STOCK MARKET WATCH, Monday June 2

[ozymandius]

Source: du

STOCK MARKET WATCH, Monday June 2, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 233
DAYS SINCE DEMOCRACY DIED (12/12/00) 2689 DAYS
WHERE'S OSAMA BIN-LADEN? 2414 DAYS
DAYS SINCE ENRON COLLAPSE = 2705
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 May 30, 2008

Dow... 12,638.32 -7.90 (-0.06%)
Nasdaq... 2,522.66 +14.34 (+0.57%)
S&P 500... 1,400.38 +2.12 (+0.15%)
Gold future... 891.50 +9.80 (+1.10%)
30-Year Bond 4.71% -0.06 (-1.22%)
10-Yr Bond... 4.05% -0.03 (-0.81%)






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: An Important Juncture Approaches

BY TIM W. WOOD

The definition of a bull or bear market can differ from person to person depending upon their particular discipline. My definition is based on the original works of the great Dow theorists, Charles H. Dow, William Peter Hamilton and Robert Rhea. When the Industrials moved above their 2000 high and was confirmed by the Transports a couple of months later in February 2007, I wrote then that “things had changed.” I stated at that time that this was not signaling the dawn of a new bull market, but rather, we were still operating within the context of the long-term bull market that began in 1974. My original article on this topic can be found in the February 9, 2007 WrapUp and I suggest that you take the time to read that article.

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

[ozymandius]

2. Today's Report

10:00 Construction Spending Apr
Briefing.com -0.8%
Consensus -0.6%
Prior -1.1%

10:00 ISM Index May
Briefing.com 49.0
Consensus 48.0
Prior 48.6

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

[UpInArms]

24. U.S. May ISM manufacturing index 49.6% vs 48.6% in April

06. U.S. May ISM manufacturing index above 48.7% consensus
10:01 AM ET, Jun 02, 2008

07. U.S. May ISM manufacturing index 49.6% vs 48.6% in April
10:01 AM ET, Jun 02, 2008

[UpInArms]

26. Manufacturing sector contracts in May: ISM

http://www.reuters.com/article/bondsNews/idUSWEN600120080602

NEW YORK (Reuters) - Factory activity contracted in May for the fourth consecutive month while inflation pressures surged to their highest since April 2004, according to a report released on Monday.

The Institute for Supply Management said its index of national factory activity rose in May to 49.6 from April's 48.6.

<snip>

A reading below 50 represents contraction in the factory sector. May was the fifth month of retrenchment in six months.

This year's manufacturing slump is the worst since 2003, when the ISM index spent five consecutive months below 50 from February to June that year.

...a bit more at link...

[UpInArms]

28. April Construction Spending down 0.4%

Construction Spending Apr/10:00 AM -0.4% -0.6%

[ozymandius]

3. Oil prices drop below $127 a barrel

BANGKOK, Thailand - Oil dropped below $127 a barrel Monday in Asia on worries that prices are cutting into demand and as a probe into futures trading by a U.S. regulator continued to weigh on the market.

Jitters about record high fuel and energy prices — particularly in the U.S., which has just started its summer driving season — have helped to pull oil off the $135.09 a barrel trading record hit May 22. Data from the U.S. Energy Department and Federal Highway Administration and several surveys in recent days suggest American consumers are driving less.

Additional selling pressure came with last week's announcement from the Commodity Futures Trading Commission about an investigation into possible price manipulation in oil futures markets. The CFTC also announced new rules designed to increase transparency of U.S. and international energy futures markets.

.....

On a trip to the Mideast over the weekend, U.S. Treasury Secretary Henry Paulson said there is "no quick fix" to high oil prices because it is an issue of supply and demand. He was on the trip to deliver a message to officials of Saudi Arabia and other oil-producing nations that soaring oil prices are putting a burden on the global economy.

...

The day before, though, the current president of the Organization of Petroleum Exporting Countries again blamed the weak U.S. dollar, speculation and the subprime crisis for the spiraling price of oil.

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

[ozymandius]

4. Drivers putting less gas in tank, then running out

.....

With gas prices hovering at $4 a gallon, motorists like Saba are putting less fuel in their tanks — then coming up empty on the highway.

Though national statistics on out-of-gas motorists don't exist, there's plenty of anecdotal evidence that drivers unwilling or unable to fill 'er up are gambling by keeping their tanks extremely low on fuel.

In the Philadelphia area, where the average price for a gallon of regular broke $4 on Friday, calls from out-of-gas AAA members doubled between May 2007 and May 2008, from 81 to 161, the auto club reported.

.....

Research from The Nielsen Co. shows that drivers have been making more frequent trips to the pump but limiting how much they put in the tank.

Convenience stores, which sell about 80 percent of the nation's gas, are seeing fewer fill-ups, said industry spokesman Jeff Lenard.

http://news.yahoo.com/s/ap/20080601/ap_on_bi_ge/gas_prices_stranded_motorists

[AnneD]

57. Funny you mention that....

I saw 3 folks this weekend on the freeway that had run out of gas. I hadn't seen a car run out of gas on the roadside in I don't know when (my college days I think).

I have been letting my tank go down to just above half before I fill up (last time I completely filled up, gas was $3.29. A top off has been between 20-35 per week. With hurricane season coming on, you can't let it go down any further.

[ozymandius]

5. Inflation Watch continues this week on Wall Street

NEW YORK - Investors examine the same key economic reports at the start of every month — on manufacturing, the service sector and employment. This week, they'll be looking at these indicators for inflation clues as much as they will for insight into economic growth.

Inflationary pressures have overtaken recession as Wall Street's primary concern. At least for now.

The market has been mercurial lately, confident that it has a lot to worry about but not completely sure what to worry about most. There are so many choices: the ever-sinking housing market, the still-strained debt markets, and ongoing deterioration in consumer credit.

But what has appeared in recent weeks to be the most tangible, widespread risk to consumer spending — and therefore the economy and corporate profits — is the high price of food and energy. Just months ago, the market was monitoring every tick in interest rate spreads. Now it's all about light, sweet crude.

.....

To be sure, this week's reports will still be read for hints about where the economy is headed. The ISM manufacturing report is expected to indicate another small contraction for May, and its service sector report is expected to post very tame expansion. The employment report is expected to show the fifth consecutive month of U.S. job losses and an uptick in the unemployment rate to 5.1 percent.

http://news.yahoo.com/s/ap/20080601/ap_on_bi_ge/wall_street_week_ahead

[DemReadingDU]

6. Cerberus woes

6/2/08 Cerberus woes
Cerberus Capital Management has sold “significantly” more than half its equity in Chrysler and GMAC to about 90 investors, in a move that could extend the fallout from the troubles at the companies beyond the buyout firm.
http://www.efinancialnews.com/tradingandtechnology/index/content/2450818059


A bit more at the link, it wouldn't let me copy any more.

[ozymandius]

9. a bit more

Investors share GMAC and Chrysler woes

The fallout from the troubles at Chrysler and GMAC could extend beyond Cerberus Capital Management as it has emerged that the buy-out firm has sold “significantly” more than half its equity to about 90 investors.

