STOCK MARKET WATCH, Thursday September 6

[ozymandius]

Source: du

Thursday September 6, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 504 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2435 DAYS
WHERE'S OSAMA BIN-LADEN? 2147 DAYS
DAYS SINCE ENRON COLLAPSE = 2108
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 September 5, 2007

Dow... 13,305.47 -143.39 (-1.07%)
Nasdaq... 2,605.95 -24.29 (-0.92%)
S&P 500... 1,472.29 -17.13 (-1.15%)
Gold future... 690.70 -0.80 (-0.12%)
30-Year Bond 4.78% -0.06 (-1.22%)
10-Yr Bond... 4.47% -0.09 (-1.86%)






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

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Read more: du

[ozymandius]

1. Market WrapUp

Will Financials Be to This Bull Market and Economy
What Tech Was to the Last?
BY CHRIS PUPLAVA

As the saying goes, “What goes up must come down,” is also true for financial markets and investing themes. Not only does sector rotation occur during a business cycle, but there can also be secular sector rotation into one sector. This is where financial capital flows into a sector in increasing amounts over the period of more than one business cycle, in which one sector’s weight is above an average share of one’s portfolio and in the S&P 500. This occurs as the underlying fundamentals for a sector become more favorable than normal in the course of the business cycle due to shifts in the economy, financial markets, and technology. Secular shifts in a sector’s predominance in the S&P 500 can be seen in the figure below that highlights three different sectors that have had their period to shine.

-chart-

The fundamental back drop that saw energy become the predominant sector in the S&P 500 in the 1970’s was an inflationary period due to rampant money creation, tight commodity markets, and political events such as the OPEC oil embargo on the U.S. This backdrop set up a favorable environment for commodities in general and energy in particular, with the weighting of the energy sector nearly doubling in the second half of the 1970s in the S&P 500 from roughly 15% to nearly 30%.

-cut-

However, the favorable secular trend in interest rates that has fueled the growth in the financial service sector may now be coming to an end, as the yield on the 30-year Treasury bond has broken through a downtrend that has been in place for decades and appears to have put in an ultimate low back in 2003 to 2005. If this is the case, a secular trend of rising interest rates does not bode well for the financial sector and may be indicating its period to shine has come to an end.

-cut-

As the FDIC report clearly shows the banking industry has seen better days and the resulting deterioration in their balance sheets goes beyond residential real estate. The report suggests that eroding credit quality is spreading beyond home mortgages as all major loan categories posted both increased net charge-offs and higher net charge-off rates. This spreading credit deterioration is seen in Figure 11 above, which shows consumer credit card charge-offs rising 144.3% over 2nd quarter 2006, followed by commercial and industrial charge-offs (71.4%) and consumer credit other than credit cards (60.9%). Not only were the rates for charge-offs significant but also the amounts. Residential mortgage charge-offs took a back seat compared to consumer credit (other than credit cards) and commercial and industrial charge-offs, which rose $757 million and $577 million respectively.

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

[ozymandius]

2. Today's Reports

8:30 AM Initial Claims 09/01
Briefing Forecast 325K
Market Expects 330K
Prior 334K

8:30 AM Productivity-Rev. Q2
Briefing Forecast 2.5%
Market Expects 2.4%
Prior 1.8%

10:00 AM ISM Services Aug
Briefing Forecast 54.0
Market Expects 54.5
Prior 55.8

10:30 AM Crude Inventories 08/31
Briefing Forecast NA
Market Expects NA
Prior -3486K

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

[UpInArms]

14. 8:30 reports pouring in:

