STOCK MARKET WATCH, Friday July 11

[ozymandius]

Source: du

STOCK MARKET WATCH, Friday July 11, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 194
DAYS SINCE DEMOCRACY DIED (12/12/00) 2728 DAYS
WHERE'S OSAMA BIN-LADEN? 2453 DAYS
DAYS SINCE ENRON COLLAPSE = 2744
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.
$1 USD = EUR 1.06678
$1 USD = JPY 116.6200

AT THE CLOSING BELL ON July 10, 2008

Dow... 11,229.02 +81.58 (+0.73%)
Nasdaq... 2,257.85 +22.96 (+1.03%)
S&P 500... 1,253.39 +8.70 (+0.70%)
Gold future... 942.00 +13.40 (+1.42%)
30-Year Bond 4.42% -0.01 (-0.16%)
10-Yr Bond... 3.81% -0.02 (-0.60%)






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: Fannie and Freddie Waterfalls Are Too Big to Bail

BY MIKE SHEDLOCK

It's been a wild ride for Fannie and Freddie recently. Yesterday, James Lockhart, director of the Office of Federal Housing Enterprise, said the GSEs are "well capitalized." William Poole, former Fed governor disagrees. See Poole Says "Fannie, Freddie Insolvent."

The market agrees with Poole as share prices have continued to plunge and Fannie Mae Pays Record Yield Spreads on Sale of Two-Year Notes vs. two-year treasuries.

-chart-

Institutions Must Be Allowed To Fail

Today Paulson Says Financial Institutions Must Be Allowed To Fail. I would like clarification from Paulson as to what "fail" means. What it should mean is Fannie and Freddie go bankrupt, the government gets out of the GSE sponsorship business, and home prices fall to their natural level.

What I suspect Paulson means is We're All Homeowners Now, Nationalization of Fannie, Freddie Unavoidable. In this scenario, the share price of Fannie and Freddie will drop to zero, yet taxpayers will foot the bill to keep Fannie and Freddie in business.

....

Paulson's statement "Institutions Must Be Allowed To Fail" is in reality an implicit admission the Fed is powerless to stop a credit implosion whether the Fed wants to do something about it or not. We have finally reached the point at which the mess is too big to bail. All that remains at this point is the final numbers on how much taxpayers have to cough up when Congress foolishly tries to make water run uphill.

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

[ozymandius]

9. Fannie, Freddie plunge on rescue report

NEW YORK (CNNMoney.com) -- The pounding of Fannie Mae and Freddie Mac continued Thursday, reflecting concerns about their solvency - and raising fresh anxieties about the impact their collapse would have on the U.S. housing market and broad economy.

The Wall Street Journal early Thursday said that Bush administration officials have held talks about what to do in the event the two government-sponsored firms falter. Late Thursday, the New York Times reported on its web site that officials are mulling the possibility of taking over one or both of the companies and placing them into conservatorship.

The government doesn't expect the firms to fail and no rescue plan is imminent, according to the papers. But both papers reported that talks, which it said had previously been part of normal contingency planning, have become more serious recently.

....

What Fannie and Freddie do - why they matter

Fannie and Freddie are crucial components to the nation's home lending industry, as they buy pools of mortgage loans and sell securities backed by the payments from those loans.

The two companies own or guarantee about $5 trillion of mortgages - or nearly half of all U.S. home-mortgage debt outstanding.

http://money.cnn.com/2008/07/10/news/companies/fannie_freddie/?postversion=2008071105

---

So the government does not expect them to fail? Then let's suppose this bailout proposal is just a bunch of mental circle jerking.

[ozymandius]

16. Fannie and Freddie: Conservatorship as Endgame?

The New York Time reports that the Federal government is leaning towards conservatorship as the approach for handling Freddie and Fannie's shaky finances. Under this scenario, shareholders are wiped out and taxpayers fund any losses.

What I find disturbing about the mainstream media coverage is the refusal to connect the dots between the increasing demands placed on the GSEs by Congress and the negative reaction in the market. This is pushback, pure and simple, against efforts to finesse a Federal bailout of housing by pushing as much as possible on to Fannie and Freddie, rather than set up new programs so the costs would be explicit.

There are no free lunches, particularly in times like these.

From the New York Times:

Alarmed by the growing financial stress at the nation’s two largest mortgage finance companies, senior Bush administration officials are considering a plan to have the government take over one or both of the companies and place them in a conservatorship if their problems worsen, people briefed about the plan said on Thursday.....

Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers.

The government officials said that the administration had also considered calling for legislation that would offer an explicit government guarantee on the $5 trillion of debt owned or guaranteed by the companies. But that is a far less attractive option, they said, because it would effectively double the size of the public debt.

Yves here. So the Feds believe that the markets can be fooled by off balance sheet financing. Back to the Times:

Although Treasury Secretary Henry M. Paulson Jr. and Ben S. Bernanke, the chairman of the Federal Reserve, passed up invitations by lawmakers on Thursday to seek legislation to deal with the crisis, officials said that the administration had been privately considering a government takeover should the markets continue to turn against the companies....

...

Neither official would address a question posed by Representative Dennis Moore, Democrat of Kansas, who asked whether the failure of either institution would pose a risk to the financial system.

So Paulson couldn't even muster a convincing lie, and ducked the question clumsily. That give you the answer right there.

http://www.nakedcapitalism.com/2008/07/fannie-and-freddie-conservatorship-as.html

[ozymandius]

18. Uh-Oh! Bad Sign on Fannie & Freddie

Marketwatch reports that the government discussed a contingency plan in case the unthinkable happens, and Fannie Mae (FNM) and Freddie Mac (FRE) were to fail.

But don't worry -- the Bush administration DOES NOT expect the entities to fail. And, they note no rescue plan is imminent.

Rex Nutting says Uh-Oh! This is a major contrary indicator, and it suggests Freddie and Fannie are toast!

Why?

"Is there any surer sign of an impending disaster than a reassurance from the White House that it doesn't expect it to happen?"

Rex adds this short list of other things that the Bush administration didn't expect:

Terrorists to fly airplanes into buildings.

Saddam Hussein to have been telling the truth about not having any weapons of mass destruction.

Iraqis to object to a long-term occupation by a foreign power.

Hurricane Katrina.

People in New Orleans to object to the government's response to Hurricane Katrina.

The Democrats to take control of Congress.

The Democrats to cave in so easily on important issues after they took control of Congress.

Scooter Libby to get caught.

Jack Abramoff to get caught.

Abu Ghraib to be discovered.

Scott McClellan to smell the coffee.

The housing bubble.

The credit bubble.

The housing collapse.

The credit squeeze.

Bear Stearns to fail.

http://bigpicture.typepad.com/comments/2008/07/uh-oh-bad-sign.html

[radfringe]

20. Corporations should stop whining, it's all in their head

[ozymandius]

27. I see Chopper Ben running to fetch a hanky to wipe Citi's snotterly nose.

Meanwhile everywhere else is drowning with pneumonia.

[burf]

31. Looking at the cartoon

makes me wonder if that is one of the ACME brand Wiley Coyote umbrellas he is giving to Uncle Sam.

[boomerbust]

56. It looks to me

to be a Haliburton brand, not Acme.

[ozymandius]

2. Today's Reports

08:30 Export Prices ex-ag. Jun
Briefing NA
Consensus NA
Prior 0.4%

08:30 Import Prices ex-oil Jun
Briefing NA
Consensus NA
Prior 0.5%

08:30 Trade Balance May
Briefing -$61.0B
Consensus -$62.2B
Prior -$60.9B

10:00 Mich Sentiment-Prel. Jul
Briefing 55.0
Consensus 55.5
Prior 56.4

14:00 Treasury Budget Jun
Briefing NA
Consensus $33.0B
Prior $27.5B

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

[UpInArms]

41. 8:30 Report highlight: U.S. June import prices rise 20.5% year over year

14. U.S. May real trade gap lowest since Oct. 2002
8:30 AM ET, Jul 11, 2008

15. U.S. May real imports down 1.8%; real exports up 0.7%
8:30 AM ET, Jul 11, 2008

16. U.S. May exports rise 0.9% to record $157.5 billion
8:30 AM ET, Jul 11, 2008

17. U.S. May imports rise 0.3% to record $217.3 billion
8:30 AM ET, Jul 11, 2008

18. U.S. May trade deficit narrows 1.2% to $59.8 billion
8:30 AM ET, Jul 11, 2008

19. U.S. May import prices rise revised 2.6%
8:30 AM ET, Jul 11, 2008

20. U.S. June imported petroleum prices rise 7.4%
8:30 AM ET, Jul 11, 2008

21. U.S. June imported natural gas prices rise 9.9%
8:30 AM ET, Jul 11, 2008

22. U.S. June import prices rise 0.8% excluding all fuels
8:30 AM ET, Jul 11, 2008

23. U.S. June import prices rise 20.5% year over year
8:30 AM ET, Jul 11, 2008

24. U.S. June import prices rise 2.6%
8:30 AM ET, Jul 11, 2008

[UpInArms]

66. Preliminary July UMich sentiment @ 56.6 (now we're getting happier! the choco rations are up!)

01. U.S. July UMich consumer sentiment 56.6: reports
9:57 AM ET, Jul 11, 2008

02. U.S. July UMich consumer sentiment above 56 expected
9:57 AM ET, Jul 11, 2008

[UpInArms]

69. note:

look at the timestamp on that report -

It is due at 10:00 not a minute earlier - not a minute later

TBTB released it early because TBTB thought it would be perceived as "good" news

:shakeshead:

[UpInArms]

79. "consumers complained about higher food and fuel prices and smaller income gains than ever before"

http://www.reuters.com/article/ousiv/idUSN1125525020080711?sp=true

The Surveys of Consumers, in a release, also said one-year inflation expectations jumped to the highest since the stagflationary year of 1981, rising to 5.3 percent from June's 5.1 percent.

Five-year inflation expectations held steady at the peak of 3.4 percent it occupied in both May and June, which was the highest in 13 years.

The low overall consumer sentiment and high inflation expectations leave the Federal Reserve in a bind. The U.S. central bank must decide whether to keep interest rates low to support growth or raise them to damp price growth.

"Consumer confidence remained unchanged from June at just above its 50-year low due to surging prices and mounting job losses," the Surveys of Consumers said in a statement.

"Continued declines in consumers' evaluations of their personal finances were offset by the availability of larger discounts on household durables and vehicles."

The index of consumer expectations fell to its lowest since May 1980, hitting 48.3 after June's 49.2.

The report said more consumers complained about higher food and fuel prices and smaller income gains than ever before, and the fewest expected improvement in their finances than at any other time in the history of the survey.

OMG! The proles are "complaining"!!!!

Who writes this shit!!!

People are dreadfully affected - they are making hard choices - do I put gas in the tank or feed my kids!

:nuke:

[UpInArms]

155. U.S. June federal budget surplus $50.7 billion (huh?)

17. U.S. June federal budget surplus $50.7 billion as expected
2:00 PM ET, Jul 11, 2008

[ozymandius]

3. Oil rises above $143 on supply worries

KUALA LUMPUR, Malaysia - Oil climbed above $143 a barrel Friday in Asia, boosted by concerns over possible disruption to tight global supplies amid tensions over Iran's launch of test missiles and the possible renewal of oil-related violence in Nigeria.

....

Late afternoon in Singapore, light, sweet crude for August delivery was up $1.99 at $143.64 a barrel in Asian electronic trading on the New York Mercantile Exchange.

The contract rose $5.60 in the overnight floor session to $141.65 a barrel — after losing nearly $10 on Monday and Tuesday and then gaining a penny on Wednesday.

....

The Organization of Petroleum Exporting Countries has warned that it cannot replace the shortfall if Iran is attacked and takes its crude supplies off the market. The fear is that Iran, OPEC's second-largest producer, could block the Strait of Hormuz, a passageway that handles about 40 percent of the world's tanker traffic.

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

[ozymandius]

4. Chevron sees downstream loss in second quarter

NEW YORK (Reuters) - Chevron Corp (CVX.N) said on Thursday it expects second-quarter earnings from its exploration and production operations to rise on higher oil and gas prices, but will be offset somewhat by a loss at its refining and marketing business.

The second-largest U.S. oil company, which posted a profit of about $252 million from its refining and marketing business in the first quarter, said it expects that number to fall "well in excess" of $500 million in the second quarter.

http://news.yahoo.com/s/nm/20080710/bs_nm/chevron_dc_1

[UpInArms]

42. August crude hits record high at $146.90 a barrel on Globex

06. August crude hits record high at $146.90 a barrel on Globex
8:37 AM ET, Jul 11, 2008

[UpInArms]

54. August crude hits record high of $147.27 a barrel on Globex

04. August crude hits record high of $147.27 a barrel on Globex
9:35 AM ET, Jul 11, 2008

[ozymandius]

5. (Here's the earnings biggie.) General Electric 2Q profit falls

HARTFORD, Conn. - Industrial conglomerate General Electric says its profit fell 6 percent in the second quarter, as discontinued operations and loss provisions weighed on results.

...

On the basis of continuing operations, GE says it earned $5.39 billion, or 54 cents per share. Thomson Financial says analysts expected the company to report earnings of 54 cents per share on revenue of $45.31 billion.

http://news.yahoo.com/s/ap/20080711/ap_on_bi_ge/earns_general_electric

[ozymandius]

6. US stocks lower as GE fails to motivate investors

NEW YORK - Wall Street headed for a moderately lower open Friday after General Electric Co.'s quarterly report failed to motivate investors still anxious about the health of the financial industry.

GE, the conglomerate that owns everything from television network NBC to jet engine plants, reported second-quarter profits that met analysts' expectations. However, the outlook across its business lines was mixed — and overall results were not convincing enough to send futures higher.

The Dow Jones industrial average futures fell 57, or 0.42 percent, to 11,160. Standard & Poor's 500 index futures fell 5.50, or 0.44 percent, to 1,249.00, while Nasdaq 100 index futures fell 11.75, or 0.63 percent, to 1,832.50.

http://news.yahoo.com/s/ap/20080711/ap_on_bi_st_ma_re/wall_street

[ozymandius]

7. Citi sells German retail banking for $7.7 billion

FRANKFURT, Germany - Citigroup will sell its German retail banking operation to France's Credit Mutuel for $7.7 billion in cash.

In a statement released Friday, Citigroup said the deal includes its Duesseldorf-based Citibank Privatkunden AG & Co. KGaA, along with some affiliates. The sale is expected to close in the fourth quarter if approved by regulators.

