STOCK MARKET WATCH, Wednesday April 9, 2008

[UpInArms]

Source: du

STOCK MARKET WATCH, Wednesday April 9, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME287 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2675 DAYS
WHERE'S OSAMA BIN-LADEN? 2361 DAYS
DAYS SINCE ENRON COLLAPSE =2652
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 April 8, 2007

Dow... 12,576.44 =35.99 0.29%)
Nasdaq... 2,348.76 -16.07 (0.68%)
S&P 500... 1,365.54 -7.00 (0.51%)
10-Yr Bond...3.558% -0.002
Gold future... 914.10





GOLD, EURO, YEN, Dollars and Loonie


PIEHOLE ALERT

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

For information on protests and other actions


(UIA - just filling in for Ozy!)

Read more: du

[UpInArms]

1. Today's Market WrapUp

It was late August of last year when I sat down to update readers on the outlook for Uranium stocks. At the time, the sector had been going through its first major correction following several years of unbridled advance. Several months earlier in my newsletter update on June 21st, 2007 we became concerned that the Uranium sector was headed for a serious decline. In that update, we stated,

URANIUM: In addition to the Gold and Silver universe, our investment tastes have led us to develop a strong fondness for Uranium Miners where a raging bull market has been present these last few years. Another sector that we believe is engaged in a long term, secular bull, the Uranium Miners are also currently potentially in the act of turning bearish. We show the charts of Denison Mines, Strathmore Minerals, and Cameco on the next page --- all of which are sporting potentially bearish divergences and/or topping patterns. While we like all of these companies a great deal, and we admit, we could be wrong, in our view, the fact that a few months have passed during which time Uranium prices have soared, while the stocks have been unable to advance tell us the stocks are acting very heavy and could be ripe for a major decline. For those of you who follow this sector and have profits accumulated, our advice would be too tighten up stops and let the market take you out of your long positions if it moves down from here. We intend to return to some of these names later on, and will be following them closely in the weeks and months ahead, as we do like the larger, long term story.”

link

[Hugin]

27. Huh-larious cartoon today...

Reminds me of the Organizational Meeting I attended. :rofl:


Edited to add: In fact that's me with the banana! :lol:

[UpInArms]

2. Consumer views of economy at 14-yr low: report

http://news.yahoo.com/s/nm/20080408/bs_nm/usa_economy_abc_dc

NEW YORK (Reuters) - American consumer confidence slipped in the latest week as views on the U.S. economy hit a 14-year low, a report showed on Tuesday.

The ABC News/Washington Post Consumer Comfort Index fell to -34 in the week ended April 6, from -33 the previous week. The index ranges from -100 to +100.

"The number of Americans who rate the economy positively is 23 points below its long-term average, and down 14 points just this year," the report said. At 17 percent, the reading was at its lowest since November 14, 1993.

Earlier on Tuesday, Investor's Business Daily and TechnoMetrica Market Intelligence said their IBD/TIPP economic optimism index fell to 39.2 in April, the worst result in the index's seven-year history and well below the 50 level that separates pessimism from optimism.

Two of the three components of the ABC/Post index fell, with positive views on the buying climate down one percentage point to 25 percent and views on the national economy off two percentage points to 17 percent. Views on personal finances rose one percentage point to 57 percent.

"Continued signs of an economic downturn are worrying consumers: (Gasoline prices) climbed 4 cents to a new nominal record of $3.33 a gallon this week, the Bureau of Labor Statistics released a worse-than-expected March jobs report and unemployment reached its highest since September 2005," the news outlets said.

...more...

[chat_noir]

28. Consumer Pain Is Gallup's Gain

There's a new traffic report every 10 minutes, and stock prices change by the second. But the two best-known indicators of consumer confidence come out only once a month. That's a long wait between temperature readings. Now, the Gallup Organization is elbowing its way into the consumer-confidence business with an indicator that comes out daily. That's the good news. The bad news? Gallup's latest data show that consumer confidence is still heading toward the basement.

On Apr. 8, Gallup announced that in its latest reading, 85% of Americans surveyed felt that economic conditions in the country as a whole are getting worse, while only 10% felt they're getting better. As for current conditions, 42% of respondents rated them poor; only 18% said they were excellent or good. Those results were the worst in several weeks and equaled the low point of optimism in mid-March. (Gallup began the daily tracking poll on Jan. 2 of this year. For the previous seven years, it had done a monthly version that had received relatively little attention.)

snip

Immediate Reactions

Because they come out daily, Gallup's numbers will help economists analyze how consumer confidence is instantaneously affected by news events, such as terrorist attacks and elections. Those influences tend to get washed out in the monthly readings, says Rick MacDonald, an economist at Action Economics. "You can really pinpoint changes with this," he says.

The two biggies in the field are the Conference Board Consumer Confidence Survey and the Reuters/University of Michigan Surveys of Consumers. The two monthly polls tend to track each other pretty closely. Other readings include the Investor's Business Daily/TIPP Economic Optimism Index and the RBC CASH Index, both of which are also monthly, and the Washington Post-ABC News Consumer Comfort Index, which until now was the frequency champ as a weekly.

http://news.yahoo.com/s/bw/20080409/bs_bw/apr2008db2008048709164;_ylt=ArslWJKF0847ohAV_ykh8L6s0NUE

http://www.businessweek.com/bwdaily/dnflash/content/apr2008/db2008048_709164.htm?chan=top+news_top+news+index_businessweek+exclusives

[UpInArms]

3. Oil mixed as traders await US data

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

VIENNA, Austria - Oil prices were little changed Wednesday as traders awaited the release of a U.S. government report expected to show gasoline inventories fell last week.

Light, sweet crude for May delivery on the New York Mercantile Exchange slipped 22 cents to $108.28 a barrel in electronic trading by midday in Europe. The contract fell 59 cents to settle at $108.50 a barrel Tuesday.

But Brent crude futures rose 11 cents to $106.45 a barrel on the ICE Futures Exchange in London.

Oil prices have been supported recently by a growing belief that U.S. gasoline supplies are falling as the summer driving season in the Northern Hemisphere approaches.

Last week, the U.S. Energy Department's Energy Information Administration said gasoline inventories fell more than expected during the week ended March 28. It was expected to report later Wednesday that gasoline stockpiles fell another 2.3 million barrels last week, according to a Dow Jones Newswires survey of analysts.

Analysts say refiners have cut back on gasoline production due to low profit margins. The rising price of crude means it costs refiners more to turn the raw product into motor fuel. The EIA was also expected to report that refinery use rose 0.7 percentage point to 83.1 percent of capacity, the survey showed.

...more...

[UpInArms]

78. Crude ends at new record closing price of $110.87

03. Crude ends at new record closing price of $110.87
2:52 PM ET, Apr 09, 2008 | Comments: 0 | Tags: none

:faint:

[UpInArms]

4. Fed looking at how to beef up lending power: report

http://news.yahoo.com/s/nm/20080409/bs_nm/credit_fed_contingencies_dc

NEW YORK (Reuters) - The Federal Reserve is looking at contingency plans for bolstering its lending power in case recent measures it has taken to unfreeze the credit markets fail, the Wall Street Journal reported on Wednesday.

