STOCK MARKET WATCH, Wednesday September 17 - Thread #2

[UpInArms]

Source: DU

STOCK MARKET WATCH, Wednesday September 17, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 123
DAYS SINCE DEMOCRACY DIED (12/12/00) 2796 DAYS
WHERE'S OSAMA BIN-LADEN? 2521 DAYS
DAYS SINCE ENRON COLLAPSE = 2812
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 September 16, 2008

Dow... 11,059.02 +141.51 (+1.30%)
Nasdaq... 2,207.90 +27.99 (+1.28%)
S&P 500... 1,213.59 +20.89 (+1.75%)
Gold future... 780.50 -6.50 (-0.83%)
30-Year Bond 4.10% -0.06 (-1.37%)
10-Yr Bond... 3.49% +0.01 (+0.23%)






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

[tblue]

1. Great post! Dumb question: What's a 'future'?

[Dr.Phool]

5. Something we don't have.

[54anickel]

Bwahahahaha!!! Oh, link to thread #1 here....for anyone interested

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3491922&mesg_id=3491922

[MattSh]

61. FYI - That links to Tuesday's SMW. - Try this one....

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3494254

[54anickel]

69. Damned!! Thanks!!! Tues must have bubbled bank up to page 1 while I wasn't looking.

[Lasher]

14. Hahahahahahahaaaaa!!

Good one.

[Hugin]

25. You win!

:rofl:

[Roland99]

32. Well played!

:)

[54anickel]

2. Wow, this is best one day polishing of gold I've seen in a long time. So, where's the buck at right

now? (Lost my INO link)

[Buttercup McToots]

7. I am giddy, I tell ya...

:bounce:

[UpInArms]

9. here's a real-time chart and the ino link

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

ino is a 30 minute delay

[54anickel]

11. Thank you UIA. That was very NICE of you, nice indeed. Who's nicer?

:hi: :evilgrin:

[UpInArms]

16. you, 54anickel - are definitely "nicer"

:pals:

so glad you are here today - Ozy had a full schedule and I'm probably going to drop out of sight this afternoon -

so, I guess what that means, is

I'm leavin' it up to you--uu-a

I don't know why I'm so caught up in covering up the past.
After all this time I, I thought I would be over you at last.
But it kills me at night, I was hoping you'd give me a second chance.

But I'm leaving it up to you, leaving it up to you.
And there's nothing that I can do.
Cause I walked away when I said I'd stay, with you.

No excuses so, I thought I'd make it better as I go.
If I could go back in time I, I wouldn't leave you waiting all alone.
I lay awake late at night.
I wish I had the courage to say no.

But I'm leaving it up to you, leaving it up to you.
And there's nothing that I can do.

[54anickel]

35. Good to be able to hang with you all a bit again. Been a long time,

been a long time, been a long loney-lonely-lonely a long and lonely time.


See ya later and have a good one! :hi:

So don't go away say what you say
But say that you'll stay
Forever and a day...in the time of my life
Cos I need more time yes I need more time
Just to make things right
Damn my situation and the games I have to play
With all the things caught in my mind
Damn my education I can't find the words to say
About all the things caught in my mind
Me and you what's going on?
All we seem to know is how to show
The feelings that are wrong

[Mojorabbit]

19. Gold is my only bright spot today

the rest of my meager investments are in the toilet.

[Max_powers94]

3. this is sad

[SeeHopeWin]

4. Shame on all of you Republicans, Reaganites!!!

[Supersedeas]

121. de de de de de de de de regulate

[Dr.Phool]

6. A few minutes ago we dipped below the magical 10,700 mark.

It was down to 10,698 before s slight recovery.

Are Bernanke or Poulson in the pool under aliases?

[UpInArms]

22. maybe they're hoping no one will notice the change

from the line in the sand at 11,700

to

the new and improved line in the sand of 10,700

:evilgrin:

[AnneD]

60. As far as the Pool goes......

we are looking for a drop below 10700 with no recovery at the closing bell....Thanks for covering for ma Prag.

[Hugin]

80. No Problem-o AnneD!

:thumbsup:

:hi:

[UpInArms]

8. 12:19 EST sinker further

Dow 10,693.12 365.90 (3.31%)
Nasdaq 2,127.84 80.06 (3.63%)
S&P 500 1,167.88 45.71 (3.77%)
10-Yr Bond 3.379% 0.112

NYSE Volume 4,115,135,750
Nasdaq Volume 1,269,840,750

[DemWynner]

10. Thanks for the second post

It was getting hard going through the other one. you guys do such a great job on this!

[boomerbust]

12. Best quote on CNBC ever

"At least it's an orderly meltdown, so there still is hope". Which will be the last one standing, Morgan or Goldmann?

[Renew Deal]

15. lol

:rofl:

[AngryOldDem]

24. Then there was this, which I heard just now:

Station-break voiceover:

"We're halfway through the trading day. Do you know where your money is?"

Uh....GONE????

[tblue]

27. Nucular meltdown.

[Ikonoklast]

30. They are marching off the cliff in formation

How very nice.

:crazy:

[MilesColtrane]

38. The boarding of the Titanic lifeboats was generally orderly too. (at least until the end)

Of course all the lifeboats were gone by the time the third class passengers were allowed on deck.

[Left Brain]

62. I don't think 3rd class was ever allowed on deck

My, how history repeats itself.

[whistle]

13. And what is the terrible news today which is taking the Dow down?

Dow Jones Industrial Average
10,710.79 -348.23 / -3.15%

Sep 17 12:26pm ET †
Open: 11,056.58
High (day): 11,057.31
Low (day): 10,660.14
YTD%Change: -19.25%
Volume: 176,860,114.00

[UpInArms]

18. taxpayer bailout of the Fed Reserve Banking system

http://www.marketwatch.com/news/story/treasury-provide-cash-fed-market/story.aspx?guid=%7B4CE4C5D0%2D57A8%2D4EB0%2D85F7%2DE346035085AE%7D&dist=hplatest

WASHINGTON (MarketWatch) -- The Treasury Department announced Wednesday that it would provide cash to the Federal Reserve to fund the central bank's operations to provide liquidity to financial markets. In a statement, Treasury said that it would raise the cash in a program of Treasury bill auctions, known as a temporary Supplementary Financing Program. The auctions would be kept apart from Treasury's current borrowing program. Agency officials gave no details of the timing, size and maturity of any bills to be auctioned. The cash will help the Fed better manage its balance sheet, which has been shrinking. The Fed has been accepting lesser quality collateral from cash-strapped financial firms in the wake of the crisis. Immediately after this announcement, Treasury said it would auction $40 billion of 35-day cash management bills to fund the SFP.

[Lasher]

20. I've predicted the S&P would be below 1100 by EOY

At this rate it will be there by the end of this week.

Edit: Oops, meant to post as response to the OP.

[flamingdem]

21. Massive credit crunch

Banks are afraid to lend overnight. Concern about the unknown and more collapses. China down a lot and Russia shut down. Maybe the Yemen bombing as well..

[DemReadingDU]

28. Keep you eye on the Ted Spread

The Ted Spread measures FEAR
http://www.bloomberg.com/apps/quote?ticker=.TEDSP:IND


here's the explanation from yesterday
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3491922&mesg_id=3492004



edit:
9/17/08
The difference between what banks and the Treasury pay to borrow, the so-called TED spread, widened 70 basis points to 289 basis points. That's the biggest spread since Oct. 20, 1987, when stocks collapsed around the world on what became known as Black Monday.
more
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQghMI6iC2GQ

[Tandalayo_Scheisskopf]

23. Here you go!

U.S. Stocks Drop as Lending Freezes Up Following AIG Takeover

By Elizabeth Stanton

Sept. 17 (Bloomberg) -- U.S. stocks tumbled as bank lending seized up in the wake of the government's takeover of American International Group Inc., raising concern that more of the nation's biggest financial companies will fail.

Goldman Sachs Group Inc. and Morgan Stanley, the two largest U.S. securities firms, plunged more than 20 percent after Oppenheimer & Co. analyst Meredith Whitney cut profit estimates. General Electric Co., the world's third-biggest company, fell 8 percent and U.S. Steel Corp. slid 14 percent. Yields on three-month bills sank to at least a 54-year low and a measure of corporate borrowing costs surged to the highest since the crash of 1987.

``It's ugly,'' said Michael Mullaney, a Boston-based money manager for Fiduciary Trust Co., which oversees $10 billion in stocks and bonds. ``It's about the worst I've seen it in 25 years. You have to have free-flowing credit to lubricate the system. That's not happening right now.''