Although Cerberus invested $7.4bn in both transactions when it took the companies private in two of the biggest deals of the leveraged buy-out boom, it has since sold on the majority of its equity, people familiar with the situation said.

Both deals have been disappointments. GMAC’s mortgage financing arm, ResCap, has been hit hard by the credit crunch, while Chrysler has been buffeted by soaring oil prices and more cautious consumers.

.....

Those buying stakes included some of Cerberus’s own investors as well as banks, hedge funds and other asset managers. The buying group included Citigroup’s private equity arm, Cerberus-controlled Aozora Bank of Japan, Avenue Capital, Cyrus Capital Partners, DB Zwirn, Franklin Templeton Investments, Oak Hill Advisors, Oak Hill Capital Partners, Satellite Capital, Seneca Capital and York Capital, people familiar with the investments said.

http://www.ft.com/cms/s/0/1a321e64-2fff-11dd-86cc-000077b07658.html?nclick_check=1

[DemReadingDU]

14. "It was a 'trust me' kind of trade"

Most of those joining the GMAC deal in 2006 did not have much time to do their due diligence.

Instead, Cerberus invited about 50 hedge funds to its Park Avenue office for a presentation by its chief administrative officer, Seth Plattus.

"It was a 'trust me' kind of trade," says one investor, who bought a small piece of GMAC. "You had no time to do real due diligence. But it was a hot deal and everybody wanted in as part of the gang."

Many of the people who took part in the deal were friends of Steve Feinberg, founder of Cerberus, and said they invested as a sign of faith in him. Some of the investors also say they made returns of up to 35 per cent after Cerberus invited them into its deal for Aozora.

"They had the wind at their back and got carried away by the momentum," says the head of one fund of funds that declined to take part. "There was an element of the greater fool theory to it."

The willingness of hedge fund managers to piggyback on each other - while charging investors performance fees ranging from 20-50 percent of the gains - was a hallmark of the buy-out boom that ended last year.

http://us.ft.com/ftgateway/superpage.ft?news_id=fto060120081858102660&page=2

[TalkingDog]

16. It's not a deal if you can't walk away from it.

At least that's this household's motto. N-O-T-H-I-N-G of import has ever been purchased without discussion and/or research. Whether it's new, used or experimental. (And that rule sometimes applies to things that aren't important.)

Yes, sometimes things move a little slowly for my liking. And I'm sure we've passed up some good deals, but traded against my security, I'll take caution any day.


Sometimes, in contradiction to Gordon Gekko, Greed is NOT good.

[DemReadingDU]

56. Cerberus says has not sold GMAC, Chrysler stakes

DETROIT (Reuters) - Cerberus Capital Management has not sold any of its equity in finance company GMAC or Chrysler since those deals closed, the private equity firm said on Monday in a statement.

Cerberus was responding to a report in the Financial Times that said the firm had sold most of its holdings in those two auto-related assets at a time when both have been hit hard by the downturn in the U.S. economy and tighter credit markets.

"Cerberus has not reduced or made any changes to its equity stakes in GMAC or Chrysler since the closing of either transaction," the firm said. "Cerberus continues to have voting control over both investments."

http://www.reuters.com/article/privateEquity/idUSN0229583220080602



:shrug:

[ozymandius]

7. Sharper Image stores to be closed and liquidated

NEW YORK (Reuters) - All remaining stores of bankrupt gadget retailer Sharper Image Corp (SHRPQ.PK) will be closed and liquidated, its new owners said on Sunday.

More than $50 million of inventory is being sold at 86 Sharper Image store-closing sales throughout the United States, liquidators the Hilco Organization and Gordon Brothers said in a statement.

http://news.yahoo.com/s/nm/20080601/bs_nm/sharperimage_closings_dc

[DemReadingDU]

8. Villains in the Mortgage Mess? Start at Wall Street.

This is a good summary of the subprime mortgage mess.


6/1/08 Villians in the Mortgage Mess? Start at Wall Street. Keep Going. by Kathleen Day

As a reporter for this newspaper, I covered the savings and loan debacle in depth and later wrote a book about it.

Once again, the White House, Congress and federal bank regulators failed to police the financial services industry because they mistook deregulation for a system without any reasonable rules. And now as then, our saga is chock-a-block with people and institutions deserving special mention in the Suprime Hall of Slime.

But make no mistake: Today's crisis dwarfs the S&L fiasco. The eventual cost to taxpayers of this scandal is likely to make yesteryear's culprits look like pikers.

The short version of how we got here: Lenders, fat with money made cheap by the federal government, aggressively coaxed millions of borrowers to take out unaffordable mortgages. They lent this money without assessing whether borrowers could repay it. They assumed, in fact, that most wouldn't be able to and would have to refinance into new, equally unaffordable loans. This process would produce an endless cycle of fees for the lenders -- but only if home prices rose, fairy-tale-like, forever.

The private-label, subprime bond market grew from $18 billion in 1995 to nearly $500 billion in 2005. Wall Street sold subprime everywhere: to public and private pension funds, foreign governments and financial conglomerates, even fishing villages in the Arctic Circle.

Continue reading for the longer version, and to see who is in the Subprime Hall of Slime...
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/30/AR2008053002568.html


edit to add...
5/9/08 If you haven't yet listened to the NPR hour program, The Giant Pool of Money, about the turmoil on Wall Street, here's the link...
http://www.thislife.org/Radio_Episode.aspx?episode=355

[ozymandius]

25. And the man who made it all possible was Fed chairman for eighteen years.

And yet suckers are willing to pay him good money to say how it was not his fault. Neither his policies nor his poetic prose.

[ozymandius]

10. Euro, Pound Fall on Speculation Credit-Market Losses Spreading

June 2 (Bloomberg) -- The euro and the British pound fell against the dollar on speculation credit losses are spreading to European banks and financial institutions.

The pound declined by the most in four weeks after people familiar said Bradford & Bingley Plc, the U.K.'s biggest mortgage lender to landlords, will raise more capital because of widening bad-debt provisions. The dollar snapped a five-day rally against the yen on speculation an industry report today will show U.S. manufacturing contracted for a fourth month.

``Credit losses have the potential to become a euro-selling factor,'' said Hiroshi Yoshida, foreign-exchange trader in Tokyo at Shinkin Central Bank, Japan's fifth-largest publicly traded lender by assets. ``Bradford & Bingley shows that many of these problems have yet to come to the surface. This is also weighing on the pound.''

http://www.bloomberg.com/apps/news?pid=20601101&sid=asCvdr6Ky_ok&refer=japan

[DemReadingDU]

11. S&L Crisis vs. Current Crisis

5/30/08 S&L Crisis vs. Current Crisis by Michael "Mish" Shedlock

I have been talking about an expected wave of bank failures for quite some time, most recently in Too Late To Stop Bank Failures. Recently I was asked to compare the current crisis to the 1980's S&L Crisis in regards to whether or not this crisis will be worse.