Nothing is imminent, since the Federal Reserve still has room on its balance sheet for additional lending, the report said, adding that the internal discussions were part of efforts to identify options in case the credit crunch got worse.

One option would be to have the Treasury borrow more money than it needs to fund the government and keep the proceeds on deposit at the Federal Reserve, the report said.

Other options include issuing debt in the Federal Reserve's name, with the proceeds used to make loans or purchase other assets; and asking Congress for immediate authority for the Fed to pay interest on commercial bank reserves rather than wait until a 2006 law permits it in 2011, the Journal said.

...more...

[Pale Blue Dot]

8. You mean the supply of money isn't infinite?

Wow... who would have guessed?

[spinbaby]

79. National City is in real trouble

We've set up an account in another bank so we'll have funds just in case.

[DemReadingDU]

85. In my Ohio paper today,

National City had an ad for CDs with 5% interest. However, to get that higher rate, you must have $10,000 and a checking account (or open a new checking account.) And the term is for 48 months.

I'm thinking, they need money. But if National City is in trouble, why put my money there


:shrug:

[spinbaby]

88. They are in trouble

A friend who works for them said they have less than 10% of the funds on hand that they're supposed to. National City is probably in the "too big to fail" category and will get bailed out if they threaten to go under, but even a temporary glitch could leave people without access to their funds. That's why we set up the second account.

Maybe we're just paranoid.

[DemReadingDU]

91. Fifth Third or KeyCorp rumored to buy National City

4/3/08
Suddenly everyone wants a piece of National City (NCC). The struggling Cleveland-based bank saw its shares rise 6% Thursday on news reports that cross-state rival Fifth Third (FITB) is considering a bid for National City. National City said earlier this week that it hired Goldman Sachs to help its board consider strategic alternatives, and a day later The Wall Street Journal reported that National City was talking with crosstown rival KeyCorp (KEY). The news comes as banks and private equity shops kick the tires at National City, which has seen its shares plunge in recent months as investors worry about its hefty exposure to the souring housing market. If a deal for National City comes together, the Journal reports Thursday afternoon, it is likely to do so in the next two weeks or so - before National City’s first-quarter earnings release.

http://dailybriefing.blogs.fortune.cnn.com/2008/04/03/fifth-third-looking-at-national-city/


I'm interested in this rumor because I have accounts at both Fifth Third and KeyCorp.

[UpInArms]

5. Ozy is having computer difficulty this morning - but he'll be back as

quickly as he can!

:hi:

[Demeter]

15. Thanks for Catching That!

I had a really great day in Real Life yesterday, and as a result, actually slept last night...so missed the start of it all.

[Hugin]

25. ...

I'm glad to hear it... :thumbsup:

[Hugin]

24. Still slacking, eh?

Likely story. :eyes:

:hi:

[UpInArms]

6. Fed: Severe downturn possible

http://news.yahoo.com/s/nm/20080408/bs_nm/usa_fed_minutes_dc?_ylt=AnTxV0M54I5D_KwstLShqGab.HQA

WASHINGTON (Reuters) - Members of the Federal Reserve's policy-setting committee worried at their most recent meeting that housing and financial market stress could trigger a nasty slide in the economy, even as inflation pushed higher, minutes of the meeting released on Tuesday show.

"Some believed that a prolonged and severe economic downturn could not be ruled out given the further restriction of credit availability and ongoing weakness in the housing market," minutes of the March 18 meeting said.

Fed economists presented a somber picture of short-term prospects -- central bank staff now fully expect negative growth over the first six months of the year -- but held out the possibility of a modest rebound later.

"The staff projection showed a contraction of real GDP in the first half of 2008 followed by a slow rise in the second half," the report said, referring to gross domestic product, a broad measure of a country's output of goods and services.

At the same time, Fed officials found recent inflation reports "disappointing," noting also with concern that some indicators of inflation expectations were edging higher.

...more...

[TalkingDog]

12. My prescience is astounding

Somebody on this board asked when it would be a "Depression" and I predicted it would be 5 minutes after the talking heads declared it was a Recession.

[Hugin]

26. Perfect lead in to today's music to market by.... "Rhapsody in Blue" -- George Gershwin

http://en.wikipedia.org/wiki/Rhapsody_in_Blue


I figure having a little Gershwin may make up for Demeter's playing of the "Gilbert & Sullivan" Card yesterday.

Besides... It's kind of upbeat in a bluesy sort of way.

[TalkingDog]

30. upbeat/bluesy... I like it.

It has that internal contradiction that I resonate with so well. I'm nice in a evil sort of way.....


Or as one of my students offered in the class evaluation "Harsh, but immanently fair."

[Hugin]

31. Be sure to check out the...

Original audio recordings from 1924.

http://www.archive.org/details/rhapblue11924

http://www.archive.org/details/rhapblue21924


Yeah, yeah... I know it's not youtube. ;)

[Demeter]

41. I Heard a Recording in Which Gershwin was Playing the Piano part

and nobody played like that since. It made so much more sense, too.

And there's a vocal rendition by the barbershop (or is it Sweeet Adelines?) group Ambience, in which they describe a tour of Manhattan in excruciating detail and sing every blessed note on the score--a stunning tour de force!


Written in 1924, too.

Now is a good time to get the Roaring Twenties music out there, before we've officially slid into the Greater Depression.

[Demeter]

65. Someday We'll Have to Honor That Old Standard:

Who's Sorry Now? by Connie Francis from 1958

But it would take a really good comeuppance, otherwise it would be a waste of opportunity.

[AnneD]

39. Morning Marketeers......

:donut: and lurkers. Talking Dog, I concur with you-thus I changes my avatar and sig line to something more apropos yesterday. I loved the bear and quote, but mt gut told me it was time to change. As more and more ARM's reset-it will become worse. Banks and companies holding these mortgages are not wanting to cut a good deal with some homeowners (if you can get hold of those folks). We are seeing more and more full timers in our RV resort. I can tell what states are doing poorly by the tags on the cars. Modern day dust bowl Okies. For a while my paternal grandparents were dust bowl Okies-that is how my parents met. They were itinerant field hands until things got better in Oklahoma. My maternal grandparents had orchards and a vegetable farm. So I guess if it wasn't for the Dust Bowl, I wouldn't be here today.

I have started watching the truckers strike. I key in wild cat strikes-seems we have bee having an increase in these regional strikes.......and yet-this was the first time I had read about them. Strange how the M$M is silent about this. Folks are pissed off but the powers that be aren't hearing about it (or don't want us to know). If this continues-we may have a '1968' all over again.

Happy hunting and watch out for the bears.

[Hugin]

40. Morning AnneD...

:hangover:


The picture in your avatar is a true classic.

[AnneD]

46. If there ever was a picture that defined...

care worn-that would be that. I often look at it and wonder what she's lost in thought about-how is she going to feed her family, where are they going to sleep tonight, what will the day hold....or is it the look of exhaustion-too tired to think a thought and just numb to it all.

