STOCK MARKET WATCH, Wednesday February 27

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday February 27, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 329
DAYS SINCE DEMOCRACY DIED (12/12/00) 2593 DAYS
WHERE'S OSAMA BIN-LADEN? 2319 DAYS
DAYS SINCE ENRON COLLAPSE = 2610
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

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

AT THE CLOSING BELL ON February 26, 2008

Dow... 12,684.92 +114.70 (+0.91%)
Nasdaq... 2,344.99 +17.51 (+0.75%)
S&P 500... 1,381.29 +9.49 (+0.69%)
Gold future... 948.90 +8.40 (+0.89%)
30-Year Bond 4.66% -0.01 (-0.15%)
10-Yr Bond... 3.86% -0.04 (-1.08%)






GOLD, EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

[ozymandius]

1. Market WrapUp: The Expanding Menu of Horrors

BY FRANK BARBERA, CMT

Over the last 20 years, municipal issuers and other investors have utilized auction rate securities (ARS) to meet their financing needs. During that period of time, seldom have these auction rate securities met with insufficient demand. That is, until the last few weeks when concerns about monoline insurer solvency have caused the market to place a huge premium on liquidity, in turn, causing many of the bidders at these auctions to pull out. The result: thousands of auctions have failed, or been priced at huge 20% reset type premiums. Since late January, the ‘cap’ rates for a wide variety of ARS paper have expanded from 4% to as high as 20%, with most notes now at least 15%. The reason, with the monolines under a serious threat of being downgraded, a number of the large brokers who in the past offered a liquidity backstop, have now simply stopped bidding. Under the terms of the arrangements, the auction arrangers are not obligated to repurchase the securities much to the horror of investors who thought these securities were absolutely liquid instruments.

Chalk this up as one more instance of the unwinding of derivatives markets which, week in and week out, has continued unabated in 2008. In fact, last week, according to Bloomberg.com, UBS concluded that “mathematical models that traders use to calculate prices in the 2 trillion dollar market for collateralized debt obligations simply don’t work anymore. In its commentary, UBS admitted that integral ‘correlation’ models which represent the odds of one default potentially infecting another, and the very fabric of pricing for many of these derivative securities, now show a nearly 100% chance of contagion. As a result, any number of quant funds are already in deep trouble in 2008, some down as much as 15 to 20%.

Across Wall Street and the Financial community, hedge funds are starting to crumble like DB Zwirn & Co., where investors have pulled out 2 billion in the last few weeks, and which on Thursday night sent out a letter to investors outlining plans to liquidate remaining assets, 60% of which were not easily tradable. Of concern here is not the fate of one particular fund, but the downside risk to all markets should the hedge fund industry begin to delever. In our view, aside from the bursting of the bond market bubble, 2008 has an excellent chance of witnessing the bursting of the hedge fund bubble, which in the last decade has seen the industry grown from a small sub-section of speculative capital to perhaps THE dominant force in global finance. While many believe that hedge fund forced liquidations will be orderly as last year's saw several punctuated declines followed by quick recoveries, the odds of that pattern repeating in the weeks ahead seem very distant at this juncture with the kind of damage which has been sustained throughout the credit system. It would seem likely that 2008 will ring down the curtain on leveraged finance for some time to come, perhaps decades.
....

So what does this all mean for the market? In our view, it translates into a highly unpredictable investment climate, where things can seem OK on one day, and turn out to be ‘pitch black’ the next. As we have done with great success in the recent past, our mantra of the moment is keep an eye on the ball, in this case, the ball being the financial sector. We strongly suspect that within the broad stock market, whether it starts in the near term or later on this year, there is still another ‘leg’ down ahead for the global equity markets. The proverbial Elliot A-B-C decline has probably already seen Wave A down, with Wave B, the counter-trend phase now in force. What could signal the end of the Counter-Trend Bear Market rally phase and the beginning of Wave C to the downside? In our view, we still say the financials are the hot spot to watch and maintain a sharp eye.

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

[burf]

16. Not to worry,

Dear Leader has a handle on the situation.

US President George W. Bush denied Tuesday that the US economy was in recession or would go into one despite a spate of downcast reports and gloomy indicators.

"We're not in a recession, I don't think we will go in a recession. We're in a slowdown, and there's a difference," Bush said in an interview with American Urban Radio Networks. "No question there is softening now."

The US president boasted of job growth since he took office in January 2001 but acknowledged that "economies go through cycles, and the question is how do you deal with the down-cycle."

"I am confident in our economy," he said.

"Think about what we've been through since I've been president, recession, an attack, corporate scandals, major natural disasters, high oil prices, war and yet we had 52 months of uninterrupted growth and that speaks volumes about the American people and resilience," he said.

His comments came after the Conference Board private research group said its consumer confidence index had slumped to its lowest level since the US-led invasion of Iraq in 2003.

The survey was likely to provide fresh ammunition to some economists who are predicting that the world's biggest economy is on the verge of a recession. Other economists believe the economy has already fallen into a recession.

http://rawstory.com/news/afp/Bush_US_in_slowdown_not_recession_02262008.html

Talk about being disconnected from reality. I guess he doesn't get out to the supermarket or the gas station much.

[Demeter]

23. Bush Needs a Pink Slip

and the loss of health care (and Secret Service protection). And a trial in the Hague, and a conviction for treason at home, and...payback!

[Wednesdays]

50. Oh man, does he even listen to his own words???

"Think about what we've been through since I've been president, recession, an attack, corporate scandals, major natural disasters, high oil prices, war and yet..."

Yeah, dumbass...you directly CAUSED all those things, or in the case of natural disasters, completely aggravated the situation!

(And to think more than 55 million people consider this guy A-okay.)

:argh:

[ozymandius]

2. Today's Reports

8:30 AM Durable Orders Jan
Briefing Forecast -5.0%
Market Expects -4.0%
Prior 5.2%

10:00 AM New Home Sales Jan
Briefing Forecast 600K
Market Expects 600K
Prior 604K

10:30 AM Crude Inventories 02/23
Briefing Forecast NA
Market Expects NA
Prior 4204K

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

[UpInArms]

14. U.S. Jan. durable-goods orders fall 5.3% vs. -5.1% expected

01. U.S. Jan. durable-goods inventories rise 0.6%
8:30 AM ET, Feb 27, 2008 - 1 minute ago

02. U.S. Jan. durable-goods shipments rise 1.8%
8:30 AM ET, Feb 27, 2008 - 1 minute ago

03. U.S. Jan. aircraft orders plunge 30.5%
8:30 AM ET, Feb 27, 2008 - 1 minute ago

04. U.S. Jan. core capital equipment orders fall 1.4%
8:30 AM ET, Feb 27, 2008 - 1 minute ago

05. U.S. Jan. durable orders ex-transportation fall 1.6%
8:30 AM ET, Feb 27, 2008 - 1 minute ago

06. U.S. Jan. durable-goods orders fall 5.3% vs. -5.1% expected
8:30 AM ET, Feb 27, 2008 - 1 minute ago

[UpInArms]

22. U.S. Jan durable goods orders fell 5.3 pct

http://www.reuters.com/article/bondsNews/idUSN2742668020080227

WASHINGTON, Feb 27 (Reuters) - New orders for long-lasting U.S.-made manufactured goods fell by 5.3 percent in January, the biggest drop in five months and more than analysts expected, and a key gauge of business spending also declined, a Commerce Department report showed on Wednesday.

Nondefense capital goods orders excluding aircraft, a proxy for business investment, declined 1.4 percent, which was somewhat less than the 2.0 percent decrease Wall Street analysts were expecting.

For overall durable goods orders, analysts polled by Reuters forecast a 4.0 percent decline. It was the biggest monthly decrease since a matching decline last August.

The bigger-than-expected drop helped push the dollar lower in early trading against the euro and the yen.

The euro had already vaulted above the psychological $1.50 mark for the first time in its 9-year history, and traded at $1.5059 shortly after the report.

...more...

[Ghost Dog]

65. Manufacturing data fuel US recession fears

US manufacturing orders on Wednesday recorded their biggest decline in five months and new home sales slumped to a 13-year low, compounding fears that the US economy may be sliding into recession.

Orders for big-ticket manufactured items fell 5.3 per cent in January, exceeding economists’ expectations of only a 3.5 per cent decline. The disappointing headline result wiped out a revised 4.4 per cent increase in December, when buoyant aircraft sales had provided a boost to the figures.
New home sales declined 2.8 per cent to a 588,000 annual rate after December’s figures were revised fractionally higher. Consensus estimates for January were for a 600,000 annual rate. Meanwhile, inventories of unsold homes rose to the highest level since 1981.

The slew of data was discomforting for economists, some of whom have pinned hopes that the US economy can avoid a recession this year, in part, on expectations that business spending would hold up. The housing report also confounded nascent hopes that new home sales might show signs of stabilising.

/... http://www.ft.com/cms/s/0/bfe88122-e540-11dc-9334-0000779fd2ac.html

[ozymandius]

3. Oil hits record $102 as dollar tumbles

SINGAPORE - Oil prices broke through a new intraday high of $102 a barrel Wednesday as a slide in the U.S. dollar prompted investors to pump more money into energy futures as a hedge against inflation.

The dollar sank to a record low against the euro after the release of three disheartening U.S. economic reports Tuesday that show that the economy is slowing as prices for consumer goods rise. The dollar's decline prompted investors to seek a safe haven from turmoil in the financial markets and the threat of inflation.

"Crude has cracked through the $100-level again and that's driven by financial investors moving money into commodities markets," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.
.....

Light, sweet crude for April delivery spiked as high as $102.08 a barrel in electronic trading on the New York Mercantile Exchange before slipping back to $101.23, up 35 cents.

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

[UpInArms]

29. Gas Prices Soar, Posing a Threat to Family Budget

http://www.nytimes.com/2008/02/27/business/27gas.html?ex=1361768400&en=c2b3d387be480319&ei=5088&partner=rssnyt&emc=rss

Gasoline prices, which for months lagged behind the big run-up in the price of oil, are suddenly rising quickly, with some experts saying they could approach $4 a gallon by spring. Diesel is hitting new records daily, and oil settled at a record high of $100.88 a barrel on Tuesday.

The increases could not come at a worse time for the economy. With growth slowing, energy increases that were once easily absorbed by consumers are now more likely to act as a drag on household budgets, leaving people with less money to spend elsewhere. These costs could worsen the nation’s economic woes, piling a fresh energy shock on top of the turmoil in credit and housing.