By sheer number of failures the S&L crisis will dwarf what's coming hands down.

Let's start with a look at bank consolidations
Here's an incomplete list of former financial institutions that now comprise what is known as JPMorgan (JPM):

Bank One
Chase Bank
U.S. Trust
Manufacturer's Hanover Trust
Chemical Bank
First Chicago
National Bank of Detroit
First U.S.A
Bear Stearns (BSC)

Of course there are thousands of smaller financial institutions that have been rolled up into this behemoth. Many of us believe that the last and most famous "acquisition” was really a bail-out of JPMorgan, the deal in reality injecting some $50 billion of capital into this amalgamation of finance.

So what you say? Well I think as we watch bank after bank (Royal Bank of Scotland(RBS) this morning as an example) take recurring “one-time” write-offs we can begin to see just what a ponzi scheme this has been over the years. Banks book loans, mark them up in value, and show the difference in profits. They've done the same thing with the phantom book value these deals present when consummated. Over the last few decades banks have not really made any money; they have merely been a conduit for the Fed to create massive credit. The U.S. money supply is now over 99% debt.

The ponzi scheme is unwinding and investors continue to be gullible. Those that bought Citigroup (C) on its dilutive stock offering are now over 20% in the red. The implications are vast. Risk is high.
The failure of Bear Stearns alone is enough to counterbalance hundreds of what really amounts to branch failures during the S&L crisis.

Today there are some huge banks and brokers at risk. Wachovia (WB), Washington Mutual (WM), Lehman (LEH), Citigroup (C), Morgan Stanley (MS), Merrill Lynch (MER), Countrywide Financial (CFC) , Keycorp (KEY), Fifth Third (FITB), and Regions Financial (RF) for starters.

That list looks ominous if not preposterous. Yet two years ago if someone said Bear Stearns and Countrywide would fail and that Citigroup, Morgan Stanley, Lehman and others would need repeated capital infusions from Dubai, Singapore, and China they would have been laughed off the street.

lots more...
http://globaleconomicanalysis.blogspot.com/2008/05/s-crisis-vs-current-crisis.html

[AnneD]

58. I like the article but have a unique viewpoint.....

and disagree with several of his points.....

"Looking back at the S&L crisis, I do not recall knowing anyone who was directly affected. This mortgage crisis (credit crisis really) runs far deeper. Ridiculous lending standards compounded by consumer greed and Fed micro-management of interest rates are causing millions of foreclosures.

In the wake, tens of thousands of self-employed real estate agents have not had any income for months on end, the originate to securities model is dying, and mortgage rates are not dropping in spite of massive rate cuts by the Fed. Unemployment is poised to soar which means still more foreclosures are coming. REOs are piling up on bank books. What was largely an institutional crisis in the 1980's is now a huge consumer crisis as well as a huge institutional crisis.
Fed's Inability To Counteract Crisis

In the 1980's the consumer was not tapped out. Today's consumer is so tapped out that many are walking away from their homes. Others are voluntarily choosing bankruptcy. The Fed can add liquidity now, but it cannot dictate where it goes. This poses a huge problem for the serial bubble blowers at the Fed because from a jobs creation standpoint, housing was the bubble of last resort.

No matter what the Fed does now, it is not going to spur jobs creation. On the other hand, Fed action may further stimulate commodity speculation, the very last thing the Fed wants. I talked about this in Commodities Speculation Symptom Of Larger Problem.
"......

Here in Houston, we use to have numerous S&L's here in town and they are pretty much gone. Because of the concurrent oil price bust and RE bust, consumers in Houston were tapped out do to the balloon mortgages, borrowed to as much as they could if they were working in order to save their homes, and forget it if you weren't working. Folks DID have to walk away from their homes-always a last ditch measure. Banks weren't willing to cut deals with folks until well into the recession, once they realized how bad it was and these new sucke....er buyers weren't lining up to buy this suddenly available 'hot' property. Even good companies could not get building loans because banks had too much property and bad loans on the books-they were gun shy. It took 10 years to fully recover. I can't remember what led us out but it might have been oil prices stabalizing. Our city leaders busted their butts to get our economy further diversified.

[DemReadingDU]

62. Ohio also had many S&L in the 80s

I think they've all been merged into banks, and some of the banks have made subprime mortgage loans. I have this sick feeling in my gut that some banks are not going to be able to recover.

[AnneD]

76. It's not a hunch....

it's a certainty.

[ozymandius]

12. GM, Motorola, New York Times Burn Cash Flow, Keeping Dividends

June 2 (Bloomberg) -- Dividends may be in jeopardy at almost three dozen of the biggest U.S. companies where annual payouts exceed cash flow from selling everything from cars to mobile telephones to newspapers.

General Motors Corp., the biggest U.S. automaker, produced 33 cents a share in so-called free cash flow last year while maintaining a $1 dividend. Motorola Corp. took in 8 cents a share from operations after capital expenses, and paid a 20-cent dividend. New York Times Co. pays investors 92 cents per share a year and spent $1.87 a share more on operations than it made in cash.

Investors are depending on dividends to limit losses as the Standard & Poor's 500 Index falls for the first time since 2002, the U.S. economy slows and corporate earnings drop for a fourth quarter. While the S&P 500 fell 8.8 percent in the past year, reinvested dividends reduced the loss to 7 percent, according to data compiled by Bloomberg.

.....

U.S. dividend yields fell to a five-decade low of 1.14 percent in 1999 as shareholders urged companies to invest more to develop their businesses, according to data compiled by Bloomberg and New York University.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aBl0gjJSBtEg&refer=us

[DemReadingDU]

13. Mike Whitney: The Great Oil Swindle

5/30/08 The Great Oil Swindle by Mike Whitney

The Commodity Futures and Trading Commission (CFTC) is investigating trading in oil futures to determine whether the surge in prices to record levels is the result of manipulation or fraud. They might want to take a look at wheat, rice and corn futures while they're at it. The whole thing is a hoax cooked up by the investment banks and hedge funds who are trying to dig their way out of the trillion dollar mortgage-backed securities (MBS) mess that they created by turning garbage loans into securities. That scam blew up in their face last August and left them scrounging for handouts from the Federal Reserve. Now the billions of dollars they're getting from the Fed is being diverted into commodities which is destabilizing the world economy; driving gas prices to the moon and triggering food riots across the planet.

For months we've been told that the soaring price of oil has been the result of Peak Oil, fighting in Iraq, attacks on oil facilities in Nigeria, labor problems in Norway, and (the all-time favorite)growth in China. It's all baloney. Just like Goldman Sachs prediction of $200 per barrel oil is baloney. If oil is about to skyrocket then why has G-Sax kept a neutral rating on some of its oil holdings like Exxon Mobile? Could it be that they know that oil is just another mega-inflated equity bubble---like housing, corporate bonds and dot.com stocks—that is about to crash to earth as soon as the big players grab a parachute?

There are three things that are driving up the price of oil: the falling dollar, speculation and buying on margin.