[Viva_La_Revolution]

75. Somebody interviewed her about it later...

I'll see if I can find you a link...

here ya go, the whole TRUE story, told by her children..
http://alteringlife.blogspot.com/2006/12/dorothea-lange-florence-owen-thompson.html

[AnneD]

77. Thanks....

I've always been curious about that.

[AnneD]

80. Wow...just wow....

:wow: Grandparents were from Tahlequah in the Indian Territory. No wonder I have a strong attraction to it. I always thought she looked like one of my Aunt's when I saw it. My grandparents ran the same circuit before they went back to Okla and settled in Stillwell, near the Arkansas border.

Sometimes Truth is stranger than fiction. Thanks again for the link.

[DemReadingDU]

82. Really interesting!

Thanks for sharing, bookmarking this one

[kineneb]

51. time to break out Woodie Guthrie's songs

damn, the more things change, the more they stay the same... Here is one for you, AnneD

Dust Bowl Refugee

I'm a dust bowl refugee,
Just a dust bowl refugee,
From that dust bowl to the peach bowl,
Now that peach fuzz is a-killin' me.

'Cross the mountains to the sea,
Come the wife and kids and me.
It's a hot old dusty highway
For a dust bowl refugee.

Hard, it's always been that way,
Here today and on our way
Down that mountain, 'cross the desert,
Just a dust bowl refugee.

We are ramblers, so they say,
We are only here today,
Then we travel with the seasons,
We're the dust bowl refugees.

From the south land and the drought land,
Come the wife and kids and me,
And this old world is a hard world
For a dust bowl refugee.

Yes, we ramble and we roam
And the highway that's our home,
It's a never-ending highway
For a dust bowl refugee.

Yes, we wander and we work
In your crops and in your fruit,
Like the whirlwinds on the desert
That's the dust bowl refugees.

I'm a dust bowl refugee,
I'm a dust bowl refugee,
And I wonder will I always
Be a dust bowl refugee?

more lyrics at:
http://www.woodyguthrie.org/Lyrics/Lyrics.htm

[Hugin]

61. Another fitting tune...

Yay! It's music day! :D

[AnneD]

62. Thanks.....

I harbour a love for Woody Guthrie. The man had a gift and used that little gift to fight some powerful folks.

[ozymandius]

52. UpInArms, I foresee a Fed governorship in your future.

However I would not think less of you one bit for turning it down.

[cosmicdot]

86. nationwide Busby Berkeley film revival!!

from "Gold Diggers of 1933"

http://www.youtube.com/watch?v=37-ocetYDdU 7:06


http://www.youtube.com/watch?v=sqbuS7U1SWQ&feature=related 3:13

[UpInArms]

7. dollar watch

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

Last trade 72.292 Change +0.002 (0.00%)

Fed: Growth, Credit Markets Still a Problem, Inflation Hawks Take a Stand

http://www.dailyfx.com/story/bio1/Fed_Considers_A_Contraction_In_1207694787339.html

FOMC Meeting Minutes from March 18

“Over the intermeeting period, conditions in some short-term funding markets worsened...”

“In the forecast prepared for this meeting, the staff substantially revised down its projection for the pace of real GDP throughout 2008….many other indicators of real activity were more negative....The staff projection showed a contraction of real GDP in the first half of 2008 followed by a slow rise in the second half.”

“Messrs. Fisher and Plosser dissented because, in light of heightened inflation risks, they favored easing policy less aggressively. Incoming data suggested a weaker near-term outlook for economic growth, but the Committee's earlier policy moves had already reduced the target federal funds rate by 225 basis points to address risks to growth, and the full effect of those rate cuts had yet to be felt....They pointed to measures of inflation and indicators of inflation expectations that had risen…Mr. Plosser noted that the Committee could not afford to wait until there was clear evidence that inflation expectations were no longer anchored, as by then it would be too late to prevent a further increase in inflation pressures.

Ben Bernanke, Federal Reserve Chairman (Voting Member)

“Given the exceptional pressures on the global economy and the financial system, damaged caused by a default by Bear Stearns could have been severe and extremely difficult to contain.” – April 3, 2008

“It now appears likely that the real gross domestic product (GDP) will not grow much, if at all, over the first half of 2008 and could even contract slightly.” – April 2, 2008

Richard Fisher, Federal Reserve Bank of Dallas President (Voting Member)

“To say we are falling into the Japan trap, that we are like Japan was in the 1990s, is in my view very misleading. It would be a mistake for us to do now what we advised them to do back then.” – April 7, 2008

Janet Yellen, Federal Reserve Bank of San Francisco President (Alternate Voting Member)
“The economy has all but stalled and could contract over the first half of the year. Starting in the fourth quarter, the economy, at best, slowed to a crawl.” – April 4, 2008

“…economic prospects remain unusually uncertain, and the downside risks to growth are significant.”– April 4, 2008

...more...

Fed Considers A Contraction In GDP 'Likely'

http://www.dailyfx.com/story/bio1/Fed_Considers_A_Contraction_In_1207694787339.html

The dollar found little support from fundamentals Tuesday, but cross market currents helped to keep the currency elevated among the majors. Topping headlines for the day were unexpected highlights in the minutes from the Federal Reserve’s March 18th meeting. Few analysts and traders were expecting any substantial changes from the report; but there were more than a few notable remarks. The most dramatic change was made in reference to the outlook for growth. Considering the disappointing cut of data that has crossed the wires since the January meeting, it wasn’t surprising that the Fed’s forecast for the economy “weakened considerably.” However, what was startling was that “many” members considered a contraction in growth as “likely.” What’s more, the pessimists among the Board saw the risk for a “prolonged and severe” downturn. This clearly reflects a concern from the policy authority that the world’s largest economy is – at the least - heading for recession. And, while these comments were feeding bearish sentiment, the statement didn’t come without its silver lining. The two dissenters in last month’s 75bp rate cut (Fed Presidents Plosser and Fisher) voted for a less aggressive move, arguing that the previous 225bp of cumulative easing haven’t fed through the market and that the future risk to inflation in the medium term outweighs an economic cooling in the near term. Outside of the Fed’s influence, the greenback was jostled by mix fundamentals. Well before the open of the US session, the UAE central bank governor announced that he would not drop the dollar peg even as a number of countries in the region look to speed up the creation of a monetary union. Countering this promising news was the NAR’s pending home sales figure for February. Though it is a lagging indicator for the sector, the report’s worst reading since records began in 2001 is a potent reminder of the condition the housing market is in – not to mention it supports the Fed’s suggestion that there is “little indication” a bottom is forming.

...more...

[UpInArms]

9. Today's Reports:

10:00 AM
Wholesale Inventories Feb
briefing.com expects 0.7%
market expects 0.5%
last report 1.0%

10:30 AM
Crude Inventories 04/05
last 7317K

[UpInArms]

10. G7 readies response to market crisis

PARIS/TOKYO (Reuters) - The Group of Seven economic powers are likely to deploy an international team to keep closer tabs on the world's big banks as well as demanding better risk management and information disclosure across financial markets.

Finance ministers from the G7 countries have also invited the bosses of about 10 banks to discuss the global markets crisis which could cost close to $1 trillion in losses and downgrades in the value of toxic assets accrued over years of investor euphoria.