...

Cooperatively owned, Credit Mutuel is France's second largest retail bank with nearly 15 million customers and more than 5,000 branches, according to the bank's Web site.

http://news.yahoo.com/s/ap/20080711/ap_on_bi_ge/germany_citibank_credit_mutuel

[ozymandius]

8. GE sells Japanese finance unit for $5.4 billion

HONG KONG (MarketWatch) -- General Electric Co. has agreed to sell its Japanese consumer financial-services unit to Shinsei Bank for 580 billion yen ($5.4 billion), the U.S. conglomerate said Friday.

The agreement calls for Shinsei to acquire GE Consumer Finance Co. Ltd.'s wholly owned credit-card and mortgage operations as well as its Lake personal-loan business, and to retain these units' employees, GE said in a statement.

http://www.marketwatch.com/news/story/ge-agrees-sell-japan-consumer-finance/story.aspx?guid=%7B78D1C03F-832C-4AFF-8684-C97B8B4D8BDE%7D&dist=msr_1

[ozymandius]

10. U.S. Consumers Trade Down As Economic Angst Grows

Spurred by economic worries, American shoppers have quickly decided that cheaper is better. They are trading down to store brands from fancy labels, to small cars from SUVs, and to deep-discounters from full-service stores.

Wal-Mart Stores Inc., which last year returned to its discount roots to try to reverse weakening sales, Thursday reported its best monthly sales gain in four years; it benefited from bargain-hunters seeking deals on the most basic stuff.

Discount stores overall saw sales jump nearly 6% last month, while those of full-price department stores declined. Consumers' use of discount coupons is starting to rebound after a 15-year slide. In June, the lowly Toyota Corolla became the best-selling vehicle in America, a spot held for more than two decades by the beefier (and pricier) Ford F-150 pickup.

....

Visits to department stores are down 6% this year, down 7% at office-supply stores and down 10% at home-improvement retailers, says market watcher Nielsen North America, which tracks store traffic and spending. But the downturn has proved a boon for retailers at the bottom of the price scale. Family Dollar Stores Inc., a small, discount department-store chain, forecasts same-store gains of 4% to 6% for its fiscal fourth-quarter ending Aug. 30. Dollar General Corp., another discounter, recently reported same-store sales jumped 5.6% for the fiscal quarter ended May 2.

http://online.wsj.com/article/SB121573829143444631.html?mod=googlenews_wsj

[ozymandius]

11. Airlines' Cry For Help

Help us help you, airlines pleaded with customers, asking them to urge Congress to keep down fuel prices by curbing speculation.

The same airlines that have slapped price tags on everything short of flotation devices are now asking customers to channel their anger toward lawmakers who are responsible for "poorly regulated market speculation." Chief executives from 12 major operators, including AMR, US Airways Group, Delta Air Lines and Northwest Airlines, blame rampant speculation for oil prices that have nearly doubled in price in the last year.

"Over 70 years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed," they wrote, adding that restoration and stricter enforcement of the limits in combination with reforms to improve transparency, "will help cool the over-heated oil market and permit the economy to prosper."

....

Northwest Airlines blamed high fuel prices for its decision to cut 2,500 jobs, charge $15 to check luggage, and enact fees ranging from $25 to $100 for travelers redeeming frequent-flier award tickets. American Airlines was the first to announce checked bag fees, which have since been employed by US Airways and UAL's United Air Lines. Both American and Delta Air Lines charge for frequent flier award redemption. US Airways is the first to eliminate in-flight entertainment systems.

http://www.forbes.com/equities/2008/07/11/us-airways-closer-markets-equity-cx_mp_0710markets44.html

[formercia]

12. Check out the DAX

Europe is falling fast at the moment.

http://finance.yahoo.com/#market_summary_europe

[ozymandius]

14. at 7:22

DAX INDEX 6,171.84
change -133.16
% change -2.11%

[ozymandius]

15. European Stocks, U.S. Futures Fall; Volkswagen, Air France Drop

July 11 (Bloomberg) -- European stocks declined after oil climbed above $145 a barrel, weighing on the earnings outlook for automakers and airlines. The U.K.'s FTSE 100 Index slipped into a bear market, and U.S. futures fell.

Volkswagen AG, Europe's largest carmaker, and Air France- KLM Group declined as crude advanced for a third day. Credit Agricole SA led a retreat by banks after Le Monde reported its Chief Executive Officer Georges Pauget may resign. General Electric Co. gained after reporting earnings.

Europe's Dow Jones Stoxx 600 Index lost 1.8 percent to 272.88 at 12:18 p.m. in London. The index has fallen 2.3 percent this week, heading for its sixth straight weekly drop and the longest losing streak since January.

Banks have led the rout that erased more than $11 trillion from global equities this year as record oil prices, accelerating inflation and more than $400 billion in credit-related losses threatened to push the U.S. into recession and stifle profit growth.

http://www.bloomberg.com/apps/news?pid=20602004&sid=aS24Popj.YzU&refer=world_indices

---

It boggles my mind to see language saying the the United States is not already in a recession - but merely in danger of falling into one.

[Dr.Phool]

17. If we would just quit whining, and start shopping.

There would be free oil, airline tickets, and ponies for everyone.

[TheWatcher]

26. We all just need to form a single file line in front of the Apple Store

And Bask in the Superior Indifference of Gadget Therapy.

I can guarantee that the heroin like high of technological wizardry will make us all forget about FNM and FRE by 11 AM.

And like Slim Pickens in Dr. Strangelove, we will ride the Information Highway of Comfort to a peaceful Euthanasia.

[DemReadingDU]

61. lol

:rofl:

[Dr.Phool]

74. You won't be laughing next week-end when I'm running amok in Ohio!

[ozymandius]

13. Lehman Takes `Pounding' Again as Speculation Drags Down Shares

July 11 (Bloomberg) -- Lehman Brothers Holdings Inc., the securities firm that lost almost 75 percent of its market value this year, sank to the lowest since 2000 in New York trading as customers' votes of confidence failed to halt speculation that the stock may drop further.

Lehman, once the biggest U.S. underwriter of mortgage bonds, fell $2.44, or 12 percent, to $17.30 in New York Stock Exchange composite trading yesterday. Shares of the New York- based investment bank lost 22 percent in the last two days.

.....

Pimco and SAC's endorsements were overwhelmed as Lehman, led by Chief Executive Officer Richard Fuld, dropped alongside home-loan financing companies Fannie Mae and Freddie Mac. Both face pressure to raise more capital amid a credit contraction that has saddled banks with $408 billion of writedowns. Lehman has taken a ``pounding'' from traders betting the shares will drop since rival Bear Stearns Cos. collapsed in March, according to Richard Bove, an analyst at Ladenburg Thalmann & Co.

http://www.bloomberg.com/apps/news?pid=20601084&sid=aruaTLzNICrU&refer=stocks

[UpInArms]

76. Lehman Brothers shares sink over 14 pct

http://www.reuters.com/article/ousiv/idUSN1135840620080711

NEW YORK (Reuters) - Shares of Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) tumbled 14.7 percent to $14.74 before the market open on Friday. The stock had already lost over 12 percent on Thursday.

[TheWatcher]

19. So this is how a Country Dies.

Just looking at the ECONOMIC News this morning is BREATHTAKING.

The Fed casually stroking themselves and calmly lamenting that they are considering Bailing Out FNM and FRE. Just 5.2 TRILLION, no big deal.

Oil at $143.00

Consumer Confidence....WHAT Consumer Confidence?

GE Imploding into the Abyss.

Citi sells German retail banking for $7.7 billion.

Airlines on the brink of Nationalization.

Basically the Economy itself is imploding right before our eyes.

Our fearless "leaders" continue to steamroll toward WW III like it's some sort of drunken Frat Boy Party game of Strip Risk.

The 4th Amendment is basically gone.

The criminals running this country continue to loot, kill, and pillage at their leisure, while one of the biggest ones goes on Vacation, clearly in Contempt of Court, thumbing his nose at a SUBPOENA, while Congress just scratches themselves and threatens to wag their fingers in disapproval if he doesn't stop fooling around and come sit down for a chat.

And what is the BIGGEST concern, the most PRESSING MATTER facing our country this morning, at least if we are to believe what the Talking Thought Guidance Counselors on the Cathode Slave Box are telling us?

Standing in line at the Apple Store to get ones hands on the latest geewizmobob gadget from Mr. Jobs.

So this is how a Country Dies.

Terminal Idiocracy.

God Bless America.

:wtf:

[TheWatcher]

21. And just to top it all off, would it surprise anyone, if despite all of this.....

The Market closed up 200 Points today.

I miss reality.

I really do.

[ozymandius]

28. Stupid White Men

---

Funny - this picture appeared when I googled "stupid white men":

[TheWatcher]

39. You know, the MORAN guy is more famous than he has any right to be.

:rofl:

But seriously ozy, have you EVER seen anything like this?

The cognitive dissonance to what is going on is INCREDIBLE.

[PassingFair]

113. It's giving me a headache.

Seriously.

[Hugin]

53. That's another one of those movies I didn't realize was a documentary...

the first time I saw it.

From the narrative: "... Scientific Research had focused on Hair Restoration and Erectile Dysfunction..."

Ahahahaha! Too funny... But, uh... Y'know, like sad and stuff too, man. :silly:

[Yavin4]

123. You Forgot Unending, Unprovoked Wars Abroad

With one presidential candidate within 8 points of starting another war abroad.

[ozymandius]

22. The Fannie and Freddie doomsday scenario

...
The disaster scenarios

The Federal Reserve and the Treasury have taken great pains to point out that the government is not obligated to bail out either Fannie or Freddie if they face insolvency.

It's debatable where the legal obligations lie, but as a practical matter, the government can't let these institutions fail because they are being counted up on to help fix the mortgage mess. If Fannie and Freddie were unable to buy and back loans, banks would stop originating them and the pool of homebuyers would shrink, causing home prices to fall even further.

....

So what would force the Treasury and Fed to step in?

Fannie and Freddie are among the most highly-leveraged companies around, meaning the amount of capital they have on hand is nowhere close to the level of assets they control.

Fannie and Freddie must constantly borrow money in order to operate; if for any reason borrowing costs rose sharply they would not be able to make good on their guarantees or even fund their day to day operations. This is when the government would feel intense pressure to step in and, at the very least, pay contracts in a timely manner.

In an April report, Standard & Poor's said an Armageddon scenario whereby Fannie and Freddie are insolvent is unlikely, but that the mere possibility of failure at either is a greater threat to the economy than the actual collapse of any investment bank.

http://money.cnn.com/2008/07/09/news/companies/benner_fanniefreddie.fortune/

[Pale Blue Dot]

24. I read this last night, and I thought "That's it. It's over."

Unless Fannie and Freddie miraculously find a way to become solvent, this may be the one event we look back on years from now and say: "That was the catalyst."

[Dr.Phool]

37. It looks like the perfect hurricane is about to hit Washington.

Congress will be out for their summer recess soon, out campaigning for their re-elections or on "fact-finding" trips to Aruba and the Marianas. The Chimp, oblivious to everything will be drunk down in Crawford for at least a month.

Maybe I'll head down to Costco this morning and increase my hurricane season supplies.

[UpInArms]

43. Fannie, Freddie shares under siege

http://www.marketwatch.com/news/story/fannie-freddie-shares-down-again/story.aspx?guid=%7BFBD22BF7%2DDC93%2D405D%2DA1AE%2D4C3DF8A5712F%7D

BOSTON (MarketWatch) -- Shares of mortgage giant Fannie Mae fell more than 50% in pre-open trade Friday, and cousin Freddie Mac dropped nearly as much, as investors increasingly believe the firms which made the American dream of home ownership possible for millions will need to be bailed out by the U.S taxpayer.

Fannie shares (FNM: 13.20, -2.11, -13.8%) fell 52%, to $6.35, and Freddie (FRE: 8.11, -2.15, -20.9%) shed slipped 44%, to $4.47.

Senior Bush administration officials are weighing a plan that would see the government take over one or both of the companies if a recent deluge of problems worsen, the New York Times reported Friday.

The report followed several similar reports this week in other publications.

"Our own very superficial and glib take (on a possible bailout) is that if the government bails out Bear they most assuredly would back Freddie/Fannie which already has the implicit guarantee -- the next step seems relatively easy," David Ader, a U.S. government bond strategist at RBS Greenwich Capital said in a note to clients early Friday.

The debt of Fannie and Freddie rose sharply Friday morning as buyers swooped into the market amid growing speculation that the U.S. government will backstop the struggling companies.

Agency debt with five-year maturities saw the biggest gains in early New York trade, with the premiums demanded by investors falling as much as 14.7 basis points over Treasurys on the Freddie Mac 3.75% note due on June 2013, according to TradeWeb.

...more...

[UpInArms]

46. Fannie, Freddie: 50% and sinking fast

http://money.cnn.com/2008/07/11/news/companies/fannie_freddie_shares/index.htm

NEW YORK (CNNMoney.com) -- The growing anxiety over Fannie Mae and Freddie Mac escalated on Friday as shares of the mortgage finance giants plunged in pre-market trading.

About 45 minutes before the market open shares of Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) were both off nearly 50% from their already battered close on Thursday.

In the first four trading days of the week, the shares of Fannie have lost 30% of their value, while Freddie shares have tumbled 45%. For the year, Fannie is down 67% and Freddie 77% through Thursday's close.

The two firms own or back more than $5 trillion of home mortgages and are a crucial source of funding for banks and other home lenders looking to make additional loans. If they were unable to do so, it would significantly raise the cost and availability of mortgage loans, causing significantly more problems for already battered housing prices and sales.

The New York Times reported Friday that senior Bush administration officials are considering a plan to have the government take over one or both of the companies if their problems worsen.

The Wall Street Journal reported a number of scenarios it said are being discussed by bankers and analysts to deal with investors' current crisis of confidence in the firms, including possibly having the Federal Reserve purchasing some of their debt or mortgage-backed securities, having the Fed make large, 10-year loans to the companies or even having the Treasury buying stock in the companies.

...more...

[Demeter]

181. You Gotta Wonder: Where's the Sense of Urgency?

Where is the leadership to make the hard and unpopular decisions so that millions of citizens are spared?

They are all looking for decisions that will spare the big money shareholders--not the customers, not the bystanders, just themselves. And they can't find one. Not a single one.