03. U.S. Q2 factory productivity revised up 1.8% vs. 1.6%
8:30 AM ET, Sep 06, 2007 - 1 minute ago

04. U.S. Q2 nonfinancial productivity up 3.5% vs rev 0.7% Q1
8:30 AM ET, Sep 06, 2007 - 1 minute ago

05. U.S. Q2 unit labor costs revised to up 1.4% vs. 2.1% prev
8:30 AM ET, Sep 06, 2007 - 1 minute ago

06. U.S. Q2 productivity highest since Q3 2005
8:30 AM ET, Sep 06, 2007 - 1 minute ago

07. U.S. Q2 productivity revised to up 2.6% vs.1.8% prev
8:30 AM ET, Sep 06, 2007 - 1 minute ago

08. U.S. continuing jobless claims up 25,000 to 2.60 mln
8:30 AM ET, Sep 06, 2007 - 1 minute ago

09. U.S. 4-week avg. jobless claims up 500 to 325,750
8:30 AM ET, Sep 06, 2007 - 1 minute ago

10. U.S. Q2 factory productivity revised up 1.8% vs. 1.6%
8:30 AM ET, Sep 06, 2007 - 1 minute ago

11. Jobless claims lowest since week ended Aug. 4
8:30 AM ET, Sep 06, 2007 - 1 minute ago

12. U.S. Q2 nonfinancial productivity up 3.5% vs rev 0.7% Q1
8:30 AM ET, Sep 06, 2007 - 1 minute ago

13. U.S. weekly jobless claims down 19,000 to 318,000
8:30 AM ET, Sep 06, 2007 - 1 minute ago

14. U.S. Q2 unit labor costs revised to up 1.4% vs. 2.1% prev
8:30 AM ET, Sep 06, 2007 - 1 minute ago

15. U.S. Q2 productivity highest since Q3 2005
8:30 AM ET, Sep 06, 2007 - 1 minute ago

16. U.S. Q2 productivity revised to up 2.6% vs.1.8% prev
8:30 AM ET, Sep 06, 2007 - 1 minute ago

17. U.S. continuing jobless claims up 25,000 to 2.60 mln
8:30 AM ET, Sep 06, 2007 - 1 minute ago

18. U.S. 4-week avg. jobless claims up 500 to 325,750
8:30 AM ET, Sep 06, 2007 - 1 minute ago

19. Jobless claims lowest since week ended Aug. 4
8:30 AM ET, Sep 06, 2007 - 1 minute ago

20. U.S. weekly jobless claims down 19,000 to 318,000
8:30 AM ET, Sep 06, 2007 - 1 minute ago

[UpInArms]

26. U.S. Aug ISM services 55.8% vs 55.8% in July

01. U.S. Aug ISM services 55.8% vs 55.8% in July
10:01 AM ET, Sep 06, 2007 - 42 seconds ago

02. U.S. Aug ISM services above consensus 55.0%
10:01 AM ET, Sep 06, 2007 - 42 seconds ago

[ozymandius]

3. Oil rises ahead of US oil data

VIENNA, Austria - Oil prices rose Thursday amid expectations that a U.S. government report due later in the day would show declines in crude and gasoline inventories.

Still, worries about the U.S. home market kept a relatively low ceiling on prices. Vienna's PVM Oil Associates also noted that "dwindling hopes of a chance in OPEC's production policy at the organization's next week's meeting (also) supported ... prices."

Light, sweet crude for October delivery gained 38 cents to $76.11 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. In London, October Brent crude gained 35 cents to $74.69 a barrel on the ICE Futures exchange.

In this week's inventory report, delayed until Thursday because of the Labor Day holiday in the United States, the Energy Department's Energy Information Administration was expected to report that gasoline stockpiles fell by 1.1 million barrels on average in the week ended Aug. 31, but that refinery utilization rose 0.2 percentage points, according to a Dow Jones Newswires survey of analysts.

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

[UpInArms]

25. Oct. crude climbs to $77/brl for the first time since Aug. 1

02. Oct. crude climbs to $77/brl for the first time since Aug. 1
9:55 AM ET, Sep 06, 2007 - 5 minutes ago

03. Oct. crude up $1.12 at $76.85/brl ahead of U.S. supply data
9:45 AM ET, Sep 06, 2007 - 15 minutes ago

04. Oct. natural gas rises 2.7% to $5.96/mln BTUs
9:45 AM ET, Sep 06, 2007 - 15 minutes ago

[ozymandius]

4. Citi's Rhodes sees credit woes taking economy toll

DALIAN, China (Reuters) - Turmoil in the credit markets will take a toll on the U.S. economy but the full impact will not be clear for another two or three months, William Rhodes, senior vice chairman of Citigroup Inc, said on Thursday.

Only when positions in subprime mortgages and other financial instruments are unwound will the extent of the damage become clear, Rhodes told a meeting of the World Economic Forum.