Could it be? Could the Fed really be looking the other way so it can bail out its banking buddies while they drive prices skyward?


more...
http://www.informationclearinghouse.info/article20011.htm

[DemReadingDU]

15. How the next president will change the Fed

6/2/08 The winner of this November's election is likely to fill at least 4 of 7 seats on the Fed Board of Governors upon taking office. Here's how those picks could affect the economy.

The next president is likely to have an unprecedented opportunity to name a majority of the Federal Reserve's Board of Governors immediately after being sworn into office.

These will be important decisions, given the battered state of the U.S. economy. It's even more critical considering that the central bank will probably assume more regulatory power over the nation's financial sector in the next few years.

"Who wins the election could a significant difference," said Jaret Seiberg, an analyst with the Stanford Group, a Washington policy research firm. "You just need one governor who feels strongly on a regulatory issue like community reinvestment or fair lending practices and suddenly it's going to get a lot more attention."

The new president is expected to have four vacancies to fill upon taking office. Gov. Frederick Mishkin announced on May 28 that he would leave the board at the end of the summer. Two other Fed governor positions have been open since last year and Gov. Randall Kroszner has remained in his seat even though his term expired Jan. 31.

But no new members are likely to join the Fed this year since Senate Banking Chairman Chris Dodd, D-Conn., has not allowed a vote on confirmation for a new term for Kroszner or for the two nominees that President Bush has made to fill the other vacancies.

more...
http://money.cnn.com/2008/06/02/news/economy/fed_election/index.htm?postversion=2008060204

[TalkingDog]

17. Selling the Nest Egg

http://www.clusterstock.com/2008/6/desperate_consumers_selling_nest_eggs_to_raise_cash

Now that lines of Credit are being withdrawn:

snip:
The WSJ catalogs a handful of the increasingly popular products that have been rushed onto the market to address this need:

* Life settlements. Sell the life insurance policy you've been making payments on for years for about 20% of the face value. The company that buys it will keep making the payments--and collect the full value when you die.
* "Reverse mortgages." Take out another mortgage, but one that doesn't require monthly payments--only a bullet payment when you die or leave the house for a year.
* 401k loans. Pay interest on money you already have--but spend that money now instead of letting it compound for your retirement.
* Other creative products, including one called the REX Agreement that allows you to sell 13% of your house today in exchange for a future repayment of this amount plus 50% of the change in value of the house from the current appraised value. (Need more details to better understand this one...all help appreciated).



The article is very short, informational and lacks depth. But at least they are just sticking to the facts.

[Ghost Dog]

21. And what facts. "None of these products are evil on their faces": Bullshit.

They lean hugely in favor of the corporations feeding on the distress of real people.

20% of face value. Bullet payments. Indeed.

These are wide open to abuse.

I am however, kindly, reminded of a method that is or was quite often used in France. In the rural south I found it quite common. In this a younger couple will make an agreement with an older couple or, often, a widow or widower who own a house. This agreement concedes to the young couple the title to the property upon decease of the owner. In return, the younger couple agree to maintain the property and perform what used to be called "housekeeping" duties. And there may be any number of specific clauses in such an agreement, which has all the approval and protection of the law. Now this sounds wide open to abuse, with our imaginations running to all sorts of methods by which the young couple kill off the owners, the sooner the better to get their hands on the house, sell it and run off into the wide blue yonder laughing. But no, and perhaps this is a hang over from the "old days" in rural France; the older property owners in question would usually have a pretty shrewd idea and make a sound choice of younger couple, who they would doubtless know very personally. Widows and widowers, and especially where, one presumes, there are no children willing to assume the burden, would be cared for kindly in their own homes until they died, and the new owners would, one supposes less-and-less in this urban age, settle in to the old house (and often small plot of land) and get on with life.

I blame it on the TV myself.

[ozymandius]

30. It's a grand idea relative to inheritance in the old world style.

The scenario is one in which the children would stay with the parents, care for the property when the parents became too old for work, care for the parents during their declining years... you get the picture, kinda like a Bruegel painting.

This is a model that works. And this seems to be a relationship that has evolved when, in modern times, children often live far away from their parents.

Good on them.

[Hugin]

32. I hate to even mention it because there's so many 'fakes' out there...

but, there is one type of 401(k) loan which is worthwhile. In this type of loan the 401(k) holder takes out a loan from
their own 401(k) and then pays the loan back into their own 401(k) account w/ some nominal interest payment to themselves.

The reason I'm reluctant to mention this scheme is because I don't think these loans are generally available. It depends on
who's managing the 401(k) plan and if there are ANY FEES what-so-ever on the loan it IS NOT A GOOD IDEA!.

This type of loan is to be used judiciously and only for the purchase of long term things one might need during retirement,
but, would be good to start on now, too. Like a HOME TO LIVE IN!

I hope I've been perfectly clear on the dangers of these loans.

Generally speaking, IT'S NOT A GOOD IDEA TO BORROW AGAINST YOUR RETIREMENT TO BUY A SLUSHY DOWN AT THE CONVENIENCE STORE!

(Think I was clear enough, TalkingDog?)

Edit: Cleaned up a few typos.

[librechik]

48. I'm paying for my new sewer with one of these

that was a surprise--glad i had the option!

[Hugin]

49. Yes...

It's always good to have sewage... Uh, I'll try to think of a better way of putting that. :silly:

Sewage is a good investment? No. :/

Well, that's exactly what those types of loans are for. :7

[TalkingDog]

53. Clear as a Slushy!

Ummmmmm. I report, you decide?

Don't mistake my intentions. I think that in anything more complicated than trading chickens for handmade rope, it's likely somebody is getting taken advantage of. Usually the person who can least afford it.

I guess I could have editorialized a bit more, but.... I will just agree that your house and/or retirement are like china pigs, once you break into them to get at the money....

[AnneD]

60. Sticking it to the folks is how I'd put it......

another reason why Social Security is needed. AND KEPT IN A LOCK BOX!!!!!!

Edited to add that I have a 403b with that self loan. That is great and while you don't get as much interest and compounding as you might-it is a good option, but not always available...they want all your money:(

[UpInArms]

18. dollar watch

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

Last trade 72.992 Change +0.112 (+0.15%)

Dollar: Will Non Farm Payrolls Spoil the Rally?

http://www.dailyfx.com/story/topheadline/Dollar__Will_Non_Farm_Payrolls_1212360795537.html

It was a pretty good week for dollar bulls as the unit managed to gain 130bp against the euro on surprisingly buoyant economic data including better than expected Durable Goods, New Home Sales and Chicago PMI numbers. For dollar bears betting on the collapse of the US economy this week was a sorely disappointing experience as all signals suggested that growth may have eased but not stopped altogether. However, as we noted at the start of last week, “The key determinant of dollar’s direction will continue to be the state of the US consumer. If gasoline prices remain sticky above $4/gallon, it is difficult to imagine any other scenario but a recession for US economy as we move into the 2nd half of the year.”

