, said the Fed was "monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets".

...more...

[stormymonday]

50. 'Subsidizing a market in the creation of junk'

as Martin Wolff in the FT so aptly put it. More on his scathing analysis can be found here

http://www.nakedcapitalism.com/2007/08/martin-wolf-takes-bernanke-to-woodshed.html