"But to me it seems very clear, as I mentioned before, that in the United States there will be an impact on the real economy, and that depends on the impact on the consumer," he said.

In a prescient warning in March, Rhodes said he expected a significant market correction within the next 12 months and urged greater prudence in investing and lending.

http://news.yahoo.com/s/nm/20070906/bs_nm/economy_rhodes_dc

[burf]

9. Good morning Ozy and all.

I saw this in the Mpls Star Tribune this morning and wonder how many more similar stories we will see.

A plan using "straw buyers" and falsified loan data resulted in a rash of foreclosures in southern suburbs.

By Dan Browning and Chris Serres, Star Tribune

Last update: September 05, 2007 – 11:43 PM


Authorities revealed in federal court Wednesday that they are investigating allegations of a mortgage fraud conspiracy involving about 200 houses in several southern Twin Cities suburbs.
The investigation is tied to a rash of foreclosures in New Prague and New Market, and possibly other suburbs, and some people who were renting the houses have been evicted. The government estimates losses of more than $50 million

more at: http://www.startribune.com/535/story/1404510.html

Fifty million here, fifty million there, pretty soon we're talking some "serious" money!

[UpInArms]

22. here's some more background on that story, burf

(and thanks for posting!)

8th guilty plea ties another knot in a complicated web of family and fraud

http://www.startribune.com/467/story/1391137.html

Taleb Mohamed Wazwaz appeared in federal court Wednesday on his 41st birthday to plead guilty to conspiring with a dozen other men to cheat the state out of more than $2.5 million in sales taxes by concealing revenues from some Twin Cities tobacco stores.

He still may face charges in a mortgage fraud investigation that implicated him and at least seven of his co-defendants.

Wazwaz was the eighth defendant to plead guilty thus far in the tax-fraud conspiracy, and another is expected to plead guilty next week.

Most of the defendants belong to four groups of brothers identified by their names: Othman, Mohamed, Yassin and Mahmoud. They owned tobacco stores in the Twin Cities and concealed the revenue and expenses of those stores or the identities of the people deriving economic benefit from their operation, according to the indictment.

...more...

[AnneD]

37. I was listening to NPR the other day....

Seems like a lot of gangs used fraudulent(ie forged)documents like paychecks etc and bought houses and used them as ATM's too. Instead of kiting checks they were kiting houses. Actually, it was ingenious but I wonder how many foreclosure fit into that category. In one state where that happened-the losses were in the millions.

In Arizona, some of these homes are used as illegal immigration safe houses or shelter for marijuana plants, per Mom.

[ozymandius]

5. Drive Your Car to Death, Save $31,000

By keeping your car for 15 years, or 225,000 miles of driving, you could save nearly $31,000, according to Consumer Reports magazine. That's compared to the cost of buying an identical model every five years, which is roughly the rate at which most car owners trade in their vehicles.

-cut-

Calculating the costs involved in buying a new Honda Civic EX every five years for 15 years - including depreciation, taxes, fees and insurance - the magazine estimated it would cost $20,500 more than it would have cost to simply maintain one car for the same period.

Added to that, the magazine factored in $10,300 in interest that could have been earned on that money, assuming a five percent interest rate and a three percent inflation rate, over that time.

http://finance.yahoo.com/loans/article/103446/Drive-Your-Car-to-Death-Save-31,000

[Maeve]

8. Tom and Ray of Car Talk recommend buying a beater

The cheapest way to own a car, IIRC, according to their research is to buy used, maintain it decently and drive it to death (the plan we've followed most of our lives and taught our kids). Yeah, the new is cool and doesn't break down at first, but you pay a hefty price for that.
Now, if you can get a new car for zero percent interest for 60 months (our last purchase)....

[Hugin]

23. Well now...

Here I was living like a King in my 1977 Buick and I didn't even know it... :rofl:

Only 6 more payments and it's ALL MINE.

:thumbsup:

[Warpy]

29. You just need to find a tuna wagon that will hold together that long

My own record for keeping a vehicle on the road was 23 years, but that involved meeting a guy named Bumpy at 3 AM for brake parts. Don't ask. I didn't.

Last year, I retired a Ford Ranger that had just become eligible to vote.