“The effect of high oil prices today could be the difference between having a recession and not having a recession,” said Kenneth S. Rogoff, a Harvard economist.

The depth of the nation’s economic problems became clearer Tuesday with the release of figures showing that prices at the producer level rose 1 percent in January from December, driven in large measure by energy costs. Compared with a year ago, prices were up 7.4 percent, the worst producer price inflation in the United States since 1981.

Other new figures showed that home prices around the country are falling at an accelerating pace, suggesting no end is in sight for the housing slump.

As of Tuesday, regular gasoline was selling at a nationwide average of $3.14 a gallon, according to AAA, the automobile club, up from $2.35 a year ago. The price has jumped 19 cents a gallon in two weeks.



...more...

[UpInArms]

30. The price of oil has quadrupled in six years

The price of oil has quadrupled in six years, and the close Tuesday was not far below the inflation-adjusted high set in April 1980, after the Iranian revolution. That record, $39.50 a barrel, equals $103.76 in today’s money.

Can anyone else say that these people need to be run from our country's highest office with torches and pitchforks?

[DemReadingDU]

40. Gasoline Price History

Here is an interesting graph I found a few years ago. I'm not sure who created it, but it is quite intresting...

http://www.randomuseless.info/gasprice/gasprice.html


edit to add this info...

1/10/06...
Prices at the gas pump have jumped 55 percent from $1.44 per gallon in January 2001 to $2.23 in January 2006, while the price for a barrel of oil has more than doubled from $29.26 in January 2001 to $62.70 in January 2006.
http://democrats.senate.gov/dpc/dpc-new.cfm?doc_name=sr-109-2-1

[UpInArms]

42. thanks!

that chart has so many spikes in the past 8 years, one could lose an eye easily!

[DemReadingDU]

43. Thank you UIA!

I couldn't figure out how to reproduce the chart for eveyone to look at. It is quite the eye-opener!

[Warpy]

67. The up side is that I'm seeing no temporary tags here on new SUVs

and this is the wild west where all the cowboys want that rugged he man image that only driving two tons of heavy steel that get under 15 miles per gallon can confer. I guess they're going to have to use some new cologne, because they're starting to buy sedans again.

Another up side is that Gov. Richardson's boondoggle, the north-south commuter rail system that runs from Belen to Bernalillo and is nearly up to Santa Fe is gaining plenty of new riders from the exurbs. If they live anywhere near the Rio Grande, they've got a solution to high gas prices and they're taking it. If they moved to the exurbs east or west of the city, they're just plain SOL.

I'm also seeing a lot more folks in town walking, biking, and taking the bus. I will no longer feel weird on my scooter because I'm seeing more of those, too.

We needed something to kick people out of those monster trucks and SUVs. We got it. We'll have it as long as Stupid is in office, threatening the rest of the oil region with war and refusing to open the tap of the Strategic Oil Reserve to lower prices.

[TalkingDog]

84. Go back to codpieces. It gets the point across (pardon the pun)

and can be made of natural or recycled products!!!

Just get some country music star who wears black hats, shirts with torn off sleeves and sports a 3 day beard...he can go on tee-vee, thumbs hooked in the pockets of his well-worn jeans singing about God and Country, his codpiece jutting proudly toward the waving American flag.....


Then he can say something like: "Real men drive cars that get 40 mpg."

Overdub: "Codpieces, an American Revolution"

[AnneD]

90. Have you ever seen...

a cowboy wearing chaps...it has a codpiece effect.

I haven't looked at cowboy the same since 'Brokeback Mountain'. The agricultural half of the family were a bit upset about that one. It didn't play well out there-if at all. Some folks hang fake bulls balls in their truck hitches in some parts of Texas (those are the wanna bes). That's what they need to accessorize them on TV.

Most of the ranchers I know really do use their trucks and SUV's. On a real farm-they are indespensible. But for knocking around the city....what a waste. Those are the ones that should be taxed.

[UpInArms]

34. Russia Quietly Starts to Shift Its Oil Trade Into Rubles

http://www.nytimes.com/2008/02/27/business/worldbusiness/27place.html?ex=1361768400&en=92ccc96dfa2f422e&ei=5088&partner=rssnyt&emc=rss

MOSCOW — Americans surely found little to celebrate when the price of oil settled above $100 a barrel last week.

They could, though, be thankful that oil is still priced in dollars, making the milestone of triple-digit oil prices noteworthy at all.

Russia, the world’s second-largest oil-exporting nation after Saudi Arabia, has been quietly preparing to switch trading in Russian Ural Blend oil, the country’s primary export, to the ruble from the dollar. Industry analysts and officials, however, say that this change, if it comes, is still some time off.

The Russian effort began modestly this month, with trading in refined products for the domestic market.

Still, the effort to squeeze the dollar out of Russian oil sales is yet another project notable for swagger and ambition by the Kremlin, which has already wielded its energy wealth to assert influence in Eastern Europe and former Soviet states.

“They are serious,” said Yaroslav Lissovolik, the chief economist at Deutsche Bank in Moscow. “This is something they are giving priority to.”

...more...

[ozymandius]

4. EU fines Microsoft record $1.3 billion

BRUSSELS, Belgium - The European Union fined Microsoft Corp. a record $1.3 billion on Wednesday for charging rivals too much for software information.

EU regulators said the company charged "unreasonable prices" until last October to software developers who wanted to make products compatible with the Windows desktop operating system.

Microsoft immediately said that these fines were about past issues that have been resolved and the company was now working under new principles to make its products more open.

The fine is the largest ever for a single company and the first time the EU has penalized a business for failing to obey an antitrust order.

http://news.yahoo.com/s/ap/20080227/ap_on_bi_ge/eu_microsoft

[the other one]

5. Have you noticed platinum?

From 1500.00 per ounce in late January, to over 2100.00 per ounce less then a month later. That is real commodity inflation. And if I knew how to put up one of those charts I would throw one in to this post.

http://www.kitco.com/charts/liveplatinum.html

[UpInArms]

24. let's see if this works

you just paste the image address in the post window and the image should show up in your post

:hi:

[Demeter]

25. Allow Me!

That IS impressive, by the way. I didn't think platinum had that much commercial demand.

[Dr.Phool]

32. Keep an eye on your catalytic converter.

They contain platinum, and they're stealing them everywhere.

[Warpy]

69. So THAT'S why I've heard so many cars around here

sounding like a convoy of tractors!

[Ghost Dog]

72. Yup. Just had to change one that fell off, completely rusted,

after 8 years here parked outside in this highly corrosive salt-air environment (A small Peugeot). A snip at €300 (~$450). (The noise was truly impressive).

[DemReadingDU]

95. someone cut off the catalytic converter on daughter's car

This was in Cincinnati Ohio last month

[Warpy]

68. It has some commercial application and some cachet

in high end jewelry. However, this is a speculative bubble if I've ever seen one. There is some consortium of rich old guys out there who are trying to corner the market and they've managed to drive the price up. Expect to see the bubble go pop as soon as they get out and start to drive the price of some other scarce commodity up, something more useful but less noticeable than platinum.

[AnneD]

85. Afternoon Marketeers....

:beer: Ya know, your career as a school Nurse isn't complete until you have been threatened by a psychotic parent with in an inch of your life. That is the way my day started and it has gone downhill from there. I won't bore you with it but retirement or a bar is looking real good at the moment.

What has fascinated me with the metals going up is that silver has really been doing well. The guy at the shop told me that by keeping both-I was covering the spread. He asked if I wanted to buy more and I remember whining about it being to heavy...He cracked up. I think I will make a weight lifting set from it. I think people are starting to get in where they can.

Warpy, Maybe we should mine the junkyards for some 'good' stuff. I know folks around here are ripping off AC units for the copper. Houses need security guards around them for all the copper thieves.

I remember something about a gold/oil ration and I remember something about a gold/silver ratio years ago during the crash in the '80's. This is when I first got interested in the market and the economy. I guess it was a good thing because I was paying attention the first time around. This time it is worse than deja vu.

Happy hunting and watch out for the bears...they are stirring from their winter nap.

I guess researching those ratios will be my homework for tonight. All I can say is that I am leaving early and adult beverages will be involved.

[TalkingDog]

88. But my mother died in May 06....

Yes, I love her, but officially psychotic. She never threatened a nurse. Teachers, however, didn't fare as well.... We learned to complain judiciously....

[Warpy]

89. Empty houses are having their copper plumbing stripped

and some thieves south of the city have been bold enough to take telephone line right off the poles.

Silver hasn't reached the peak it did when Bunky Hunt was trying to corner the market, not indexed to the inflation we don't have. If it does get there, the flatware I never use because it reminds me of too many tense holiday dinners will go.

What kind of psycho goes after a school NURSE?

[AnneD]

91. Some one who

insists their feverish daughter that can barely stand up is ok to go to school. Sent her out with a 102.5 temp and throwing up yesterday. They can't come back AT LEAST 24 hours after running a temp. That is the school rules (and sensible).

He was arguing with the clerk and then came to me. When I told him the same thing he said he wanted to see it. I told him to wait I could produce it in writing for him. The poor daughter was talking to him (another language)and trying to pull him away away from me (I was trying to be as non confrontational as possible). Poor kid was sick and embarrassed. I felt sorry for her. We called later and made sure she was ok. Dad does have mental health problems-I just don't want to end up on the 5 o'clock news (and I am a sitting duck-out in the open). Some Nurses have had their tires slashed, cars keyed-you name it. I don't get it as much as some.

Parents will keep sick kids out one day, dope them up with Tylenol and send them to school the next day and say they are fever free. Of course the Tylenol wears off, I catch their fever in the afternoon and send them home AGAIN. They of course exposed their whole class by now.:eyes: One day we will have a pandemic. And the place that will be most dangerous will be the schools. And maybe when the mortality goes to 1 in 4... folks will understand why we have these rules

[Warpy]

93. Dad can't afford the day off

to sit with the kid and repeated calls to him at work will result in his firing.

That's the kind of world we live in. Thanks, GOP.

[AnneD]

97. The one secret guilty pleasure I have.....

those sick folks are working in those posh watering hole these GOP hang out at. And at this very moment....there is some GOP dirtbag getting ill from the waitstaff and kitchen staff....

"It's the simple things in life that you treasure." Fred Kwan Galaxy Quest.