The moves to improve the behavior of banks, and supervision of financial markets more generally, are due to be announced at a meeting on Friday in Washington. They are based on a list of recommendations from the Financial Stability Forum, a body they created in response to Asian financial crises of the late 1990s.

<snip>

Ministers would dine with the bankers on Friday, the official said. "It's an informal meeting ... We will ask banks why (the crisis) occurred and what steps to take from here."

<snip>

In a twice-yearly report on global financial markets, the IMF said there had been a "collective failure" to grasp the extent of leverage in the financial system and the risk that it could unwind in a disorderly fashion.

http://www.reuters.com/article/bondsNews/idUSL0972796020080409?sp=true

[antigop]

29. Ain't globalization grand? n/t

[TalkingDog]

11. Greenspan says: *waves hands over magic ball*

"We're in a Recession"

Well, no-freakin'-duh.

http://news.yahoo.com/s/nm/20080408/bs_nm/usa_economy_greenspan_dc

Snip: (Green-Speak)
"Clearly, certain of our anticipations of what would happen as a consequence of those policies were off but there's no way of avoiding that," he said.

Translation:

We think we might've understood the ramifications of lighting the fuse leading to that big pile of dynamite, but we thought there may be room for error, so we did it anyway and who coulda' figured....it blew up.

[mcollier]

13. The Depression Underway

Family by family, home by home accross America...

Another $50 billion tax dollars thrown into the financial markets yesterday... $1 trillion over the past 8 months. What a mess.

[formercia]

43. There's a hole in the bottom of the bucket

When the water gets down to a certain level, someone dumps in another slug and the level rises, only to begin falling again.

Nobody bothers to fix the hole.

[Karenina]

48. Today's Tune: There's a Hole in the Bucket

There's a Hole in the Bucket
Traditional


(Boys)
There's a hole in the bucket, dear Liza, dear Liza,
There's a hole in the bucket, dear Liza, a hole.

(Girls)
So fix it dear Henry, dear Henry, dear Henry,
So fix it dear Henry, dear Henry, fix it.

With what should I fix it, dear Liza, dear Liza,
With what should I fix it, dear Liza, with what?

With straw, dear Henry, dear Henry, dear Henry,
With straw, dear Henry, dear Henry, with straw.

But the straw is too long, dear Liza, dear Liza,
The straw is too long, dear Liza, too long.

So cut it dear Henry, dear Henry, dear Henry,
So cut it dear Henry, dear Henry, cut it!

With what should I cut it, dear Liza, dear Liza,
With what should I cut it, dear Liza, with what?

Use the hatchet, dear Henry, dear Henry, dear Henry,
Use the hatchet, dear Henry, the hatchet.

But the hatchet's too dull, dear Liza, dear Liza,
The hatchet's too dull, dear Liza, too dull.

So, sharpen it, dear Henry, dear Henry, dear Henry,
So sharpen it dear Henry, dear Henry, sharpen it!

With what should I sharpen it, dear Liza, dear Liza,
With what should I sharpen, dear Liza, with what?

Use the stone, dear Henry, dear Henry, dear Henry,
Use the stone, dear Henry, dear Henry, the stone.

But the stone is too dry, dear Liza, dear Liza,
The stone is too dry, dear Liza, too dry.

So wet it, dear Henry, dear Henry, dear Henry,
So wet it dear Henry, dear Henry, wet it.

With what should I wet it, dear Liza, dear Liza,
With what should I wet it, dear Liza, with what?

With water, dear Henry, dear Henry, dear Henry,
With water, dear Henry, dear Henry, water.

With what should I carry it, dear Liza, dear Liza,
With what should I carry it dear Liza, with what?

Use the bucket dear Henry, dear Henry, dear Henry,
Use the bucket, dear Henry, dear Henry, the bucket!

There's a hole in the bucket, dear Liza, dear Liza,
There's a hole in the bucket, dear Liza, a hole.

[Hugin]

60. It really fits doesn't it?

:/

[Karenina]

71. Michael Franti's updated version

Michael Franti and Spearhead Hole in the Bucket Lyrics

(Money Money Money Money Nothin But Money)

I work 9 to 5 but it starts in the P.M.
and I love the sunrise so I step out in the A.M.
the street is black and shiny from the early nightly rainin'
the glory of the light it brings evaporation

morning's fresh oxygen cleanest
I take a deep hit help my mind stay the greenest
I'm already wake so I'm not drinkin' coffee
don't wanna cigarrette, 'cause it's a form of slavery

walk into the store 'cause I need a few items
the sun heats the blood like a hit of vitamins
needa buy some food and some 'poo for my dreads
can't remember why but I need a spool of thread

Man with dirty dreads, steps around the comer
he asks me for a dime, a nickel or a quarter
I don't have any change so I'm steppin' along
and as I'm walkin' past he sings to me a song...

(chorus)
There's a hole in the bucket dear liza, dear
liza...(repeat)

The day is pickin' up cause I'm hummin' his song
the buses and the people all keep movin' along
to the shopkeeper I say "was'sup?"
and I'm thinkin' about the man who's holdin' up the cup

I pay for all the stuff and get a pocketful of change
should I give it to the man's the question in my brain
What's gonna happen if I give the man a dime?
I don't wanna pay for anotha brotha's wine

What's gonna happen if I give the man a quarter?
will he find a dealer and try to place an order?
what's gonna happen if I give the man a nickel
will he buy some food or some pork that's been pickled?

I'm not responsible for the man's depression
how can I find compassion in the midst of recession?
How come all these questions keep fuckin' with my head
and I still can't rememba why I need a spool of thread.

(chorus)

He's starin' in my eyes just as I'm walkin' past
I'm tryin to avoid him cause I know he's gonna ask
me about the coinage that is in my pocket
But I don't know if I should put it in his bucket

walk right past him to think about it more
back at the crib I'm openin' up the door
a pocketful of change it don't mean alot to me
my cup is half full but his is empty

I put back on my cap and I start headin' back
I reach into my pocket and I have a heart attack
well as I'm diggin' deep I scream "oh no!"
there's nothin' in the pocket but a great big hole

While I was busy thinkin' if he would buy smack
the jingle in my pocket it slipped through the cracks
no one has the change and it's fuckin' up my head
But now I know the reason why I had to buy the thread!

(chorus)

[cosmicdot]

87. my thought exactly ... listen to it ...

and, sing along ...

There's a Hole in my Bucket

http://www.youtube.com/watch?v=mL2ZAHqU3b4 2:08

[Karenina]

92. Franti's version touches on Solidarity

http://www.youtube.com/watch?v=CszG_bR35Mw

[bahrbearian]

49. Sure they they try to fix the hole

Can't you see them taking turns puttiing their finger in it.

[formercia]

56. As they're holding their own bucket underneath

to catch what leaks out.

The whole idea is to make people believe they're trying to fix the problem whilst walking away with the loot.

[Juneboarder]

14. Thank you

I have been quietly checking the Stock Market thread for over a year now and just wanted to say thank you for always being so on top of it and getting this info out to everyone. Happy Wednesday :)

[MadinMo]

32. Thanks from me too ---

Like Juneboarder, I've been lurking here for a while. It's my first stop in the morning, and I drop in throughout the day. You all help me understand some of the economic issues just a little better. A la Raymond on Rain Main, I'm "DEFINITELY not" an economist.