Some cars out there are fussy objects that won't last beyond about 7 years. Others are workhorses and popular enough that the junkyards are full of spare parts, even "new" engines should that become necessary.

Every year you can drive a paid off vehicle is a year you're paying yourself interest. Every time you get slapped with a $500 repair bill on it, figure out how much you'd be paying on a replacement and act accordingly.

Remember, it's generally cheaper to fix it than it is to get a new one.

Trustworthy mechanics are pure gold.

[Hugin]

30. ...

Bumpy? :lol:

[skids]

16. Assuming a 3% inflation rate?

Not that it might not be cheaper as they say, but trusting the gubment inflation figures isn't good.

I suppose the question is whether the $1k to $2k/year is worth for you the extra reliability of a newer car and earlier access to any features that come down the pipe in newer models. For me it is, because the hassle of a breakdown costs me personal days and stress, and my time is valuable to me. For others, that may work out great.

Besides someone has to put the hybrids out on the used markets or few would be able to afford them.

[Viva_La_Revolution]

19. someone should do the math for those silly people who lease a new car every 2 years.

like throwing your money down a deep dark hole.

[Hugin]

21. It took me several years to convince...

My sweetie that leasing anything was stupid.

[AnneD]

34. Morning Marketeers...

:donut: and lurkers. A subject that is near and dear to my heart. After my experience with a new car and buying used cars I discovered that the absolute best way to buy a car is to buy used and pay cash. Not only do you negotiate for a better deal, you have a low interest rate (try zero) and a reasonable monthly payment (again zero). The first national bank of Me offers much better rates. And as for getting a new car on fleece, er uh I mean lease, you are paying the depreciating up front. Why do you think they push those 'deals'.

We started out buying a 1K and paid cash. We saved up another 1K, sold the 1K car for 1k and put it with out saved money and got a 2K car. We will do the same and get a 3-4K car and so on until we get what we want. We have little depreciation at this point and we are keeping more of our money. Cars these days are fairly reliable and because I have an emergency fund-I don't have to sweat it if there is some unforeseen emergency like a battery, a set of tires, or towing.

Try this website for some practical advice. It is part of the Dave Ramsey website for you regulars. I really do get a kick out of the guy and he offers some good,practical advice.

https://www.mytotalmoneymakeover.com/?event=displayFreeContent&intContentID=7633&trl=daveramsey&affiliateID=9


Happy hunting and watch out for the bears.

[Hugin]

35. Now if only we could do something about the insurance...

:hangover:


that's almost an entire car payment every month.

[AnneD]

38. If your car depreciates...

at a certain point you go for liability only (you basically self insure). If you can't afford to replace it with cash on hand-then get collision. BUT, if you have a used car-the cost of collision is less anyway. Sounds like a win-win to me.:shrug:

[ozymandius]

6. U.S. stock futures slip from early gains

NEW YORK - U.S. stock futures wavered Thursday as investors awaited key August reports on retail sales and the nation's service sector.

Following sharp declines a day ago, investors will be looking for any sign that recent financial market turmoil has hurt consumer spending as retailers report August same-store sales, a key gauge of retailers' health. Also Thursday, a private research group reports on the service sector, which covers a range of businesses such as banking, restaurants and insurance.

-cut-

Stock futures slipped from early gains Thursday, as European stock markets turned lower. Dow futures fell 12, or 0.10 percent, to 13,343. Standard & Poor's 500 index futures fell 4.00, or 0.27 percent, to 1,472.60, and Nasdaq 100 index futures dipped 2.50, or 0.12 percent, to 2,000.75.

Overseas, Britain's FTSE 100 dropped 0.23 percent, Germany's DAX index lost 0.51 percent, and France's CAC-40 fell 0.49 percent. Japan's Nikkei stock average rose 0.61 percent.

http://news.yahoo.com/s/ap/20070906/ap_on_bi_st_ma_re/wall_street

[ozymandius]

7. Good morning.

:donut: :donut: :donut:

I will be away for the rest of the day. Have a wonderful time watching the dice roll.