[DemReadingDU]

6. Healthcare fraud trial in Columbus, Ohio - Update

2/26/08 2 National Century execs weren't full participants in alleged fraud, witness says

At least two of the executives standing trial on criminal fraud charges in the $2.84 billion collapse of National Century Financial Enterprises Inc. weren't in on every aspect of the alleged scheme, a government witness acknowledged Tuesday.

Sherry Gibson, once National Century's executive vice president of compliance and the company insider the government has characterized as an architect of the massive fraud, conceded during cross-examination that James Dierker and Rebecca Parrett didn't know everything Gibson was doing to allegedly cook the company's books.

During the morning session, Gibson got pinned down by attorney Leonard Yelsky over whether Dierker authorized funds to be sent to a bankrupt National Century client. The government has alleged Dierker, vice president of marketing, illegally sent millions of dollars to a bankrupt California medical services provider owned by National Century executives out of NPF XII Inc., a bond fund that had raised money from investors.

National Century was ordered by a bankruptcy court to provide bankruptcy financing for California Psychiatric Management Services, but it wasn't allowed to use investor-raised funds. The company did anyway, and Dierker was in charge of overseeing those transfers, Gibson said.

more...
http://www.bizjournals.com/columbus/stories/2008/02/25/daily16.html

link to previous articles
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3198268&mesg_id=3198425

[UpInArms]

7. dollar watch

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

Last trade 74.474 Change -0.123 (-0.16%)

What Drove the US Dollar to a Record Low?

http://www.dailyfx.com/story/bio1/What_Drove_the_US_Dollar_1204064033278.html

It has been a record breaking day in the financial markets with the US dollar falling to an all-time low against the Euro and crude oil futures closing at a record high. Although US Consumer confidence dropped to a 5 year low, that was not the primary catalyst for the dollar’s slide. Instead, the downward spiral was triggered by the combination of things including comments from Federal Reserve President Kohn, stops being taken out at the prior high, weaker consumer confidence, stronger Eurozone economic data and concerns about what Ben Bernanke will say at his testimony on monetary policy tomorrow. Kohn has already warned us that the central bank will do what it takes to fight a recession. With foreclosures rising 90 percent in the month of January from the same period last year, consumer confidence tanking and oil prices hitting new highs, it is absolutely necessary that Ben Bernanke makes growth his top priority. We doubt that the Senate our House panels will allow him to get away with talking about price pressure when most of their constituents probably feel like the US economy is already in a recession. Therefore even though the annualized pace of producer price growth rose was the fastest pace since 1981, the impact on the US dollar was limited because the market quickly realized that right now, stronger inflationary pressures will not stop the Fed from continuing to lower interest rates. The futures market is still pricing in a 50bp rate cut for the March 18th monetary policy meeting and recent economic data suggests that the US central bank cannot afford to slow down. The price action in the US dollar today clearly indicates that this is what the market expects Bernanke to tell us tomorrow. New home sales and Durable Goods orders are also due for release. Existing home sales were stronger than expected, but new home sales should remain soft and even if it rebounds, it will not help the dollar much because either inventory will rise or prices will fall, or both. As for durable goods, after increasing 5.2 percent in the month of January due to non-defense aircraft sales, a healthy decline is expected.

...more...

Euro Breaks Mythical 1.50 as Dollar Takes a Beating, Will Bernanke Deal The Final Blow?

http://www.dailyfx.com/story/bio2/Euro_Breaks_Mythical_1_50_as_1204110343996.html

Euro broke through the mythical 1.50 barrier as the dollar sold off throughout the overnight session after U.S. economic data and comments from Fed Vice chairman Donald Kohn, suggested that more rate cuts are forthcoming from the Fed. The European economic data that crossed the wires only strengthened the case for euro bulls as European money supply was stronger than expected at 11.5%, German import prices index rose 0.8% in January, and GfK consumer confidence printed unchanged at 4.5.

The European economy continues to show signs of decoupling as the money supply numbers suggests that the credit crunch isn’t affecting lending in the region as it has in the U.S. Also look for the ECB to continue their hawkish stance, as their inflation case was bolstered by rising German import prices and as consumer confidence showed signs of stabilizing. Now that the Euro has broken through the 1.50 barrier, the currency could continue to set new record highs as expectations are that interest rate differentials will continue to widen between the U.S and the Eurozone.

Fed Chairman Ben Bernanke is expected to reiterate Donald Kohn dovish sentiments when he speaks today, as economic data continues to signal that more work is needed to be done by the Fed. In contrast President Trichet recently reiterated his hawkish stance when speaking in Frankfurt, when he intimated that strong Asian demand will offset declines from the U.S.

U.K. GDP signaled that they have more in common with the U.S. than their European brethren as the economy grew at its slowest rate in more than a year as the credit crunch takes a toll on consumer spending. Rumors that a U.K. clearer was having trouble raising funds led to a selloff of the pound and rumors that an emergency rate cut by the BoE may be in store.

With durable goods and new home sales expected to print lower, Euro longs will make a strong case. However, the real event risk will come from Fed Chairman Bernanke’s report on the economy. Any signal that inflation, and for that matter, stagflation, is a major concern for the Federal Open Market Committee may lead to the dollar rebounding, as traders look to lock in profits.

...more...

[UpInArms]

11. Little respite seen for record-low dollar for now

http://news.yahoo.com/s/nm/20080227/bs_nm/markets_forex_dc?_ylt=Ar_.kEqvZ4nhqhSbJNpElIdv24cA

LONDON (Reuters) - The dollar slid to an all-time low versus a basket of currencies on Wednesday after weak U.S. data and comments from a top Federal Reserve official cemented views for more U.S. rate cuts.

The euro vaulted above the psychological $1.50 mark for the first time in its 9-year history. The Swiss franc also rose to a record peak against the U.S. currency, while the New Zealand dollar touched levels not seen it was free-floated in 1985.

Analysts reckoned that Wednesday's calendar was unlikely to bring any respite to the dollar, with January durable goods orders and new home sales seen easing versus the previous month and Fed chairman Ben Bernanke seen leaving the door open for further rate cuts in his semi-annual monetary policy report before the House Financial Services Committee from 10:00 a.m. EST.

"The overnight explosion has been quite aggressive ... and the question is what's going to arrest the upward momentum (in the euro) and at the moment it would probably require some better U.S. data," said Jeremy Stretch, strategist at Rabobank.

"That doesn't seem to be happening any time soon, and it's going to be pretty unlikely that Bernanke is going to signal anything other than continued pre-emptive action from the Fed. In the short-term it seems that ... the path of least resistance is to the topside."

...more...

(fixed link on edit)

[Ghost Dog]

15. Dollar Falls to Record Low of $1.50 per Euro on Rate Outlook

Feb. 27 (Bloomberg) -- The dollar fell to a record low beyond $1.50 per euro on speculation Federal Reserve Chairman Ben S. Bernanke will indicate the U.S. central bank is prepared to cut interest rates already at a three-year low.

The dollar weakened against 15 of the 16 most-active currencies before Bernanke testifies to Congress today. It reached a 23-year low against the New Zealand dollar and fell the most against South Africa's rand as investors bought higher- yielding currencies.

``We're going into a new leg of dollar weakness,'' Tony Morriss, a currency strategist in Sydney at Australia & New Zealand Banking Group Ltd., Australia's third-biggest bank, said in an interview with Bloomberg Television. ``The Federal Reserve is sending a pretty clear signal they need to support growth.''

The dollar touched $1.5057 per euro, the lowest since the European single currency was introduced in 1999, before trading at $1.5043 as of 7:39 a.m. in London from $1.4974 in late New York yesterday. It also fell to 106.96 yen from 107.28 yen. The euro was at 160.79 yen from 160.67, after reaching 161.39. The dollar may drop to $1.53 per euro in the next three months, Morriss said.

...

The slump in the dollar pushed oil prices to a record yesterday and increased the cost of buying wheat, sugar, copper, cotton and cocoa. Nine of the 10 most-active currencies in Asia outside Japan gained against the dollar today. Indonesia's rupiah rose 0.2 percent to 9,060 per dollar and the Singapore dollar touched an 11-year high of S$1.3995. The Chinese yuan advanced 0.2 percent to 7.1470.

...

The dollar will tumble to a record low against the currencies of major trading partners ``within weeks'' as the Fed lowers rates to prevent a recession, Bank of America N.A. analysts said in a research note dated today.

The currency will continue to trade below $1.50 for the next few weeks, Robert Sinche, head of global currency strategy at the New York-based bank, wrote in the report. An index traded on ICE Futures in New York, which tracks the currency against its six major counterparts, fell 0.2 percent to 74.611. It reached 74.484 on Nov. 23, the lowest since the gauge started trading in 1973.

``It's crunch time for the dollar,'' said Yuji Saito, head of foreign-exchange sales in Tokyo at Societe Generale SA, a unit of France's second-largest bank by market value. ``Bernanke may know that monetary policy alone cannot support the slowing U.S. economy.''

The U.S. currency may fall to $1.51 today, Saito forecast.

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=akLj06eaEzHg&refer=japan

[Ghost Dog]

17. Euro= USD 1.504, GBP 0.757, CHF 1.608 and JPY 160.1 at this time

[Ghost Dog]

21. Euro extends gains vs dlr on hawkish Weber comments

LONDON, Feb 27 (Reuters) - The euro extended gains towards earlier record highs versus the dollar on Wednesday, after ECB Governing Council member Axel Weber said market expectations for rate cuts fail to consider the dangers of higher inflation.

The euro was at $1.5060 <EUR=> by 1204 GMT from around $1.5036 before the Weber comments, moving back towards record highs of $1.5087 set earlier in the session according to Reuters data. It also hit a six-week high at 75.84 pence <EURGBP=>.

"It's another confirmation that the ECB is not ready to cut rates," said Niels Christensen, FX strategist at Nordea in Copenhagen.

"They are still worried about the inflation outlook and this view is supported by strong German data."

/. http://www.reuters.com/article/marketsNews/idINL2732967020080227?rpc=611

[Ghost Dog]

53. Euro= USD 1.506, GBP 0.758, CHF 1.607 and JPY 160.0 at this time

[DemReadingDU]

66. dollar dropping $74.125

Low 74.125 2008-02-27 11:25:41

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

[Ghost Dog]

70. Euro= USD 1.513, GBP 0.760, CHF 1.611 and JPY 161.7 at this time

[Roland99]

74. Good Grief!!!!

:wow:

[Ghost Dog]

98. Euro= USD 1.514, GBP 0.763, CHF 1.608 and JPY 161.4 at this time

[UpInArms]

8. Fed chief assessing economy's health

http://news.yahoo.com/s/ap/20080227/ap_on_bi_ge/bernanke_congress

WASHINGTON - Federal Reserve Chairman Ben Bernanke is giving Congress a fresh assessment of the country's economic health, which has been pummeled by a housing bust, a credit crunch and soaring energy prices.