So do they panic? No, just write it off against profits.

[Pale Blue Dot]

23. Layoffs 7/11

One of these hits uncomfortably close to home for me. :-(

Sun Microsystems - national - 1000 jobs

Sun Microsystems on Thursday notified 212 people at its Broomfield and Louisville campuses that they will lose their jobs as part of a previously announced downsizing, according to state and company officials.

In all, Sun said Thursday it notified 1,000 workers across the U.S. and Canada that their jobs would be cut.

Thirteen people -- eight in Broomfield and five in Louisville -- are expected to lose their jobs between July 21 and Aug. 4, while199 more workers -- 131 in Broomfield and 68 in Louisville -- are expected to be laid off between Sept. 8 and 22, according to paperwork Sun filed with the state of Colorado in accordance with the federal Worker Adjustment and Retraining Notification Act.
http://www.dailycamera.com/news/2008/jul/10/sun-cuts-1000-jobs-us-and-canada/

Hartford Public Schools - Hartford, CT - 85 jobs

The impact of the cuts in the radical reorganization of the 2008-09 Hartford schools budget is now being felt.

And for many employees directly affected, it has been a rude surprise.

When Leigh Keynon, a special education teacher at Quirk Middle School, walked into the principal's office this week, getting laid off was the last thing she expected.

"It came out of nowhere," Kenyon said. "I don't know how they didn't know this in May , but a month and a half later, slots are being cut six weeks before school starts in September. Now I don't have a job."

In the past several weeks, at least 85 employees in the school district have been laid off, most without much warning, according to numbers provided by school employee union heads — 16 special education teachers, 31 custodians, two guidance counselors and 36 secretaries.
http://www.courant.com/news/education/hc-schoollayoffs0711.artjul11,0,3073595.story

The Columbian Newspaper - Washington state - 20 jobs

The Columbian Publishing Co. has made further job reductions this week as the company struggles to meet operating budgets for the first half of the year. An estimated 20 positions were included in the latest round of layoffs, said Columbian Publisher Scott Campbell.

Eight newsroom employees were part of the job cuts, six reporters, one photographer and one sports clerk/writer.

“The economy — both nationally and locally — is pretty tough right now,” Campbell said. “It is impacting news organizations and companies in many business sectors. We have had another decline in advertising revenue over the past year, primarily in classified advertising, and advertising pays about 80 percent of the cost of publishing the newspaper.”
http://www.columbian.com/business/businessNews/2008/07/07112008_Columbian-goes-through-another-round-of-layoffs.cfm

Intermec and Terex Corp. - Seattle, WA - 380 jobs lost total

Intermec Inc., the Everett-based maker of bar code and radio-frequency identification systems for tracking inventory and shipments, said it plans to cut 260 jobs companywide as it moves manufacturing from its Everett headquarters to a Singapore-based contractor and consolidates repair work at other locations.

Of that total, 180 jobs will be gone from Everett, according to the company's filing with the state Employment Security Department.

The layoffs will occur over the next nine to 12 months.

Genie Industries Inc.'s parent, Terex Corp., laid off 120 full-time workers and an undisclosed number of temporary workers in its aerial work platforms segment. Redmond-based Genie, which makes lifts, booms and light towers, makes up the majority of that division, but the company didn't disclose how many of the layoffs were there or at its manufacturing plant in Moses Lake.
http://seattlepi.nwsource.com/business/370360_intermec11.html

Pinellas County law enforcement - FL - 25 jobs lost

LARGO - Pinellas County Sheriff Jim Coats said the layoff of 25 law enforcement deputies on Thursday, July 10, is part of “devastating” budget cuts to his agency.

Coats said the layoffs, effective Aug. 8, were prompted by the Pinellas County Board of Commission’s mandate that the sheriff cut his budget by 10 percent or $25.7 million for the next fiscal year.

“We can’t find any other sheriff’s office in the state of Florida that has been asked to reduce their budget by the percentage amount that we have,” Coats said, during a press conference at the Sheriff’s Office. “It’s unprecedented for our agency.”
http://www.tbnweekly.com/content_articles/071008_pco-01.txt

Motor Coach Industries - Pembina, ND - 40 jobs lost

Forty hourly workers at Motor Coach Industries’ Pembina, N.D., assembly plant received layoff notices Thursday, according to a company spokeswoman.

According to Patricia Plodzeen, the layoffs will be effective July 18.

Plodzeen said the layoffs were because of an adjustment in the line rate or the number of buses produced by the plant.
http://www.grandforksherald.com/articles/index.cfm?id=81609§ion=homepage

City of Atlanta - 165 jobs potentially lost

ATLANTA (AP) -- Atlanta Mayor Mayor Shirley Franklin plans to
discuss more projected job cuts with city departments on Friday.
Franklin told the City Council that 165 more position must go,
having "a direct impact on municipal services."
In a letter to the council Thursday, Franklin did not specify
where the cuts will be made. The savings projected total $2 million
more than the council requested to balance the budget.
The letter says the cuts will "impact public safety services"
and the city will not reach its goal of having 2,000 police
officers by 2010, the year after Franklin term ends.
Facing a $140 million shortfall, Franklin laid off 441 city
workers in May and eliminated 788 additional positions to balance
the budget for the fiscal year that started July 1.
http://www.wrdw.com/home/headlines/24444279.html

Mannatech - Coppell, TX - 60 jobs lost

Mannatech Inc., a developer of dietary supplements and skin care products, said Thursday the company will be cutting approximately 60 positions, or 15 percent of its U.S. work force, to streamline expenses and improve the company's positioning in terms of profitability.

Mannatech (NASDAQ: MTEX) currently employs 613 staff members worldwide, including 449 positions based at its corporate headquarters in Coppell.

In addition to job cuts, the company says it intends to slice other discretionary expenses.
http://dallas.bizjournals.com/dallas/stories/2008/07/07/daily41.html

By the way, for those who are interested, I found a great resource that summarizes weekly layoffs:
http://www.costar.com/News/Article.aspx?id=FB87066723177AED718B97E05D8F22F5
It's comprehensive and very informative.

[ozymandius]

25. Thanks for putting this together Finnfan.

As a fellow teacher, those job cuts do hit me in the gut too. That symbolizes a totally nutso sense of priorities.

Plus city services in Atlanta, my fair city are cut. Atlanta's taxes are so high as to make one dizzy. Yet the city functions so poorly. Where does the money go?

[Pale Blue Dot]

29. Among the many scary things about this

is that I've assumed that the teaching profession would be relatively immune to a downturn. It looks like I may have been mistaken.

[radfringe]

30. bush* numbers

[Doctor_J]

45. I love that second graph

* should always be associated with red - all of his failed businesses, his failed Residency, and the blood of more than a million people in Iraq

[TheFarseer]

190. Thanks for that last graph

that is mind-blowing

[Pale Blue Dot]

47. Siemens to compile lists of employees affected by job cuts by end-August

MUNICH (Thomson Financial) - Siemens AG. is planning to compile the lists of all employees affected by the company's wide-ranging job cuts by the end of August, a Siemens spokesperson said, confirming statements made in a company presentation.

Siemens (nyse: SI - news - people ) announced last week it plans to cut 16,750 jobs worldwide, with 5,250 jobs to be slashed in Germany.

Worldwide, the company employs about 420,000 people, 130,000 of whom work in Germany.

Siemens said it is planning to cut some of the jobs via transfer companies, part-time pre-retirement schemes as well as via internal and external job placements, training programmes for further job qualification and severance packages.

http://www.forbes.com/afxnewslimited/feeds/afx/2008/07/11/afx5204898.html

[ozymandius]

32. Federal takeover of GSEs now in the works

As I said in an earlier post, taking over Fannie and Freddie has been the plan all along for the Bush Administration. They have been planning this since at least March. Coincidentally, I have confirming evidence now. The New York Times reports that they are unveiling this plan for a bailout now.

They are only doing so because market events dictate it. In the wake of the Lehman Brothers analysis suggesting $75 billion in additional capital is needed at the two GSEs there is no choice but to deploy the secret plan.

I find it an ironic coincidence that the report comes from Lehman Brothers. Lehman was saved in part by the GSEs' having provided liquidity to the mortgage markets since March. In another ironic twist, the resulting market turmoil might send Lehman to the wall as well.

Alarmed by the growing financial stress at the nation’s two largest mortgage finance companies, senior Bush administration officials are considering a plan to have the government take over one or both of the companies and place them in a conservatorship if their problems worsen, people briefed about the plan said on Thursday.

The companies, Fannie Mae and Freddie Mac, have been hit hard by the mortgage foreclosure crisis. Their shares are plummeting and their borrowing costs are rising as investors worry that the companies will suffer losses far larger than the $11 billion they have already lost in recent months. Now, as housing prices decline further and foreclosures grow, the markets are worried that Fannie and Freddie themselves may default on their debt.
-New York Times, 11 Jul 2008

This is a very palatable way out from a political perspective, because it helps do an end run around on some of the mortgage bailout chatter. In addition, the Bush administration can get credit for tackling the problem. They also get to offer a backdoor bailout to mortgage companies and homeowners at taxpayer expense without having to explicitly do so.

http://www.creditwritedowns.com/2008/07/federal-takeover-of-gses-now-in-works.html

[MUAD_DIB]

33. A little off topic, but...

You already have a market pool going for when the Dow reaches parity (parody?) with its 2001 numbers when * was installed, but have you thought about a second pool to see when he takes wing and heads for Paraguay when pool number one sadly becomes a reality?

[ozymandius]

35. I don't think anyone has touched that subject.

I imagine Bush would take flight before the discovery process proceeding the trials. But I'm not holding my breath - too much calculus.

[radfringe]

36. sorry if I sound like a cynic... but

there won't be any trials - congress doesn't have the balls to do it this year

if (heaven forbid) mccain wins - he'll award the bushies the medal of freedom

if it's Obama - the talking point will be that it's more important to focus on the future and unite the country rather than focusing on the past and further dividing the country

[Dr.Phool]

38. Sometimes cynicism is called realism.

[Hugin]

100. Actually, the pool is somewhat optimistic...

Considering we ignore the fact the Dow went down to somewhere in the 7 - 9,000's in late 2002 - early 2003.

[ozymandius]

34. How about some fugly futures numbers?

08:30 am : S&P futures vs fair value: -16.6. Nasdaq futures vs fair value: -25.8.
Stocks remain in position for a negative start. The May trade balance totaled a $59.8 billion deficit. Economists expected a trading deficit of $62.5 billion. The June import price index climbed 2.6% month-over-month, which is even with the increase registered in May and more than the 2.0% increase economists were expecting. Year-over-year, the June import price index showed 20.5% increase, though economists were expecting an 18.6% increase and the May index showed an 18.8% increase.

08:00 am : S&P futures vs fair value: -14.0. Nasdaq futures vs fair value: -21.2.
Stock futures indicate a downward open to Friday's trading session. General Electric (GE) announced quarterly earnings results that matched the consensus estimate, generating $0.54 per share. The company also provided an in-line outlook. Shares of Fannie Mae (FNM) and Freddie Mac (FRE) are down in premarket action after reports suggested the government is considering taking over the lenders if their problems worsen. Oil prices are climbing, adding to early pessimism.

[UpInArms]

40. dollar diving watch

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

Last trade 72.203 Change -0.290 (-0.40%)

Another Big Surprise for the Dollar

http://www.dailyfx.com/story/bio1/Another_Big_Surprise_for_the_1215726152155.html

The currency market was fairly quiet today with the US dollar rallying against some currencies and falling against others. Jobless claims were the only piece of data released and filings for unemployment dropped by 58k to the lowest level in 3 months. The goods news however was shrugged off by the markets because the data is distorted by seasonal shutdowns in auto plants. This happens every summer in the month of July and lasts for about two weeks. According to the Labor department, their seasonal adjustment formula prices in auto layoffs in the first 2 weeks of July and fewer occurred last week than expected. Excluding the seasonal adjustment, claims actually increased by 30k while continuing claims rose by 91k. With companies such as Starbucks, Citigroup and Air Tran announcing layoffs in the past month, the labor market will worsen before it improves. Despite the bad news, the US dollar may be in for a big surprise. A difficult labor market, the decline in the stock market and the rise in food and energy prices are expected to force US consumers to reduce spending. However judging from the monthly reports from retailers, consumer spending may not be that bad. Discounters like Wal-Mart, Costco and Target all reported stronger sales in the month of June as consumers continue to spend their tax rebates. If retail sales remain positive, the US economy may avoid double dipping, which would be a nice surprise for the US dollar. Fannie Mae and Freddie Mac’s potential solvency problems were the biggest news in the financial markets today. They are too big to fail and we believe that the US government will exhaust their options before allowing this to happen because preventing or mitigating future crisis is Bernanke and Paulson’s top priority. Fed President Yellen even said today that the Fed has the potential to further ramp up facilities if needed. Meanwhile the US trade balance and consumer confidence reports are due for release tomorrow. The rise in the export component of the manufacturing ISM report suggests that the trade balance will improve, but any dollar rally could be offset by the consumer confidence report which will be released shortly thereafter. More strain on the US economy should lead to weaker consumer confidence.

...more...

Carry Nears A Breakout As Earnings Gear Up And Credit Fears Rise

http://www.dailyfx.com/story/special_report/special_reports/Carry_Nears_A_Breakout_As_1215772633853.html

While the DailyFX Carry Trade Index was modestly higher over the past week, the strategy (and overall risk sentiment) is on the verge of a breakout with earnings season kicking off and signs of a deepening financial crisis popping up all over the market. Today, the carry index stood at 28,935 – 101 points above last Friday’s level. However, looking at the chart below, it is easy to grasp the pressure building behind an inevitable break in the market’s cautious stance. Since May, the basket has cut an ascending wedge with a horizontal resistance around 29,050. Perhaps offering a bias for the eventual trend development, market condition indicators are actually working their way lower despite improvements seen this past week. USDJPY risk reversals corrected considerably from its highest levels since last October and the volatility index is holding above the critical 10 percent figure.

The rebound in risk appetite seen from the March swing low has been slowly curbed by various signs that credit conditions and a lack of liquidity are still burdening the financial markets. Recently, a Bank of England credit report forecasted that the credit market – the life blood of investment – would worsen through the third quarter. Such a forecast is troubling considering European banks are paying the highest prices in a decade to raise capital just to meet reserve requirements, while the governmentally sponsored Fannie Mae and Freddie Mac in the US are paying record yields in their own efforts to fortify reserves. In the weeks ahead, speculation that these two lenders may require a government bailout or face bankruptcy will help to define the overall direction of risk trends; and the debate is lively. St. Louis Fed President William Poole has suggested the government step in now as the companies are essentially insolvent. Another driver for risk trends and the carry trade will be banks’ second quarter earnings numbers, which start to hit the wires next week.