Ozy :hi:

[Hugin]

24. Have a good one Ozy...

I've been thinking about hitting the Casino... At least there the odds are known. :)

[UpInArms]

10. dollar watch

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

Last trade 80.608 Change -0.057 (-0.07%)

What Will the Dow 'September Effect' Do to Carry Trades?

http://www.dailyfx.com/story/topheadline/What_Will_the_Dow__Sptember_1189032257994.html

For currency traders, the relationship between the Dow Jones Industrial Average and the infamous Carry Trade is no secret, Currently the Dow is leading the direction of carry trades, but in the past there have been times when carry trades has led the Dow. The month of September brings forth a very strong seasonality in US stocks, one that could provide us with a leading indicator of how carry trades, or more specifically the Japanese Yen crosses will behave this month.

Relationship Between Carry Trades and the Dow

The correlation between carry and the Dow is now the strongest in 8 years. The chart below emphasizes the significance of Dow performance versus the G-10 carry trade basket, with the current medium-term correlation standing at its highest levels since the infamous tech bubble burst in 1999. Given a tumble in risky high-growth stocks, speculators across the spectrum scaled back exposure to other risky assets including the highly leveraged global carry trade. Given a very similar sell-off through the past month and a half, the Carry Trade vs. Dow correlation remains fairly stable near the 0.6 mark. The reason why these two asset classes are correlated is because they are both a reflection of risk. When the risk appetite of the financial markets is high, then demand for stocks and carry trades rise, but on the flip side, when the market is risk averse, the Dow and carry trades tend to suffer. There is no reason why this relationship should break down over the next month, which is why the strong seasonality in the Dow during the month September could provide very useful clues on how the carry will trade in the month ahead.



The “September Effect”

In widely documented studies, September is a particularly difficult month for US equities. Over the past 50 years, on average, the Dow Jones Industrial Average has fallen 1.2 percent this month. Dubbed the “September Effect” by the financial press, it is relatively well-known that many large hedge funds and mutual funds will begin scaling back exposure in stock markets so as to book profits before the year end, especially since many mutual funds end their fiscal year in October.

...more...

U.S. dollar Extends Losses Against Most Asian Currencies

http://www.dailyfx.com/story/dailyfx_reports/top_fx_market_movers/U_S__dollar_Extends_Losses_Against_1189032227914.html

The U.S. dollar sold off against most Asian currencies after a report showed that problems in the housing market were getting worst. Pending sales of existing homes fell in July to the lowest level in nearly six years according to the National Association of Realtors. The sell off accelerated following the release of the Federal Reserve Beige Book, which describes economic conditions in regions around the United States. Most districts reported that “the recent developments in financial markets had led to tighter lending standards for residential mortgages, which was having a noticeable effect on housing activity, and several noted that the reduction in credit availability added to uncertainty about when the housing market might turn around. The Chinese yuan appreciated to 7.5565 to the dollar on the over the counter market and is now up by more than 250 pips since the beginning of August. Moreover, one year onshore yuan forwards traded at 7.2082 to the dollar, anticipating the yuan would be 5 percent stronger in one year's time.

Asian Stock markets had a mixed day as investors remain worried over the state of the US economy

Asian Stock markets had a mixed day. The Shanghai Composite Index, which covers shares listed on the Shanghai Stock Exchange, closed up 16.67 points at 5,310.72 propelled higher by energy stocks. On the other hand, the Korea Composite Stock Price Index closed down 9.15 points at 1,865.59 (Hyundai Steel stocks plunged nearly 6% as investors remain worried over the state of the US economy). Moreover, the Hang Seng advanced 0.77 per cent to 24,069.17, the Taiwan Weighted Index was down 0.10 per cent and the Straits Times rose more than 2 per cent to 3,445.08.

...more...

[UpInArms]

11. Fleetwood first-quarter loss widens (maker of recreational vehicles)

http://www.reuters.com/article/businessNews/idUSWEN081720070906?feedType=RSS&feedName=businessNews

NEW YORK (Reuters) - Fleetwood Enterprises Inc. (FLE.N: Quote, Profile, Research), a maker of recreational vehicles and manufactured homes, said on Thursday it posted a fiscal first-quarter loss, mainly due to weak results from its travel trailer division.

The California-based company reported a quarterly loss of $2.35 million, or 4 cents a share, compared with a year-ago loss of $411,000, or 1 cents a share.