The S&P 500 lost 37.79 points, or 3.1 percent, to 1,175.8 at 11:51 a.m. in New York, below its lowest close since May 2005. The Dow Jones Industrial Average decreased 289.94, or 2.6 percent, to 10,769.08. The Nasdaq Composite Index sank 72.4, or 3.3 percent, to 2,135.5. More than 10 stocks retreated for each that rose on the New York Stock Exchange.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aXSfaQ5wyF2Y&refer=home

[flamingdem]

26. Also, apparently no bullets left

... emporer in need of clothing fast!

[Robbien]

31. My guess. Massive money fund redemptions hitting the USD hard right now.

This could get very nasty before its all over.

[whistle]

57. It seems to be

Dow Jones Industrial Average
10,694.01 -365.01 / -3.30%

Sep 17 1:46pm ET †
Open: 11,056.58
High (day): 11,057.31
Low (day): 10,660.14
YTD%Change: -19.38%
Volume: 225,214,002.00
Prev. Close: 11,059.02

http://money.cnn.com/data/markets/dow/

[Hannah Bell]

142. "money fund redemptions" - what does that mean? n/t

[Robbien]

153. Tons of money being pulled from money market accounts

Money market accounts got hit with a double whammy yesterday

First, a major money market player 'broke the buck'. Basically that means a dollar put into a money market account is no longer worth a dollar. Right now they are saying it is worth ninety seven cents.

Second. Money market accounts are made up of a mixture of corporate and government bonds, all rated triple A. Triple A player Lehman went bankrupt thus its bonds are not good. Lehman is said to have had trillions of these bonds held by money market fund managers.

So now big hedge funds and many corporations and many individuals are pulling their dollars from money market accounts. Trillions of dollars are leaving. Closing out money market accounts is what is meant by the phrase 'money fund redemptions'.

[Hannah Bell]

169. Thank you, that's helpful. Could you also explain - when a hedge fund

puts $$$ into money markets, & when i put $$$ into a money market savings account - is my $1 also worth .97?

How does this affect small savers?

[Robbien]

173. Small savers and large hedge funds use the same money market system

It is all one asset class. The difference between money markets is who is managing the portfolio of underlying investments.

Right now Reserve Management is the first one to 'break the buck'. The papers today are trying to calm people's jitters and are saying Reserve's move is a one-off. (Now where have we heard that one before?) Many firms which have money markets have started posting their risk status online to try to assure people their money market money is safe.

As more financial firms go under, more money markets are at risk because they are big holders of financial firm debt.

[Hannah Bell]

174. i understood that bank money market savings accounts were fdic-insured

to 100K, while money market investment accounts through brokers, etc. weren't?

[Occulus]

74. Gratuitous theme song of the day: Comedown

love and hate get it wrong
she cut me right back down to size
sleep the day let it fade
who was there to take your place

no one knows never will
mostly me but mostly you
what do you say do you do
when it all comes down

cause i don't want to come back down from this cloud
it's taken me all this time to find out what i need yeah

i don't want to come back down from this cloud
it's taken me all this all this time

there is no blame only shame
when you beg you just complain
the more i come the more i try
all police are paranoid

so am i so's the future
so are you be a creature
what do you say do you do
when it all comes down

cause i don't want to come back down from this cloud
it's taken me all this time to find out what i need yeah yeah yeah

i don't want to come back down from this cloud
it's taken me all this all this time

shoot up, shoot up, shoot up you're high
love and hate get it wrong
she cut me right down to size

sleep the day let it fade
who was there to take your place

no one knows never will
mostly me but mostly you
what do you say do ya do
when it all comes down

cause i don't want to come back down from this cloud
it's taken me all this time to find out what i need yeah yeah yeah

i don't want to come back down from this cloud
it's taken me all this all this time

why did you (9x)
comedown

i don't want to come back down from this cloud
this cloud (8x)

Yes, I know; the song is about heroin, but Wall Street seems waaay drugged out these days.....

[Tandalayo_Scheisskopf]

17. And hey! There is still the Kasino going on as well!

And guess what? It's started to go down again, after the coke and meth heads in the GLOBEX overnight tried to get something started. Perhaps they need new dealers or something.

PETROLEUM ($/bbl)
PRICE* CHANGE % CHANGE TIME
Nymex Crude Future 92.47 1.32 1.45 11:54
Dated Brent Spot 89.11 -.42 -.47 12:23
WTI Cushing Spot 92.94 1.79 1.96 12:15


PETROLEUM (¢/gal)
PRICE* CHANGE % CHANGE TIME
Nymex Heating Oil Future 269.65 -2.32 -.85 11:53
Nymex RBOB Gasoline Future 235.69 -4.39 -1.83 11:53


NATURAL GAS ($/MMBtu)
PRICE* CHANGE % CHANGE TIME
Nymex Henry Hub Future 7.79 .51 7.06 11:54
Henry Hub Spot 7.75 -.30 -3.73 09/16
New York City Gate Spot 8.06 -.25 -3.01 09/16


ELECTRICITY ($/megawatt hour)
PRICE* CHANGE % CHANGE TIME
Mid-Columbia, firm on-peak, spot 58.34 -2.81 -4.60 09/16
Palo Verde, firm on-peak, spot 55.91 -.76 -1.34 09/16
Bloomberg, firm on-peak, day ahead spot/West Coast 66.61 -1.71 -2.50 09/16

[Hugin]

29. And all without a drop of oil from ANWR or a length of the Pipeline-to-nowhere being cast. n/t

[Tandalayo_Scheisskopf]

36. Gas is down...

To 2.35 right now, too and HO/Diesel is down to 2.70. On the news of Valero's refinery starting up again, methinks.

Oh, the amount of speculation and, yes, manipulation in the markets will be shown to have been amazing. Stupifying.

If someone ever has the guts to write the story.

[Roland99]

33. The Worst Financial Crisis Since the Great Depression

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4020550&mes

[MUAD_DIB]

34. When does * open his pie hole?

[UpInArms]

41. no Piehole scheduled - issuing Press Releases instead

White House says concerned about more companies

http://www.reuters.com/article/bondsNews/idUSN1715775420080917

WASHINGTON, Sept 17 (Reuters) - The White House on Wednesday defended government actions to shore up troubled insurance company American International Group Inc (AIG.N: Quote, Profile, Research, Stock Buzz), saying it was to prevent broader harm and that there was concern about other companies.

U.S. Treasury and Federal Reserve chiefs had determined that an emergency $85 billion rescue of AIG was required to prevent the impact spreading through the economy, White House spokeswoman Dana Perino said.

Concerns remained about the financial health of other companies and any future actions would be determined on a case-by-case basis, she said without naming any firms.

"We remain concerned about other companies and that's why the secretary of the Treasury continues to work with the team to see if we can stem any other losses," Perino said.

The decision to support AIG was the right action to take for a U.S. economy which was showing "a very mixed picture," she said. "Our economy has the strength to be able to deal with these shocks."

Treasury and Federal Reserve chiefs and other government economic advisors had determined that "some of these companies were so big that to allow them to fail would have caused even greater harm and damage to the economy," Perino said.

...more...

[radfringe]

82. yeah, that way you can't tell if he's slurring his words or not... *hic* n/t

[Captiosus]

37. As of 12:50pm, Morgan Stanley

has dropped 32.76% of its value.

The spiral continues.

[Robbien]

39. Merrill Lynch Cuts WaMu Target To $1

September 17, 2008 12:34 PM EDT

Shares of Washington Mutual Inc. (NYSE: WM) are lower again after Merrill Lynch lowered its price target on the embattled bank from $3 per share to $1 per share. The $1 price target is under half the current market price of WaMu.

The Merrill Lynch analyst said the company may be forced to find a merger partner, even at a discount to what they believe the company is worth, as it faces massive pressures due to the credit crunch.

Recent reports have suggested banking regulators have contacted JPMoran (NYSE: JPM), Wells Fargo (NYSE: WFC) and HSCB (NYSE: HBC) to gauge interest in a buyout of Washington Mutual.

http://www.streetinsider.com/Analyst+Comments/Merrill+Lynch+Cuts+WaMu+(WM)+Target+To+$1+As+Bank+Needs+Merger+Partner/3997599.html

Appears they have decided which bank is the one to be the next one walking the plank.

[Hugin]

40. Is this the same Merrill Lynch which is now a tiny division of BoA?

And couldn't their ratings now be construed as a 'Conflict of Interest'?