...more...

[Pale Blue Dot]

44. About Those Companies Brought Down by Rumors . . .

We've heard from oh-so-many people how whisper campaigns have brought down so many firms like Bear Stearns (BSC) and Indy Mac (IMB) and Fannie (FNM) and Freddie (FRE) and now Lehman Brothers (LEH).

Why is it that all these rumor-mongerers and shorts are only bringing some firms to their knees? How come they always seem to be the over-leveraged, under-capitalized, unhedged, most poorly-managed companies? Isn't it funny that all of the firms that are the subject of such rumors have so many similar characteristics? Bear and Lehman and Fannie Mae and Freddie Mac and AIG and . . . the list goes on and on.

Why is it never the firms with strong balance sheets, good business models, making lots of profits? Why aren't we terrified that these powerful shorts go after Intel (INTC) or Google (GOOG) or Apple (AAPL) or Berkshire (BRK) or GE or Exxon Mobil (XOM)?

Or is that merely a funny and unexplainable coincidence?

According to Jamie Dimon, a whispering campaign can bring down a firm. Vanity Fair blames shorts and CNBC. If that's true, why not go short Bear AFTER it fell 100? Why not go after a really big firm, with lots of room on the downside to make even more money? Perhaps an alternative explanation is in order.

http://bigpicture.typepad.com/comments/2008/07/about-those-com.html

[Pale Blue Dot]

Holy crap! Dow's down 168 pts already! nt

[Renew Deal]

49. What set this off?

I mean today.

[ozymandius]

57. Oh - where to begin?

meltdown in banking

meltdown in mortgage securities

meltdown in bonds

meltdown in real estate

GE profits are down

only discount merchants show growth - and then they're only selling essentials

hard to find good news today

[UpInArms]

48. 9:33 EST Look Out Below!

Dow 11,066.02 163.00 (1.46%)
Nasdaq 2,223.81 34.04 (1.51%)
S&P 500 1,240.41 12.98 (1.04%)
10-Yr Bond 3.817% 0.006

NYSE Volume 160,701,687.5
Nasdaq Volume 54,280,496.094

edited to add the following:

if the market was down 163 at 9:33 and down 74 at 9:36

9:36

Dow 11,074.49 72.95 (0.65%)
Nasdaq 2,222.90 34.95 (1.55%)
S&P 500 1,235.59 17.80 (1.42%)
10-Yr Bond 3.821% 0.01

NYSE Volume 215,900,953.125
Nasdaq Volume 77,787,515.625

why is the Dow on 8 points different?????

Something is terribly wrong with this picture.

editing again - show the 9:41 numbers

Dow 11,060.57 168.45 (1.50%)
Nasdaq 2,225.31 32.54 (1.44%)
S&P 500 1,234.96 18.43 (1.47%)
10-Yr Bond 3.823% 0.012

NYSE Volume 289,885,031.25
Nasdaq Volume 115,750,554.688

and to say:

this is too weird for me

[UpInArms]

50. 9:36 EST and yo-yo-ing straight up (things that show the PPTs hand)

Dow 11,074.49 72.95 (0.65%)
Nasdaq 2,222.90 34.95 (1.55%)
S&P 500 1,235.59 17.80 (1.42%)
10-Yr Bond 3.821% 0.01

NYSE Volume 215,900,953.125
Nasdaq Volume 77,787,515.625

[Dr.Phool]

59. They're gonna have to commemorate this as "National Whiplash Week".

If you've been watching the charts all week, you've got whiplash.

[Joanne98]

51. Freddie down 44%

http://finance.yahoo.com/q?s=FRE

4.42 a share

[harun]

101. Almost 10x avg volume at mid-day, whew! They're tossing that

hot potato!

[Joanne98]

52. Fannie down 42%

http://finance.yahoo.com/q?s=FNM

7.71

[Joanne98]

55. Lehman down 17%

http://finance.yahoo.com/q?s=LEH

15$

[Joanne98]

58. Merrill down 4%

http://finance.yahoo.com/q?s=MER

[ozymandius]

60. PPT doing some heavy lifting today

9:53
Dow 11,096.64 Down 132.38 (1.18%)
Nasdaq 2,231.83 Down 26.02 (1.15%)
S&P 500 1,240.68 Down 12.71 (1.01%)
10-Yr Bond 3.809% Down 0.002
NYSE Volume 462,334,593.75
Nasdaq Volume 181,640,718.75

09:15 am : S&P futures vs fair value: -14.0. Nasdaq futures vs fair value: -20.8. The opening bell will sound shortly and stocks remain in position for a start in negative territory. Premarket sentiment has been consistently pessimistic.

09:00 am : S&P futures vs fair value: -16.5. Nasdaq futures vs fair value: -22.0. Stock futures continue to indicate a downside open for the week's final trading session. The Wall Street Journal has reported InBev is now offering to acquire Anheuser-Busch (BUD) for $70 per share, topping its initial bid of $65 per share. Oil has climbed above $146 per barrel in early electronic trading.

[Joanne98]

62. The West Implodes

Spain Implodes, UK Home Slide Most Since Great Depression

Data from everywhere is pouring in at a fast pace. Almost all of it is horrid. Let's start with a look at Europe where Spain pulls bond sale amid economic crisis.


The treasury pulled an expected sale of 15-year bonds after probing the market informally, saying it would wait until credit conditions began to calm down. "We are not facing financing problems. We placed a successful three-year note on Wednesday," said a spokesman.

Government officials have been shocked by the intensity of the downturn now engulfing the country. Car sales fell 31pc in June, industrial production has fallen 5.5pc over the past year and the collapsing property sector is shedding almost 100,000 jobs a month.

Miguel Sebastian, the industry minister, said the economy had ground to a halt in the second quarter and was now in "virtual recession".
Worst Slide Since Great Depression

In the UK the Slide in house prices is the worst since the Great Depression.

Britain is now in the midst of the worst housing slide since the Great Depression, economists declared after house price inflation dropped to the lowest level since comparable records began.

Figures from Halifax, the UK's biggest mortgage lender, showed house prices have fallen by 8.7pc in the year to June, confirming that the property crunch is more severe than the last housing crash in the early 1990s.

House prices have never fallen by more than 10pc over a year in recorded history, except in 1931, when Britain left the gold standard.

The Bank of England reported recently that the number of mortgages being approved for housing purchases dropped to 42,000 in May - the lowest level since comparable records began in 1993 and down 64pc on the previous year.

Prof Goodhart, now at the London School of Economics, said: "Output is going to fall, unemployment is going to rise, possibly quite sharply. It's a horrible situation. "The British economy is getting into quite a recession. I remember when the Queen had an 'annus horribilis,' and this is the annus horribilis for the MPC.
Bankers Want More Help

In a repeat of what is happening in the US, UK Bankers want more help from Bank of England.

Senior figures from the UK's biggest banks will today lobby the Bank of England to widen the terms of the special funding scheme launched in April to bring liquidity back to the financial sector. The bankers will argue that the Special Liquidity Scheme (SLS) has not done enough to restore confidence among banks, leading to them to remain cautious about lending money to each other and to customers.

The Bank may also be resistant to widening the terms of the SLS. The Bank's Governor, Mervyn King, has repeatedly warned of the "moral hazard" of financial institutions generating business without having proper concern about the risk of writing it at any price.
Britain Condemned For Flagrant Breach Of EU Spending Rules

The Telegraph is reporting Britain faces EU action over budget deficit.

European Union finance ministers have voted to condemn Britain for flagrant breach of the Maastricht spending rules, irked that the UK government has not even tried to keep its budget deficit below the treaty limit of 3pc of national income.

By its own admission, Labour will need to borrow at least 3.2pc of GDP this year, even if the economy holds up well. Brussels described this as "prima facie evidence of a planned excessive deficit". It warned that UK public finances were no longer on a sustainable course after the spending blitz of recent years.

Yesterday's vote is the first time the EU has launched disciplinary action against a big Western state under the revamped Growth and Stability Pact. While France and Germany both violated the old pact, they did so at the bottom of the dotcom mini-slump.

Britain's sins are more serious. The breach has occurred at the top of the cycle when tax revenues should be at their peak. Brussels said there had been a "deterioration of the structural balance of 4.5pc of GDP" since 1999. Brussels said Britain did not qualify under the "exceptional" circumstances clause.

The UK now has the worst fiscal profile of any developed country in the North Atlantic sphere.
UK Homebuilders Axe 40% Of Staff

The housing gloom is spreading as Bovis Homes and Redrow axe 40% of staff.

Bovis Homes and fellow housebuilder Redrow both said this morning that they plan to make 40pc of their staff redundant as the British public continues to put off buying new homes.

Bovis is cutting 400 jobs and this morning described the current market as "the worst backdrop the group has seen for many years", while 500 jobs will go at Redrow, which said that the pace of the downturn in the UK market was "unprecedented".

Bovis revealed the number of homes it sold in the first six months of the year fell by 32pc, and conceded that it was impossible to predict by how much house prices would fall.

Yesterday Persimmon, the UK's largest housebuilder, said that it was laying off 1,100 people - 22pc of its workforce. Last week, Taylor Wimpey said that it was wiping £660m off the value of its land holdings, in recognition of the fact that it is worth a lot less now compared with this time last year.
US Foreclosures Rise 53%

On this side of the ocean, Foreclosures Rose 53% in June, Bank Seizures Tripled.

U.S. foreclosure filings increased 53 percent in June from a year earlier and bank seizures rose the most on record as deteriorating property values and higher rates on adjustable mortgages forced more people to give up their homes.

More than 252,000 properties, or one in 501 U.S. households, entered a stage of the foreclosure process, RealtyTrac Inc., a seller of default data, said today in a statement. Bank seizures rose 171 percent, the most since the Irvine, California-based company began tracking statistics on default notices, warnings of a scheduled auction and repossessions in January 2005.

"The foreclosure problem is getting worse and will stay with us well into the next decade," Mark Zandi, chief economist for Moody's Economy.com in West Chester, Pennsylvania, said in an interview. "The job market is eroding and homeowners have less equity. Lenders are much less willing to work with you if you've got negative equity, and you're more likely to give up your house if you're deeply underwater."

Foreclosure activity is the highest since the Great Depression of the 1930s, said Rick Sharga, RealtyTrac's vice president of marketing. Home prices, which fell the most on record in April, according to the S&P/Case-Shiller index of 20 U.S. metropolitan areas, have created a cycle where shrinking equity drives homeowners into foreclosure, which in turn further pushes down home prices, Sharga said.

"We'll have 1 million bank-owned properties by the end of the year," Sharga said in an interview. "That will represent between one-fourth and one-third of all home sales."
There are only two words that can describe what is happening and both begin with a "D".

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

[ozymandius]

72. This is Soviet style economics.

Though it is pretending to be a capitalist system. It is soviet-style through: central economic planning; merger of state and corporate power; fiat currency based on faith; bald-faced lying on national economic statistics...

What can you think of that makes our system so similar to the Soviet model?

[zippy890]

88. huge unsustainable military budget

state capitalism with massive amounts of govt expenditures on military costs

[UpInArms]

63. Flucknut Hanky-Panky Paulson is set to trot out and lie:

01. Paulson to discuss Fannie, Freddie
9:56 AM ET, Jul 11, 2008

02. Treasury Secretary Paulson to speak 'shortly'
9:55 AM ET, Jul 11, 2008

this guy has turned himself into a 'toon

sheesh!

[Pale Blue Dot]

65. Let's see... what would the markets most like to hear?

Because that's exactly what he's going to say.

[UpInArms]

80. Trotting out to "calm" the markets:

01. Paulson: Maintaining dialogue with Fannie, Freddie
10:26 AM ET, Jul 11, 2008

02. Paulson: Supporting Fannie, Freddie in 'current form'
10:26 AM ET, Jul 11, 2008

03. Paulson: No bailout of Fannie, Freddie on horizon
10:26 AM ET, Jul 11, 2008

[UpInArms]

82. Today's tune for today's 'toon:

Mybaby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky!

My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky!

I saw her walking on down the line.
You know I saw her for the very first time.
A pretty little girl standing all alone.
“Hey baby, can I take you home?”
I never saw her, never really saw her.

My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky!

(solo)

I saw her walking on down the line.
You know I saw her for the very first time.
A pretty little girl standing all alone.
“Hey baby, can I take you home?”
I never saw her, never really saw her.

My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky!

My baby does the Hanky Panky,
My baby does the Hanky Panky,
My baby does the Hanky Panky...

[Pale Blue Dot]

83. The markets didn't like it.

They sank by 60 pts. after the news.

[Joanne98]

64. Steve Forbes is an Idiot!

http://globaleconomicanalysis.blogspot.com/2008/07/steve-forbes-on-economy.html


Steve Forbes On The Economy


Here is Steve Forbes at Freedom Fest.

VIDEO

Forbes' Thoughts


The US economy will show real growth in the second half because of low inventories.
There is plenty of liquidity out there even though a lot of it is frozen.
The rest of the world is starting to get it right.
In terms of investments we are on the cusp of a real era of innovation.
Right now I would take a bundle or package of financial institutions and buy them.

This is a classic: "There is plenty of liquidity out there even though a lot of it is frozen."

My Thoughts

The US recession picks up steam in the second half.

The world economy is going to slow.
Inventories are going to skyrocket along with unemployment.
Financials are not going anywhere except for a possible dead cat bounce.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

[Doctor_J]

67. Steve must've flunked 2nd grade science. If somthing's frozen,

then it's not liquid, you thundering moron

[Joanne98]

68. We're all homeowners now!

We're All Homeowners Now, Nationalization of Fannie, Freddie Unavoidable


Yesterday Freddie Mac, Fannie Mae Plunged on Capital Concerns.


Freddie Mac fell 18 percent and Fannie Mae dropped 16 percent after Lehman Brothers Holdings Inc. analysts said in a report today that an accounting change may force them to raise a combined $75 billion. Speculation that the companies may take further writedowns also weighed on the stock, said John Tierney, a credit strategist at Deutsche Bank AG in New York.