...more...

[UpInArms]

12. Ace (Hardware) discovers $154M accounting shortfall

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

CHICAGO - Ace Hardware Corp. discovered an approximately $154 million shortfall on its books while preparing to convert from retailer-owned cooperative to for-profit corporation and likely will have to restate its financial results for the last five years, President and CEO Ray Griffith said Wednesday.

Ace has called off the conversion plan and hired an audit consulting firm to help rectify an accounting problem which appears to date to 2002, Griffith told The Associated Press. The company may have to forego returning profits to store owners this year as a result, he said.

He said no money or inventory is missing but the Oak Brook, Ill.-based company has not been able to determine the source of what he characterized as a "significant accounting error."

Ace notified the dealers who own its 4,600 stores of the problem in letters Wednesday from Griffith and its board of directors.

The chief executive said an internal review of the company's financial documents found that its inventory total is $154 million less than its general ledger balance — the company's primary method for recording its financial transactions. The final total is expected to be somewhat less.

...more...

[UpInArms]

13. Countrywide to cut about 900 more jobs

http://news.yahoo.com/s/ap/20070906/ap_on_bi_ge/countrywide_job_cuts

LOS ANGELES - Struggling mortgage lender Countrywide Financial Corp. said Wednesday it will cut about 900 more jobs nationwide, primarily from its mortgage production divisions.

The cuts followed the elimination of about 500 positions last month.

The latest layoffs came in response to the troubled housing market and economic conditions, Calabasas-based Countrywide said in a statement.

"Countrywide has always aligned its organization to best serve the needs of its customers and reflect the market and economic conditions in which we operate," the statement said.

The company, the largest mortgage lender by volume in the U.S., employs about 60,000 people, with around 34,000 in loan production.

...more...

[UpInArms]

15. Fed Pumping Early: Fed adds reserves via 14-day repurchase agreements

http://www.reuters.com/article/bondsNews/idUSNYG00072420070906

NEW YORK, Sept 6 (Reuters) - The U.S. Federal Reserve said on Thursday it added temporary reserves to the banking system through 14-day repurchase agreements.

Federal funds, the benchmark overnight lending rate to banks, last traded at 5.31 percent, above the Fed's targeted rate of 5.25 percent.

[Hugin]

18. Yep, some mornings a cold start requires a little priming...

urrrrah.... urrrrah... urrrah... %$@%#@^@#%% urrrah... urrrah... $%#@%#$@% *chug* *chug*
urrrah.... %$@)*$)(*@# etc. :)

[antigop]

17. Subprime: Let the finger-pointing begin

http://money.cnn.com/galleries/2007/fortune/0709/gallery.subprime_blame.fortune//index.html

[UpInArms]

20. Standard Chartered's head of risk quits - more SIV trouble ahead?

http://www.marketwatch.com/news/story/standard-chartereds-head-risk-quits/story.aspx?guid=%7BA85AA571%2DE0F4%2D4CAE%2DAF07%2D4F602CED71C5%7D

LONDON (MarketWatch) -- Standard Chartered said Thursday its head of risk management has quit amid market worries about the structured investment vehicle it operates.

Standard Chartered (UK:STAN: news, chart, profile) (HK:2888: news, chart, profile), a London-listed bank that mostly operates in Asia, said Kaikhushru Shiavax Nargolwala has resigned to pursue "other career opportunities."

He was responsible for risk and "special-assets managements" functions as well as governance of Asia. Nargolwala has been a director at the bank for eight years.

The bank didn't make any mention in its release of Whistlejacket Capital, a structured investment vehicle managed by the bank, which runs roughly $18 billion in assets.

Like many SIVs, as they are called, Whistlejacket issues short-term commercial paper to fund investments in longer-duration, higher-yielding debt. The bank has previously said that Whistlejacket invests in AAA-rated securities and has a small exposure to the U.S. subprime mortgage market.

...more...

[Hugin]

27. 0900 EST: And they're off...

Index Last Change % change
• DJIA 13295.55 -9.92 -0.07%
• NASDAQ 2602.22 -3.73 -0.14%
• S&P 500 1470.85 -1.44 -0.10%

[DemReadingDU]

28. Nippon Oil to buy Iran oil in yen

Japanese firm Nippon Oil is to start paying for Iranian oil in yen, rather than in US dollars.