I'm so confused. :crazy:

[Demeter]

42. Obama Takes the Point!

Obama, in a morning statement, says, "I certainly don’t fault Sen. McCain for these problems, but I do fault the economic philosophy he subscribes to. ... Instead of prosperity trickling down, the pain has trickled up."

colorado press conference

[Chrisnreno]

48. The perfect quote!

Nail...meet hammer.

[MilesColtrane]

43. deleted

[UpInArms]

44. dunno - here's what I found:

https://personal.vanguard.com/us/VanguardViewsArticle?ArticleJSP=/freshness/News_and_Views/news_ALL_marketresponse_09152008_ALL.jsp&SYND=RSS&Channel=AN

excerpt:

A number of Vanguard stock funds have some exposure to Lehman Brothers, though no fund held more than 0.70% of net assets in Lehman stock as of Friday. Vanguard Total Stock Market Fund and Vanguard 500 Index Fund, Vanguard's two most widely held funds, each had 0.02% of net assets in Lehman Brothers stock.

Among Vanguard's fixed income funds, exposure was similarly modest, with no fund holding more than 0.78% of net assets in Lehman Brothers' securities. Vanguard Total Bond Market Index Fund, Vanguard's largest bond fund, held 0.25% of its net assets in securities issued by Lehman Brothers.

More significant than the performance of any single stock or bond has been the broad-based weakness among financial companies. Even after its recent decline, the financial sector accounts for a relatively large share of the stock market's value; it comprises almost 15% of assets in Vanguard Total Stock Market Fund, for example. Most diversified funds have some exposure to these stocks.

"Over the past few years, many financial companies borrowed heavily to buy assets that turned out to be riskier than expected," said Gus Sauter, Vanguard's chief investment officer." As they try to clean up their balance sheets, some will fail. But I'm confident that we're making progress. Markets are resilient. We've worked our way through crises before."

[ellie]

49. Thank you

I am looking at my 401K and i see that I have a huge chunk of money in Vanguard Windsor II. This whole thing is starting to freak me out because I don't quite understand it.

[MilesColtrane]

59. I self deleted because I was eventually able to get access to my Vanguard account...

...and I didn't want to instigate any needless panic.

All my $ is in broad market index funds, so I'm not particularly exposed to Lehman or any other financials.

[antigop]

45. Conseco shares sink after holdings revealed

http://money.cnn.com/news/newsfeeds/articles/apwire/c98874d7abd3a686ba673bacfe8ef030.htm

Shares of Conseco Inc. shed half their value Wednesday, a day after the insurer announced that it held more than $100 million in securities of Lehman Brothers Holdings Inc. and two other troubled companies.

Conseco announced Tuesday after markets closed that it held $19.3 million, mostly in various forms of debt, from Lehman Brothers; $49.9 million from American International Group Inc.; and $34 million from Washington Mutual Inc.

Shares of Conseco traded down $3.85, or 50 percent, to $3.78 Wednesday afternoon.

[Robbien]

52. Crap

Just crap.

My 401k investments are in four different firms, three of which have been bleeding. Conseco was the only holdout.

Now that's being hit too.

Crap.

[Tansy_Gold]

46. At what point do we become truly frightened? And then,

what do we become frightened of?

And after that, what do we do about it?

What happens when there is no real money? Is that what we're facing? Someone once told me, years ago, that part of the problem of the 1930s Depression (will we start referring to it as Great Depression I, and the 2009 version as GD2?) was that there were things to buy, but without jobs, no one had money to buy them. They could not pay their bills, their mortgages, their taxes, so they lost everything.

Is that what we're coming to?

I don't know.

The tiny 401K my husband left me lost a small but worrisome amount since last May. It is my only cushion, and I am now losing sleep because I fear delinquent student loans will gobble every penny of my social security.

Maybe no one else is, but I'm afraid already.



Tansy Gold, tightening the belt yet again.

[bobthedrummer]

51. The Fed ceased publication of the M3 aggregate on March 23, 2006-did that alarm you?

Many economists were stating that the M3 was GONE at the end of 2004-they were labeled conspiracy theorists, did you pay attention to them and compare what they stated with your environment like I did or did you label them as paranoid nutjobs?

[Tansy_Gold]

54. In March 2006 I was moving and still recovering from the

financial catastrophes I suffered with my husband's sudden death.

I am not an economist. I knew very little about this until I began reading SMW about a year ago maybe.

So I guess I'm trying to speak for all those who don't know anything, who don't know if they're supposed to be afraid or not, the ones whose taxes are going to be sucked into this vortex that will spit out cushions and parachutes for the already wealthy.

And yes, speak for myself as well.

But on the other hand, I was concerned in a reasonably uninformed way at least as early as 2002 when I saw what the developers and mortgage brokers were doing in the housing market in the Phoenix, AZ market. I knew something was wrong, terribly wrong, but I had no clue where to look for answers.

So I'm asking questions, as I have tried to do on a regular basis here. I've asked honest questions, and I've always hoped for honest answers.

And no, I never considered the warnings or those who issued them "nutjobs." I was one of them.



And I am still


Tansy Gold

[TalkingDog]

65. Student loans

One word. Deferment.

If you don't have your loans financed through the Govt., call them to see about having it done. Then defer, defer, defer.

On the whole they are very sympathetic.

[DemReadingDU]

79. Yes, I think that is what is coming

It's called deflation, a decrease in the money supply (banks refusing to give credit or loans)
http://en.wikipedia.org/wiki/Deflation


Most people have relied on credit to buy anything, and have saved hardly anything.

In deflation, there will be lots of things to buy, but people won't have the cash money and stores won't take credit cards.

We can try to take out some dollars in cash and hide them in our house in order to be able to buy necessities, or barter.

and I am so frightened just thinking about what is to befall our country.

[Robbien]

47. Money-market funds scrambling to calm investors

Major fund managers have acted quickly to assuage investors’ concerns that exposure to financials have not compromised their money-market funds—which are intended to be the safest of investment vehicles for institutional and retail investors. The actions follow yesterday’s “breaking of the buck” by the Reserve’s Primary Fund.

http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080917/REG/809179991/1036

the article goes on to say:

In a related event, the SEC’s office of the chief accountant today clarified that banks which step in to support money market mutual funds generally are not required to present the fund on-balance sheet. The office noted it had “received questions” about the accounting by sponsoring financial institutions—another sign of current concerns about money-market funds.

-----------------

even in the midst of a crisis caused by deregulation, the SEC is still deregulating! Geeze!

[dweller]

72. Is Your Money Market Fund the Next Subprime Mortgage

Debacle?
From ClusterStock, Sept. 17, 2008:

The financial meltdown surpassed another dismal milestone today as the bankruptcy of Lehman Brothers forced one of the world's premiere money market funds to record a loss -- the first for such a fund in 14 years.

If you're scared that you, too, are going to get slammed, put your money in an FDIC-insured savings account and/or invest it in a money-market fund at a major firm that will be publicly humiliated if its funds drop. This is no guarantee, of course (the fund that lost money today is a big one), but it's better than investing in little money-market funds no one has ever heard of

http://finance.yahoo.com/tech-ticker/article/61942/Is-Your-Money-Market-Fund-the-Next-Subprime-Mortgage-Debacle?tickers=leh,aig,mer,%5Edji

:shrug:

dp

[Demeter]

147. According to NPR, This Was An Institutional Money Market

Individual money markets are prohibited from "investing" in crap like that.

[Roland99]

50. Today's song (cuz I just heard it on the radio) - "Master Charge" - Albert Collins

My wife has a charge card
That I got her the other day,
I owe five hundred dollars
that's just for yesterday.

I said,
"Honey, here's a present go out and shop around.
Get a couple of dresses and browse around
downtown."
She did just what I told her,
Bought one, two or three
Then came home looking silly
Making goo-goo eyes at me.

Chorus: (3X)
Master Charge
Master Charge
A Bank of America Card

I said, "Did you get your dresses?"
She said, "Yes, one or two,
but I had to get me some shoes and I needed
some jewelry too."

She had $200 dresses
That I could have made and I can't sowe!
Fifty Dollars pair of shoes
And I thought you so and so.

I said, "What about the jewelry?"
As calmly as I could.
She said, "Honey, you'll love them. They're pure African wood."

(Chorus) 3X

Let's charge it!
Let's charge it!

She said, "They were $200 and I paid
one and a half!"
I just didn't believe it,
I was so mad I had to laugh.