Back-to-back appearances on Capitol Hill were scheduled to begin Wednesday for Bernanke, who is facing his biggest challenges yet in his two years at the Fed's helm.

Bernanke, testifying before the House Financial Services Committee, was expected to signal another cut in a key interest rate, despite fresh evidence that inflation is picking up. Since September, the Fed has been lowering its key rate, which now stands at 3 percent. Economists are predicting another reduction at the Fed's next meeting, on March. 18.

The government reported Tuesday a sharp increase in wholesale prices. That followed a big increase in prices paid by consumers.

At the same time, the economy is losing speed, raising the specter that stagflation is brewing. That's a dreaded mix of stagnant economic activity, rising prices, lagging wages and higher unemployment — something the country hasn't seen since the 1970s.

...a bit more...

[Hugin]

31. "It's dead, Jim."

"Dawgone it, I'm a helicopter turkey bomber... Not a Econonimust."

(Complementary Star Trek reference brought to you by: Trekker's Anonymous Local 1701. "Posting where no nerd has
posted before.")

[UpInArms]

33. and here I thought you was a "miracle" worker!

:rofl:

[Hugin]

37. Um, no... Actually, that would be Helen Keller.

:shoveglassesuponnose:

:dork:

[TalkingDog]

86. Ummm.... Anne Sullivan?

Waaaa-dah

wwaaaaa-duh......

I'm hit and run today....broken 'puter (using my library tax dollars) and busy.

Have fun all...

[Hugin]

87. Nerd.

:P

:hi:

[AnneD]

92. You know what Helen Keller's...

favourite colour was....



corduroy. OK flame me-I remember more but I'll leave it rest.

[Hugin]

94. Haha!

I had forgotten all about those. :blush:

I do have quite the respect for Ann Sullivan and Helen Keller, tho. What they achieved is often overlooked
and taken for granted in this modern era.

[AnneD]

96. It truly was pioneering work...

in teaching the multiply impaired. I can't imagine the IQ she must have had to do what she did. She deserves her spot on the state quarter.

[Demeter]

45. As Usual, Doctor, Your Responses Are Highly Illogical

sticks Vulcan tongue out

[Hugin]

46. How's that 'Pon Farr' coming along for ya?

*checks watch*

Coming up on seven years there, buddy. Time's a wastin'! ;)

[Demeter]

54. I'll Thank You to Stay Out of My Personal Affairs, Doctor

[Hugin]

56. Anything to not have to talk about...

the Economy. ;)


( :hi: )

[Demeter]

57. I'm sure we could keep the dialog up for at least another few rounds

Not to drop character, like that

[Hugin]

59. Oh, at least 4 seasons...

:7

[Demeter]

58. The Question Is: In 48 Minutes or Less: WWKD?

"What would Kirk Do?" with the bustling US economy (one of my favorite phrases from that ancient musical "How Now, Dow Jones?" where the voice of the Dow announces that the Index finally hit 1000--because that's when her fiance promised to marry her, and she's pregnant with some other guy's child. What can I say--it was a kinder, gentler time.)

[Hugin]

61. It's quite obvious WKWD...

1. Get his shirt torn and hair mussed.
2. Queue up the "Fight Music".
3. Manage a few body throws.
5. Flirt with "Yeoman Rand".
6. Pull up his boots.

[Demeter]

73. Yes, But Besides That!

Oh, you mean it's up to the Good Doctor and the Halfbreed Vulcan?

Boy, are we screwed!

[Hugin]

79. Looks like it...

Maybe it's time to have Mr. Scott beam us the heck out of here. (If the Transporter is working.)

[Demeter]

80. You Are Referring, No Doubt, to Helicopter Ben?

I believe his dilithium crystals have been drained.

[AnneD]

99. This ship o state canna take it anymore

she's tearing apart from the strain.

[Hugin]

100. "She's lit up like a Christmas tree, Cap'n."

I've got someone in another thread saying they've "made TONS" on the Stock Market.

To this I say, Cash Out and let's see what you really have.

[Demeter]

101. LOLOLOLOL!

You said it! :rofl:

[UpInArms]

9. Carlyle founder sees strong industry, leverage back

http://www.reuters.com/article/bondsNews/idUSN2739645920080227

MUNICH (Reuters) - Private equity has not reached the "high-water mark" and will emerge stronger from the global economic downturn, Carlyle Group founder and managing director David Rubenstein said on Wednesday.

He said leverage would not be back for "quite a while, but that doesn't mean the industry will fall apart".

Markets seized up in the summer after the subprime loans turmoil, bringing to an abrupt halt a buyout boom that broke deal records. The financing of large leveraged buyouts was ended, while deals not completed were on shaky ground.

Rubenstein, talking at the 11th Super Return private equity and venture capital conference in Munich, forecast banks would sell some of their $200 billion or so debt backlog over the next year or so, although probably at lower prices than they hoped.

"You will see leverage come back to the industry," he said.

...more...

[Demeter]

60. Just not in your lifetime!

[UpInArms]

10. U.S. mortgage applications fall to 2008 low - MBA

http://www.reuters.com/article/bondsNews/idUSN2741215520080227

NEW YORK, Feb 27 (Reuters) - Applications for U.S. home mortgages plunged to their lowest level this year, as rising long-term interest rates curbed incentives to refinance, an industry group's data showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity dropped 19.2 percent to 665.1 in the week ended Feb. 22.

It marked the third straight week of a decline in the index, pushing home loan demand down to the lowest level in 2008.

The MBA's seasonally adjusted index of refinancing applications plunged 30.4 percent to 2,458.9 last week, its lowest since December. The decline came as the average 30-year fixed mortgage rate climbed to 6.27 percent from 6.09 percent in the previous week.

The 30-year rate has risen 0.78 percentage point since mid-January amid concerns short-term interest rate cuts by the Federal Reserve will spark faster inflation.

...more...

[Ghost Dog]

12. Asian Stocks Climb for Third Day; BHP, Marui, Banks Lead Gains

Feb. 27 (Bloomberg) -- Asian stocks rose, sending the region's benchmark to a six-week high, as a rally in commodity prices and profit reports at Standard Chartered Plc and Marui Group Co. stoked optimism earnings will endure a global slowdown.

BHP Billiton Ltd. gained in Australia after crude oil climbed to a record and copper futures rose. Standard Chartered, the London-based bank that makes two-thirds of its profit in Asia, jumped to a three-week high in Hong Kong, while Marui, Japan's third-biggest department-store operator by market value, surged the most in eight years on the Tokyo Stock Exchange.

``Some of the excess bearishness concerning the domestic and global economies is melting away,'' said Takashi Miyazaki, who helps oversee $61 billion at Mitsubishi UFJ Asset Management Co. in Tokyo.

The MSCI Asia Pacific Index added 2.1 percent to 149.32 as of 5:04 p.m. in Tokyo, extending a two-day, 1.8 percent rally. The benchmark, poised for its highest close since Jan. 15, has rallied 13 percent since hitting a 14-month low on Jan. 22 as concern eased that a U.S. housing slump will drag the world's largest economy into a recession.

Japan's Nikkei 225 Stock Average added 1.5 percent to 14,031.30, a seven-week high. Benchmarks advanced in all other markets open for trading, with Hong Kong's Hang Seng Index posting the biggest gain of 3.2 percent. Industrial & Commercial Bank of China Ltd. led Chinese banks higher in the city, after JPMorgan Chase & Co. advised investors to buy their shares.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=aeUCD0_W9les&refer=asia

[Ghost Dog]

13. Japanese Stocks Advance on U.S. Retailer Earnings; Sony Rises

Feb. 27 (Bloomberg) -- Japanese stocks rose, sending the Nikkei 225 Stock Average to a six-week high, after earnings at U.S. retailers boosted speculation spending will support growth in the world's largest economy.

Sony Corp., which generates about 70 percent of its sales outside Japan, advanced for a third day. Nikon Corp. jumped after International Business Machines Corp. said it will spend $15 billion to buy back shares, boosting confidence in the outlook for technology companies.

``If the U.S. can avoid a serious recession, Japanese companies aren't going to have significant profit declines,'' said Takashi Miyazaki, who helps oversee $61 billion at Mitsubishi UFJ Asset Management Co. in Tokyo. ``Some of that excess bearishness concerning the domestic and global economies is melting away.''

Mitsubishi Logistics Corp. led a gain by warehouse and food companies as investors moved money into shares whose earnings may benefit from the strengthening yen. Marui Group Co. surged after the company said it will buy back shares.

The Nikkei 225 Stock Average rose 206.58, or 1.5 percent, to 14,031.30 at the close of trading in Tokyo, its highest close since Jan. 11. The broader Topix index added 17.05, or 1.3 percent, to 1,364.52.

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=a5QV5ly.JS8w&refer=japan

[Ghost Dog]

18. Noble Shares Jump on Forecast for Doubling of Profit

Feb. 27 (Bloomberg) -- Noble Group Ltd., a Hong Kong-based supplier of raw materials from coffee to energy, surged to the highest in almost two months in Singapore trading after fourth- quarter profit rose and an executive forecast further growth.

The stock gained 24 Singapore cents, or 12 percent, to end at S$2.32, the highest close since Jan. 2. The shares were the day's best performers on Singapore's Straits Times Index.

Noble is benefiting as increased demand for raw materials in China and India, the two fastest-growing major economies, pushes up commodity prices. Chief Operating Officer Ricardo Leiman said yesterday profit would double in the next four years.

...

Full-year revenue from agriculture, mainly grains such as wheat and soybeans, rose 60 percent to $6.5 billion, while energy sales, including so-called clean fuel, coke, and coal, gained 76 percent to $10.9 billion. Revenue from metals advanced to $4.6 billion from $2.8 billion.

``We expect demand for soft commodities, especially from China and India to buoy Noble's growth,'' said Lee at OCBC Investment, referring to agricultural commodities.

...