[AnneD]

42. Welcome aboard....

:hi: Juneboarder and MadinMo. I often wonder how many folks lurk out there. Nice of you to put your toe in the water. We always like the local on the ground reports from folks in the field. It gives us a far better feel for what is going on than ANYTHING the M$M prints. Nice to have you around.

[Demeter]

16. RGE Monitor Email--Global Economic Outlook

Today we focus on the global economic outlook – prompted by the World Economic Outlook publication of the International Monetary Fund that will be out today and by this weekend’s Spring meetings of the World Bank, IMF and G7 finance ministers and central bankers. Expect lively discussions about the global economy, currencies, the recent financial turmoil and the necessary reforms of the system of regulation and supervision of financial markets.

The IMF has cut its 2008 outlook for global economic growth for the second time this year, as housing and credit problems in the U.S. – possibly the worst financial crisis in the U.S. since the Great Depression – will likely take a serious toll on the global economy. Global growth is expected to reach 3.7% in 2008 – down from the 4.1% forecasted last January. This would mark the lowest level of global growth since 2002. A global recession – defined as global growth at 3% – seems now a possibility (with the IMF giving it a one in four odds). Take a look at: “Global Economic Outlook for 2008: Recession Fears Going Global?”, “Credit Market Meltdown: $1-$2 Trillion Fallout Could Reduce U.S. GDP Growth By 2% in 2008” and “The Rising Risk of a Systemic Financial Meltdown: IMF Expects $945bn Credit Losses”

According to the IMF’s Global Financial Stability Report, published yesterday, “the widening and deepening fallout from the U.S. subprime mortgage crisis could have profound financial system and macroeconomic implications”. The IMF estimates that losses from this financial crisis may be almost as high as $1 trillion. In his economic outlook Fed Chairman Bernanke stated that the economy in first half of the year could even “contract slightly” but growth is set to return to potential, or even slightly above, by next year. The IMF sees real U.S. GDP growth at 0.5% in 2008 and 0.6% in 2009. Take a look at “U.S. Economic Outlook: How Will the U.S. Economy Fare in 2008?”, “U.S. Payroll Numbers Signal Recession: Will the Labor Market Get Gloomier?” and “Housing Finance and Implications for Monetary Policy: Will Central Banks Rescue The MBS Market?”

The Eurozone is expected now to grow 1.3% in 2008 – revised down from the IMF’s 1.6% projected in January. Industrial production remains reasonably strong in Germany and France despite some moderation, but has slowed much more sharply in Spain and Italy. Although growth is moderating the ECB is expected to remain on hold tomorrow in the wake of its inflation concerns. Read: “Will ECB Stay on Hold in April? A Difficult Balancing Act”

As emphasized in the Global Financial Stability Report, “the market turmoil has exacerbated vulnerabilities in a number of emerging markets notably in some countries in emerging Europe that had relied excessively on foreign bank credit or wholesale funding to finance rapid domestic credit expansion”. Check out: “Fast Growth in CEE Area: Will It Continue In 2008?", “Credit Growth in CEE Countries: Catching Up or Going Too Fast?”

Japan is set to grow at 1.4% in 2008 – revised down from the 1.5% the IMF was forecasting in January. Even as financial contagion into Asian emerging markets has weakened the decoupling hypothesis, the World Bank, Asian Development Bank and UN have lowered their growth forecast for the Asian economies. They note that growing domestic demand, accommodative policies and export demand elsewhere may alleviate the impact of a U.S. recession. Nevertheless, Asia will be vulnerable to slowing export demand in U.S., Europe and Japan, a weakening dollar and contracting global liquidity. Moreover, growing inflation from food and energy prices may prevent rate cuts and pose risks to growth. China andIndia’s growth estimates have also been revised down due to slowing exports and rising global risk aversion respectively.

[Demeter]

17. ...have the feds saved the planet? Doesn’t seem likely....

DailyReckoning.com


many people think the feds have done it. By aggressively cutting rates and pushing money out to the banks...and helping to save Bear Stearns...they’ve turned it around. It is as if they had diverted a giant meteor; the world is saved.

Hallelujah.

But what does it mean, anyway? Let’s say they were successful? What would that mean? Have they somehow erased Americans’ debts? Are all those upside down homeowners now flipped over so they’re sunny side up? And how about all that subprime debt...and all those leveraged loans for mergers, acquisitions and buyouts that didn’t quite work...and all those hedge funds who stretched so far to get into the most dangerous investments at the most dangerous time? Have all these mistakes somehow been wiped away?

Oh, dear, dear reader...we feel a religious experience coming on. Somehow, we have all been forgiven our sins...the slate has been washed clean...our errors have been pardoned by an authority more powerful than God himself – the feds.

Could it be?

If it is not...then what does it mean when they say the feds have ‘succeeded’ in averting a real crisis? What, exactly, have they averted? If they have not erased the mistakes, what have they done with them? If they have not prevented people from getting what they’ve got coming...who, then, is going to get what those people had coming?

Ah, there’s the rub...if the mistakes cannot be magically made to vanish...then someone will pay for them. Perhaps then, the ‘success’ is really in shifting them...from the people who deserve to pay to the people who don’t...that is, to the general public and the taxpayer?

Personally, we like mistakes. It is our mistakes that made us what we are. Yes, we would happily erase a few of them from the record, if we could. But inasmuch as all of them contributed to what we are, getting rid of any of them might have drastic consequences...causing the whole universe to slip into some kind of alternate reality. We might disappear too...why take the chance?

The feds must like mistakes too. As near as we can figure, ‘success’ – for them – must mean getting people to make more of them. That’s why they are lowering borrowing rates – so an over-indebted nation can borrow more. And that’s why they’ve given out tax ‘rebates,’ so that people who spend too much can spend more.

And if they spend and borrow more, what does that mean for the future? The next generation must spend and borrow less. That’s it, isn’t it? That’s what ‘success’ really means...

...robbing the next generation. Spending their money today so they will spend less tomorrow.

[MilesColtrane]

53. Reposted and bolded for emphasis:

International Monetary Fund calls the current economic situation, "possibly the worst financial crisis in the U.S. since the Great Depression"

Another plank in the great legacy of the Worst. President. Ever.

[DemReadingDU]

63. U.S. near recession amid global slump - IMF

4/9/08 International Monetary Fund shows U.S. sliding into recession and pulling down economic growth around the world.

The world economy will slow sharply this year, according to an International Monetary Fund forecast, with the United States sliding into a recession amid housing, credit and financial slumps.

The IMF, in a World Economic Outlook released Wednesday, slashed growth projections for the United States - the epicenter of the woes - and the global economy as a whole.

Economic growth in the United States is expected to slow to a crawl of just 0.5% this year, which would mark the worst pace in 17 years, when the country last suffered through a recession, the IMF said. The United States won't fare much better next year; the IMF projected the U.S. economy will grow by a feeble 0.6% in 2009.