The single biggest factor driving consumer sentiment is employment. That why next week’s currency trade is very likely to be dominated by absolute focus on the Non-Farm payroll report due June 6th are 12:30 GMT. The market expects a fifth consecutive month of job cuts, but the true measure of dollar’s strength or weakness is likely to be determined by the amplitude of the loss. If the NFP’s contract by more than -100K jobs, talk of an oncoming recession will quickly sweep FX trading desks and markets may begin to price in yet more rounds of Fed easing.

Over the past few weeks, as worries about the credit crunch have dissipated, US rates on the 10 year bonds have started to rise, providing support for the greenback, but that scenario will quickly reverse if the job picture showed significant deterioration. The EURUSD now finds its way at the midpoint of its 1.60-1.50 recent range and may stay within at these levels for the time being unless the data from the US signals the start of a fresh downturn. The dollar rally will continue only if we see further upside surprises this week, otherwise equilibrium and choppy trade conditions are likely to persist– BS



...more...

US Dollar Weighed Down By Slowing Spending, Watch for NFPs Next Week

http://www.dailyfx.com/story/bio1/US_Dollar_Weighed_Down_By_1212184084403.html

The US dollar inched lower on Friday as US indicators only added to the pile of evidence suggesting that the economy is far from recovery mode. First, personal spending and personal income both slowed to a 0.2 percent pace during the month of April, indicating that consumption is not only weak, but will likely remain so through Q2. Indeed, record energy prices, a collapse in the housing sector, and a deteriorating labor market create a less-than-ideal environment for spending to recover. In fact, sentiment during the month of May was confirmed at a 28 year low of 59.8, according to the University of Michigan consumer confidence survey. It is not only the consumer side of the coin suffering though, as Chicago PMI held below 50 for the fourth consecutive month, signaling a contraction in business activity. A breakdown of the index shows a surge in the prices paid component, as rocketing commodity prices are undoubtly pushing input costs higher. Given the pick up we've seen in US CPI figures in recent months, it appears that businesses are passing these costs on to customers. Looking ahead to next week, the US dollar faces heavy event risk from the release of the ISM reports for the manufacturing (Monday) and services (Wednesday) sectors. However, Friday’s non-farm payrolls release should – as usual – prove to be the main event, especially as payrolls are expected to fall negative for the fifth consecutive month. Watch for our NFP Preview on Thursday in order to get a better sense of how the odds stack up ahead of the release, and if you should be watching for a surprisingly strong (dollar bullish) or weak (dollar bearish) number.

...more...

[UpInArms]

19. Wachovia ousts CEO Thompson after losses mount

http://news.yahoo.com/s/nm/20080602/bs_nm/wachovia_dc

(Reuters) - Wachovia Corp (WB.N), the fourth-largest U.S. bank, said on Monday it ousted Chief Executive Ken Thompson, following a series of disappointments including an ill-fated purchase of a big mortgage lender at the height of the nation's housing boom.

The Charlotte, North Carolina-based company said Thompson is retiring at the request of its board of directors.

Lanty Smith, who replaced Thompson as chairman last month, was named interim chief executive. Ben Jenkins, the vice chairman and head of Wachovia's retail and business bank, was named interim chief operating officer.

In a statement, Smith said "a series of previously disclosed disappointments and setbacks cumulatively have negatively impacted the company and its performance. The board believes new leadership will help to revitalize and reenergize Wachovia, and enable it to realize its potential."

<snip>

Mounting loan losses pushed Wachovia in April to raise $8.05 billion in capital. It cut its dividend, posted a first-quarter loss that it later nearly doubled to $708 million, and disclosed up to $1.14 billion of costs for legal and regulatory problems.

Thompson paid $24.2 billion in October 2006 for Golden West Financial Corp, a California specialist in adjustable-rate mortgages that let borrowers pay less than the principal due.

...more...

[UpInArms]

20. Toyota set to cut U.S. sales forecast: report

http://news.yahoo.com/s/nm/20080602/bs_nm/toyota_dc

PARIS (Reuters) - Toyota Motor (7203.T) is considering downgrading its U.S. sales forecast to account for a worsening outlook for pick-up trucks and other big vehicles, the Financial Times newspaper said on Monday.

It quoted Toyota president Katsuaki Watanabe as saying he was not sure that increased sales of smaller cars and the Prius hybrid would make up for the decline in sales of sports utility vehicles and pick-up trucks.

Senior Managing Director Takeshi Suzuki told reporters in May that Toyota's U.S. operations were working on revising the automaker's sales forecast for this calendar year, from 2.64 million vehicles, to reflect weaker industry demand.

...more...

[slipslidingaway]

22. The Many Faces Of Inflation - June 2008 Contrary Investor

Posted in the economy forum here...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x39157

Direct link...

http://www.contraryinvestor.com/mo.htm

[ozymandius]

23. Watch your step. The floor is slick.

11:11
Symbol Last Change Dow 12,499.17 Down 139.15 (1.10%)
Nasdaq 2,491.88 Down 30.78 (1.22%)
S&P 500 1,387.77 Down 12.61 (0.90%)
10-Yr Bond 4.015% Down 0.031
NYSE Volume 1,017,718,187.5
Nasdaq Volume 577,574,937.5

11:00 am : The major indices are trading above their worst levels, but continue to post substantial losses.

A good deal of media attention is being placed on news that Wachovia's (WB 22.80, -1.00) CEO was forced out by the company's board. An executive being ousted in the wake of the credit market turmoil is nothing new. Merrill Lynch (MER 43.32, -0.60), Bear Stearns, Citigroup (C 21.56, -0.33) and UBS (UBS 23.51, -0.15) have already replaced their CEOs.

Meanwhile, crude oil has rebounded to a modest gain of 0.4% after being down as much as 1.7%. Commodities as a whole are nearly unchanged with a slight advance of 0.1%.DJ30 -141.34 NASDAQ -27.84 SP500 -12.83 NASDAQ Dec/Adv/Vol 1887/769/531 mln NYSE Dec/Adv/Vol 2027/899/291 mln

[Dr.Phool]

27. I just bailed out Wachovia.

I made my mortgage payment. They're saved!

[Hugin]

35. I think my mandatory stock investment retirement fund buys today too...

I'll never see that money again. :eyes:

Oh, BTW... I'm in full control of my retirement. (Translation: It's all my fault I didn't pull myself up by my bootstraps.)
( :rofl: )

[AnneD]

64. "He chose....poorly"....

let's hope you choose wisely. My first suggestion is read, read, read (The Smartest Investment Book You'll Ever Read. Also the 401K Hoax are my suggestions-also the Total Money Makeover). If worse comes to worst, buy shares of Berkshire Hathaway and let Warren Buffet handle it for you, better him than most folks I know-esp if you have a long horizon line:rofl:

[UpInArms]

67. or is it "she chose ... poorly" (warning graphic)

[AnneD]

77. I'd pitch a bucket of water....

if I thought it would help speed things along.

[Hugin]

69. Well, actually I had no choice at all...

Unless you count that old "Supply-sider" maxim that I had the "choice of not working". :eyes:

All I have is the "illusion of control."