The new FAS 140 rule that seeks to stop companies keeping assets in off-balance sheet entities may force Fannie Mae and Freddie Mac to bring mortgages back onto their books, requiring them to put up capital, Lehman analysts led by Bruce Harting wrote in a note to clients today.

Fannie Mae would need to add $46 billion of capital and Freddie Mac would need about $29 billion, the Lehman analysts wrote.
Lie of the Day

Unsurprisingly, the lie of the day today is Fannie, and Freddie are Adequately Capitalized.

Mortgage financiers Fannie Mae and Freddie Mac are adequately capitalized and continue to be active in the mortgage market, said James Lockhart, director of the Office of Federal Housing Enterprise, which regulates the two enterprises.

"Both of these companies are adequately capitalized, which is our highest criteria," Lockhart said in an interview with CNBC. "They have been very active in the mortgage market, and they are continuing to be. And, in fact, Congress has put on them the requirement to do jumbo mortgages and they have been doing those as well."
Fannie Mae holds or guarantees over $5 trillion in mortgages. A mere 1% decline would wipe them out. Is that adequately capitalized? I do not think so and neither does Minyanville's Kevin Depew.

We're All Homeowners Now

Here are two video links on the impending nationalization of Fannie Mae.

We're All Homeowners: Nationalization of Fannie, Freddie Unavoidable

DepewTube: Nationalizing Fannie and Freddie

"Fannie Mae and Freddie Mac are not adequately capitalized even if the housing market turned around today. And it's not going to turn around today".

Separately Bloomberg is reporting Freddie, Fannie Don't Need More Capital, Ofheo Says.

"It concerns me that people sort of extrapolate well beyond what the facts are," Lockhart said. "Fannie and Freddie are continuing to do their job in the marketplace. They were created for just this type of marketplace and they are continuing to fulfill their function."

Fannie Mae and Freddie Mac, created by Congress to increase homeownership, have become one of the few avenues for new mortgage financing as competitors scaled back last year amid record increases in delinquencies and defaults. Their share of the conforming mortgage market, or new loans of $417,000 or less, almost doubled to 81 percent in the first quarter.
Fannie Mae Has Failed Its Mission

The second lie of the day is that "Fannie and Freddie are continuing to do their job in the marketplace." Nothing could possibly be further from the truth.

There is a rock solid Case for Abolishing the FHA and GSEs for many reasons. Here are some of them:

Fannie Mae has failed to help make housing affordable (its primary mission)
Fannie Mae's CEO was forced out in disgrace
Fannie Mae and Freddie Mac were both involved in multi-year derivative scandals where they had no idea what their derivative books ever were.
Government sponsorship of housing is absolutely guaranteed to drive up prices (until things implode as they did in the US).
And most importantly the government has no business promoting housing over renting for any reason. Such promotion causes bubbles and the biggest bubble in history is now imploding. If ever there was a complete model of precisely what not to do, the US government sponsorship of Fannie Mae and Freddie Mac would surely be on the list.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

http://globaleconomicanalysis.blogspot.com/2008/07/were-all-homeowners-now-nationalization.html

[Demeter]

182. I'm Trying to Imagine Bushbots In Charge of Mortgage Lending

And all that comes to mind is New Orleans, post-Katrina.

[UpInArms]

186. do you remember the only good thing that came out of Katrina?

for me, it was that Cooper Anderson stood in the middle of the street and started yelling.

[ozymandius]

70. Lifting into hernia territory.

10:04
Dow 11,144.75 Down 84.27 (0.75%)
Nasdaq 2,236.92 Down 20.93 (0.93%)
S&P 500 1,245.93 Down 7.46 (0.60%)
10-Yr Bond 3.821% Up 0.01
NYSE Volume 621,476,437.5
Nasdaq Volume 265,451,937.5

09:45 am : Stocks opened deep into negative territory. All three of the major indices are trading with losses in excess of 1.0%.

Selling pressure is broad-based, but primarily concentrated in the financial sector. Eight of the ten sectors are down more than 1.0%. Financials are down a hefty 2.8%, more than any other sector.

Oil is currently trading 3.3% higher, near $146.30 per barrel. Oil's rise has given support to the energy sector (+0.4%), which is the only economic sector posting an advance.DJ30 -137 NASDAQ -29 SP500 -14 NASDAQ Adv/Vol/Dec 458/123 mln/1759 NYSE Adv/Vol/Dec 409/111 mln/2260

[Pale Blue Dot]

78. Looks like they threw their backs out.

The Dow's back down 175 pts.

[MilesColtrane]

89. Domestic fairy dust supply long since depleted.

Due to record oil prices, can't afford to import any more Chinese fairy dust.

Only thing left for them to do, is cash out and get a plane ticket, leaving their successors to face the angry pitchfork and torches mob.

[Joanne98]

71. Dollar down against the Euro

AP
Dollar down against the euro at US$1.5940
Friday July 11, 10:06 am ET
Dollar falls against the euro as US trade gap narrows, mortgage crisis worries grow


FRANKFURT, Germany (AP) -- The U.S. dollar fell sharply against the euro, as fears continued that the entities that underpin the U.S. mortgage market may fail.
The 15-nation euro bought $1.5940 in afternoon European trading, up from the $1.5783 it bought in New York late Thursday.

The British pound climbed higher, too, buying $1.9930, above the $1.9775 it bought late Thursday

http://biz.yahoo.com/ap/080711/dollar.html?.v=4

[antigop]

73. GE: Financial Services Don't Need New Capital

http://money.cnn.com/news/newsfeeds/articles/djf500/200807110954DOWJONESDJONLINE000582_FORTUNE5.htm

General Electric Co. (GE) executives stressed Friday the conglomerate's financial services operations are in solid shape and won't need an influx of new cash.

"We absolutely don't need any external capital infusion," Chief Financial Officer Keith Sherin told analysts on a post-earnings conference call. "We will not be looking for any partners that would be a capital infusion."

Sherin also said the company's non-U.S. mortgage portfolio, which has about $ 79 billion in mortgages, is in good shape.

Fears regarding GE's big financial services operations have rattled investors since April, when the company posted a first-quarter earnings disappointment that it blamed largely on the credit crisis.

[Tansy_Gold]

98. Um, wait a minute. Am I losing my mind or did GE just

sell off part of its financial services?

Didn't I read about it up-thread?

Tell me I'm losing it. tell me I'm crazy. tell me I've lost my fucking mind, because that would be better than acknowledging it's the whole U.S. economy that's gone totally bonkers.

[UpInArms]

109. GE to sell Japan lender to Shinsei for $5.4 bln

http://www.reuters.com/article/ousiv/idUSTKG00318520080711?sp=true

TOKYO (Reuters) - General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz) will sell its Japanese consumer finance operation to Shinsei Bank Ltd (8303.T: Quote, Profile, Research, Stock Buzz) for $5.4 billion, concluding a year-long effort to pull out of consumer lending in Japan.

GE has been looking to shed assets globally amid calls from analysts and investors to simplify its vast operations which range from jet engines to media. Also, changing regulations have eroded profits in Japan's consumer lending sector.

The U.S. company said on Thursday it will look to spin off to shareholders its entire consumer and industrial unit, signaling it wants to part with a large part of its portfolio, not just the $7 billion appliance arm it has been looking to sell.

<snip>

Ratings agency Standard & Poor's put the bank on credit watch with negative implications, meaning that the deal was likely to have a negative impact on the bank's credit quality.

<snip>

"Profitability will never be as good as it used to be, therefore volume is critical."

Consumer lenders have seen their profits slide after Japan's parliament approved a law to lower the maximum interest rate they can charge. The regulations will go into effect by 2009, and moneylenders have already lowered their rates in anticipation.

They have also been forced to repay previous interest that is now deemed illegally high.

...more...

looks like they dumped it 'cause they couldn't be usurious anymore

:eyes:

[Tansy_Gold]

141. Well, duh, of course! (smacks forehead)

"looks like they dumped it 'cause they couldn't be usurious anymore."

How could I have made such a stupid mistake? I shoulda known that in the new booooooosh world of fundamentalist xtian economy, it's the wives that are s'posed to be subservient and submissive to the husbands, not the other way around! What was GE thinking? I'm glad they got rid of that awful business. Maybe now they'll get their wives in line and stop being so fond of them.



















Oh, you mean usurious? As in charging criminally and immorally outrageous rates of interest? :rofl: I thought you meant UXORIOUS!!!!!!!!!!!!















Tansy Gold, aka Emily Litella (for those who are old enough to remember.....and need a chuckle today)

[Joanne98]

75. Meltdown

Last Trade Change Volume Related Info
FRE FREDDIE MAC 4.50 9:59AM ET 3.50 (43.75%) 50,188,864 Chart, Profile, More
FNM FANNIE MAE 8.55 9:59AM ET 4.65 (35.23%) 52,650,936 Chart, Profile, More
FNA FEDERAL NTL MTG PFD 19.71 9:56AM ET 8.34 (29.73%) 571,796 Chart, , More
FRE-PS FED HOMELN PFD 24.80 9:58AM ET 0.70 (2.75%) 622 Chart, , More
FRE-PW FEDERAL HOME LN MTG 12.79 Jul 10 0.00 (0.00%) 0 Chart, , More
NWFL NORWOOD FIN CORP 20.03 Jul 2 8.56 (29.92%) 3,200 Chart, Profile, More
FRE-PV FEDERAL HOME LN MTG 7.92 9:46AM ET 4.98 (38.60%) 900 Chart, , More
FRE-PZ FREDDIE MAC PFD Z 14.00 9:59AM ET 3.60 (20.45%) 2,145,950 Chart, , More
CVLL COMMUNITY VALLEY BNC 6.7201 9:37AM ET 2.6599 (28.36%) 2,346 Chart, Profile, More
FNM-PQ FED NTL MTG SER Q 12.25 9:54AM ET 3.72 (23.29%) 6,100 Chart, , More
FNM-PI FANNIE MAE 5.375 I 19.76 9:54AM ET 6.99 (26.13%) 2,000 Chart, , More
QSND QSOUND LABS INC 1.56 9:30AM ET 0.09 (5.45%) 100 Chart, Profile, More
FRE-PY FEDERAL HME 6.55 PF 11.69 9:55AM ET 2.81 (19.38%) 2,500 Chart, , More
FRE-PL FREDDIE MAC VAR RTS 17.85 9:52AM ET 3.90 (17.93%) 2,000 Chart, , More
FRE-PF FED HOME LN MTG 5.0 17.00 9:55AM ET 6.00 (26.09%) 4,100 Chart, , More
FNM-PN FEDERAL NATL PFD N 29.00 Jul 10 0.00 (0.00%) 0 Chart, , More
FNM-PH FANNIE MAE 5.81% H 28.25 Jul 10 0.00 (0.00%) 0 Chart, , More
FNM-PT FEDERAL NATL PFD T 14.20 9:59AM ET 4.83 (25.38%) 499,950 Chart, , More
FNM-PL FED NATL MTG PFD L 18.00 9:54AM ET 6.14 (25.43%) 500 Chart, , More
FNM-PR FANNIE MAE PFD R 14.70 9:56AM ET 4.57 (23.72%) 18,700 Chart, , More
XFH LEHMAN ABS 8.20 MOTO 14.24 9:54AM ET 3.34 (18.99%) 12,400 Chart, , More
FRE-PH FREDDIE MAC 5.10 PFD 22.40 9:48AM ET 3.50 (13.51%) 200 Chart, , More
EUBK EUROBANCSHARES, INC. 2.96 Jul 10 0.00 (0.00%) 0 Chart, Profile, More
FNM-PF FANNIE MAE PFD F 13.00 9:36AM ET 4.85 (27.17%) 1,400 Chart, , More
FNM-PS FANNIE MAE PFD S 14.28 9:59AM ET 3.74 (20.75%) 4,452,317 Chart, , More
http://finance.yahoo.com/losers?e=us

[ozymandius]

77. Lehman Takes `Pounding' as Speculation Hurts Shares (Update1)

July 11 (Bloomberg) -- Lehman Brothers Holdings Inc., the securities firm that lost almost 75 percent of its market value this year, sank to the lowest since 2000 in New York trading as customers' votes of confidence failed to halt speculation that the stock may drop further.

Lehman, once the biggest U.S. underwriter of mortgage bonds, fell 40 cents, or 5.2 percent, to $16.40 before the official open on the New York Stock Exchange. Shares of the New York-based investment bank have lost 24 percent this week.

Yesterday's speculation centered on two clients backing away from the firm. Pacific Investment Management Co., manager of the world's biggest bond fund, and hedge fund SAC Capital Advisors LLC both said publicly that they continued to do business with the company. Pimco fund manager Bill Gross said in an interview with CNBC that there's ``no question'' about the firm's solvency.

....

About 70.3 million shares, or 10 percent of Lehman's outstanding stock, were sold short by investors as of June 30, compared with 37 million at the start of the year, the New York Stock Exchange said yesterday.

....

Lehman said in a filing last night that its Tier 1 ratio, a measure of capital adequacy, was 10.7 percent, while its total risk-based capital ratio was 16.1 percent at the end of second quarter. That compares with 10.8 percent Tier 1 ratio and 14.2 overall ratio at Goldman Sachs Group Inc., the largest securities firm. U.S. securities firms are revealing their capital ratios for the first time under new Securities and Exchange Commission regulations.

http://www.bloomberg.com/apps/news?pid=20601084&sid=a2hReA72Y2sk&refer=stocks

[thewiseguy]

81. Breaking: No bailout for either of those firms on the horizon

[Dr.Phool]

86. Translation: Are they going to try to blame this on us?

"We've already worked overtime one week-end this year, and it will just have to wait until next week".

[UpInArms]

84. 10:32 EST and doing a big fugly belly flop (that's gonna leave a mark!)

Dow 11,037.77 191.25 (1.70%)
Nasdaq 2,227.71 30.14 (1.33%)
S&P 500 1,233.29 20.10 (1.60%)
10-Yr Bond 3.867% 0.056

NYSE Volume 966,985,750
Nasdaq Volume 452,736,562.5

[Joanne98]

85. Crude Oil Rises to Record on Speculation Israel May Attack Iran

By Mark Shenk

July 11 (Bloomberg) -- Crude oil rose more than $5 a barrel to a record on concern that Israel may be preparing to attack Iran as a strike in Brazil and renewed militant activity in Nigeria threaten to cut supplies.