"The U.S. economy will tip into a mild recession in 2008 as the result of mutually reinforcing cycles in the housing and financial markets," the IMF said.

Many private economists and members of the U.S. public believe the country has already fallen into its first recession since 2001. For the first time, Federal Reserve Chairman Ben Bernanke acknowledged last week that a recession was possible.

more...
http://money.cnn.com/2008/04/09/news/international/world_economy.ap/index.htm?cnn=yes

[Demeter]

18. It looks like the end is near...for ethanol at least

DailReckoning.com

Take Basehor, Kansas-based ethanol plant, Ethenex Energy for example. This company opened its doors in the midst of the ethanol boom two years ago, when “Corn was the cheapest it had ever been and ethanol was skyrocketing,” former Ethanex president and chief executive officer Al Knapp said. “There was a land rush for people to build ethanol plants.”

But today, with the price of corn hitting $6 a bushel and the price of ethanol falling, Ethanex was “definitely held captive by the capital market.”

The company filed for Chapter 11 late last month. And more and more this sort of scenario is playing out for ethanol plants.

“I have gotten about ten emails like from farmers in Illinois, MN, Iowa, Wisconsin and Indiana. Either ethanol plants under construction that have ceased or plants that are declaring Chap. 11. Looks like the ‘dream’ of the new gold rush in corn based ethanol is starting to unravel, and fast.

“I am headed out to Minnesota on the 17th and will be visiting a few farms and hog operations as well as a feedlot as well as an ethanol plant (under construction) in Janesville Minnesota. It will be interesting to get a sense of what the sentiment is now as compared to the last two years that I have talked to farmers. Somehow I think a lot of the euphoria is gone, corn at $6 will do that since it has made input costs skyrocket.”

We know that long time DR-sufferers where never fooled by the great ethanol swindle. It was clear that the dream of this corn-based fuel was to be short-lived.


*** As we’ve been saying...there is no advantage so great that the authorities can’t waste it...

Colleague Garry White explains how the oil producers are squandering their windfall revenues:

“The latest data available on World Energy consumption is for 2003 from the World Resources Institute. The figures represent total energy consumption per capita in units of kilograms of oil equivalent (kgoe) per person.

US: 7,794.8
UK: 3,918.1
UAE: 10,538.7
Qatar: 21,395.8
Kuwait: 9,076.0
Bahrain: 10,250.5

“The U.S. is decried as the gas-guzzling capital of consumption...but this is only partly true. It is actually the residents of the Middle East who are the largest consumers of energy in the world. With a wealth and population explosion added to the mix, oil-rich countries are facing an unprecedented energy crunch.

“Middle East governments were more generous in subsidising oil products than governments anywhere else in the world during 2007, according to the IMF. While oil prices rose strongly through the year, governments in the Middle East passed on just 58% of the increase in the cost of importing petrol.

“Egyptians paid just $0.23 for a litre of kerosene at the end of 2006, compared with the $2.25 a litre paid by consumers in Turkey, which passed on more of the increase to consumers.

“The region’s governments also passed on an average of 67% of the increased cost of diesel to their consumers, a smaller amount than governments in any other part of the world. Yemen spent a staggering 9.3% of GDP on energy subsidies in 2006, the most of any country in the region.”

And from Horacio Pozzo, our man here in Buenos Aires, comes word that you can fill your gas tank up in Venezuela for only $3. Still, the economy of Chavez’s country is a disaster. The shelves are empty, and the inflation rate and the murder rate are both at record highs.

[TalkingDog]

22. Good...dumb@sses.

How is it a good idea to use your food to fuel something you, in all likelihood, don't need? And how is it a good idea to pump pure clean drinking water into a place where you sh^t in it?

We have lost sight of every meaningful priority in this country. Greed is our God and his first commandment is: To Hell with everybody else, I got mine.

Frack. Now I'm pissed.

[MadinMo]

45. There are other grains/plants that ethanol can be made from.

Sorghum, Bush's rapeseed, beets (look at Brazil), etc. Its not a bad idea, just needs some tweaking.

[NickB79]

89. But that takes farmland out of grain production

At a time when global demand for wheat, soy, corn, and rice is skyrocketing.

[Demeter]

19. One Moneyman's Existential Crisis

THE FLIPPING INDUSTRY by Byron King

DailyReckoning.com

I am sure glad to see the first quarter of 2008 behind us. It seemed as if every couple of days there was more bad economic news. Each announcement was worse than the last. The banks, investment houses, hedge funds, etc. just pumped out the bilges with their financial gray, brown and black water. It didn’t matter if the tide was coming in or going out. The whole economic bay seemed to be polluted.

As the quarter unfolded, it became clear that the world’s credit system was drifting aimlessly, like a ship sailing with no wind. A lot of business that should have gotten done just did not happen, for lack of funding. Funding went away because risk aversion kicked in with a vengeance, and for a very real reason.

The last 12 months or so have been a time of repricing risk – and this occurred on a global scale. But the repricing was not orderly. The U.S. dollar was steadily drifting downward in value, and prices for most things were readjusting just on this monetary basis alone. Add to this some severe industrial disruptions, from power shortages in South Africa to floods in Australia to economy-stopping winter weather in China.

Closer to home, the downward repricing of risk rapidly became a collapse as flaws in the U.S. rating agency process bobbed to the surface. With so much distressed commercial paper floating around, many people were paranoid about risk. It was like the old game of “hot potato,” except nobody could pass their potatoes onto the next guy down the line.

For example, in one major presentation, I heard General Electric CEO Jeff Immelt spend a large part of his discussion defending GE’s “triple-A credit rating.” Normally, Immelt would be up there slapping the pointer against the screen and bragging about all the great products that GE makes and sells. Instead, he was busy trying to “prove a negative,” that GE does not hold bad paper in its money operations. But Immelt believed he had to defend GE’s stock price by dispelling fears of a rating markdown.

And through it all, the resulting stock market gyrations were a reflection of investor confusion about the future. Are we at the end of something good? Are we at the beginning of something bad? Is this the beginning of the end? Or is it only the end of the beginning? Really, what comes next? Will credit markets liquefy? Or will they stay dried out? Can we do business? Or should we hold tight and sit on the cash?

Paul Krugman of The New York Times recently told Fortune , “Large parts of the financial system will have to be reinvented.” And there’s no argument from me on that one. But so much of the financial system is broken that the question is where to even start.

It is apparent that much of the old way of doing business – particularly in the realm of lending money – was rotten to the core. In my view, it begins with the dollar itself. The dollar has been steadily deteriorating in value for decades, so inflationary expectations are part of the worldwide consciousness. That is, just because of the long-term decline in the value of the dollar, most people expect most things to go up in price most of the time.

So is it any wonder that people developed a “speculation expectation”? This fed into an entitlement mentality, as well, that tainted every rung of the credit ladder. A lot of people wanted to buy and flip, whether it was houses or stocks or commodities. So other people lent to people to enable buying and flipping. Flipping became a dominant, if not defining, element of the financial “industry,” of sorts.