I could see it in my mind
On a horse like Paul Revere
I check my mail box
'cause these bills keep coming here.

(Chorus) 3X

Charge it!
Let's charge it!
Let's charge it!

[Geek_Girl]

53. Markets are melting down and the GOP ditto heads still won't say we're in a recession.

http://money.cnn.com/2008/09/17/news/economy/colvin_recession.fortune/index.htm?postversion=2008091711

[AnneD]

55. Morning Marketeers......

:donut: This is mi vida loca.

The city is under a 12 midnight to 6 am curfew-relaxed from 9pm-6am curfew, We now have wifi here. No one complains about things these days because many of our neighbours have even less. Because I am near the Power Center and the Astrodome (the FEMA staging grounds-we have gotten services restored quickly-down to the traffic lights. Several TV stations simulcast with the radio stations and all they have been covering have been local news, and there has been plenty of it.

I have gone through many a hurricane, even the bad one here-Alicia. Ike and Alicia are comparable, in different ways. The damage is similar wide spread but in different areas. People were not caught off guard so much as surprised by the size of Ike. Winds and all usually pick up 2-3 hours before the eye hits. The folks in Bolivar, Gilchrist, Crystal Beach and High Island were pelted NINE HOURS before the eye even landed, it was that big. I was just hearing this am about Ohio, Tenn., and other places being pelted AFTER it had been on land for some time. This doesn't surprise me.

The good news...Houston is not NOLA and Mayor Bill White is not Mayor Ray Nagen. With Chertoff standing next to him, he said that FEMA would be held accountable. I think the fact that Texas refines so much of the nation's gas gives a quick recovery even more urgency. One of our local judges was out at the staging center last night riding the FEMA folks asses for not getting supply trucks out when they are called for at pod locations(point of distribution). The trucks are deployed in certain areas where there is no power. Folks get (per family) two bags of ice, 2 cases of water and 12 MRE's. We have also had impromptu food banks start up in business parking lots in neighbourhoods all around town. It's nothing to see power strips outside houses with handwritten notes for folks to recharge their phones if needed. One side of the street will have power and one side won't so folks are organizing showers and dinner parties (have your neighbors come over to use your shower, cook group dinners, etc). The temp at night have been wonderful, but I am sure there will be sleep overs arranged too if needed.

Your day begins at 6 and your first thought is 'Do I Have Everything I Need Today'. If not you go out to scrounge it up. I had a friend from Moscow that told me a funny story. Someone came up to a guy standing in a long line. The man asked the guy standing in line what he was he there to get. The guy said he really didn't know, but since the line was this long, it had to be good. That's the way it is here. I was 4 yesterday hours getting fresh produce, a few groceries and a tank full of gas. Folks use the time to call friends etc. People have been patient and few long lines have resulted in fist fights.

We have had a not so small army of volunteers descend on Houston. Electric linemen folks all the way from Canada and other places in the US are here. Our sister cities have responded with assorted aid. Tree removal folks from all over the us are here. Every year, Houston negotiates an emergency plan, just in case (a lesson learned during Alicia). So those guys will be down here soon. Dallas, San Antonio, Austin and other cities have sent extra police officers that guard the supplies and free up the local police to patrol the streets.

So far so good. I can't wait to read about the fireworks from yesterday. Happy hunting and watch for the bears.

[antigop]

58. Good to hear from you, AnneD. Thanks for the update. Stay safe. n/t

[JNelson6563]

141. excellent report Anne

Great to see you here. Loved reading about how the people are working together to get through the aftermath.

Thank you for stopping in and posting the update.

Cheers,
Julie

[fascisthunter]

56. Republican Economics, Milton Friedman and his Free Market FAILED

and smart folks knew it would...... the left was right again.

[Doctor_J]

67. Anyone know where Milt is buried? I need to take a leak.

what a fraud

[Robbien]

63. Bankrupt banks' memorabilia does roaring trade on Ebay

Lehman Brothers and Merril Lynch aren’t the only ones frantically liquidating assets this week. Ex-employees are flogging their bank memorabilia on Ebay faster than you can say 'Chapter 11'.

The online auction giant is doing a roaring trade this morning as everything from Merrill-emblazoned golf balls to Lehman-branded pins and shirts are being snapped up -- as if there was no credit crunch or softening consumer market after all.

As the financial sector wakes up to smell the coffee, Lehman mugs were fetching as much as US$48 a piece, whilst a black baseball cap bearing the bankrupt logo had already received bids up to US$56.
. . .

T-shirts, blazers, key rings, all going for top dollar. But one particular item really said it all; a slice of toast with the letters LB burned into it. Crunch, crunch.

http://www.pcauthority.com.au/News/122919,bankrupt-banks-memorabilia-does-roaring-trade-on-ebay.aspx

Don't see how these things are going to be worth anything. There are going to be so many bankruptcies that Lehman/Merrill junk will just be lost in the crowd.

[Demeter]

148. It's For Bragging Rights--Consumerism Strikes Again!

Just goes to show some people are too stupid to live.

[Ghost Dog]

64. Financial sector turmoil swipes European shares

Wed Sep 17, 2008 1:09pm EDT

* FTSEurofirst 300 closes down 2 percent

* Financials slump despite AIG bailout

* HBOS slides further despite takeover bid from Lloyds

LONDON, Sept 17 (Reuters) - European shares tumbled for a third straight day on Wednesday as investors dumped financials, worried that a credit crisis could claim more victims after the failure of Lehman Brothers (LEH.P: Quote, Profile, Research, Stock Buzz) and the bailout of insurer AIG (AIG.N: Quote, Profile, Research, Stock Buzz).

The FTSEurofirst 300 index of top European shares fell 2 percent to 1,070.10 points, the lowest closing level since May 2005. The benchmark is down more than 8 percent this week and on is track for its worst week in more than six years. The index has lost 29 percent this year.

Banks took the most points off the index, with HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz), Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz) and Banco Santander (SAN.MC: Quote, Profile, Research, Stock Buzz) falling by 4.6-10.4 percent.

British lender HBOS (HBOS.L: Quote, Profile, Research, Stock Buzz) slipped 19 percent despite saying that it was in advanced talks to be bought by rival Lloyds TSB (LLOY.L: Quote, Profile, Research, Stock Buzz). HBOS has now lost more than 47 percent of its value in the last three days on worries about funding.

...

The cost of borrowing overnight dollars spiked above 10 percent, betraying a deep lack of trust in the inter-bank lending market in Europe.

Miners suffered because of a broader market sell-off and a decline in key base metals prices, although gold prices rose as investors sought a safe haven.

BHP Billiton (BLT.L: Quote, Profile, Research, Stock Buzz), Anglo American (AAL.L: Quote, Profile, Research, Stock Buzz), Vedanta Resources (VED.L: Quote, Profile, Research, Stock Buzz), Kazakhmys (KAZ.L: Quote, Profile, Research, Stock Buzz), Xstrata (XTA.L: Quote, Profile, Research, Stock Buzz), Antofagasta (ANTO.L: Quote, Profile, Research, Stock Buzz) and Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) fell between 1 and 11 percent.

Across Europe the FTSE 100 .FTSE index fell 2.3 percent, the German DAX .GDAXI slipped 1.8 percent and the French CAC 40 FCHI dropped 2.1 percent.

BARCLAYS STANDS OUT

British bank Barclays (BARC.L: Quote, Profile, Research, Stock Buzz), which is buying Lehman's U.S broker dealer business, rose 3.2 percent to stand out in a sea of red.

Elsewhere macroeconomic signals were also gloomy.

German Chancellor Angela Merkel said Europe's largest economy will not escape unscathed even though the impact of the global market turmoil has been moderate so far.

And the number of Britons claiming unemployment benefit rose for a seventh consecutive month in August and by its biggest amount since December 1992.

...

But analysts said the focus continued to be squarely on financials as uncertainty prevailed after the folding of Lehman and the travails of AIG.

"There's no transparency, We don't know about funding, the cost of it and the size of the problem," said Cazenove's Winder.

/... http://www.reuters.com/article/marketsNews/idCALH61549820080917?rpc=44&sp=true

[Ghost Dog]

66. FTSE slides on financial sector turmoil; HBOS sinks

LONDON, Sept 17 (Reuters) - Britain's benchmark share index lost 2.3 percent on Wednesday to hit its lowest close since mid 2005, as investors dumped financial stocks fearing more chaos from a credit crisis that has roiled Wall Street banks.