Oil jumped as high as $147.27 a barrel in New York after the Jerusalem Post said Israeli war planes practiced over Iraq. A Brazilian union said it plans a five-day strike and Nigerian militants pledged to renew attacks on oil facilities. Prices have jumped more than $10 a barrel in the past two days.

``The Iran premium has come into the market over the last two days,'' said Adam Sieminski, Deutsche Bank's chief energy economist, in Washington. ``Nothing has changed except the perception about whether there will be a deal between the U.S. and Iran. The possibility of a conflict is of tremendous concern to the market.''

Crude oil for August delivery rose $5.37, or 3.8 percent, to $147.02 a barrel at 9:33 a.m. on the New York Mercantile Exchange. The previous record of $145.85 a barrel was reached on July 3. Futures have more than doubled over the past year.

The gain in prices has triggered computer-generated buying programs. Futures tumbled 6.4 percent on July 7 and 8, the biggest two-session decline since March.

``We had a nice correction earlier this week, found support in the $133-to-$135 level, held there for a short while and then took off,'' said Tom Bentz, a broker at BNP Paribas in New York. ``With all the programmed buying, the market can take off in a heartbeat. The market has become more technical than ever because of the electronic trading programs.''

Israeli Maneuvers

Israeli war planes are conducting maneuvers in Iraqi airspace and using U.S. airbases in the country, possibly preparing for a strike against Iran, the newspaper reported, citing comments by Iraqi officials in local media. Israeli government spokesman Mark Regev denied the report.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aoGUJKzSvI9Y&refer=home

[PfcHammer]

87. FEDS CONDUCTING OPEN MARKET OPERATIONS. NOW !!!

http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[thewiseguy]

90. what does that mean?

[UpInArms]

93. it means the printing presses are running on extreme turbo speed

and we (the people) are on the hook for every Fed note printed.

[MilesColtrane]

99. I believe the Fed is injecting cash into banks, the Treasury, and Fannie and Freddie...

...in exchange for short term IOUs.

Trying to avert meltdown?

[UpInArms]

91. yesterday's numbers are staggering: a total of $140.1 Billion (with a B) in repos

http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE

Deal Date: Thursday, July 10, 2008
Delivery Date: Thursday, July 10, 2008
Maturity Date: Friday, July 11, 2008
Type of Operation1: Repo 
Settlement: Same Day
Term of Operation2: 1 Day 
Operation Close Time: 09:50 AM

Results	Amount ($B)	Rate (%)
Collateral Type	  Submitted	Accepted	Stop-Out3	Weighted
Average4	High	Low
Treasury	9.950	0.200		  	2.04	  
		  	2.040	  
		  	2.04	  
		  	1.95	  

Agency	12.350	2.550		  	2.05	  
		  	2.050	  
		  	2.05	  
		  	1.96	  

Mortgage-Backed	4.100	0.000		  	N/A	  
		  	N/A	  
		  	2.03	  
		  	2.00	  

Total	 26.400	  2.750	 
 
  Top 






Deal Date: Thursday, July 10, 2008
Delivery Date: Thursday, July 10, 2008
Maturity Date: Thursday, July 17, 2008
Type of Operation1: Repo 
Settlement: Same Day
Term of Operation2: 7 Days 
Operation Close Time: 09:40 AM

Results	Amount ($B)	Rate (%)
Collateral Type	  Submitted	Accepted	Stop-Out3	Weighted
Average4	High	Low
Treasury	23.800	11.847		  	2.01	  
		  	2.018	  
		  	2.03	  
		  	1.90	  

Agency	22.350	2.100		  	2.07	  
		  	2.070	  
		  	2.07	  
		  	1.95	  

Mortgage-Backed	13.100	0.053		  	2.10	  
		  	2.100	  
		  	2.10	  
		  	2.00	  

Total	 59.250	 14.000	 
 
  Top 






Deal Date: Thursday, July 10, 2008
Delivery Date: Thursday, July 10, 2008
Maturity Date: Thursday, July 24, 2008
Type of Operation1: Repo 
Settlement: Same Day
Term of Operation2: 14 Days 
Operation Close Time: 08:30 AM

Results	Amount ($B)	Rate (%)
Collateral Type	  Submitted	Accepted	Stop-Out3	Weighted
Average4	High	Low
Treasury	22.750	0.130		  	2.04	  
		  	2.040	  
		  	2.04	  
		  	1.80	  

Agency	17.200	4.870		  	2.09	  
		  	2.100	  
		  	2.11	  
		  	1.93	  

Mortgage-Backed	14.250	0.000		  	N/A	  
		  	N/A	  
		  	2.13	  
		  	2.03	  

Total	 54.200	  5.000	 

that's how much the 83 point gain yesterday cost the US

:shakesheadatmadness:

(edited typo on subject line)

[Dogmudgeon]

106. The life of a Repo Man is *intense*, Otto.

Let's all go for a drive -- whadda-ya-say?

--p!

[Theres-a]

188. Let's go get chinese and not pay. nt

[roamer65]

196. I expect Monday morning will be REALLY bad.

Expect massive debt monetization from the FRB on Monday, in an attempt to stop the inevitable. M3 growth ought to go through the roof very soon.

Two words.


BUY GOLD.

[MilesColtrane]

92. Is it time to cue the Dan of Steel?

When Black Friday comes
I'll stand down by the door
And catch the grey men when they
Dive from the fourteenth floor
When Black Friday comes
I'll collect everything I'm owed
And before my friends find out
I'll be on the road
When Black Friday falls you know it's got to be
Don't let it fall on me
When Black Friday comes
I'll fly down to Muswellbrook
Gonna strike all the big red words
From my little black book
Gonna do just what I please
Gonna wear no socks and shoes
With nothing to do but feed
All the kangaroos
When Black Friday comes I'll be on that hill
You know I will

When Black Friday comes
I'm gonna dig myself a hole
Gonna lay down in it 'til
I satisfy my soul
Gonna let the world pass by me
The Archbishop's gonna sanctify me
And if he don't come across
I'm gonna let it roll
When Black Friday comes
I'm gonna stake my claim
I guess I'll change my name

[UpInArms]

94. 11:29 EST Wind Sheer! Pull Up! Pull Up!

Dow 11,013.42 215.60 (1.92%)
Nasdaq 2,220.04 37.81 (1.67%)
S&P 500 1,230.64 22.75 (1.82%)
10-Yr Bond 3.844% 0.033

NYSE Volume 1,708,106,750
Nasdaq Volume 718,581,812.5

[UpInArms]

95. 11:31 EST 11,000 has been broken

Dow 10,993.15 235.87 (2.10%)
Nasdaq 2,214.51 43.34 (1.92%)
S&P 500 1,231.23 22.16 (1.77%)
10-Yr Bond 3.851% 0.04

NYSE Volume 1,740,778,750
Nasdaq Volume 750,273,000

[Hugin]

102. Sound the Klaxons!

Oh goodie, now we get to see what the RED button does!

W00T!


:crazy:

[TalkingDog]

104. You mean THIS button?

Dag! I look at the ticker this morning and not only is it red, it's, like, flashing and stuff.....


I think somebody broke something.



Seriously. Somebody could get hurt.

[CatholicEdHead]

103. Time to freeze the dates in AnneD's pool

[Hugin]

127. We need a rules clairification... OH, RULES COMMITTEE!!!

Does it lock when the Dow dips below 11,000 during trading or when it closes below 11,000?

[UpInArms]

160. IMHO it is when it closes below 11,000

but then - heck ....

looks around for AnneD

:shrug:

[Dr.Phool]

171. Where is AnneD today?

That's what I thought also. When it closes below 11,000. But, I think there was a minor revision.

[Demeter]

183. Probably Cowering Under the Bed

That's where I'D like to be.

[TrogL]

96. 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

2008-05-30 Friday, May 30 1.00624 USD
2008-06-02 Monday, June 2 0.998901 USD
2008-06-03 Tuesday, June 3 0.994926 USD
2008-06-04 Wednesday, June 4 0.985707 USD
2008-06-05 Thursday, June 5 0.980873 USD
2008-06-06 Friday, June 6 0.981643 USD
2008-06-09 Monday, June 9 0.978186 USD
2008-06-10 Tuesday, June 10 0.976467 USD
2008-06-11 Wednesday, June 11 0.983284 USD
2008-06-12 Thursday, June 12 0.977517 USD
2008-06-13 Friday, June 13 0.972573 USD
2008-06-16 Monday, June 16 0.979432 USD
2008-06-17 Tuesday, June 17 0.980296 USD
2008-06-18 Wednesday, June 18 0.98174 USD
2008-06-19 Thursday, June 19 0.987167 USD
2008-06-20 Friday, June 20 0.982994 USD
2008-06-23 Monday, June 23 0.984155 USD
2008-06-24 Tuesday, June 24 0.98668 USD
2008-06-25 Wednesday, June 25 0.986777 USD
2008-06-26 Thursday, June 26 0.988045 USD
2008-06-27 Friday, June 27 0.988142 USD
2008-06-30 Monday, June 30 0.981836 USD
2008-07-01 Tuesday, July 1 0.978474 USD
2008-07-02 Wednesday, July 2 0.987459 USD
2008-07-03 Thursday, July 3 0.980008 USD
2008-07-04 Friday, July 4 0.980008 USD
2008-07-07 Monday, July 7 0.982898 USD
2008-07-08 Tuesday, July 8 0.979912 USD
2008-07-09 Wednesday, July 9 0.989315 USD
2008-07-10 Thursday, July 10 0.989805 USD

Current values

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

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     0.9843 0.9915 0.9843 0.9905 -0.0011 -0.11% 
CD.U08 Sep 2008 0.9837 0.9920 0.9837 0.9920 +0.0014 +0.14% 
CD.Z08 Dec 2008 0.9800 0.9800 0.9800 0.9898 +0.0024 +0.24% 
CD.H09 Mar 2009 0.9757 0.9757        0.9890 +0.0024 +0.24% 
CD.M09 Jun 2009 0.9880 0.9880 0.9880 0.9882 +0.0024 +0.24% 
CD.U09 Sep 2009 0.9865 0.9865 0.9865 0.9875 +0.0024 +0.24% 
CD.Z09 Dec 2009 0.9845 0.9845 0.9845 0.9868 +0.0024 +0.24%  

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

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.U08 Sep 2008 0.9629 0.9629 0.9629 0.9629 +0.0018 +0.19%   
EURO/BRITISH POUND (NYBOT:GB)
GB.U08.E Sep 2008 (E) 0.79760 0.79800 0.79690 0.79950 +0.00345 +0.43%    
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.U08.E Sep 2008 (E) 168.05 168.05 167.25 167.59 -0.04 -0.02%    
EURO/US$ (SMALL) (NYBOT:EO) 
EO.U08.E Sep 2008 (E) 1.57740 1.58810 1.57740 1.58810 +0.01615 +1.03% 

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

The September Canadian Dollar was lower overnight as it consolidated some of this week's rally. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. If September extends this week's rally, the reaction high crossing at 99.42 is the next upside target. Closes above the reaction high crossing at 99.42 are needed to renew the rally off June's low. Closes below the reaction low crossing at 97.54 would open the door for a possible test of June's low crossing at 96.82 later this summer. First resistance is Thursday's high crossing at 99.17. Second resistance is the reaction high crossing at 99.42. First support is the 20-day moving average crossing at 98.32. Second support is last Tuesday's low crossing at 97.54.

Analysis

With what's happening with Fannie and Freddie down south and the price of oil, I'm expecting excitement today. Exactly what excitement I have no idea. I'm just gearing up for :popcorn:

[TrogL]

184. Closing numbers and blather

Current values

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

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     0.9843 0.9916 0.9843 0.9906 -0.0010 -0.10% 
CD.U08 Sep 2008 0.9837 0.9920 0.9837 0.9897 -0.0009 -0.09% 
CD.Z08 Dec 2008 0.9800 0.9800 0.9800 0.9890 -0.0008 -0.08% 
CD.H09 Mar 2009 0.9757 0.9757        0.9885 -0.0005 -0.05% 
CD.M09 Jun 2009 0.9880 0.9880 0.9880 0.9879 -0.0003 -0.03% 
CD.U09 Sep 2009 0.9865 0.9865 0.9865 0.9875  0.0000  0.00% 
CD.Z09 Dec 2009 0.9845 0.9845 0.9845 0.9871 +0.0003 +0.03%  

Blather

The September Canadian Dollar closed slightly lower on Friday as it consolidated some of this week's rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If September extends this week's rally, the reaction high crossing at 99.42 is the next upside target. Closes above the reaction high crossing at 99.42 are needed to renew the rally off June's low. Closes below the reaction low crossing at 97.54 would open the door for a possible test of June's low crossing at 96.82. First resistance is today's high crossing at 99.23. Second resistance is the reaction high crossing at 99.42. First support is last Tuesday's low crossing at 97.54. Second support is June's low crossing at 96.82.

Analysis

Analysts are still convinced that the Canadian economy is too closely tied to the greenback for its own good. Harper is NOT helping matters acting like Dubya's lapdog and Dione's completely lost it and is baying at the moon.

I miss Anne McLellan, I really do.

[Joanne98]

97. How Bear Markets Help M&A Dealmaking

The FT reports on how the Dow-Rohm deal got done so easily:

Dow's $78 per share bid represented a premium of 46 to 47 per cent to Rohm and Haas' share price when the parties first started to negotiate, but as the company's shares sank, that premium widened substantially. Without that market pressure on Rohm and Haas' board, the deal might not have happened, one insider said.

By the time the deal was announced, that $78-per-share bid represented not a 46% premium, but rather a 74% premium. At that point one can see how it would be hard for the Rohm & Haas board to refuse the offer, especially considering that Rohm & Haas has only ever traded above $60 a share for one day back in April.

In other words, if you're a strategic acquirer paying cash, bear markets are your friend, and make it much easier to get deals done. I knew there had to be a silver lining in this bear market somewhere!

http://www.portfolio.com/views/blogs/market-movers/2008/07/11/how-bear-markets-help-ma-dealmaking?rss=true

[Dogmudgeon]

105. Over 100 messages and it isn't even quite noon

That just screams "bad day on Wall Street".

--p!

[UpInArms]

107. UAL sees second quarter charges near $2.7 billion (entire "goodwill" acct written off)

http://www.reuters.com/article/ousiv/idUSWNAB044520080711

CHICAGO (Reuters) - UAL Corp (UAUA.O: Quote, Profile, Research, Stock Buzz), parent of United Airlines, said on Friday it plans to take $2.6 billion to $2.7 billion in charges against second-quarter earnings, due to record-high fuel prices and the company's reduced market capitalization.