But what an industry! For example, in the past five years, many people just plain lied through their teeth on everything from credit card applications to mortgage applications to the lending documents for multibillion-dollar takeovers. It was pure and brazen fraud in many instances, verging on burglary in plain sight. The next level up the food chain – the brokers and loan officers – often just looked the other way and rubber-stamped the papers. “Hey, not my problem.”

This kind of bad buck-passing went all the way to the top of some firms, many with familiar names. There in the ethereal reaches of the nice office buildings in Irvine, Calif., and Fort Lauderdale, Fla. – let alone Wall Street – the chief executives knew, or should have known, how risky the portfolios were becoming. (If I may say so, we’ve been writing about it at Agora Financial for at least the past four years.)

But these corporate worthies let it happen. The pressure to “make the numbers” was too much. The money was just too good. The bonuses were too sweet. And besides, there is always the old excuse that “Everybody does it this way.” Yet it was not for nothing that the ancients defined greed as a deadly sin. At each step of the ladder of financial deceit, people just let it slide. They should have known better, and maybe they did know better.

Now looking ahead, we have a hell of a rocky road before us. And can we as a society really “regulate” our way out of that situation? Or is there a systemic problem with deeper roots? Really, what do the Furies have in store for us?

[Robbien]

66. So much packed into one article

But that is usually the case for Byron King.

My thoughts on two of the issues discussed

About future profit sources for banks/investment firms: From where is it going to come? Beats me. Some reports say that 60-75% of their earnings came from collecting fees on buying and selling CDOs/CDSs to each other. That business is not coming back anytime soon, if ever. Charging more for ATM transactions and stock trades is not going to make up the difference. Sure they are making a mint on the money they are getting from the Fed window, but that is peanuts compared to prior fee collections. Bet bankers are having many sleepless nights these days.

Mortgage lending business "was rotten to the core":
Came across two interesting articles today

Lenders wouldn't verify borrowers’ incomes
http://www.nytimes.com/2008/04/06/business/06gret.html?_r=1&em&ex=1207627200&en=76b034558f6d092b&ei=5087%0A&oref=slogin
The article states that lenders refused to verify incomes being reported on loan apps. Only between 3 and 5 percent of all the loans that were funded in 2006 were incomes were actually checked. “Ameriquest, and others I don’t want to name, just didn’t want to know because it would kill the deals. The attitude was don’t ask, don’t tell.”


Subprime Borrowers Needlessly Overpaid for Brokered Mortgages
http://www.earthtimes.org/articles/show/new-report-finds-subprime-borrowers-needlessly-overpaid-for-brokered-mortgages,344200.shtml
Article states that homeowners who got mortgages through brokers paid over five grand more in fees than if that exact same homeowner would have dealt directly with the lender. When the heck did brokers become such a big business in real estate? Outsourcing of services by banks the cause?

Appears every step in the process was rotten to the core. Without any of this being in the news, it is no wonder than honest unsuspecting buyers were duped. Everyone in the process was out to get them.

[54anickel]

20. Fed's pugnacious policies hurt economies (from 2004 - don't let anyone every say they couldn't see

this coming)

http://www.atimes.com/atimes/Global_Economy/FA10Dj01.html

Global Economy

COMMENT
Fed's pugnacious policies hurt economies
By Henry C K Liu

Alan Greenspan, chairman of US Federal Reserve Board, may be patting himself on the back a bit prematurely and undeservedly by claiming that the Fed correctly focused policies on trying to mitigate probable damage after the eventual bursting of the bubble of stock market speculation rather than taking measures to prevent the bubble itself.

At a meeting of the American Economic Association in San Diego on January 3 of the new year, Greenspan spoke on "Risk and Uncertainty in Monetary Policy", in which he asserted that Fed policies had been correct and successful in handling the bubble economy. He defended himself against criticism, saying policymakers would have damaged the economy in the late 1990s had they tried to prevent or later puncture that era's speculative stock market bubble. He gave his personal view as a veteran from "the policy trenches". It is a very peculiar topic, one that would be expected from the risk manager of commercial bank or a hedge fund, not a central banker whose job presumably is to ensure systemic stability by eliminating rather than managing, and therefore accepting systemic risk.

Greenspan paid tribute to the 1979 tightening of monetary policy by the Federal Reserve under Paul Volcker for "ultimately breaking the back of price acceleration in the United States, ushering in a two-decade-long decline in inflation that eventually brought us to the current state of price stability".

"Price acceleration" is an economics term describing the worst kind of vicious cycle in which prices push up wages which in turn push up prices, with the process accelerating through anticipation eventually into hyperinflation, the killer of economies and political systems. Typical of a central banker, Greenspan did not bother to mention the cost, or pain, of such a tight monetary policy, only the benefits. Volcker ended inflation in the early 1980s by administering wholesale financial bloodletting on the US economy. The victory was by no means a free lunch. A case can be easily made that the cure was worse than the disease.

Nor did Greenspan mention his role in causing the 1987 crash. There are those with less selective memories who will recall that Greenspan precipitated the crash by raising the discount rate 50 basis points to 6 percent at a time of extreme interest-rate sensitivity, and pushed the fragile economy over the edge. Portfolio insurance has been identified as having exacerbating the crash. This hedging technique involves selling stock futures when stock prices fall in order to limit or insure a portfolio against large losses. This hedging practice gives index arbitrageurs the speculative opportunity to profit from lower future prices by buying futures in Chicago and selling on the stock market in New York, adding horrendous selling pressure to the market in any downward trend.

But that was only the speculative cause. The fundamental cause of the 1987 crash was the trend of corporations moving to debt from equity financing. Corporate new debt tripled in a decade, with debt service taking up 22 percent of internal cash flow by 1987. Total non-financial debt was 200 percent of gross domestic product (GDP) in 1987, compared with about 120 percent in 1977, the year of high inflation, which favored borrowers by making their loans less valuable at maturity. When inflation moderated, debtors were caught with loans the principal of which was worth more than had been anticipated at the time of borrowing during high inflation. Corporate credit ratings deteriorated as a result but the lending did not cease because ample funds could be raised in the deregulated non-bank credit markets through securitization and hedging with derivatives, causing the credit market to run away completely from Fed control.

1987 crash: Fed injects $12b in banking system

much more....

[samsingh]

21. isn't greespans acknowledgement that the economy in

recession going to send chills throughout the markets?

[TalkingDog]

23. It might give them a cold, but

that only gives them something to think about while they ignore the metastasized cancer.

[Zynx]

33. Is this a serious question?

The answer is no. The vast majority of traders believe we are either in one or will be in one shortly. The stock market has already decline more than 10% from its most recent 52-week high in anticipation of a recession.

[samsingh]

58. its a serious question - i was talking

actual acknowledgement from Greenspan himself versus

discussions that have been going on

[Hugin]

37. I doubt it samsingh...

The Markets are so insulated and 'plunge-protected' at the present time there will be little instantaneous effect.

I'm sure they have everything ready for such an announcement, or he wouldn't have said it now.


As the Market lingo goes... Greenspan's comments have been, "Priced In" to the Market valuations.

So, I understand it.