Miners chased weak metal prices and HBOS (HBOS.L: Quote, Profile, Research, Stock Buzz) ended 19 percent lower as it entered merger talks with Lloyds TSB (LLOY.L: Quote, Profile, Research, Stock Buzz).

The FTSE 100 .FTSE closed down 113.2 points at 4,912.4 having touched a low of 4,903.3 and a high of 5,124.4 in volatile trade.

The UK's blue-chip index closed below the psychological 5,000 mark for the first time since June 2005.

"Chaotic ... the volatility in banks has made sensible decision making impossible. Never seen a day like it in nearly 25 years up here," said one London trader.

...

"The only game in town is the HBOS deal," said Richard Farquhar, director of dealing at Liontrust. "It looks like an extremely good deal for Lloyds -- that's the market's interpretation of it."

"But (banks) are not out of the woods. Big, big problems remain."

/... http://www.reuters.com/article/marketsNews/idCALH13944720080917?rpc=44&sp=true

[mcollier]

70. Immediate TAX TODAY!!!!!!

The Fed has just dropped the rate of Money Markets investments... Where they used to be guaranteed $1 in you'd be sure to at least get $1 out.... But now that the Fed had dropped the rate to .97 Cents... Millions of Americans have just seen an Immediate Tax Increase TODAY!!!!


Example: Monday you moved 10s of thousands of dollars out of stocks into money market accounts in anticipation of a rough week... Millions of others followed suit... The Fed bails out a few Big Companies ( on the backs of the tax payers) then the Fed feels the need to punish hard working Americans who move their money into what was long been thought of as safe accounts...( Money Market Accounts), by reducing the rate of guarantee for each dollar.


That is an unacceptable Tax Increase at a time when we just can't afford it....


WHAT THE FUCK!!! I CAN'T STAND THE bush Administration!!!!


DO SOMETHING!

[Ghost Dog]

75. Market Turmoil Forces Bank Of England To Extend Liquidity Program

LONDON (Dow Jones) -- The Bank of England on Wednesday said it would delay closing the window on its long-term liquidity program until early next year due to renewed market turmoil.

The central bank said in a statement that it was extending the drawdown period, which was initially scheduled to close on Oct. 21, until Jan. 30 due to the "current disorderly market conditions."

The move gives banks additional time "to plan their access to the scheme in an orderly fashion," the bank said.

Bank of England Gov. Mervyn King had last week told U.K. lawmakers that the window for banks to participate in the long-term liquidity plan, known as the Special Liquidity Scheme, would close as scheduled in October.

The program, which began in April, allows banks to swap highly-rated-but-hard-to-move mortgage-backed securities for U.K. Treasury bonds of up to three years from the central bank.

/.. http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=bbeca48d-1981-4f7a-b4cd-9839794c686f

----
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=BB07S3gOH0a%2FA3rShDugPQ%3D%3D. You can use this link on the day this article is published and the following day.

[Ghost Dog]

77. UK jobless soars as economy sinks

LONDON, Sept 17 (Reuters) - British unemployment registered its biggest jump in 16 years in August, factory orders fell at their sharpest rate in more than two years this month, and the country's biggest mortgage lender might soon be taken over.

Bad news on the British economy flowed thick and fast on Wednesday and many experts say recession is now an inevitability and hundreds of thousands more will lose their jobs as a global credit crunch tightens its grip a year after it first took hold.

Minutes of the Bank of England policymakers' Sept 3-4 meeting, also out on Wednesday, showed one of them wanted to cut interest rates by 50 basis points even though inflation was more than double the central bank's target, so worried was he about the economic outlook.

...

Economists said the central bank would have to cut rates eventually as this week's renewed turmoil in financial markets following the collapse of U.S. investment bank Lehman Brothers had made the economic outlook that much bleaker.

...

The number of Britons claiming unemployment benefit rose by 32,500 in August, the biggest jump since 1992 and far more than the 22,300 predicted by analysts.

And the internationally comparable ILO measure of joblessness rose by 81,000 in the three months to July, taking the total to 1.724 million, the highest in nearly a decade.

David Blanchflower, the BoE policymaker urging lower rates now, has predicted this figure could hit 2 million by Christmas.

...

British consumers face "potentially severe implications" from the deepening credit crisis, Financial Services Authority Chief Executive Hector Sants said on Wednesday.

Certainly, the central bank's hope that a sharp slide in sterling over the last few months should help the economy rebound next year is starting to look optimistic as weak demand in the global economy means exports may not pick up.

The Confederation of British Industry's monthly industrial trends survey's total order books balance fell to -26 from -13, the weakest reading since January 2006. The export orders balance fell to -25 from -9, the lowest since December 2001.

"The message from the CBI of weak output and moderating inflation pressures is supportive of our call for a November rate cut from the MPC," said Allan Monks, economist at JP Morgan.

/... http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=8a58dca3-db36-49bd-8913-68ec944f6c21

[antigop]

68. Senate Dem Raises Keating Five, Rips McCain on Economy, Palin

http://www.huffingtonpost.com/2008/09/17/senate-dem-raises-keating_n_127088.html

One of the Senate's most progressive members ripped John McCain on Tuesday for offering a phony populist self-portrayal in the wake of the current crisis in the financial markets. In the process, Sherrod Brown of Ohio raised the Republican nominee's involvement in the Keating Five scandal as evidence that voters couldn't trust McCain's record on both the economy and ethics.

"It is not so much his economic proposals but his economic record," Brown said of McCain. "His main adviser is Phil Gramm -- he was his mentor in the Senate -- and you just tie it all together. Of course John McCain supported the oil industry, he has oil lobbyists working for him. Of course John McCain supported these trade agreements, he has got Wall Street people working for him... It is all wrapped up together. John McCain is a creature of these interest groups in Washington. He is no maverick and, from the Keating Five on, his ethics have been questionable. He's not a maverick and Barack has got to just keep hammering on that."

In referencing McCain's involvement in that 1980's Savings and Loans controversy, Brown has gone where the Democratic nominee himself has only tread subtly. During his speech on Tuesday, Obama drew parallels between that industry collapse and the current stumbles of the housing and financial sectors.

"Instead of sensible reform that rewarded success and freed the creative forces of the market, too often we've excused an ethic of greed, corner-cutting and inside dealing that threatens the long-term stability of our economic system," he said. "It happened in the 1980s, when we loosened restrictions on Savings and Loans and appointed regulators who ignored even these weaker rules. Too many S&Ls took advantage of the lax rules set by Washington to gamble that they could make big money in speculative real estate."

[antigop]

71. (Sen.) Dodd says Fed has authority to set up fund to buy bad debts

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

Senate Banking Committee Chairman Christopher Dodd said the Federal Reserve has the authority to act as an ``effective Resolution Trust Fund'' to buy up and dispose of bad debt stemming from the subprime mortgage crisis.

``The Fed has the authority to move in this area,'' Dodd told reporters in Washington.

Dodd said creating a separate agency to take on bad debt, akin to the Resolution Trust Corp. set up in 1989 to absorb losses from savings and loan associations, would take about a year. Instead, the Fed should use its own authority to act.

``Debating whether or not you're going to set up some new agency or bureaucracy in government is a nice point but I don't think we have the luxury of waiting another year,'' Dodd said.

[Roland99]

73. 2:33pm - Gold up $70!!

[Robbien]

78. The TED spread is up to 3.04

All that cash is ending up in the shiny golden stuff.

[Robbien]

76. Hedge Fund Chief Buys $14M Park Ave. Apt.

His hedge fund isn’t the Cadillac that it once was, but that hasn’t stopped Goldman Sachs’ Raymond Iwanowski from buying his deluxe apartment in the sky.

The Global Alpha manager—who saw his fund lose almost 40% last year and shrink by more than half due to redemptions—has bought a five-bedroom pad on New York’s Upper East Side for almost $13.6 million.

The full-floor Park Avenue condo is hardly the most extravagant real-estate purchase by a hedge fund manager in recent months: John Paulson, whose funds were returning triple digits while Iwanowski’s secretive quantitative fund was hemorrhaging red, paid $41.3 million for a 10-acre Hamptons estate earlier this year. But it isn’t too shabby, either. The 4,184-square-foot residence features nine rooms and two fireplaces.

http://www.finalternatives.com/node/5511

As soon as the ink is dry on the closing, this guy will be announcing the close down of this hedge fund and walk away saying the GOP mantra "I got mine and f-u to you".

[Pale Blue Dot]

81. The Dow's staging a mini-recovery now. What will the last hour bring?

Will it be a recovery or a crash?