The parent of the No. 2 U.S. airline said in a filing with the U.S. Securities and Exchange Commission that the bulk of the charges -- $2.2 billion to $2.3 billion -- is due to the writedown of non-cash assets.

"The company has concluded that the entire value of goodwill on its books has to be written off," UAL said in the filing.

The airline industry has been battered by soaring fuel prices. Shares of UAL have fallen about 90 percent so far this year, while the Amex airline index .XAL has shed about 60 percent.

UAL, which will report quarterly earnings on July 22, said last month that it paid an average price of $3.33 per gallon of jet fuel in the second quarter, up $2.08 from the year-ago quarter.

...more...

[UpInArms]

108. FACTBOX: Key facts on Fannie Mae and Freddie Mac ("worst downturn since Great Depression")

http://www.reuters.com/article/marketsNews/idUSN0935460220080711?sp=true

* FANNIE MAE:

-- Original name: Federal National Mortgage Association

-- Created in 1938 by Congress as part of a campaign aimed at expanding the secondary U.S. mortgage market and increasing home ownership and rental housing.

-- Assets: $843.23 billion (March 31, 2008)

-- Liabilities: $804.23 billion (March 31, 2008)

-- Debt: $544.42 billion (March 31, 2008)

-- Annual revenue: $43.71 billion (December 31, 2007)

-- Common stock outstanding: 982.32 million (March 31, 2008)

-- Chairman: Stephen B. Ashley.

-- Shares touched a 52-week high of $70.57 on August 22, 2007.

-- Fannie Mae said its retained, or investment, portfolio was $736.9 billion in May, the highest balance since August 2005.

* FREDDIE MAC:

-- Original name: Federal Home Loan Mortgage Corp.

-- Created in 1970 by Congress as part of a campaign aimed at expanding the secondary U.S. mortgage market and increasing home ownership and rental housing

-- Assets: $802.99 billion (March 31, 2008)

-- Liabilities: $786.84 billion (March 31, 2008)

-- Debt: $469.23 billion (March 31, 2008)

-- Annual revenue: $42.91 billion (December 31, 2007)

-- Common stock outstanding: 646.27 million (January 31, 2008)

-- President: Eugene M. McQuade.

-- Chairman: Richard F. Syron.

-- Shares touched a 52-week high of $67.20 on August 17, 2007.

-- Freddie Mac said its retained, or investment, portfolio was a record $770.4 billion in May.

* COMBINED SHARE OF THE MORTGAGE MARKET

-- Including mortgage bonds it guarantees, Fannie Mae's total book of business topped $3 trillion for the first time in May, twice its size at the beginning of 2002.

With Freddie Mac's $2.2 trillion in investments and MBS, the GSEs have a hand in nearly half of the entire U.S. mortgage market.

[antigop]

110. Kucinich on getting rid of the Fed

Thanks to mrone2 who posted this on the political videos forum.

It talks about impeachment, but also the Fed.

Thought you all might want to watch...

http://www.youtube.com/watch?v=BcVjPo0luBs

[radfringe]

111. time to cue up the SHAAAAAAAAAAAARKS!!!!!!

Great white shark reported at 'Jaws' filming site
Dispatched plane fails to confirm sighting at Martha's Vineyard beaches
http://www.msnbc.msn.com/id/25639671/

EDGARTOWN, Mass. - The island where "Jaws" was filmed had a real-life shark scare Thursday, when an unconfirmed sighting of a great white forced the closure of two beaches.

South Beach on Martha's Vineyard was closed for a short time, and swimmers were kept out of the water at State Beach in Edgartown, the Massachusetts Department of Conservation and Recreation said.

A plane was dispatched to try to confirm the sighting, but no shark was spotted, said Lisa Capone, a spokeswoman for the state Executive Office of Energy and Environmental Affairs.

[Hugin]

112. Unconfirmed no-less...

:eyes:

I bet this is on the scroller... no?

[Wednesdays]

115. Next up: unconfirmed report of missing blonde

:puke:

[radfringe]

118. next: unconfirmed report about unconfirmed shark attacking unconfirmed missing blonds n/t

[Dr.Phool]

129. DNA concludes blonde shark killed Jon Benet Ramsey!

I knew there was a reason that was back in the news this week.

[ozymandius]

156. Can you confirm that?

Either of them?

[Dr.Phool]

170. It was told to me by a guy who once saw Bernanke and Poulson,

Drunk together at the Old Ebbetts Grill in DC. Or was it Bullfeathers by Capitol Hill?

I've been drunk in both of them. But not with those two.

[radfringe]

174. it's now an unconfirmed report that the previous unconfirmed reports

were the results of an unconfirmed hoax

[ozymandius]

180. But Paulson is a Mormon. Supposedly a dry tea sipper.

That would be dishonest. Certainly not in the fiber of this Secretary.





:sarcasm:

[Dr.Phool]

187. Tea and coffee mix very well with Yukon Jack.

[Hugin]

114. Oh, say... 12:45 ish EMT: Still hovering in a seemingly artificial manner slightly above 11,000 PIL.

Index Last Change % change
• DJIA 11004.22 -224.80 -2.00%
• NASDAQ 2214.43 -43.42 -1.92%
• S&P 500 1228.99 -24.40 -1.95%


Note: Puns in Headline intentional.

[Pale Blue Dot]

124. ... and the NASDAQ keeps approaching 2199...

but it just keeps from crossing that line. Free markets are amazing!

[UpInArms]

116. 12:56 EST no one wants to hold stock over the weekend - exits more crowded than ever

Dow 10,985.42 243.60 (2.17%)
Nasdaq 2,206.13 51.72 (2.29%)
S&P 500 1,226.18 27.21 (2.17%)
10-Yr Bond 3.882% 0.071

NYSE Volume 2,756,465,000
Nasdaq Volume 1,097,864,500

12:35 pm : Stocks continue to chop along well into negative territory. There has been a lack of leadership for the entire session.

Movers providing some support in the S&P 500 feature Anheuser-Busch (BUD 65.92, +4.71), General Electric (GE 27.81, +0.17), and Chesapeake Energy (CHK 63.07, +1.49).

Laggards include Chevron (CVX 91.95, -4.30), JPMorgan Chase (JPM 32.38, -2.13), and Bank of America (BAC 20.96, -1.40).DJ30 -210.55 NASDAQ -38.59 SP500 -22.60 NASDAQ Adv/Vol/Dec 802/956 mln/1952 NYSE Adv/Vol/Dec 599/716 mln/2477

[Hugin]

120. That stock gets heavy... Dontcha know. Especially over a weekend!

(I figure somebody in this thread has to be the "color announcer". :7 )

[Yavin4]

121. It's All In Your Mind

Who you gonna believe hard data or Phil Gramm?

[MUAD_DIB]

126. Wouldn't it be nice if we had an effective government that actually

wasn't out to actively fleece us then lie about it?

[Demeter]

193. Well, It Would Be Different!

Change can be beneficial, you know.

[PM7nj]

117. Fannie, Freddie Send Dow Below 11,000 for First Time in Two Years

NEW YORK (AP) -- Wall Street sank further into a bear market Friday as investors dumped stocks in response to troubles at mortgage companies Fannie Mae and Freddie Mac and oil's continuing climb into record territory. The Dow Jones industrials fell more than 200 points and slid below the 11,000 mark for the first time in two years.

http://biz.yahoo.com/ap/080711/wall_street.html

[Neshanic]

119. "Weekend at Fanny and Freds" Next week we all get houses if we like it or not.

[Hugin]

122. We just don't get to live in 'em...

Maybe they'll send us a note now and then to let us know how our house is doing.

Pictures to show how it's grown.

That kind of thing...

[KansDem]

128. "Adopt a House"

Could work...could work...

[Karenina]

176. There are no accidents, so says C.A.Fitts.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x370543

[Hugin]

125. About 13:25 EMT: Zombie bounce...

Index Last Change % change
• DJIA 11029.38 -199.64 -1.78%
• NASDAQ 2213.50 -44.35 -1.96%
• S&P 500 1231.76 -21.63 -1.73%

[Dr.Phool]

130. I saw a chimp screeching on the TV at the gym.

I couldn't hear it. What did it say?

Did it announce a trip to Paraguay?

[Pale Blue Dot]

131. WOW. The was suddenly a HUGE buying spree. Dow now down only 69.

It's gained 120 pts. back in about 5 minutes. Was there some news I missed?

[Dr.Phool]

132. PPT had steroids, Red Bull and watermelon for lunch!

[Newsjock]

133. The PPT still has all those billions they looted

Probably just unloaded a couple of them right there.

[Newsjock]

134. More of our money will be made available

http://finance.yahoo.com/marketupdate/overview?u

3:00 pm : Stocks have made a sharp climb on word that Fed Chairman Bernanke stated the discount window would be open for Fannie Mae (FNM 10.17, -3.03) and Freddie Mac (FRE 8.35, +0.35), according to Reuters. The word gave investors reassurance that capital is available if the companies should need it. Stocks are now at their best level of the session.

[ozymandius]

137. He deserves to lose his job.

This money is not his to lend give away to his lunch pals. Do you think we, the American people and the shareholders, will ever see a penny in return?

[ozymandius]

135. Markets have had more ups-n-downs today than a $5 hooker.

3:06
Dow 11,201.59 Down 27.43 (0.24%)
Nasdaq 2,260.20 Up 2.35 (0.10%)
S&P 500 1,253.37 Down 0.02 (0.00%)
10-Yr Bond 3.938% Up 0.127
NYSE Volume 4,150,304,000
Nasdaq Volume 1,819,257,125

3:00 pm : Stocks have made a sharp climb on word that Fed Chairman Bernanke stated the discount window would be open for Fannie Mae (FNM 10.17, -3.03) and Freddie Mac (FRE 8.35, +0.35), according to Reuters. The word gave investors reassurance that capital is available if the companies should need it. Stocks are now at their best level of the session.

The news relieved stress weighing on the financial sector. Financial stocks still remain 1.1% lower, but that is far better than the steeper losses seen earlier. The sector had been down as much as 4.8%.DJ30 -74.90 NASDAQ -9.03 SP500 -5.81 NASDAQ Adv/Vol/Dec 969/1.65 bln/1863 NYSE Adv/Vol/Dec 706/1.14 bln/2435

[Wednesdays]

136. Dow in positive territory now...Whee! does that mean

I get to retire rich? :party: :toast:

Looks like oil and metals will be closing at or near weekly highs, though.

[ozymandius]

138. You turned your head for a second. It's down........

Dow 11,183.10 Down 45.92 (0.41%)
Nasdaq 2,254.22 Down 3.63 (0.16%)
S&P 500 1,249.90 Down 3.49 (0.28%)
10-Yr Bond 3.965% Up 0.154
NYSE Volume 4,224,801,500
Nasdaq Volume 1,880,296,625

[ozymandius]

139. falling at a fantastic rate - almost per second

3:13

Dow 11,153.47 Down 75.55 (0.67%)
Nasdaq 2,251.37 Down 6.48 (0.29%)
S&P 500 1,247.01 Down 6.38 (0.51%)
10-Yr Bond 3.942% Up 0.131
NYSE Volume 4,237,546,500
Nasdaq Volume 1,889,050,750

[ozymandius]

140. Dow falling at 30 pts per minute

3:13

Dow 11,112.67 Down 116.35 (1.04%)
Nasdaq 2,242.30 Down 15.55 (0.69%)
S&P 500 1,250.25 Down 3.14 (0.25%)
10-Yr Bond 3.9360% Up 0.1250

[ozymandius]

142. Jeebus! PPT fighting for control

3:16

Dow 11,129.12 Down 99.90 (0.89%)
Nasdaq 2,246.97 Down 10.88 (0.48%)
S&P 500 1,244.41 Down 8.98 (0.72%)
10-Yr Bond 3.938% Up 0.127
NYSE Volume 4,272,707,000
Nasdaq Volume 1,915,756,500

[ozymandius]

143. Truly this is a glorious wrestling match.

3:18

Dow 11,118.94 Down 110.08 (0.98%)
Nasdaq 2,243.64 Down 14.21 (0.63%)
S&P 500 1,242.62 Down 10.77 (0.86%)
10-Yr Bond 3.936% Up 0.125

[Renew Deal]

144. What is PPT?

:shrug:

[ozymandius]

146. The Plunge Protection Team

The Working Group on Financial Markets (also, President's Working Group on Financial Markets or the Working Group) was created by Executive Order 12631,<1> signed on March 18, 1988 by United States President Ronald Reagan.

The Group was established explicitly in response to events in the financial markets surrounding October 19, 1987 ("Black Monday") to give recommendations for legislative and private sector solutions for "enhancing the integrity, efficiency, orderliness, and competitiveness of financial markets and maintaining investor confidence".<1>

As established by Executive Order 12631, the Working Group consists of:

* The Secretary of the Treasury, or his designee (as Chairman of the Working Group);
* The Chairman of the Board of Governors of the Federal Reserve System, or his designee;
* The Chairman of the Securities and Exchange Commission, or his designee; and
* The Chairman of the Commodity Futures Trading Commission, or her designee.

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

http://www.washingtonpost.com/wp-srv/business/longterm/blackm/plunge.htm

http://www.usnews.com/blogs/capital-commerce/2008/1/25/mccain-paul-and-the-plunge-protection-team.html

http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=A1YourView&xml=/money/2008/01/07/ccview107.xml

[Renew Deal]

150. Are they the ones with the pixie dust?

I've heard a lot about that.

[ozymandius]

152. That's them.

The pixie dust is otherwise known as your money. Word says that the PPT does a lot of hedging in the S&P pits. They also shore up Dow components with monetary assurances.

[Dr.Phool]

148. Plunge Protection Team.

It takes taxpayers money and floods it into the market to keep it from collapsing on the chimps watch.

[Karenina]

151. Plunge Protection Team

They've commandeered the pixie dust. Here's Mike Whitney's rundown:

http://onlinejournal.com/artman/publish/printer_1811.shtml

[Wednesdays]

145. Aw, that's just your imagination...

"Growth continues in the economy." Dr. Phil the Second said so.

[ozymandius]

147. Could be.

My imagination can be quite vulgar at times.