:grumble:

[Doctor_J]

29. -140 already today. Is the moron giving a speech?

:shrug:

[Robbien]

31. CNBC reporting Chamber of Commerce types meeting with WH financial guys

On tax cuts of course.

One proposal they put forth is to cut corporate taxes and raise money by increasing the gas tax. Good for consumers say CoC types. Per studies, (financed and presented by CoC types of course) any increase in corporate tax decreases worker pay and benefits. So if corporate taxes were decreased workers would be the winner, which would more than offset the extra they pay at the pump.

They said it all with straight faces.

[Doctor_J]

33. The CofC said publicly two months ago that any attempt at populism

will be met with the full force of the corpo-government state. Methinks Obama's not-corporate-enough rhetoric has goaded the fascists to action.

[Hugin]

34. They were going to anyway...

They hate populists... With a passion... more than they hate Labor and the Middle Class.

But, yes... I think Sen. Obama makes them very nervous.

[Hugin]

36. Isn't that still essentially "Trickle Down" Economics?

I guess they're trying to "Intelligent Designize" it.

[Robbien]

38. A hard sell these days no matter how they package it

Trickle down economics was sold to the masses back in the eighties during a climate when some companies actually shared profits with workers. It has been over a decade or two (or three) since average workers' pay/bonus were increased due to good bottom lines.

A corporation sharing a corporate tax cut windfall with workers? Not even the CNBC pundits were biting that premise.

Ha, the Chamber of Commerce types are being punished for their idiocy by being treated to a speech presented by the financial guru president bush.

[Hugin]

39. "treated to a speech presented by the financial guru president bush"

Hahaha!

[Dr.Phool]

40. C of C?

Is that like Comedy of Central?

And the chimp will probably believe that bullshit.

[ozymandius]

42. Not only believe it, but support it.

This is the same lame language that McSame has uttered to define his economic plank. Cut the corporate tax rate (because we all know how generous those corporate types are).

[ozymandius]

47. Additionally, the national CoC knows what Bush is going to support and say before he does. n/t

[TrogL]

37. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



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




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

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

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

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

2008-04-21 Monday, April 21 0.993443 USD
2008-04-22 Tuesday, April 22 0.996711 USD
2008-04-23 Wednesday, April 23 0.980969 USD
2008-04-24 Thursday, April 24 0.987069 USD
2008-04-25 Friday, April 25 0.983961 USD
2008-04-28 Monday, April 28 0.984446 USD
2008-04-29 Tuesday, April 29 0.987362 USD
2008-04-30 Wednesday, April 30 0.990884 USD
2008-05-01 Thursday, May 1 0.981643 USD
2008-05-02 Friday, May 2 0.982125 USD
2008-05-05 Monday, May 5 0.987654 USD
2008-05-06 Tuesday, May 6 0.996413 USD
2008-05-07 Wednesday, May 7 0.998004 USD
2008-05-08 Thursday, May 8 0.985319 USD
2008-05-09 Friday, May 9 0.993838 USD
2008-05-12 Monday, May 12 0.996314 USD
2008-05-13 Tuesday, May 13 1.0004 USD
2008-05-14 Wednesday, May 14 0.998203 USD
2008-05-15 Thursday, May 15 1.0004 USD
2008-05-16 Friday, May 16 1.00341 USD
2008-05-19 Monday, May 19 1.00867 USD
2008-05-20 Tuesday, May 20 1.00725 USD
2008-05-21 Wednesday, May 21 1.01626 USD
2008-05-22 Thursday, May 22 1.0141 USD
2008-05-23 Friday, May 23 1.01184 USD
2008-05-26 Monday, May 26 1.01184 USD
2008-05-27 Tuesday, May 27 1.00685 USD
2008-05-28 Wednesday, May 28 1.00878 USD
2008-05-29 Thursday, May 29 1.01307 USD
2008-05-30 Friday, May 30 1.00624 USD


Current values

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

Market            Open   High    Low   Last  Change    Pct 
CCD.Y$$ Cash    1.0053 1.0053 0.9997 0.9997 -0.0057 -0.57% 
CD.M08 Jun 2008 1.0040 1.0040 1.0000 1.0000 -0.0051 -0.51% 
CD.U08 Sep 2008 0.9992        0.9992 0.9992 -0.0052 -0.52% 
CD.Z08 Dec 2008 0.9780 0.9780 0.9780 1.0043 -0.0055 -0.55% 
CD.H09 Mar 2009 0.9757 0.9757        1.0045 -0.0055 -0.55% 
CD.M09 Jun 2009 0.9995 0.9995        1.0045 -0.0055 -0.55% 
CD.U09 Sep 2009 0.9780 0.9780 0.9780 1.0045 -0.0055 -0.55% 
 

Other combinations: (http://quotes.ino.com/exchanges/?c=currencies)

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.M08 Jun 2008 0.9497 0.9497 0.9497 0.9497 +0.0069 +0.73%   
EURO/BRITISH POUND (NYBOT:GB)
GB.M08.E Jun 2008 (E) 0.7863 0.7863 0.7863 0.7858 +0.0001 +0.01%    
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.M08.E Jun 2008 (E) 162.185 162.185 162.060 162.140 -1.550 -0.95%     
EURO/US$ (SMALL) (NYBOT:EO)
EO.M08.E Jun 2008 (E) 1.5523 1.5529 1.5482 1.5529 -0.0010 -0.06%    

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

The June Canadian Dollar was lower overnight as it extends last Friday's decline. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 100.24 are needed to confirm that a short-term top has been posted. If June renews last month's rally, March's high crossing at 102.38 is the next upside target. First resistance is the 10-day moving average crossing at 100.89. Second resistance is last Thursday's high crossing at 101.76. First support is the 20-day moving average crossing at 100.24. Second support is the 38% retracement level of the April-May rally crossing at 99.84.


Analysis

Loonie's being contrarian again so I thought I'd put up a quickie before my next meeting.

[ozymandius]

41. Stocks roundly suck.

12:11
Dow 12,493.88 Down 144.44 (1.14%)
Nasdaq 2,490.70 Down 31.96 (1.27%)
S&P 500 1,386.80 Down 13.58 (0.97%)
10-Yr Bond 3.984% Down 0.062
NYSE Volume 1,442,972,125
Nasdaq Volume 822,312,500

12:00 pm : The stock market is succumbing to profit-taking, which follows four consecutive advances. Weakness is broad-based, with 84% of S&P 500 components posting a loss.

Overall, corporate news has been on the light side.

A serious of disappointments and setbacks prompted Wachovia's (WB 23.11, -0.70) board of directors to oust CEO Ken Thompson. On a related note, Washington Mutual (WM 8.91, -0.11) CEO Kerry Killinger is being replaced as chairman of the board, but will remain as CEO.

The media is focusing on the stories, although an executive being ousted in the wake of the credit market turmoil is nothing new. Merrill Lynch (MER 43.05, -0.87), Bear Stearns, Citigroup (C 21.35, -0.54) and UBS (UBS 23.33, -1.39) have already replaced their CEOs.