[nadinbrzezinski]

83. Crashes like 1929 or 1987 will not be seen for structural reasons

but it is happening in slow motion

[nadinbrzezinski]

84. CNBC sounds really, REALLY spooked

We are not over the edge, YET.... but they are spooked

[nolabels]

85. All of this still sounds like it's just going to be the big fish eating little fish

In the twenties crash people were gambling and doing even crazier speculative investments. The key point to remember is that in the twenties they were involving everything. The financial sector may be in a even bigger shamble this time but other sectors of the economy have multiple ways to rebound. These people with big hedge funds and other forms of large bank may have been pulling a lot of the levers but they were never the sole driver or impetus for anything. All of this could be just something good happening that we all don't quite understand yet :shrug:


Investors running away from bank stocks
As the government reportedly seeks a buyer for Washington Mutual, shares of most big banks plunge again as investors brace for a bigger financial shakeout.

By Aaron Smith, CNNMoney.com staff writer
Last Updated: September 17, 2008: 1:53 PM EDT

NEW YORK (CNNMoney.com) -- As the government reportedly tries to broker a buyer for Washington Mutual, shares of WaMu and other banking and finance firms continued to spiral downward Wednesday.

WaMu (WM, Fortune 500) fell 11% in midday trading on reports that federal regulators were trying to organize a buyout for the battered bank.

Shares of other big commercial banks, including Citigroup (C, Fortune 500) and Wachovia (WB, Fortune 500), all tumbled more than 10% as well.

And the nation's top two investment banks were hit particularly hard: Morgan Stanley (MS, Fortune 500) plunged 38% and Goldman Sachs (GS, Fortune 500) plummeted 23%.

All this follows what have been a historic few days for Wall Street and the financial services sector as a whole.

Late Tuesday night, the Federal Reserve announced it would loan $85 billion to troubled insurance giant American International Group, a move that effectively means the government is taking it over. Shares of AIG (AIG, Fortune 500) dropped 46% Wednesday.
(snip)
http://money.cnn.com/2008/09/17/news/companies/wamu_banks/?postversion=2008091713

[Mojorabbit]

86. I don't think so

If companies can't get credit lines to do business it will reverberate into the greater economy.

[nolabels]

100. In the older economic models vendors supplied their own credit

financed by their own built up reserves. Nowadays it's almost like a crime to have an inventory. There are a lot of effed up business practices that will probably change in the near term and beyond. I just like to remember that somehow long ago people were even able to pull off business deals even without money.

If people can keep their heads on long enough to think then they would realize that only thing really in danger are some forms of mega-capitalism

[DemReadingDU]

101. There is so much debt out there, trillions

Companies won't be able to get credit nor loans. Same for people, cash only.
The economy will slow down, but I think there are people with critical thinking skills who will do ok.

[Robbien]

87. CNBC pundits now screaming at credit rating agencies

Both of these guys know everyone was playing a game but to have CNBC pundit sitting there reaming the credit rating guy is just insane. Credit rating guy should turn the argument back to CNBC pundits who played their own part in cheerleading this mess.

They are turning on each other and it ain't pretty.

[Dr.Phool]

90. Cheerleaders masquerading as journalists scream at players!

YOU GUYS SUCK!!! YOU GUYS SUCK!!! YOU GUYS SUCK!!!

A few of them must have got taken to the cleaners this week. That's what happens when you believe your own bullshit.

[amandabeech]

118. The S&P guy had to be very careful to say nothing.

The lawyers are restless.

[blueclown]

88. the dow was just down -200 an hour ago.

Now it is down to -330 and falling.

[54anickel]

89. Gold Glitters as Metal Posts Biggest 1-day Gain Ever (Uh-oh!)

http://biz.yahoo.com/ap/080917/gold_prices.html


NEW YORK (AP) -- Gold prices exploded Wednesday -- posting the biggest one-day gain ever in dollar terms -- as fears of more credit market turmoil unnerved investors and triggered a flood of safe-haven buying.

Gold for December delivery rose as much as $90.40, or 11.6 percent, to $870.90 an ounce in after-hours trading on the New York Mercantile Exchange after jumping $70 to settle at $850.50 in the regular session. That was the biggest one-day price jump ever; gold's previous single-day record was a $64 gain on Jan. 29, 1980.

The huge rally came after the government moved overnight to rescue troubled insurer American International Group Inc. with an $85 million bailout loan. The Federal Reserve stepped in after AIG, teetering on collapse from losses tied to the subprime crisis and the credit crisis, failed to find adequate capital in the private sector. The emergency measure came a day after Lehman Brothers Holdings Inc., a 158-year-old investment bank, filed for bankruptcy after failing to find a buyer.

Fearing more tightening of credit markets, investors reacted swiftly and began dumping stocks and socking money into gold, silver and other safe-haven commodities. Gold is especially attractive during times of crisis because the metal is known for holding its value.

more...

and the buck's been swan divin' all afternoon....

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

Last trade 78.323 Change -0.920 (-1.16%)

Settle Time 15:09 Open 79.240

Previous Close 79.243 High 79.261

Low 78.290 2008-09-17 14:01:31, 30 min delay

52wk High 80.375 52wk High Date 2008-09-11

52wk Low 70.698 52wk Low Date 2008-03-17



confidence game coming to a close?....

[Pale Blue Dot]

94. Wow. Another last minute sell-off. Dow's now down 420. nt

[Robbien]

107. For a half minute there, the Dow was under 10,600

I expect there were quite a few players needing to change their shorts.

Closing just above 10,600. Phew, the floor held.

[Pale Blue Dot]

114. How many floors does this basement have? nt

[blueclown]

91. the stock market tanking as it starts to close.

the dow jones industrial is now down 400 and falling.

[flamingdem]

92. All I have to say is "yow"

Dat wuz a biggun

[harun]

95. Yep, jumping ship. Down more than 400 (n/t)

[spinbaby]

99. They're running for the doors

I think I just felt a pain in my 401k.

[uppityperson]

93. -414.43

[54anickel]

98. Look at the f'ing volume!!! Still soaring while trying to capture the moment here

NYSE Volume 9,169,611,000
Nasdaq Volume 3,050,135,500

[specimenfred1984]

96. Neil Cavuto just soiled his man diapers

Not to worry, Maria Bartiromo is licking it up like a good fascist.

[MUAD_DIB]

97. Ouch. DJIA -411.74...

:scared:

[harun]

102. The DJIA is now 31.42 pts up from when B*sh took office.

[MUAD_DIB]

103. Who had picked 9/18 in the pool?

[Renew Deal]

104. I think I had today.

So close.

[Dr.Phool]

109. Sucker rally again tomorrow.

Shit really hits fan Friday.

Seen this movie before.

[radfringe]

105. was thinking same thing ... anyone?

[uppityperson]

113. I did.

[RUMMYisFROSTED]

106. Pass the strop.

[Roland99]

108. At the close - Man...I had *10*/17...not *9*/17...SO close today....

Dow 10,609.66 -449.36
Nasdaq 2,098.85 -109.05
S&P 500 1,156.39 -57.21
10-year 3.41 %-0.08
Oil $97.16 $6.01
Gold $850.50 $70.00

[RUMMYisFROSTED]

112. There's always tomorrow.

[antigop]

110. Insurance regulators on AIG meltdown: don't blame us

http://financialweek.com/apps/pbcs.dll/article?AID=/20080917/REG/809179977/1036
Industry association notes that insurer’s problems were at its non-insurance units—and thus not subject to state regulation

Risky transactions at the financial subsidiaries of American International Group—as opposed to dealings at its insurance subsidiaries—prompted the problems that ultimately led to AIG’s meltdown, according to the National Association of Insurance Commissioners.

And the organization of state insurance regulators says AIG could actually jump back on its feet thanks to its insurance subsidiaries, which are still solvent and could be sold in an attempt to return the parent company to a more stable financial position.

“The key distinction here is that AIG’s insurance subsidiaries did not cause this crisis,” Sandy Praeger, NAIC president and the Kansas insurance commissioner, said in a press release today. “Rather, they will play a critical role in the solution. Calls for federal regulation of insurance in light of these events are simply unable to be supported.”

Ms. Praeger added that AIG’s non-insurance parent company is federally regulated and therefore not held to the same investment, accounting and capital adequacy standards as its state-regulated insurance subsidiaries. According to the federal Gramm-Leach-Bliley Act, state insurance regulatory authority only applies to actual insurance entities and transactions with those entities.