``Irrespective of the price of the products that we deal in, there will be long-term growth in global demand for basic commodities,'' Chairman David Eldon and Elman said in a joint letter to shareholders. ``We operate in businesses that count time in years, not 20-second sound bites.''
:rofl:

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=a0hmW.dOTO3w&refer=asia

[Ghost Dog]

19. Komatsu Forecasts at Least 10% Sales Growth on Asia

Feb. 27 (Bloomberg) -- Komatsu Ltd., the world's second- biggest maker of earthmovers after Caterpillar Inc., forecast sales will rise by at least 10 percent for a fourth year on demand in Asia and Eastern Europe.

Orders for construction machinery in China, Southeast Asia and Eastern Europe will lift revenue by ``double digits'' to a record in the year starting April 1, Chief Executive Officer Kunio Noji said in a Bloomberg Television interview broadcast today. Komatsu may add an assembly plant in China next year to meet demand in the world's fastest-growing major economy, he said.

Noji, 61, is counting on developing markets to overcome a near 16-year low in U.S. housing starts and a 4 percent gain in the yen against the dollar this year that cuts into repatriated overseas earnings. Development in China, oil-funded construction booms in Russia and mining projects in Indonesia are driving sales of Komatsu's excavators, bulldozers and dump trucks.

``It's a long-term growth era for emerging markets, shifting from a time when only the U.S., Europe and Japan prospered,'' Noji said in a Feb. 22 interview in Tokyo. Demand from Asia and Eastern Europe will probably increase industry sales of excavators, wheel loaders, bulldozers and other mining machinery by 8 percent to 10 percent in the next fiscal year, he said.

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=aRe5EF8TDioM&refer=japan

[Ghost Dog]

20. HBOS weighs on European shares; waiting for Bernanke

FRANKFURT, Feb 27 (Reuters) - European shares were down by midday on Wednesday as Britain's biggest mortgage lender HBOS (HBOS.L: Quote, Profile, Research) posted disappointing results, dragging down other financials and offsetting gains in miners and oil companies.

By 1210 GMT, the pan-European FTSEurofirst 300 index was 0.7 percent lower at 1,351.50 points.

The FTSEurofirst snapped a two-day rally in which it added about 3 percent. Since the beginning of the year, however, the index has lost almost 10 percent. It gained 1.6 percent in 2007 compared with a 16-percent gain in 2006.

"An economic slowdown is an economic slowdown. It can last for a while. We've got enough data confirming what's only being rumoured in the United States," said Boris Boehm, fund manager at Nordinvest asset management in Germany.

/... http://www.reuters.com/article/marketsNews/idCAL2756498320080227?rpc=611

[Ghost Dog]

71. Europe shares hit by banks, economy worries

LONDON, Feb 27 (Reuters) - European shares ended down on Wednesday as investors fretted over the U.S. economy and HBOS (HBOS.L: Quote, Profile, Research) led banks lower, but news that investment caps would be lifted for two U.S. mortgage finance firms limited losses.

The pan-European FTSEurofirst 300 (.FTEU3: Quote, Profile, Research) ended 0.22 percent lower at 1,358.21 points, but well away from its day low of 1,339.69.

HBOS slid 6.8 percent after it said higher funding costs hit its margins last year and both financial and housing margins were to stay tough.

Other banks also fell, with ING (ING.AS: Quote, Profile, Research) and BNP Paribas (BNPP.PA: Quote, Profile, Research) losing more than 1.5 percent and Allied Irish Banks (ALBK.I: Quote, Profile, Research) slipping 4.3 percent.

Stocks staged a recovery after Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FMC.N: Quote, Profile, Research) got the green light to invest billions of dollars more in the U.S. mortgage market, a move that could provide much-needed cash to stabilise the battered sector.

Equities have also been supported in recent days by the stabilisation in the credit ratings of bond insurers Ambac (ABK.N: Quote, Profile, Research) and MBIA (MBI.N: Quote, Profile, Research).

The FTSEurofirst 300 has gained 11 percent since the U.S. Federal Reserve served up the first of two rate cuts last month on Jan. 22, gains described as a bear market rally after a torrid start to the year.

But analysts said that repair jobs notwithstanding, the U.S. economy still faced severe problems.

"The Fed is going to be proactive, and rates are headed towards 2 percent. There's no way the monoline insurers can be allowed to fail, and the regulators and the government are going to make life as easy as possible for Freddie Mac and Fannie Mae," said Roger Noddings, UK chief investment officer at HSBC Investments.

"But for some time now the U.S. has needed a cleanout of some of the excesses of 10-15 years of over consumption and extended leverage, and consumers have needed to redress their balance sheets."

"The U.S. is not allowing that natural course of events to take place, partly because you can't manufacture a soft downturn and things tend to become self-seeding."

On Capitol Hill Federal Reserve Chairman Ben Bernanke told lawmakers that downside risks still dogged the U.S. economy despite the interest rate cuts.

And new U.S. single-family home sales slumped to a 13-year low in January while demand for durable goods declined more than expected, fuelling recession fears.

Around Europe, Britain's FTSE 100 (.FTSE: Quote, Profile, Research) ended 0.2 percent lower, Germany's DAX (.GDAXI: Quote, Profile, Research) gained 0.2 percent and France's CAC (.FCHI: Quote, Profile, Research) lost 0.1 percent.

/... http://uk.reuters.com/article/eurMktRpt/idUKL2781662120080227

[UpInArms]

26. Help hard to get for troubled home owners

http://www.reuters.com/article/bondsNews/idUSN1225568420080227?sp=true

DETROIT (Reuters) - As the housing crisis deepens, major lenders say they will help borrowers avoid foreclosure, but nonprofit groups and others say their actions are not living up to their promises.

"Some lenders are willing and able to work out loan modifications," said Juanita Bryant, a loss mitigation officer at Michigan Neighborhood Partnership, which covers one of the worst-hit states in the country. "Those lenders are in the minority."

Among the people Bryant's group is trying to help is Will Clark, 53, who bought his home in Detroit in 1996. After being diagnosed with diabetes in 2006, and with his savings wiped out by medical bills, he contacted his lender.

"I wanted to work something out because I couldn't afford the house anymore," Clark said.

His lender, JPMorgan Chase & Co unit Chase Home Lending, told him he could try a short sale -- sell the house for less than the outstanding debt and the bank would forgive the rest. Or he could hand over his property to the bank in a process known as deed in lieu of foreclosure. Both would harm his credit rating, but not as badly as foreclosure.

...more...

[Ghost Dog]

27. US stocks set to ease ahead of Bernanke testimony

LONDON, Feb 27 (Reuters) - U.S. stocks are expected to open down on Wednesday, tracking a fall in European shares, as investors await housing and manufacturing data and testimony from Federal Reserve Chairman Ben Bernanke.

Investors will be hoping to get a good feel of the state of the property market from the new-homes sales data, as well as earnings from mortgage finance company Fannie Mae (FNM.N: Quote, Profile, Research).

...

"There's a lot to digest for investors today ... (after) the three-day rally I think people are taking a breather and there's a bit of caution over Bernanke's comments ... What he has to say will be the main focus," Claire Collingwood, at CMC Markets, said.

Bernanke will address the House Financial Services Committee to testify on the central bank's semi-annual monetary policy report and investors will look for any insight into the Fed's thinking on the likely course of U.S. interest rates.

/... http://www.reuters.com/article/marketsNews/idCAL2715938720080227?rpc=611

[DemReadingDU]

28. Gas Prices Soar, Posing a Threat to Family Budget

2/27/08
Gasoline prices, which for months lagged behind the big run-up in the price of oil, are suddenly rising quickly, with some experts saying they could approach $4 a gallon by spring. Diesel is hitting new records daily, and oil settled at a record high of $100.88 a barrel on Tuesday.

The increases could not come at a worse time for the economy. With growth slowing, energy increases that were once easily absorbed by consumers are now more likely to act as a drag on household budgets, leaving people with less money to spend elsewhere. These costs could worsen the nation’s economic woes, piling a fresh energy shock on top of the turmoil in credit and housing.

“The effect of high oil prices today could be the difference between having a recession and not having a recession,” said Kenneth S. Rogoff, a Harvard economist.

more...
http://www.nytimes.com/2008/02/27/business/27gas.html?_r=1&hp&oref=slogin

edit to add: gas $3.19 in SW Ohio. At this price, gas is already a threat. :(

dupe: UIA posted above

[Dr.Phool]

36. Up $.30 in the last 10 days in Tampa Bay.

Last Sunday, I noted $2.88, I left town on Tuesday, and it was $3.05. Yesterday I saw between $3.15 and $3.19, with one at $3.24.

[Roland99]

75. Up $0.50 in that timeframe in Louisville.

Yet gas and oil inventories are up.

[UpInArms]

35. Fannie Mae posts nearly $3.6B loss in 4Q

http://news.yahoo.com/s/ap/20080227/ap_on_bi_ge/earns_fannie_mae

WASHINGTON - Fannie Mae on Wednesday said it lost nearly $3.6 billion in the fourth quarter of 2007 as home-loan delinquencies mounted. The company said it expects additional losses this year as the housing slump continues.

The quarterly loss at Fannie Mae, the largest U.S. buyer and backer of home loans, contrasts with a profit of $604 million in the same period a year earlier.

Fannie Mae reported the late 2007 loss was equivalent to $3.80 a share. It earned 49 cents a share a year earlier. Thomson Financial said Wall Street analysts had expected the company to lose $1.24 a share in the latest period.

The government-sponsored company was forced to set aside billions to account for bad loans.

The company's loss for all of 2007 was $2.05 billion, or $2.63 a share, compared with a profit of $4.05 billion, or $3.65 a share, in 2006.

...more...

[UpInArms]

38. From the Too Weird to Believe - Office Depot investigated for calling economy weak!

Office Depot being probed by U.S. regulator: report

NEW YORK (Reuters) - Office Depot Inc (ODP.N) is undergoing a formal investigation by the U.S. Securities and Exchange Commission into its communications with Wall Street analysts, the New York Post reported on Wednesday.

The No. 2 office supplies retailer is being probed for allegedly making a series of phone calls to analysts last June, warning them that weak economic conditions were hurting its sales, the Post reported, citing sources familiar with the matter.

It said the SEC launched an informal inquiry into the matter last July, upgrading it to a formal investigation last month.

<snip>

Office Depot posted a bigger-than-expected drop in quarterly profit on Tuesday, hurt by higher expenses and lower sales in North America.

...more...