The first payments to be made in the new currency for crude oil contracts will take place in October.

Iran has been increasingly selling oil in currencies other than the US dollar, which has fallen in value.

Iran, the fourth-biggest oil exporter, has made the shift in the light of political differences with the US over its nuclear programme.

full article...
http://news.bbc.co.uk/1/hi/business/6981375.stm

[Spazito]

39. Hmmm, I found this sentence interesting...

"Iran, the fourth-biggest oil exporter, has made the shift in the light of political differences with the US over its nuclear programme."

Why isn't it possible Iran made the shift due to the dropping value of the dollar? Oh, wait a minute, here it is, down near the bottom, only after they try and sell the "political differences" meme:

"Iran and other countries that rely heavily on oil exports have been hard hit by the decline in the dollar's value."

[Ghost Dog]

31. ECB, Britain hold rates amid market turmoil

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070906:MTFH26671_2007-09-06_12-03-32_L06450977&type=comktNews&rpc=44

LONDON, Sept 6 (Reuters) - The European Central Bank and Bank of England held interest rates steady on Thursday after the custodian of the single currency again provided emergency funds to turbulent money markets.

The Bank of England left its rate at 5.75 percent and issued a statement saying it was too early to gauge the impact of a global credit crisis on the British economy.

ECB official rates remained at four percent and its marginal lending rate, at which banks can get emergency overnight loans, was left unchanged too. President Jean-Claude Trichet will hold a news conference at 1230 GMT.

"Heightened concerns about a variety of asset-backed securities have led to disruption around the world, not only in markets for those financial instruments but also in money markets more generally," Britain's central bank said.

"It is too soon to tell how far the disruption in financial markets will impair the availability of credit to companies and households."

On Wednesday, the BoE acted for the first time to temper sky-high money market rates, something other central banks have been attempting for a month with limited success. Continued...

/...

[Ghost Dog]

32. European stocks gain on Trichet comments

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070906:MTFH28888_2007-09-06_13-18-29_L06232047&type=comktNews&rpc=44

PARIS, Sept 6 (Reuters) - European stocks reversed earlier losses and turned positive on Thursday in the absence of any clear signals of future rate increases from European Central Bank President Jean-Claude Trichet's news conference.

At 1313 GMT, the pan-European FTSEurofirst 300 index <.FTEU3> was up 0.2 percent, at 1,525.92, helped also by strong U.S. productivity data.

Trichet said that the central bank would monitor developments on the financial markets as well as inflation very closely, but did not repeat the key "strong vigilance" phrase seen as a signal that a rate rise is on the cards.

The ECB left rates unchanged at 4.0 percent on Thursday.

Trichet also said the ECB had decided to launch a supplementary long-term refinancing operation.

/...

[DemReadingDU]

33. Mortgage woes push foreclosures to record high

WASHINGTON - The number of homeowners receiving foreclosure notices hit a record high in the spring, driven up by problems with subprime mortgages.

The Mortgage Bankers Association reported Thursday that mortgage-holders starting the foreclosure process in the April-June quarter reached 0.65 percent, marking the third consecutive quarter that this figure has set an all-time high.

The delinquency rate, which tracks the number of people who are behind in their payments but have not yet entered the foreclosure process, was also up sharply during the spring, rising to 5.12 percent of all loans, up nearly three-fourths of a percentage point from the same period a year ago.

http://www.msnbc.msn.com/id/20623088/

[roamer65]

36. Wow...gold at $696 an ounce right now.

http://www.kitco.com

[Roland99]

42. Up to $705. Quite the rise in the last week or so, eh?

[roamer65]

43. Yup. It's all those Bernanke bucks.

M3 money supply growth is the highest in 34 years.

[antigop]

40. Lehman Slashes 850 jobs at mortgage group

http://money.cnn.com/2007/09/06/news/companies/lehman_mortgage.ap/index.htm?postversion=2007090613

>>
Lehman Brothers Holdings Inc. said Thursday it is laying off 850 people as part of a global scale down of the investment bank's mortgage business.