[Pale Blue Dot]

111. Let's speculate: What possible trick could the Fed try overnight to try to calm markets?

I'm thinking that if the AIG bailout didn't work, they've got nothing left but to throw a "hail mary", i.e. lower interest rates a point. So that's my guess.

You?

[Robbien]

116. The fact that the Fed ran out of money

and that that fact hit the news and is in the public forum

Means there are no options doesn't it?

Greenberg is out there saying we should go to SWFs. What kind of answer is that.

[Pale Blue Dot]

117. The Fed said it ran out of money????

Holy crap! I missed that (I was at work).

Wow. We're cooked.

[Robbien]

126. They didn't use those terms, but seriously their announcement means its broke

Here’s the statement from the US Treasury:

The Federal Reserve has announced a series of lending and liquidity initiatives during the past several quarters intended to address heightened liquidity pressures in the financial market, including enhancing its liquidity facilities this week. To manage the balance sheet impact of these efforts, the Federal Reserve has taken a number of actions, including redeeming and selling securities from the System Open Market Account portfolio.

The Treasury Department announced today the initiation of a temporary Supplementary Financing Program at the request of the Federal Reserve. The program will consist of a series of Treasury bills, apart from Treasury’s current borrowing program, which will provide cash for use in the Federal Reserve initiatives.

Announcements of and participation in auctions conducted under the Supplementary Financing Program will be governed by existing Treasury auction rules. Treasury will provide as much advance notification as possible regarding the timing, size, and maturity of any bills auctioned for Supplementary Financing Program purposes.'’

http://www.marketwatch.com/news/story/treasury-provide-cash-fed-market-liquidity/story.aspx?guid=%7B4CE4C5D0%2D57A8%2D4EB0%2D85F7%2DE346035085AE%7D&dist=hplatest

Pocketbook is empty.

[MUAD_DIB]

129. How long will it take BushCo to print up 86 billion for AIG?

[Renew Deal]

125. They will finally socialize McDonalds

New item: McGreenspan "Quarter pounders from grass Fed cows."

It will be the first profitable business they have socialized.

[Demeter]

149. They Could Close The Markets and Let Everybody Settle Down

get real jobs, start producing real goods....

[Hugin]

115. 1******** The Pool is Now Locked *******

_________________________________________________________________________________________________________________________
Guess the date the DJIA rolls back to the level it was when the chimp took office-10,578.24. You can revise your dates until the DJIA hits(IMPORTANT CHANGE) 10700 (got to have a cut off). Anyone can join, just give a date and your reasoning for that date. Note the change on the cut off. That should make for a good horse race. I will check the post date/time for last minute posters but those that guessed the date way in advance get extra points. The earlier posters are at the top in the cases of multiple guesses on the same day.

Prag... 9/17 (Note: I'll update this until I get it correct!)

Ghost Dog ....9/18 (You may just get it GD!)
uppityperson... 9/18 (Note: Because it's a special day.)

Ozy.....9/19 (Note: Ozy picked this date a couple of months ago.)
AnneD..... 9/19 (Like the quadruple witching thang.)
readmoreoften... 9/19
Karenina.... 9/19

Demeter.....9/22
Buttercup McToots ... 9/22 (Note: Said Please.)
ozone_man.....9/23
JuneBourder.....9/29
radfringe.... 10/09/08 (Countdown!)
Birthmark....10/10
Mojorabbit.... 10/11
Tansy_Gold.....10/13
DemReadingDU.....10/16
Roland99.....10/17
AnneD....10/24
Neshanic.....10/24
UpInArms.....10/30
MsLeopard.....10/31
Wordpix.....11/3
Passingfair.....11/4
Ship wrack.....11/5
Wednesdays.....1/16/2009

Remember-you can change the dates as we learn more. If your date isn't on the list, e-mail me and I'll add it the next time I post. I erased expired dates so you can guess again. I post about one a week-more often the closer we get to the number. The winner get the praise and admiration of those on the Stock Watch Thread. We have also kicked in for a years worth of bragging rights and Karl Rove as you own pool boy if we can find Speedos to fit. There is still time to place your bets.....And please-no Reggie bars in the pool.

IMPORTANT ADDENDUM: I believe, as an investor, one day does not a trend make. So as activity coordinator of the pool, additional guesses are allowed should it dip down but pop up above the cut off. Call it the Indian Summer Clause. I personally think that 11000 is their PIN, but the fact that it cannot be pumped up any further anymore points to weakness in the system-for my $0.02.
__________________________________________________________________________________________________________________________

As per official Section 17, Para. 6, Line 2. of the RULES. :patriot:

[Hugin]

119. Ghost Dog & uppityperson both have chosen 9/18.

:patriot:

[Ghost Dog]

150. I'm saying nothing,

today... :smoke:

[TalkingDog]

122. Heck, I was only a month off.....drat. n/t

[Hugin]

124. It's not there yet...

Talking Dog. :)

By the way, do you have that wealth distribution chart you posted awhile back handy? The one looking like a mushroom
cloud?

[TalkingDog]

131. I'll post it just for you

but I always thought it looked like a golf tee.... Gimme a sec in p'shop....

[TalkingDog]

134. New and Old versions:

[Hugin]

135. Excellent!

Thanks Talking Dog!

:hug:

This picture pretty well sums it all up... Really. If one can't see what's wrong at a glance, they
have no business near the levers of power.

[dweller]

143. Prag, please see this thread

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3476769&mesg_id=3477312

Anne D. had me in there, before you became the lifeguard, for 9/25...

i'm just stuck to the drain.
dp

[Hugin]

145. Okay.

I fixed it.

Got to watch out for those filters!

Good luck. (or given the circumstances... Good Whatever.) ;)

[dweller]

170. thankyouverrrymuch!

now, watch this dive :D


dp

[Hugin]

144. Slight update.

Prior to the lock dweller informed me of a date asked for which wasn't reflected on the list.

_________________________________________________________________________________________________________________________
Guess the date the DJIA rolls back to the level it was when the chimp took office-10,578.24. You can revise your dates until the DJIA hits(IMPORTANT CHANGE) 10700 (got to have a cut off). Anyone can join, just give a date and your reasoning for that date. Note the change on the cut off. That should make for a good horse race. I will check the post date/time for last minute posters but those that guessed the date way in advance get extra points. The earlier posters are at the top in the cases of multiple guesses on the same day.

Ghost Dog ....9/18 (You may just get it GD!)
uppityperson... 9/18 (Note: Because it's a special day.)

Ozy.....9/19 (Note: Ozy picked this date a couple of months ago.)
AnneD..... 9/19 (Like the quadruple witching thang.)
readmoreoften... 9/19
Karenina.... 9/19

Demeter.....9/22
Buttercup McToots ... 9/22 (Note: Said Please.)
ozone_man.....9/23
dweller.... 9/25
JuneBourder.....9/29
radfringe.... 10/09/08 (Countdown!)
Birthmark....10/10
Mojorabbit.... 10/11
Tansy_Gold.....10/13
DemReadingDU.....10/16
Roland99.....10/17
AnneD....10/24
Neshanic.....10/24
dweller....10/25 (Note: Standby Date)
UpInArms.....10/30
MsLeopard.....10/31
Wordpix.....11/3
Passingfair.....11/4
Ship wrack.....11/5
Wednesdays.....1/16/2009

Remember-you can change the dates as we learn more. If your date isn't on the list, e-mail me and I'll add it the next time I post. I erased expired dates so you can guess again. I post about one a week-more often the closer we get to the number. The winner get the praise and admiration of those on the Stock Watch Thread. We have also kicked in for a years worth of bragging rights and Karl Rove as you own pool boy if we can find Speedos to fit. There is still time to place your bets.....And please-no Reggie bars in the pool.

IMPORTANT ADDENDUM: I believe, as an investor, one day does not a trend make. So as activity coordinator of the pool, additional guesses are allowed should it dip down but pop up above the cut off. Call it the Indian Summer Clause. I personally think that 11000 is their PIN, but the fact that it cannot be pumped up any further anymore points to weakness in the system-for my $0.02.
__________________________________________________________________________________________________________________________

[Neshanic]

120. Quick! Look over there! Housing has hit a bottom. Per MSNBC shills.

[jayfish]

127. Cramer Was On MSNBC This Morning

with a big old smile and look of relief. I wonder how he looks now.