Eight of the ten economic sectors are posting a loss, with seven down more than 1%. Financials (-1.8%) are leading the way lower, on fears that Wachovia's actions indicate the company may be in for a dismal second quarter. Telecom (-1.7%), and tech (-1.5%) are also under selling pressure.

The energy sector (+1.1%) is posting the largest gain, after spiking higher as crude rebounded from a loss of 1.7% to a gain of 0.9% at $128.63 per barrel. The Materials sector (+0.3%) is outperforming as commodities rise 1.2%.

This session's economic releases were slightly better than expected, and reflected sluggish economic growth. The reports failed to incite buying interest.

The May ISM Index, a national manufacturing survey, rose 2.1% to 49.6, topping the consensus estimate of 48.5. The index suggests a slight contraction in United States manufacturing activity, as the number falls short of 50.

Separately, April construction spending fell 0.4% month-over-month, which is modestly better than the expected decline of 0.6%. March construction spending was revised higher to a decline of 0.6% from a decline of 1.1%.DJ30 -142.97 NASDAQ -31.99 SP500 -13.15 NASDAQ Dec/Adv/Vol 2016/753/786 mln NYSE Dec/Adv/Vol 2029/986/429 mln

[Hugin]

44. It's gone as low as -160.00 so far today...

It's 'hovering' (Pun intended) at around -145.00... Volume is about normal of late.

[ozymandius]

45. heading back in that direction

12:30
Dow 12,481.59 Down 156.73 (1.24%)
Nasdaq 2,489.38 Down 33.28 (1.32%)
S&P 500 1,385.62 Down 14.76 (1.05%)
10-Yr Bond 3.988% Down 0.058
NYSE Volume 1,542,493,875
Nasdaq Volume 889,050,062.5

[ozymandius]

46. Wachovia down a bit more than 3%.

Citigroup not far behind.

[Roland99]

50. -202 a few min. ago.

:hi: everyone. Can't post as much anymore but I do read and post when I can!

[AnneD]

65. We miss you.....

give us a tinkle when you can (British slang for give us a call or shout out when you can). I envisioned something totally different the first time my British friend mentioned this-so use to drug tests am I):blush:

[Robbien]

43. Lawsuit provides a rare glimpse at credit default swaps

<snip>

According to the story that unfolds in the court documents, in early 2007, UBS approached Paramax, a small hedge fund with just $200 million in capital, to insure the notes. After months of discussion, Paramax established a special-purpose entity to conduct the swap and capitalized it with $4.6 million.

Under the terms of the deal, UBS would pay Paramax 0.155 percent of the $1.31 billion in notes annually for its insurance, and Paramax would deposit collateral to back the swap, increasing it if the value of the underlying notes declined.

That they did. Almost immediately.

By early November, UBS had asked Paramax for $33 million in additional collateral. Paramax refused, and UBS sued the fund, contending breach of contract, in mid-December 2007 in New York state Supreme Court. Paramax filed a counterclaim in January.

In court filings answering the complaint, Paramax tells its side of this story - and intriguing it is. The fund said it knew when it entered into the swap with UBS that the swap was risky and could require a good deal more capital than it had to deploy if the underlying securities fell in value. Paramax was concerned, the court filing said, that UBS could mark to market downward the value of the notes, causing a call for more collateral beyond the initial $4.6 million.

To allay the fund's concerns, the documents say, Eric Rothman, the UBS managing director who arranged the deal, assured Paramax that mark-to-market risk was low. During a Feb. 22, 2007, phone call, Paramax says in the filing, it was informed by Rothman that "UBS set its marks on the basis of 'subjective' evaluations that permitted it to keep market fluctuations from impacting its marks." The filing also says: "Rothman explained that he was responsible for all marks on UBS's super senior positions and that he could justify 'subjective' marks on the Paramax swap because of the unique and bespoke nature of the deal."

Rothman is no longer employed at UBS. He could not be reached for comment.

In later discussions, according to court documents, Rothman contended that even if significant defaults arose in the underlying mortgages, UBS's marking of the position "might not be as bad as you'd first think."

On April 10, the hedge fund's filing said, Rothman pressed Paramax to "please close this trade already"; in mid-May, the hedge fund pulled the trigger on the deal.

Six weeks later, in early July, Paramax said, it received its first margin call from UBS

http://www.iht.com/bin/printfriendly.php?id=13365821

A company having only $200 mil was approached to insure over a billion in risky assets . The holder of assets said "Trust us, these are good. Even if they turn out to be bad, don't worry we won't ask you to cover the losses".

If this is the typical deal being made in the hidden swap market, no wonder they hide it.

[Ghost Dog]

72. UBS: Eric Rothman, the UBS managing director

"responsible for all marks on UBS's super senior positions". Noted.

[Robbien]

51. Barclays, RBS Raided by Regulator Over Loan Price fixing

June 2 (Bloomberg) -- Barclays Plc and Royal Bank of Scotland Group Plc were raided by the U.K. antitrust regulator as part of an investigation into the price of loans to accountants, lawyers and other professional services firms.

The two banks were visited 12 days ago, Corinne Gladstone, a spokeswoman from the Office of Fair Trading said in an interview today. London-based Barclays said it approached the OFT with information about ``inappropriate'' contacts with one department in exchange for leniency on March 17.

The issue is the second involving U.K. banks to come under OFT scrutiny in the last year. In April, a High Court judge ruled that the regulator could legally challenge the overdraft fees of eight banks, including Barclays and RBS. The banks are currently appealing the court decision.

. . .

``The investigation is operating within the confines of the Professional Services banking area and we believe that, if there is any issue, it starts and stops there,'' Alistair Smith, a spokesman for London-based Barclays, said in a statement.

Gladstone said RBS and Barclays were the only banks targeted in the raids, describing the investigation as ``narrow.''

``The OFT's investigation is at an early stage,'' the regulator said in a statement.

This is the fifth major price-fixing investigation the OFT is undertaking, after probing supermarkets and the construction industry.

``From both the European Commission and the U.K. regulators' point of view, the financial services sector has been like a Pandora's Box: they want to have a look, but they don't want to lift the lid,'' said Mike Pullen, an antitrust lawyer at DLA Piper in London. ``The OFT has been very clever here in going for a narrow focus: it makes it more manageable.''

If found guilty of price-fixing, the banks could face a fine of as much as 10 percent of their global revenue from the affected market.

http://www.bloomberg.com/apps/news?pid=20601102&sid=akY8rBV.Wl04&refer=uk

[Robbien]

52. Kmart is promoting an Abstinence Pants campaign?

Over at Think Progress:

Jessica Valenti points out that retail chain Kmart has begun selling abstinence-gear for juniors:

truelovewaits4.gif

The description for the products reads, “Whether she is lounging around the house, going to practice, or doing her chores. These soft athletic style crop pants will keep her comfy.” One Feministing commenter adds, “Because nothing says ‘I plan not to have sex until marriage’ like plastering text across your ass.”

http://thinkprogress.org/2008/06/02/kmart-promotes-abstinence-pants/

When you need to cater to the rabid right fundies to bolster sales, it is time to start the funeral procession for our good ol' buddy Sears/KMart.