Two weeks after closing its BNC Mortgage LLC subsidiary, the Wall Street brokerage said it is winding down much of its home lending business in the U.S. and U.K.
Video More video
Amid the housing slump, five properties aim to break the record for most expensive house. CNN's Gerri Willis reports.
Play video

Lehman Brothers joins some of the country's biggest mortgage lenders in scaling back its business to combat the turmoil in the mortgage industry and the secondary market where investors and banks trade mortgage debt.

The bank is closing its Korean mortgage business, and folding its businesses in the U.S., Japan and Europe into a single unit called Lehman Mortgage Capital.
>>

[antigop]

41. Michael Lewis: A Wall Street Trader Draws some subprime lessons --(GEEZ!)

Even if this is satire, I think it's quite offensive!

http://www.bloomberg.com/apps/news?pid=20601039&sid=a5lhZkEauCu8&refer=columnist_lewis

>>
So right after the Bear Stearns funds blew up, I had a thought: This is what happens when you lend money to poor people.

Don't get me wrong: I have nothing personally against the poor. To my knowledge, I have nothing personally to do with the poor at all. It's not personal when a guy cuts your grass: that's business. He does what you say, you pay him. But you don't pay him in advance: That would be finance. And finance is one thing you should never engage in with the poor. (By poor, I mean anyone who the SEC wouldn't allow to invest in my hedge fund.)

That's the biggest lesson I've learned from the subprime crisis. Along the way, as these people have torpedoed my portfolio, I had some other thoughts about the poor. I'll share them with you.
>>

[RUMMYisFROSTED]

44. Funny. I've learned that the rich

get near-prime loans while the poor receive usurous treatment.



Chimp plays 3 card monte.

[ozymandius]

45. closing up shop at this late hour

Dow 13,363.35 Up 57.88 (0.44%)
Nasdaq 2,614.32 Up 8.37 (0.32%)
S&P 500 1,478.55 Up 6.26 (0.43%)
10-Yr Bond 4.50% Up 0.008
NYSE Volume 2,826,259,000
Nasdaq Volume 1,876,055,000

4:20 pm : After running into some headwinds early on, amid more news tied to lingering credit concerns, additional evidence to suggest Wednesday's widespread sell-off was overdone helped stocks recover some ground.

However, the major averages closed off their highs, volume was light again, and market gains were modest at best as investors weren't willing to place huge bets ahead of tomorrow's influential jobs report.

Since the market sees the August employment report as crucial to the Fed's policy decision on September 18 (or before), payroll growth averaging a strong 132,000 over the last six months doesn't leave investors overly convinced that Friday's jobs data will play into the Fed rate cut that Wall Street has priced into the market since policy makers shifted their stance last month.

Among the handful of encouraging news items giving participants a reason to recoup some of yesterday's losses, the bulk of back-to-school sales results checking in better than expected offered some reassurance that the consumer is holding up rather well.

Atlanta Fed President Dennis Lockhart later saying there are no signs that the housing and subprime mortgage market woes are spilling over into other sectors of the economy lent further validation that consumer spending remains healthy.

St. Louis Fed President and voting Fed official Poole, though, said that he sees evidence for a 'further leg down' in housing, that there was "no question" financial problems would worsen, and that the Fed won't be pushed into a decision.

Of the nine sectors finishing in positive territory, Utilities turned in the best performance, but that also speaks to the more risk-averse mindset that has contributed to the S&P 500 losing 5% of its value since peaking in mid July.

The Materials sector (+1.1%) was the next best performer, due largely to a 2.0% rally in gold prices.

The Industrials sector (+0.9%) got a lift late in the day after Dallas Fed President Fisher said he doesn't see the dynamics of a very strong economy changing overnight in the face of the financial turmoil that we've recently seen.

The Financial sector was the only sector that failed to participate in today's recovery; but its decline was minimal despite a slew of negative developments -- from the three-month Libor rate climbing for an 11th straight session to foreclosures rising to their third consecutive record high -- that continue to plague the heavily weighted sector. DJ30 +57.88 NASDAQ +8.37 SP500 +6.26 NASDAQ Dec/Adv/Vol 1329/1643/1.75 bln NYSE Dec/Adv/Vol 1270/1997/1.16 bln