:wtf:

[UpInArms]

39. The Economy: A Mix of Bad News

http://news.yahoo.com/s/bw/20080227/bs_bw/feb2008pi20080226549123

A series of economic reports released Feb. 26 delivered bad news on wholesale inflation, housing prices, and the mood of the consumer, offering a stark display of the range of problems faced by the U.S. economy.

The real attention-getter was an outsized increase in the producer price index (PPI) for January. The headline PPI jumped 1.0% on the month, and rose 0.4% excluding food and energy prices. The readings were much more than economists' consensus expectation of increases of 0.3% for the headline and 0.2% for the core.

Price Hikes

Among the chief culprits: Food prices jumped 1.7%, following the 1.4% December hike, and are up 8.3% from a year ago, reflecting bad weather especially in Southern California. Energy prices rose 1.5% in January and are up 22.6% on the year.

The total PPI is now up 7.4% from a year ago, and 2.3% excluding food and energy.

The data confirm the acceleration of inflation seen in the CPI, and spotlight the Fed's dilemma in fighting recession while dealing with the upward creep in inflation, says S&P Economics. S&P still expects another rate cut by the Federal Reserve at its March policy meeting. "(B)ut unless inflation subsides, that will probably be all."

...more...

[UpInArms]

41. 9:52 EST numbers and blather

Dow 12,643.81 41.11 (0.32%)
Nasdaq 2,335.94 9.05 (0.39%)
S&P 500 1,376.42 4.87 (0.35%)
10-Yr Bond 3.806% 0.054

NYSE Volume 330,451,875
Nasdaq Volume 185,480,437.5

09:40 am : The major indices open on a lower note. There is some profit taking after the market posted healthy gains in the three previous sessions. Most of the news this morning has been negative, which is adding to the selling pressure. Fed Chairman Bernanke testifies on the economy and monetary policy at 10:00 ET, which may spur some volatility.

In corporate news, Microsoft (MSFT) was fined a record $1.3 billion by the European Union for failing to comply with Union's previous antitrust decision. The fine is not as much as some feared, which is helping to limit Microsoft's losses in early trade.

Fannie Mae (FNM) reported a larger than expected loss. In 2007, the company lost $2.1 billion, or $2.63 per share, in 2007. By comparison, Fannie Earned $4.1 billion in 2006. Its losses are linked to the recent housing downturn.

In economic news, January durable good orders declined by a larger than expected amount.

The dollar continues to weaken, with the dollar index (-0.41%) falling to fresh all-time lows. The euro is up a strong 1.01%, sending it above 1.5 for the first time.

The weakness in the dollar is spurring some buying interest in commodities. Crude, currently trading flat, hit an all-time high of $102.28 in earlier trade. Meanwhile gold (+$10.40 to $959.00) hit an all-time nominal high of $967.70 per ounce. Of note, gold is trading well below its inflation adjusted highs reached in the late 70s and early 80s.DJ30 -56.33 NASDAQ -16.48 SP500 -7.74

09:14 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -15.0.

[Hugin]

44. "Of note, gold is trading well below its inflation adjusted highs reached in the late 70s..."

They just can't stand it, can they? :rofl:

[Hugin]

47. ~10:15 ET: Post hearing pause...

Index Last Change % change
• DJIA 12656.10 -28.82 -0.23%
• NASDAQ 2337.53 -7.46 -0.32%
• S&P 500 1377.05 -4.24 -0.31%

Which way do we go? Which way do we go?

:popcorn:

[Hugin]

48. ~10:20 ET: Yay! He said RATE CUT!

:woohoo:

Index Last Change % change
• DJIA 12676.70 -8.22 -0.06%
• NASDAQ 2340.32 -4.67 -0.20%
• S&P 500 1379.00 -2.29 -0.17%

Damn the 'worst durable goods numbers... EVER!' Full speed ahead! Toot! Toot!

[Hugin]

52. ~10:49 ET: Up.

Index Last Change % change
• DJIA 12729.45 +44.53 +0.35%
• NASDAQ 2358.78 +13.79 +0.59%
• S&P 500 1384.54 +3.25 +0.24%

Okay, I'm calling it... Off to the lunch room. Going to be another 'Blue Pill Day' on
Wall Street.

[hatrack]

51. Yeah, they can't say it about oil any more, so now it's gold . . .

And eventually, platinum, I suppose.

[Ghost Dog]

55. Gold hits record high on tumbling dollar, firm oil

LONDON (Reuters) - Gold surged to a record high above $960 on Wednesday as investors piled in, spurred by a plummeting dollar and oil rising above $100 a barrel.

Silver rallied to its loftiest level since November 1980, palladium jumped to a 6-1/2-year high and platinum advanced to trade near last week's record highs before paring gains.

Spot gold rose as high as $964.70 an ounce and was quoted at $959.20/960.00 at 10:04 a.m. EST, against $946.60/947.40 in New York late on Tuesday. It has gained 16 percent this year.

"The main driver is the record low U.S. dollar, but apart from that, gold should remain fairly well supported even if the currency retracts," said Walter De Wet, Precious metals analyst at Standard Bank.

"There are not many alternatives out there right now. Equities are currently high risk investments and still have negative returns for the year. U.S. Treasury is a traditional safe-haven, but there is also not a lot of value.

"And then what you left with is gold. There is room for gold to move higher as there are pretty bullish conditions."

/... http://www.reuters.com/article/hotStocksNews/idUSL2741347220080227

[DemReadingDU]

49. 76 troubled lenders in U.S. under scrutiny by FDIC

2/27/08 76 troubled lenders in U.S. under scrutiny by FDIC

The housing crisis that has claimed many victims among Ohio homeowners could be taking aim next at some of the state's banks.

Nationally, 76 banks are under scrutiny by the Federal Deposit Insurance Corp. and categorized as "problem institutions" based on their financial health.

The FDIC, which doesn't identify the troubled banks, is adding staff members in anticipation of an increase in bank failures.

Ohio, which has some of the worst foreclosure rates in the nation, is among those states that come to the forefront of the discussion, one banking expert said.

"Regulators are bracing for well over 100 bank failures in the next 12 to 24 months, with concentrations in Rust Belt states like Michigan and Ohio, and the states that are suffering severe housing-market problems like California, Florida and Georgia," Jaret Seiberg, a Washington policy analyst for the financial-services firm Stanford Group, told The Wall Street Journal.A new report by the FDIC showed that 9.4 percent of federally insured commercial banks in Ohio were unprofitable during the fourth quarter, nearly triple the number for the same period a year ago.

Banking officials emphasize, however, that deposits in FDIC-insured banks are safe and are insured up to $100,000.


more...
http://www.columbusdispatch.com/live/content/business/stories/2008/02/27/Bank_Failure.ART_ART_02-27-08_C8_UM9FKF7.html?sid=101

[spotbird]

62. Is there a list of these institutions

anywhere?

[DemReadingDU]

63. I was wondering the same thing

FDIC says it is not naming the banks. Guess they don't want people to make bank runs on the troubled banks.


edit to add list of banks that failed since 10/1/2000
http://www.fdic.gov/bank/individual/failed/banklist.html

[Ghost Dog]

64. What Bernanke told Congress (Transcript)

The Associated Press
February 27, 2008 at 11:46 AM EST

WASHINGTON — Federal Reserve Chairman Ben Bernanke's prepared testimony Wednesday to the House Financial Services Committee:

/Full text follows... http://www.theglobeandmail.com/servlet/story/RTGAM.20080227.wbernanketext0227/BNStory/Business

[Demeter]

76. Thomas Palley: "The Debt Delusion"

http://www.nakedcapitalism.com/2008/02/thomas-palley-debt-delusion.html

Economist Thomas Palley has of late been discussing what he believes to be an insufficiently-acknowledged cause of our current financial woes, namely, a shift in government policy away from emphasizing wage growth as a key objective. Another shift was a lack of concern about trade deficits.

Now one can argue that combatting trade deficits means protectionism, but that's a naive view. Our trading partners do not have open economies; neither do we. China has an openly mercantilist approach, gives substantial subsidies to domestic industries, and maintains a dollar peg (which is admittedly being permitted to slip, but due to high domestic inflation, not to any desire to accommodate the US). We restrict entry of certain high wage professionals like doctors and provide heavy agricultural subsidies. So to act as if the default position is open borders is a gross misunderstanding of how things work. This is a game of who gives what in return for what access. And our negotiating priorities have been skewed in favor of large corporations rather than wage earners.

Palley describes the consequences:


A second big American interest-rate cut in a fortnight, alongside an economic stimulus plan that united Republicans and Democrats, demonstrates that US policymakers are keen to head off a recession that looks like the likely consequence of rising mortgage defaults and falling home prices. But there is a deeper problem that has been overlooked: the US economy relies upon asset price inflation and rising indebtedness to fuel growth.

Therein lies a profound contradiction. On one hand, policy must fuel asset bubbles to keep the economy growing. On the other hand, such bubbles inevitably create financial crises when they eventually implode.

This is a contradiction with global implications. Many countries have relied for growth on US consumer spending and investments in outsourcing to supply those consumers. If America’s bubble economy is now tapped out, global growth will slow sharply. It is not clear that other countries have the will or capacity to develop alternative engines of growth.

America’s economic contradictions are part of a new business cycle that has emerged since 1980. The business cycles of Presidents Ronald Reagan, George H.W. Bush, Bill Clinton, and George W. Bush share strong similarities and are different from pre-1980 cycles. The similarities are large trade deficits, manufacturing job loss, asset price inflation, rising debt-to-income ratios, and detachment of wages from productivity growth.

The new cycle rests on financial booms and cheap imports. Financial booms provide collateral that supports debt-financed spending. Borrowing is also supported by an easing of credit standards and new financial products that increase leverage and widen the range of assets that can be borrowed against. Cheap imports ameliorate the effects of wage stagnation.

This structure contrasts with the pre-1980 business cycle, which rested on wage growth tied to productivity growth and full employment. Wage growth, rather than borrowing and financial booms, fuelled demand growth. That encouraged investment spending, which in turn drove productivity gains and output growth.

The differences between the new and old cycle are starkly revealed in attitudes toward the trade deficit. Previously, trade deficits were viewed as a serious problem, being a leakage of demand that undermined employment and output. Since 1980, trade deficits have been dismissed as the outcome of free-market choices. Moreover, the Federal Reserve has viewed trade deficits as a helpful brake on inflation, while politicians now view them as a way to buy off consumers afflicted by wage stagnation.