[samsingh]

90. they seem to be holding up

[54anickel]

34. Volcker Says Fed's Bear Loan Stretches Legal Power

http://www.bloomberg.com/apps/news?pid=20601087&sid=aCGyDXfClFvI&refer=home

April 8 (Bloomberg) -- Former Federal Reserve Chairman Paul Volcker questioned the central bank's decision to rescue Bear Stearns Cos. with a $29 billion loan, saying it was at ``the very edge'' of its legal authority.

``The Federal Reserve has judged it necessary to take actions that extend to the very edge of its lawful and implied powers, transcending in the process certain long-embedded central banking principles and practices,'' Volcker said in a speech to the Economic Club of New York.

Fed Chairman Ben S. Bernanke last month agreed to lend against Bear Stearns securities, paving the way for JPMorgan Chase & Co. to buy its Wall Street rival. Bernanke, who worked with Treasury Secretary Henry Paulson to broker the bailout, last week defended the move as necessary to prevent ``severe'' damage to financial markets.

Volcker, the Fed chairman from 1979 to 1987, had implicit criticism for U.S. regulators and market participants who allowed ``excesses of subprime mortgages'' to spread into ``the mother of all crises.'' The Fed's Bear Stearns loan was unusual, he said.

more...


http://money.cnn.com/2008/04/08/news/newsmakers/volcker_/
Former Fed chief: Inflation isn't dead

NEW YORK (CNNMoney.com) -- Former Federal Reserve Chairman Paul Volcker, famous for helping whip sky-high inflation in the early 1980s, said Tuesday that rising prices should again be a subject of concern for the U.S. economy.

Speaking before the Economic Club of New York, Volcker said today's economic conditions are not as severe as they were during his tenure, but still suggested caution about the threat of inflation. He also warned that the weak dollar is a major problem.

"We are at a point where we have to worry about ," said Volcker, who was appointed Fed head in 1979 by President Jimmy Carter before stepping down in 1987.

Volcker's remarks came just ahead of the Tuesday release of the minutes from the Federal Reserve's latest meeting in March. And many Fed members don't appear to share Volcker's inflation concerns.

more...

[Hugin]

44. Probably why they announced it on a Sunday afternoon...

Still silence from the Congress.

[54anickel]

69. Deafening isn't it?

[poppysgal]

35. Oh by the way

hi!.:hi:

[poppysgal]

36. What a multi-tasker

UIA you are really something-love the cartoon, hate the economy.:hi:

[TalkingDog]

38. U.S. Stocks Drop on Earnings Concern (what can Brown do for you?)

snip:
U.S. stocks fell for a second day after United Parcel Service Inc. said domestic shipments are slowing, adding to concern that weaker growth dragged down first-quarter earnings across the economy.

snip:
UPS is a ``pretty good thermometer of the temperature of the economy,'' Gavin Graham, chief investment officer at Guardian Group of Funds Ltd. in Toronto, which manages about $5.4 billion, said in an interview with Bloomberg Radio. ``Unfortunately the temperature is dropping.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=aEtAiB4nEqAk&refer=home

[DemReadingDU]

47. Hm, guess people aren't buying much from the Internet stores

If people were shopping online, UPS would be showing increased deliveries.

I had heard about retail stores slumping sales, but I thought people didn't have money to pay for both gas & shopping, and would shop online. Guess they don't have money, period.

[MilesColtrane]

54. Dang it Brandine, order some more of them Franklin Mint Elvis plates.

The econuhmy needs it!

[formercia]

57. I'll put them right next to my velvet painting shrine.

:rofl:

[kineneb]

64. poking out mind's eye now... nt

[ozymandius]

50. Thank you very much UpInArms!

I am writing to you from my wife's computer, the new Mac. I just installed the ethernet connection because my old machine is still doing its thing: reorganizing the file allocation tables on the hard drive. This has been going on for about twelve hours. The Windows XP is finding empty and useless files, truncating them and saving these lost chains as stand-alone files. I installed new ram, two new CD/DVDrw drives on my old machine plus updated the OS from Win98SE to XP home. This is a new process to me so any tips on this conversion process would be greatly appreciated.

I cannot imagine how long this process will take since it has taken so much time already. Unfortunately, all my bookmarks and the SMW code sheet are somewhere on the old machine. I remember enough of the bookmarked source pages to get started. So if someone could post the codes here in "plain text", I will be get back on the job tomorrow posting the thread.

Thank you. Thank you. Thank you.

Ozy :hi:

P.S. I will be back later today. My son and I are on Spring Break this week and he wants to go to the zoo after lunch.

[Demeter]

55. I will send back what you sent me n/t

[Hugin]

59. Link to template...

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=3249877#3249882

:)

Do I get a cookie?

[Demeter]

67. I Spend Part of Every Day Stripping the Cookies of My System

trying to keep it from totally locking up. Thank goodness Microsoft issued a security patch for the Hijackers that have been plaguing me for two weeks....at least, I hope that's what it was for.

Are you SURE you want cookies?

[Hugin]

72. Only the oatmeal rasin kind...

Good for the heart muscle.

Anything else makes me gassy. :blush:

[Eugene]

68. Merrill sees $6 bln-$6.5 bln Q1 writedowns-CNBC

Source: Reuters

Merrill sees $6 bln-$6.5 bln Q1 writedowns-CNBC
Wed Apr 9, 2008 1:20pm EDT

NEW YORK, April 9 (Reuters) - Merrill Lynch & Co (MER.N)
executives expect the company to record first-quarter write-
downs in the neighborhood of $6 billion to $6.5 billion and
will likely post a quarterly loss, CNBC reported on Wednesday,
citing sources.

Merrill Lynch reports first-quarter results on April 17,
and analysts polled by Reuters on average expected the
company to post a loss. (Reporting by Dan Wilchins, editing
by Mark Porter)

http://www.reuters.com/article/marketsNews/idUSWEN485820080409

[antigop]

70. Middle class "dissatisfied", according to Pew Research

http://money.cnn.com/2008/04/09/news/economy/middle_class.ap/index.htm?postversion=2008040912

Growing numbers of middle-class Americans say they aren't better off than they were five years ago, reflecting economic pressures amid growing debt, a study released Wednesday shows. Their short-term assessment of personal progress, according to the study, is the worst it's been in nearly half a century.

[Hugin]

73. Well, I can think of a few other choice words than... "dissatisfied".

But, in the interest of keeping the SMW family friendly, I'll keep them to myself. :eyes:

[antigop]

74. Oh, we're "family friendly" -- guess I need to watch my mouth then, huh? n/t

[AnneD]

81. Gots to wash ...

my potty mouth. The only problem is when I wash my mouth out...

I'm Forever Blowing Bubbles..... :rofl::rofl::rofl::rofl:

[Karenina]

84. Bada-bing, bada-burst!!!

:rofl::rofl::rofl::rofl:

[Demeter]

76. Well, At Least the Short Sellers Are Happy

Assuming there are any left after all that shameless inflation in past weeks...

[Roland99]

83. Closing numbers...

Dow 12,527.26 -49.18
Nasdaq 2,322.12 -26.64
S&P 500 1,354.49 -11.05
10 YR 3.47% -0.09
Oil $110.87 $2.37
Gold $938.00 $20.00



Gas here is now the highest it's ever been... $3.43 - $3.45/gal.