[ozymandius]

149. 3:31

Dow 11,098.10 Down 130.92 (1.17%)
Nasdaq 2,239.43 Down 18.42 (0.82%)
S&P 500 1,238.68 Down 14.71 (1.17%)
10-Yr Bond 3.94% Up 0.129
NYSE Volume 4,463,195,500
Nasdaq Volume 2,030,048,375

[ozymandius]

153. blather

3:30 pm : Stocks made their way into positive territory after being more than 2.0% lower in earlier trading. The surge was helped by word that the discount lending window would be open to Fannie Mae (FNM 10.00, -3.20) and Freddie Mac (FRE 7.24, -0.76). However, the Fed would not confirm that such an arrangement would be available. In turn, stocks surrendered to renewed selling pressure.

The S&P 500 is down nearly 1% inside the final hour of trading. At its current level, the S&P 500 is on track to conclude the week with a loss of 1.7%.DJ30 -135.64 NASDAQ -18.42 SP500 -13.52 NASDAQ Adv/Vol/Dec 1261/1.93 bln/1595 NYSE Adv/Vol/Dec 1234/1.31 bln/1908

[UpInArms]

154. Chopper Ben tells GSEs they can borrow from GSEs (we're making it up as we go now! Wheee!)

07. Bernanke told GSEs they can use discount window: report

[ozymandius]

157. He's plastered by now.

Nobody's buyin' what he's sellin'.

3:45

Dow 11,088.90 Down 140.12 (1.25%)
Nasdaq 2,230.84 Down 27.01 (1.20%)
S&P 500 1,237.64 Down 15.75 (1.26%)
10-Yr Bond 3.9400% Up 0.1290
NYSE Volume 4,697,458,500
Nasdaq Volume 2,140,115,750

[UpInArms]

161. 3:53 levitation in progress

Dow 11,137.67 91.35 (0.81%)
Nasdaq 2,242.67 15.18 (0.67%)
S&P 500 1,242.81 10.58 (0.84%)
10-Yr Bond 3.94% 0.129

NYSE Volume 4,835,069,000
Nasdaq Volume 2,196,462,000

[Renew Deal]

164. They must have started adding

And found out it equals 0, or worse.

[UpInArms]

158. Bernanke tells GSE discount window open-source

http://www.reuters.com/article/bondsNews/idUSN1134061620080711

WASHINGTON, July 11 (Reuters) - Federal Reserve Chairman Ben Bernanke told Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) chief Richard Syron that his company and Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) could take advantage of the emergency discount window, said a source familiar with a conversation between Bernanke and Freddie Mac chief Richard Syron.

Bernanke and Syron spoke by telephone Thursday afternoon and in that call the central bank chief said he intended the discount window to be open to the two companies, said a source familiar with the phone conversation.

...more...

and who gave this asswipe the authority over the US Treasury?

[Amonester]

163. the decider?

or his darth?

one of 'em said that it would be a lot easier if this was a dictatorship as long as the dictator is nobody else than himself

[Renew Deal]

166. 50 years from now kids will be studying this as a major part of the meltdown

Bear Stearns and Bernanke are names that will go down in infamy.

[ozymandius]

169. YOU FORGOT GREENSCAM!!

Who is probably hiding somewhere in Poland right about now. So don't forget Poland either!

:sarcasm:

[Pale Blue Dot]

194. Was this a false rumor?

Fed: No Discount Window for FNM, FRE

Go figure: In the midst of a deep selloff, a bullish rumor seems to have been planted that would allow for the rescue of Fannie Mae (FNM) and Freddie Mac FRE).

It turns out to have been shite.

"Federal Reserve has not had any discussions with Fannie Mae and Freddie Mac about access to direct loans from the central bank, Fed spokeswoman Michelle Smith said.

"Federal Reserve officials are following the situation closely,'' Smith said in a telephone interview today. "However, there have been no discussions'' with the companies ``about access to the discount window,'' she said.

Shares of the two largest U.S. mortgage-finance companies plummeted this week on concern they don't have enough capital to offset losses from the mortgage meltdown. The discount window offers direct loans to commercial banks at an interest rate that's now 2.25 percent, a quarter point above the Fed's benchmark rate.

Chairman Ben S. Bernanke and his colleagues opened the discount window to investment banks at the time of the collapse of Bear Stearns Cos. in March to alleviate the credit crisis."

These bullish bull$%*# rumors end up costing investors real money. Remember the story about Buffett buying Bear Stearns? That made the rounds, including all of the financial television channels, Forbes, etc., sending the stock to $126.

I am waiting for Jamie Dimon to call for an investigation over who started that enormously expensive, money-losing false rumor.

[UpInArms]

159. Fannie, Freddie nationalization "inevitable" - Kanas (blame it on the liberals?)

http://www.reuters.com/article/bondsNews/idUSN1127486320080711

NEW YORK, July 11 (Reuters) - A private equity executive who formerly headed up regional bank North Fork Bancorp Inc said on Friday that some form of nationalization of Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) was "inevitable."

"The combination of the real problems that these companies have with the perceived problems that they have is deadly," John Kanas, now a private equity partner at WL Ross & Co, said in a telephone interview.

He described the mortgage entities as "critical," saying the backing they provide is not just for the mortgage market, but also supports the smooth running of the wider financial markets.

Nationalization, however, is not going to be problem-free, he said. Assuming the government fully backs the companies, that would imply the equity behind them is wiped out, he said.

"That alone is going to cause great dislocation," he added.

In the event of a federal bailout, the government is also likely to apply more stringent regulations to the companies.

"Everyone is going to go out of their way to make sure that the liberal extensions to credit that got us here in the first place aren't allowed anymore," he said. "That's good in the long run, but in the short-term it could be devastating."

...more...

[UpInArms]

162. Free Money! Yippee! Fannie, Freddie and even your Aunt Mabel could go to the discount window

http://www.marketwatch.com/news/story/marketwatch-first-take-fed-can/story.aspx?guid=%7B4127A735%2DEDF4%2D48B6%2DA964%2D214F589EECB7%7D&dist=hplatest

WASHINGTON (MarketWatch) -- Shares of Fannie Mae and Freddie Mac bounced higher Friday afternoon on a report that the companies had been assured by Federal Reserve Chairman Ben Bernanke that they could borrow from the Fed if necessary.

That was a nice statement of support from Bernanke on a day when Fannie and Freddie needed all the friends they could get. See full story.

However, what Bernanke said goes without saying.

The fact is, even your Aunt Mabel could get an emergency loan from Fed.

Typically, the Fed has acted as a lender of last resort only for commercial banks. But the Fed has authority to lend to almost anyone, if the Fed Board of Governors agrees that conditions are dire enough.

Earlier this year, the Fed board voted to open up its discount window (where it makes cheap loans to banks) to the investment banks. The Fed even created a special entity to hold the especially toxic assets from the Bear Stearns fire sale.

Under Fed regulations, regional Fed banks can offer loans to any "individual, partnership, or corporation" under "unusual and exigent circumstances" but only "if, in the judgment of the Federal Reserve Bank, credit is not available from other sources and failure to obtain such credit would adversely affect the economy."

...more...

Hurrah! I want my own RePo!

[ozymandius]

167. In that case - we could really use some help with our bills.

Prices keep going up and I'm not even whining about how much we pay for food ... yet.

A coupla grand would help a lot.

[Amonester]

168. you won't get your own RePo

'cuz you're not a RePuke havemore

it's as simple as that

[PM7nj]

165. Phew! What a day.

[ozymandius]

172. At the end of it all - NYSE volume past the 6 billion mark

Dow 11,100.54 Down 128.48 (1.14%)
Nasdaq 2,239.08 Down 18.77 (0.83%)
S&P 500 1,239.49 Down 13.90 (1.11%)
10-Yr Bond 3.94% Up 0.129
NYSE Volume 6,213,389,500
Nasdaq Volume 2,338,996,500

blather to come

[ozymandius]

173. blather

Fannie, Freddie Fan Fears
Dow -128.48 at 11100.54, Nasdaq -18.77 at 2239.08, S&P -13.90 at 1239.49

It was another volatile session on Wall Street as the Dow Jones Industrial Average fell more than 200 points to break below 11,000 for the first time in two years. It made its way back into positive ground, though only for a moment. Renewed pessimism sent the Dow markedly lower to finish the session with a 128 point loss.

Stocks spent nearly the entire session trading with sizeable losses as investors continued to fret over Fannie Mae (FNM 10.25, -2.95) and Freddie Mac (FRE 7.75, -0.25). Only when a Reuters source indicated the two lenders would have access to the Fed’s discount window did stocks rally into the green. The notion that capital would be available to the lenders if they were in dire need assuaged concern and lifted the shares; short-covering aided in the recovery.

However, when the Fed would not confirm it would lend to Fannie or Freddie, stocks surrendered their gains.

The concerns surrounding Fannie and Freddie overwhelmed news from General Electric (GE 27.66, +0.02), an enriched buyout bid for Anheuser-Busch (BUD 66.50, +5.29), and encouraging economic data.

For the second quarter GE earned $0.54 per share matching the consensus earnings estimate. GE also announced it is divesting its consumer finance business in Japan for $5.4 billion. GE announced yesterday it is considering spinning off its consumer and industrial business. The firm is trying to focus on higher return opportunities.

Belgian brewer InBev increased its bid to acquire shares of BUD to $70 per share, up from $65 per share, according to The Wall Street Journal. Shares of BUD climbed higher in response to the offer, unaffected by the turmoil surrounding the broader market.

Importantly, the May trade deficit narrowed to $59.8 billion from a revised $60.5 billion in April. The real trade deficit fell to $43.6 billion from $46.7 billion in April. Briefing.com argues that the continued narrowing of the real trade deficit will add to GDP contribution and effectively offset the decline in residential construction.

After trading off its highs in recent sessions, crude oil prices surged to a new record of $147.27 per barrel in early trading, only adding to the session’s pessimism. It closed its session just below the $145 per barrel mark.

[radfringe]

175. record of $147.27 per barrel in early trading, only adding to the session’s pessimism

it's all in their heads... :eyes:

[ozymandius]

179. I dare not whine about $147.27/bbl oil.

Phil Gramm might call me ungrateful or something. Is pessimistic the same as whining?

[nolabels]

177. Betya a ;-) the DJIA stays around 1100 till * leaves office

After that i cannot not guess :scared:

[RUMMYisFROSTED]

178. $1000USD.

Let's agree on "around 1100.*"












*Assuming you mean 11,000. If not, make it a $1,000,000.00 bet!

[UpInArms]

185. Office of Thrift Supervision shuts down IndyMac (color me not surprised)

http://news.yahoo.com/s/ap/20080711/ap_on_bi_ge/indymac

LOS ANGELES - IndyMac Bank's assets were seized by federal regulators on Friday after succumbing to the pressures of tighter credit, tumbling home prices and rising foreclosures.

The Office of Thrift Supervision said it transferred IndyMac's operations to the Federal Deposit Insurance Corporation because it did not think the lender could meet its depositors' demands.

IndyMac customers with funds in the bank were limited to taking out money via automated teller machines over the weekend, debit card transactions or checks, regulators said.

Other bank services, such as online banking and phone banking were scheduled to be made available on Monday.

The bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history, regulators said.

"This institution failed today due to a liquidity crisis," OTS Director John Reich said.

...more...

I guess that was some that "frozen" liquidity :eyes:

[ozymandius]

189. I bet Neal Bush is sad he wasn't in on that action.

There was a lot more loot than was available when he was robbing banks in the '80s.

[Ghost Dog]

191. Amazing.

Look closely at the quality of the paper backing up your money-market funds...

[radfringe]

192. psychologically speaking

mccain-iacs and mccain-leaners should be looking hard at him. harken back to 2000 campaign season - one of the "concerns" regarding bush was his lack of knowledge with foreign affairs, economics et al.

we were told over and over again he would "have good advisors"

well, bush does have advisors surrounding him - are they good? just take a look at the messes he has created and is leaving for the next president to clean up

mccain's advisors/surrogates have pointed how good it would be for them if there were another 9-11 type attack before the election - this says to me they are looking at and willing to continue the "bush campaign" administration model. Using anything and everything for political advantage.

More recently, we were told by mccain a "gas tax holiday" or similar gestures would only provide "psychological relief", should also note mccain has no idea what a gallon of gas costs. His "financial advisor", Phil Graham says the current state of the economy is just fine and to stop whining.

With these kinds of advisors surrounding him - the notion of a president mccain makes me extremely nervous....psychologically speaking

[Ghost Dog]

195. Europe promises cheers for Obama - and little else (Yup. ¡Hiya radfringe!)

Barack Obama is coming: Europe can scarcely contain itself. The Democratic contender for the White House is crossing the Atlantic to burnish his credentials as a world leader. Europeans just want to cheer.

I have my doubts as to whether Mr Obama will profit much from a series of photo-opportunities with the old continent's tired and beleaguered leaders. The Middle East leg of his trip may make more news at home. The crowds in Europe will be another story. When he steps out of his pre-presidential limousine Mr Obama can expect to be greeted as a messiah.

As far as Europe is concerned, the US has made its choice. The pundits in Washington may only now be speculating about the possibility that Mr Obama could win by a landslide. Europe has already decided: it will get the American president it deserves. The ballot on November 4 is no more than an irksome formality.

Europeans are almost jealous. After all, when did they last get to cast a vote in a "transformational election"? Even those whose sympathies are with the Republican John McCain are caught up in Obamamania. My bet is that David Cameron, Britain's Conservative leader, will be as eager as Prime Minister Gordon Brown to catch some of Mr Obama's stardust.

Only Carla Bruni, partner and chanteuse to France's Nicolas Sarkozy, can compete in the glamour stakes. The other day an old friend - by day a level-headed diplomat - went so far as to muse about an Obama-Bruni match. Now that, he remarked only half-whimsically, would give global politics a truly handsome couple. Mr Sarkozy, I suppose, might have something to say on the subject. So, one imagines, might Michelle Obama. But watch the body language when her husband turns up at the Elysée Palace.

Youth and charisma are not the only reason Senator Obama stirs envy among Europe's leaders. He has done what they can only dream of. He has drawn the disenchanted back into politics. Who else has inspired a new political movement, has raised an army of 1.7m volunteers and can boast more than 1m campaign donors?

/... http://www.ft.com/cms/s/0/e8f77dbc-4edf-11dd-ba7c-000077b07658.html

:hi: heh heh heh... (La Carla es muy sexy)...

(edit to add, in case you haven't seen/heard it: http://www.youtube.com/watch?v=ghSJsEVf0pU&feature=related )