The new business cycle also embeds a monetary policy that replaces concern with real wages with a focus on asset prices. Whereas pre-1980 monetary policy tacitly aimed at putting a floor under labor markets to preserve employment and wages, it now tacitly puts a floor under asset prices. This is not a matter of the Fed bailing out investors. Rather, the economy has become so vulnerable to declines in asset prices that the Fed is obliged to intervene to prevent them from inflicting broad damage.

All these features have been present in the current economic expansion. Wages have stagnated despite strong productivity growth, while the trade deficit has set new records. Manufacturing has lost 1.8 million jobs. Prior to 1980, manufacturing employment increased during every expansion and always exceeded the previous peak level. Between 1980 and 2000, manufacturing employment continued to grow in expansions, but each time it failed to recover the previous peak. This time, manufacturing employment has actually fallen during the expansion, something unprecedented in American history.

The essential role of asset inflation has been especially visible as a result of the housing bubble, which also highlights the role of monetary policy. Despite the massive tax cuts of 2001 and the increase in military and security spending, the US experienced a prolonged jobless recovery. That compelled the Fed to keep interest rates at historic lows for an extended period, and rates were raised only gradually because of fears about the recovery’s fragility.

Low interest rates eventually jump-started the expansion through a house price bubble that supported a debt-financed consumer-spending binge and triggered a construction boom. Meanwhile, prolonged low interest rates contributed to a “chase for yield” in the financial sector that resulted in disregard of credit risk.

In this way, the Fed contributed to creating the sub-prime crisis. However, in the Fed’s defense, low interest rates were needed to maintain the expansion. In effect, the new cycle locks the Fed into an unstable stance whereby it must prevent asset price declines to avert recession, yet must also promote asset bubbles to sustain expansions.

So, even if the Fed and US Treasury now manage to stave off recession, what will fuel future growth? With debt burdens elevated and housing prices significantly above levels warranted by their historical relation to income, the business cycle of the last two decades appears exhausted.

It is not enough to deal only with the crisis of the day. Policy must also chart a stable long-term course, which implies the need to reconsider the paradigm of the past 25 years. That means ending trade deficits that drain spending and jobs, and restoring the link between wages and productivity. That way, wage income, not debt and asset price inflation, can again provide the engine of demand growth.

[Demeter]

77. Another Off-Balance Sheet Time Bomb: VIEs

http://www.nakedcapitalism.com/2008/02/another-off-balance-sheet-time-bomb.html

Despite the sudden flurry of worry in the press, triggered by the release of Citigroup's 10K, VIEs, or variable interest entities, have been around for some time. They were a favorite device of Enron's. SIVs are a subset of VIEs.

With such an illustrious history. it's a wonder they haven't gotten more inquiring coverage until now. Indeed, it's a bit odd that Bloomberg is reporting the story today, in "Goldman, Lehman May Not Have Dodged Credit Crisis," when the most immediate trigger for possible VIE problems, namely a downgrade of the big monolines, is now off the front burner. It is also noteworthy that the headline and early part of the story focuses on the two heretofore largely unscathed Wall Street firms, when the rope-a-dope Citigroup has $320 billion in unconsolidated VIEs. This is nearly as large as the entire SIV market at its height.

Moreover, recall SIVs in the end took small losses relative to their outstandings (roughly 3%, from what I can infer; note the NAVs reported were NOT a measure of loss on the total, merely losses to capital note holders). That's why the much ballyhooed MLEC program never saw the light of day; the industry could absorb the damage on its own. By contrast, due to the opaqueness and likely significant differences among these VIEs, the loss potential is harder to assess. CreditSights puts it at $88 billion, Moody's at $30 billion. That variance alone says this is a murky and not well understood problem.

From Bloomberg:


Goldman, which hasn't had any of the industry's $163 billion in writedowns, said last month it may incur as much as $11.1 billion of losses from the instruments.

The potential for a fire-sale of the assets that would bring another round of charges has ``always been our greatest fear,'' said Gregory Peters, head of credit strategy at New York-based Morgan Stanley...

VIEs, known as special purpose vehicles before Enron Corp.'s collapse in 2001, finance themselves by selling short-term debt backed by securities, some of which are insured against default....

Wall Street's writedowns stem from a surge in mortgage delinquencies among homeowners with the riskiest subprime-credit histories. The industry's VIEs, also known as conduits, had $784 billion in commercial paper outstanding as of last week, according to Moody's Investors Service and the Federal Reserve.

``There's a big number at work here and it will have significant consequences,'' said J. Paul Forrester, the Chicago- based head of the CDO practice at law firm Mayer Brown. ``The great fear is that a combination of subprime CDOs, SIVs and conduits result in a flood of assets into an already-stressed market and there's a price collapse.''...

``The lightning rod of the monoline fix is so important to so many banks,'' said Thomas Priore, chief executive officer of New York-based Institutional Credit Partners LLC, which manages $12 billion in CDOs.

Accounting rules allow financial firms to keep VIEs off their balance sheets as long as they're not the ones that stand to gain or lose the most from the entity's activities. A bank would also have to account for its portion of a VIE if prices for the debt owned by the fund fall too far or if the bank is forced to provide financing.....

Goldman, which earned a record $11.6 billion in the year ended in November 2007, said it avoided writedowns by setting up trades that would profit from a weaker housing market. Now the threat is $18.9 billion of CDOs in VIEs, the firm said in a regulatory filing on Jan. 29. Goldman spokesman Michael DuVally declined to comment....

Lehman, which wrote down the net value of subprime securities by $1.5 billion, guaranteed $6.1 billion of investors' money in VIEs and $1.4 billion of clients' secured financing as of Nov. 30, according to a filing also made on Jan. 29....

Citigroup, which has incurred $22.1 billion in losses from the subprime crisis, has $320 billion in ``significant unconsolidated VIEs,'' according to a Feb. 22 filing by the New York-based bank. New York-based Merrill Lynch, which recorded $24.5 billion in subprime writedowns, has $22.6 billion in VIEs, according to CreditSights....

The securities in the VIEs may be worth as little as 27 cents on the dollar once they're put back on balance sheets, according to David Hendler, an analyst at New York-based CreditSights. Hendler based his estimate on the recent sale of $800 million of bonds by E*Trade Financial Corp.

Predictions for losses vary widely because banks aren't required to specify the type of assets being held in the VIEs or how much they are worth, said Tanya Azarchs, managing director for financial institutions at S&P.

``The disclosure on VIEs is hopeless,'' Azarchs said. ``You have no idea of the structure or how that structure works. Until you know that you don't know anything. It's like every day you come into the office and another alphabet soup has run off the rails.''

[RUMMYisFROSTED]

78. $11,100,000,000.00

Chump change.

[Demeter]

81. That We Know Of

Who knows what's lurking in the shadowy corners?

[RUMMYisFROSTED]

82. I'm sure they'll reveal what we need to know. When we need to know it.

Of that I'm confident.

[Hugin]

83. I admire your confidence...

I have confidence in your confidence.

[Hugin]

102. ~Closing Numbers... Paltry.

Index Last Change % change
• DJIA 12694.28 +9.36 +0.07%
• NASDAQ 2353.78 +8.79 +0.37%
• S&P 500 1380.02 -1.27 -0.09%


A Note: I have been accused of discouraging investment... Far from it. Investment is a healthy activity.
However, I DO DISCOURAGE blind investment in funds who's only purpose is to be there to be looted by
fees and other invisible regressive taxes imposed willy-nilly. Five years ago I had to PAY several hundred dollars
to get my spouse out of a mis-managed corrupt 401-(k) plan. We had no choice. Know what you are investing
in! Due-diligence, there is no substitute!

[UpInArms]

105. a side of gambling blather to go with those numbers

The stock market opened on a down note, following three consecutive sessions of gains. Investor sentiment was lifted, however, when regulators announced the lending caps on Fannie Mae (FNM 27.27, +0.30) and Freddie Mac (FRE 25.09, -0.12) would be removed to promote additional lending in the housing market. Despite the announcement, stocks slipped in afternoon trading to finish the day slightly lower.

Fed Chairman Bernanke made no surprises at his semiannual testimony before the Financial Services Committee on Capitol Hill. Bernanke indicated that the economy continues to face challenging headwinds and the Fed will likely move to continue fighting those challenges with further rate cuts, rather than hold back as a result of inflationary pressures.

January durable goods fell 5.3% when compared with December orders, which had shown an increase of 4.4% from the previous month. Though the drop was steeper than economists expected, the news is not entirely grim as the trailing three-month average indicates orders are flat.

New home sales in January fell to 588,000 from 605,000 in December, on a seasonally adjusted annualized basis. The results were worse than expected as economists pegged January sales at 600,000 units.

New home sales remain one of the weakest segments in the housing industry. Such weakness was made further evident by a first quarter earnings loss of $0.61 per share by luxury homebuilder Toll Brothers (TOL 23.83, +0.71). Analysts were calling for a loss of just $0.50 per share.

According to subsidized home lender Fannie Mae, the housing industry is unlikely to improve any time soon. The company announced today a loss of $2.1 billion, or $2.63 per share, in 2007. Last year the company earned $4.1 billion, or $3.65 per share. Fannie Mae believes there will be further tightening in the mortgage lending market in 2008. Should current conditions persist, the company will likely face additional write-downs.

In a move to help restore the home-lending market, the Office of Federal Housing Enterprise Oversight (OFHEO) will remove the portfolio growth caps for both Fannie Mae and its smaller cousin Freddie Mac, effective March 1, 2008. OFHEO is also considering relaxing the capital requirements the two lenders adhere to. OFHEO's move should bode well for the mortgage market since increased capital availability adds liquidity to the secondary mortgage market.

In other regulatory news, Microsoft (MSFT 28.26, -0.12) was slapped with a $1.35 billion fine by the European Union for violating antitrust laws. The penalty was the largest ever levied by European regulators. Microsoft had already announced efforts to increase product openness and interoperability.

A bearish report from the Department of Energy induced oil to pull off the $100 mark. The report indicated that oil stores increased by 3.2 million barrels, or 1%, to 308.5 million barrels. Analysts were anticipating a build of 2.7 million barrels, according to Bloomberg.com. Prior to the announcement, oil hit an all-time intraday high of $102.08 per barrel.

Gold also hit an all-time high of $967.70 per ounce in intraday trading. Commodities have been stretching higher partly as a result of a weak dollar.