Abstinence Pants? :rofl:

[TalkingDog]

54. Okay. I 'm not going to post the link

But Google: Landover WWJD panties



The good thing is they are made in the USA. Shop Local!

[AnneD]

66. What if you prefer....

thongs. The fine print might be difficult to read. Does that lay the ground work for a lawsuit. I personally prefer the guillotine undies for my daughter...:rofl: Sorry guys, you have to be mom approved. I actually told her date once that I had already done hard time for murder and had no trouble doing it again. God, I love embarassing my teenager:rofl::rofl::rofl:

[AnneD]

55. Morning Marketeers.....

:donut: and lurkers. We finally did it. We managed to graduate the kid. In this day and age I managed to graduate a kid that has no tattoos, piercings, is not sexually active, not in to drugs, in the top ten academically in her class, registered to vote, and employed. And this was done while being a single Mom for all but the last 5 years. It was hard work and I had support from some really good friends.

At the graduation ceremony, she conducted an excerpt from the New World symphony by Dvorak. She did very well and was impressive (for a debut). She wore a green and gold patterned Christin Dior strapless evening gown (sewn by our fashion designer friend). Talk about fearless (conducting in a strapless evening gown), she had firm command of the orchestra. She only had one meltdown (pre performance anxiety)-this was 20 minutes prior-when I stopped to get some flowers to present to her. I got caught in traffic, but have lived in Houston long enough to know how to maneuver through the downtown streets and made it there in time. A friend had arrived earlier and saved us some seats. So every truly worked out well.

After graduation activities included taking in the midnight showing of Sex in the City (one of her fav. shows)with a group of her friends and critiquing the shoes and fashion. I may dress simply as a nurse and in personal life-but I am a closet fashion buff-she comes by it honestly.

The next day, my hubby preformed at an extravagant Muslim wedding in town. It was absolutely lovely and unlike other Muslim weddings I have attended, I actually saw the public portion of the service. It was done in Arabic with an English translation afterward. The words and sentiment were very beautiful and it was a lovely ceremony.

But the activity didn't stop there. My daughter was a lay reader at Sunday's service. This was a first for her and of all things-it was Communion Sunday. I was so tired that I didn't do much after that and got a late start today. Hopefully things will return to a more normal pace for the rest of the summer. I have some good books that are calling my name.

Happy hunting and watch out for the bears.

[skoalyman]

59. :hi:Looks like they slacked off on oil just enought

to let things cool off then :puffpiece: BAM .They start gradually running oil up specially wholesale gas we'll see what tomorrow brings :puke:

[AnneD]

61. I think the announcement that they were investigating...

and the fact that we may soon have a new administration may have caused some of these slime balls to slow up a bit. But a leopard never changes his spots, rest assured.

[skoalyman]

75. your right no matter how much

hair dye they use in the end it'll all wash out and they'll be exposed.:evilgrin:

[DemReadingDU]

63. Congratulations!

You have done a great job raising your daughter. You must be very proud. She is well on her way to becoming a successful young woman.


:applause:

[AnneD]

68. Thanks...

And yet she still talks to me, that is the most amazing part.:rofl:

She cracks me up. She called me today and told me she had made an appointment with planned parenthood and she had talked to them about contraceptive devices:wow:
She said she wanted to get this taken care of now and not wait til the last minute before she went to college, she has so many things to do. Well, I told her, you could have talked to me, I said. Well, that's what I'm doing now. I have my first pap test scheduled and I want to know if you can come?:wtf: The ink hasn't dried on the Diploma and she is already taking care of this. I don't know whether to laugh or cry. I think I am still in shock.

[Ghost Dog]

73. Absolutely.

:thumbsup:

[Hugin]

70. Congrats to her!

:party:

[ozymandius]

71. Congratulations Anne!

Woot! What a wonderful story. And what a momentous milestone! You folks rock :yourock: dontcha know!

[AnneD]

78. Ozy....

before you know it....you'll be having the same milestone.

[ozymandius]

74. Finals on today's whompin'.

Dow 12,503.82 Down 134.50 (1.06%)
Nasdaq 2,491.53 Down 31.13 (1.23%)
S&P 500 1,385.67 Down 14.71 (1.05%)
10-Yr Bond 3.971% Down 0.075
NYSE Volume 3,721,240,250
Nasdaq Volume 1,993,315,250

4:25 pm : The stock market kicked off June on a low note. Stocks ended Monday with sharp losses, as a management shake-up at a major bank prompted traders to take some money off the table.

The major indices fell to session lows after Standard & Poor's took negative credit rating actions on several major financial firms. However, this was not the underlying catalyst to this session's decline considering that stocks recovered nearly all of their S&P induced losses by the market close.

With regard to Standard & Poor's actions, the agency said its move was in response to the "prospects of continued weakness in the investment banking business and the potential for more write-offs." The agency downgraded its debt ratings on Merrill Lynch (MER 42.62, -1.30), Lehman Bros. (LEH 33.83, -2.98) and Morgan Stanley (MS 43.10, -1.13). The outlooks for JPMorgan Chase (JPM 42.15, -0.85) and Bank of America (BAC 33.58, -0.43) were lowered to negative from stable.

Although the financial sector (-1.8%) managed to rebound from most of its S&P induced retreat, it did not recover its prior losses. The sector ended the session as the main laggard on speculation that management shake-ups at two banks were a sign of bad things to come. Wachovia's (WB 23.40, -0.40) board ousted its CEO, citing a series of disappointments and setbacks. On a similar note, Washington Mutual's (9.00, -0.02) CEO will no longer be the company's chairman, but will remain as CEO.

The decline was not just limited to the financial sector, as weakness was broad-based with nine of the ten economic sectors ending the day lower. Seven of the sectors posted a decline of more than 1%. Tech stocks (-1.4%) -- one of the best performing sectors last week with a gain of 3.5% -- saw a substantial pullback. Meanwhile telecom (-1.2%) was under pressure as Verizon (VZ 37.86, -0.61) fell 1.6%.

The energy sector stood alone in positive territory, with a modest 0.1% advance as crude prices gained 0.3% to $127.70 per barrel.

This session's economic releases were slightly better than expected, but failed to incite buying interest.

The May ISM Index, a national manufacturing survey, rose 2.1% to 49.6, topping the consensus estimate of 48.5. The index suggests a slight contraction in United States manufacturing activity, as the number falls short of 50.

Separately, April construction spending fell 0.4% month-over-month, which is modestly better than the expected decline of 0.6%. March construction spending was revised higher to a decline of 0.6% from a decline of 1.1%. DJ30 -134.50 NASDAQ -31.13 NQ100 -1.3% R2K -1.0% SP400 -0.8% SP500 -14.71 NASDAQ Dec/Adv/Vol 2034/880/1.97 bln NYSE Dec/Adv/Vol 2138/968/1.15 bln