The dollar index hit an all-time low today, falling to 74.07. Meanwhile, the euro hit an all-time high against the dollar, stretching upward to $1.514. DJ30 +9.36 NASDAQ +8.63 NQ100 +0.5% R2K -0.1% SP400 -0.5% SP500 -1.27 NASDAQ Dec/Adv/Vol 1504/1388/2.22 bln NYSE Dec/Adv/Vol 1707/1411/1.46 bln

3:30 pm : The stock market has broken back into positive territory. After paring earlier losses, the S&P 500 had been struggling to break through the unchanged mark.

The S&P 500 has been unable to register gains in four straight sessions since December.

Crude prices settled $1.31 lower at $99.57 per barrel. Crude hit an all time intraday high of $102.08 after a bearish inventory report.DJ30 +30.69 NASDAQ +13.30 SP500 +1.42 NASDAQ Dec/Adv/Vol 1438/1408/1.85 bln NYSE Dec/Adv/Vol 1631/1469/1.14 bln

and, Prag, there's a huge difference in investing and gambling - hang in there!

[KoKo]

103. kick!

[Robbien]

104. When the collapsed Auction Rate Securities (ARS) market gets personal

Today's Wall Street Journal includes a scary article by James Stewart who thought the money he had in an Auction Rate Securities (ARS) account with Merrill Lynch & Co. was just as safe as a money market fund. Then he was shocked to discover that since the market for ARSs had ceased to function, his "safe" money was frozen.

Stop to consider this for a moment. Imagine that you had a significant chunk of your savings in a bank or money market fund. You read news that there were problems with some of the investments in these funds. So you call the institution to get some money out and discover that you can't withdraw a penny. How would you feel?

Well I am amazed at how calm Stewart appears in this article. He mentioned that he doesn't really need the money in the ARS account and that he has no way of getting it out. Merrill Lynch, unlike some of the money market funds that had problems with subprime-mortgage backed securities, will not make good on those ARS accounts. There are too many and it doesn't have the money.

Stewart is waiting to hear whether Merrill will let him take out an interest-free loan using his now frozen account as collateral.

http://www.bloggingstocks.com/2008/02/27/when-the-collapsed-auction-rate-securities-ars-market-gets-per/

The guy is seeking a loan using worthless collateral held by the firm from which he is seeking the loan? Well, good luck with that.

Idiot.

The article even says the man states he doesn't need the money right now but he is asking the company which stiffed him to give him a loan anyway.

Idiot doubled.

[UpInArms]

106. wow!

now that one has me lurching from side to side like a drunk without a drink and no pot to piss in and :wtf:!

so the guy says - give me my money and they say nope - no money for you (or anyone else that parked their dollars here for safety) and then the guys says - well, then give me a loan using that money that you won't give me as collateral and they say - nope - no loan for you, you stuuuuppiiiddd git and then the guy says - oh well, I didn't need that money anyway?????

:staggeringfromsidetoside:

[citizen snips]

107. Toll Brothers Swings to 1Q Loss

PHILADELPHIA (AP) -- Luxury-home builder Toll Brothers Inc. said Wednesday it swung to a loss in the first quarter as write-downs on properties it could no longer sell at a profit more than doubled and its sales tumbled 23 percent.

Chief Executive Robert Toll said in a conference call with analysts that the selling season that started in mid-January has been "weak for the third year in a row," but there were a few "glimmers of hope" in areas such as Naples, Fla. and suburban Washington, D.C.

The Horsham, Pa.-based company lost $96 million, or 61 cents per share, in the three months ended Jan. 31 compared with profit of $54.3 million, or 33 cents per share, a year earlier.

According to Thomson Financial, Wall Street analysts expected a loss of 50 cents per share.

more...
http://biz.yahoo.com/ap/080227/earns_toll_brothers.html

[citizen snips]

108. Chrysler Loss Pegged at $2.7B

DETROIT (AP) -- Chrysler LLC lost about $2.7 billion in the two months after Daimler AG sold controlling interest in the U.S. automaker to a New York private equity firm, Daimler said in its annual report Wednesday.

The figure, for the period from Aug. 4, 2007 to Sept. 30, was calculated under international financial reporting standards used in Europe and not under U.S. accounting standards, Daimler said.

The net loss also includes about $466 million in expenses incurred in the fourth quarter of last year, including Chrysler restructuring costs and costs related to a new four-year contract with the United Auto Workers, Daimler said in its report, filed with the U.S. Securities and Exchange Commission.

Daimler reported that for the full year in 2007, Chrysler lost 870 million euros, or roughly $1.2 billion when converted at the euro-to-dollar exchange rate that Daimler reported for the third quarter. It was unclear how much of Chrysler's fourth-quarter results were included in the figure because neither Daimler nor Chrysler would answer questions about the report.

more...
http://biz.yahoo.com/ap/080227/chrysler_loss.html

[citizen snips]

109. Nortel Shares Tumble After Weak Results

NEW YORK (AP) -- Shares of Nortel Networks Corp. tumbled Wednesday after the Canadian telecommunications equipment maker posted weak fourth-quarter results, falling short of expectations in what it called a "challenging environment."

Chief Executive Mike Zafirovski acknowledged attempts to turn the company around have not been easy. Nortel, which widened its losses during the quarter, also said it will cut 2,100 jobs and will shift about 1,000 more to cheaper areas.

RBC Capital Markets analyst Mark Sue, who downgraded Nortel "Underperform" from "Sector Perform," said the results show things are not getting better for the company.

"The overall situation remains little changed for Nortel in a consolidating industry," he wrote in a note to investors. Sue said the company's weak balance sheet was also a reason for the downgrade.

more...
http://biz.yahoo.com/ap/080227/nortel_mover.html?.v=3

[citizen snips]

110. Yahoo Battling 7 Shareholder Suits

SUNNYVALE, Calif. (AP) -- Yahoo Inc. is facing seven shareholder lawsuits alleging the slumping Internet pioneer bungled its response to Microsoft Corp.'s unsolicited takeover bid.

The Sunnyvale-based company provided a breakdown of the suits in an annual report filed Wednesday with the Securities and Exchange. The documents didn't provide any new information about Yahoo's attempts to shoo away Microsoft, which is threatening to pursue a hostile takeover unless a friendly deal can be negotiated.

Yahoo's board believes Microsoft's offer, originally valued at $44.6 billion, is insufficient. Microsoft, though, has stood firm and is now preparing to overthrow Yahoo's 10-member board, which includes the company's co-founder and chief executive, Jerry Yang. Microsoft faces a March 14 deadline to nominate an alternate slate of directors.

The impasse has triggered four shareholder suits in California's Santa Clara County Superior Court. Three other complaints have been filed in Delaware by pension funds that own Yahoo's stock.

more...
http://biz.yahoo.com/ap/080227/yahoo_lawsuits.html?.v=2

[citizen snips]

111. Treasurys Mixed After Hectic News Flow

NEW YORK (AP) -- Treasury prices closed mixed Wednesday after a volatile session during which regulatory developments that should bolster the housing industry competed for attention with an economic warning from Federal Reserve Chairman Ben Bernanke.

Regulators said they will lift limits on the investment portfolios of mortgage companies Fannie Mae and Freddie Mac. Over time the higher caps should lessen the default rate and boost liquidity in the housing sector. This raised investors' hopes for an easing of the ongoing credit crisis.

But there also were a number of worrisome developments Wednesday that helped spark late-session demand for short-term Treasury, safe assets that perform well when investors are concerned about the economy.

The day's clutch of bad news stories included a warning from Bernanke that the economy is facing the triple challenges of a slowdown, inflation and weak financial markets. The bond market read Bernanke's comments in a more negative light than the stock market did.

more...
http://biz.yahoo.com/ap/080227/bonds.html?.v=6

[citizen snips]

112. Metals at a Glance

NEW YORK (AP) -- The following are key metals settlement prices Wednesday, compared with late Tuesday, on the New York Mercantile Exchange:

April gold $961, up $12.10 an ounce

March silver $19.210, up 49 cents an ounce

March copper $3.8380, up 5.9 cents a pound

http://biz.yahoo.com/ap/080227/metals_glance.html?.v=1

[citizen snips]

113. Earnings Roundup: Fannie Mae, Dynegy

WASHINGTON (AP) -- Fannie Mae and Freddie Mac will be allowed to expand their roles in the turbulent mortgage market even as worsening conditions in the housing market punish the two companies.

HOUSTON (AP) -- Dynegy Inc. said Wednesday it narrowed its fourth-quarter loss on rising volumes, higher prices and gains on facility sales, but the power provider reduced its outlook for 2008 in part because it expects lower interest income.

Other stories:

PALO ALTO, Calif. (AP) -- Shares of biotechnology company CV Therapeutics Inc. sank Wednesday after the company's fourth-quarter results missed Wall Street expectations.

more...
http://biz.yahoo.com/ap/080227/earns_roundup_fannie_mae.html?.v=1

[citizen snips]

114. S&P 500 Leaders & Laggards: ADSK JNPR

NEW YORK (AP) -- Shares of Autodesk Inc., a design software company, declined on Wednesday and helped send the Standard & Poor's 500 index to a lower close.

Autodesk posted an outlook that disappointed investors and caused an analyst downgrade, sending shares down $6.09, or 15.6 percent, to $33.01.

Dynergy Inc. declined 70 cents, or 8.5 percent, to $7.56. The power provider posted a smaller fourth-quarter loss, but lowered its 2008 profit outlook.

And Office Depot Inc. shed 91 cents, or 6.8 percent, to $12.47. The nation's second-largest office supply chain on Tuesday posted an 85 percent drop in fourth-quarter profit that fell below expectations.

more...
http://biz.yahoo.com/ap/080227/s_p_500_laggards.html?.v=1

[citizen snips]

115. DJIA Leaders & Laggards: C IBM MRK MCD

NEW YORK (AP) -- Shares of Citigroup Inc. rose on Wednesday and led the gainers on the Dow Jones industrial average, after the bank named a new chief risk officer.

Citigroup tapped Brian Leach as its new chief risk officer and named four senior managers to report to Leach. Shares rose 77 cents, or 3.1 percent, to $25.72.

International Business Machines Corp. rose $2.08 to $116.46. On Tuesday, IBM announced a major buyback and lifted its 2008 earnings outlook.

And American International Group Inc. advanced 83 cents to $52.25. The insurer reports quarterly results on Thursday, and Citi Investment Research analyst Joshua Shanker said AIG will probably break even in the fourth quarter.

more...
http://biz.yahoo.com/ap/080227/djia_leaders.html?.v=2