Jay

[Neshanic]

130. Back in his New Jersey manse asking where the booze is.

[Robbien]

132. CNBC said that also, but of course no fact

I'd like to see how they come up with that when

Housing Starts Dropped in August
http://online.wsj.com/article/SB122165409820947685.html

Housing construction plunges 6.2 pct. in August
http://customwire.ap.org/dynamic/stories/E/ECONOMY?SITE=NDBIS&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2008-09-17-16-34-51


Financial cheerleaders in the media are taking a page from McCain/Palin. They are not just making stuff up. They are outright lying.

[amandabeech]

123. CNBC: Reports out there that Washington Mutual is putting itself up for auction.

If true, yowza!

Who will bid? Will there be a minimum?

If no bidders, then it's Chapter 11.

It may or may not be an orderly winding down.

[Neshanic]

128. Wachovia chatting with JP Morgan per CNBC.

[amandabeech]

154. Together, they'd be too big to fail.

Bail 'em out! Bail 'em out! W-a-a-a-y out!

[Dr.Phool]

133. I'll give them 100 bucks.

Give myself a nice salary, and a comfortable golden parachute, then finish killing it off!

It's the Republican way!

[amandabeech]

155. Sounds good to me!

Are you looking for investment partners?

I'll give you a 20.

[Jersey Ginny]

163. So if WAMU goes under, what happens to my mortgage with them?

Is it written off?

[amandabeech]

167. No, you'll still have to pay your mortgage.

Chances are that WAMU is merely servicing your mortgage, and doesn't keep much of your monthly payment for itself. Whatever WAMU receives will end up going to its creditors or will be taken over by any buyer.

It is likely that your mortgage became part of a mortgage-backed security--a large number of similar mortgages bundled together, then sliced and diced and sold to a wide variety of investors, including Fannie Mae or Freddie Mac. Who knows, your mortgage-backed could have ended up in the portfolio of Bear, Stearns or Lehman.

No matter who owns the right to get all or part of your mortgage payment after all the sales and bankruptcies, you'll still have an obligation to pay SOMEONE.

Make sure that you open and understand any communication that you get from WAMU. One of those could be a notice from WAMU for you to start making payments to another entity. You'll want to keep those payments going so that you don't end up with a credit rating like the one WAMU has now!

Good luck!

[Jersey Ginny]

171. Thanks for the valuable info. I'll make sure to read all WAMU info and fine print n/t

[RUMMYisFROSTED]

136. Iow, $85B gets ya bubkes.

[flamingdem]

137. Silver Lining: As we all know this could benefit our fearless leader in multiple

ways so hang in there ... Plus this is an incentive to work harder than ever because if O doesn't win it's the soup line! And if he does, and he will, the world will return to invest in a newly sane country.

[Ghost Dog]

138. Americas Snapshot (Reuters)

Canada dollar rebounds on higher commodity prices - at Reuters - 5 minutes ago

FOREX-Dollar falls vs euro, yen despite AIG bailout - at Reuters - 11 minutes ago
* Dollar falls as AIG rescue fails to calm markets * Currency gyrations exacerbated in thin trading * Morgan Stanley, Goldman Sachs shares tumble

Latin America stocks slump in credit market fears - at Reuters - 47 minutes ago
Latin American stocks took a beating on Wednesday as investors spooked by a credit crunch scrambled to raise cash by dumping shares of anything deemed risky.

Toronto stocks plunge on financial worries, Nortel - at Reuters - 47 minutes ago
The Toronto Stock Exchange's main index tumbled more than 350 points on Wednesday amid worries over the U.S financial crisis and as Nortel Networks Corp slashed revenue forecasts and said it was looking to sell one if its businesses.

Mexico markets slammed by global credit fears - at Reuters - 1 hour, 35 minutes ago
Mexican stocks, bonds and the peso slumped on Wednesday as investors dumped emerging market assets after a spike in interbank rates abroad fanned fears that credit may be drying up in the global financial system.

US dollar falls 2 pct vs Swiss franc, sterling - at Reuters - 1 hour, 45 minutes ago
The U.S. dollar extended losses on Wednesday in choppy trading, falling 2 percent against sterling and the Swiss franc. The dollar fell to session lows against the Swiss franc at 1.0993 francs.

[Ghost Dog]

139. Morgan Stanley, Goldman plummet as crisis mounts

Wed Sep 17, 2008 4:43pm EDT

NEW YORK/LONDON (Reuters) - Shares of Wall Street firms Morgan Stanley and Goldman Sachs plummeted on Wednesday and Britain's biggest mortgage lender neared a sale, the latest signs the global financial industry is in extreme distress.

The surprise $85 billion rescue of insurer American International Group by the U.S. Federal Reserve on Tuesday did little to calm investors' nerves.

"Stop The Insanity," pleaded a research note from Swiss bank UBS as U.S. financial shares appeared to be in free-fall. The U.S. stock market plunged 4.7 percent to a three-year low, the dollar slumped and safe-haven U.S. Treasury bonds soared. Please don't vote for McInsane, the researcher would have added, were she not afraid of losing her job. :silly:

The AIG rescue capped a week of bailouts, a bankruptcy on Wall Street and moves by central banks around the world to flood the financial system with funds to prevent it from seizing up.

The result: a seismic shift in the financial industry, with some of Wall Street's biggest names disappearing.

"The fear is who is next," said John O'Brien, senior vice president at MKM Partners in Cleveland. "It almost feels like people scour the books and say who is the next likely target that we can put a short on. And that spreads continuous fear."

Shares of Morgan Stanley and larger rival Goldman fell as much as 43 percent and 27 percent respectively, even after both reported better-than-expected quarterly earnings on Tuesday.

That stoked talk Wall Street's two surviving investment banks may have to join up with a commercial bank to survive. Continued...

/... http://www.reuters.com/article/newsOne/idUSHKG1567720080917

[Robbien]

140. Big hedge funds pulled big money from Morgan

A series of large hedge funds switched money out of Morgan Stanley’s prime brokerage or are considering moving after the cost of insuring the investment bank’s bonds against default soared and Lehman Brothers collapsed.

Many hedge fund managers said they were reassessing the risk of doing business with Morgan Stanley and, to a much lesser extent, Goldman Sachs after the failure of Lehman and agreed takeover of Merrill Lynch left only two large US broker-dealers.

The moves come amid widespread concerns at hedge funds and banks about renewed risks of failure of a market counterparty as a result of the US decision to allow Lehman to fail.

Morgan Stanley’s lucrative prime brokerage division, the world’s largest, lost low single-digit percentages of balances on Monday and Tuesday, according to people familiar with the business. Rivals say many funds are putting legal agreements in place to allow more to shift, and both funds and competitors said the move of cash balances accelerated on Wednesday, with one estimating there was over $20bn (£11bn) left.

The reviews by hedge funds follow the leap in the cost of Morgan Stanley credit default swaps, a form of insurance against default, in the past three days.

The cost of protecting its debt, equivalent to about 1,000 basis points, is now far higher than that of Bear Stearns immediately before its rescue, while its shares were down 32 per cent in early afternoon trading.

http://www.ft.com/cms/s/0/ff2787fe-84ee-11dd-b148-0000779fd18c.html

A quote from the article
“Unless you were alive and trading in 1929 you have never seen anything like this,”

[Ghost Dog]

146. Lloyds to buy HBOS in $50 billion deal

LONDON (Reuters) - British bank Lloyds TSB has agreed to buy rival HBOS Plc to create a 28 billion pound ($50 billion) mortgage company, a person familiar with the matter said on Wednesday, making it the latest troubled bank to be forced into the arms of a better-funded rival.

HBOS, Britain's biggest home loan lender, will be bought for 232 pence per share in an all-share deal, valuing it at over 12 billion pounds, the source said.

The deal is expected to be formally unveiled on Thursday.

...

Prime Minister Gordon Brown was involved in negotiating Lloyds' deal for HBOS, the BBC said.

...

The government is expected to smooth any competition concerns about the tie-up on grounds that it would help financial stability.

Lloyds is Britain's fifth-biggest bank and HBOS ranks sixth, but they rank fourth and first for mortgage lending and would have a 28 percent share of home loans, and also be the biggest taker of savings and provider of current accounts.

HBOS has lost more than half its value in the last six days -- its shares crashed from 308.5 pence on September 9 to an all-time low of 88p earlier on Wednesday.

Lloyds shares ended unchanged at 279.75p, valuing it at almost 16 billion pounds. The DJ Stoxx European bank index fell 4 percent as the sector was hit hard again.

...

The talks were encouraged by both the Treasury and UK regulator the Financial Services Authority, the BBC said.

HBOS has come under mounting pressure as it is more reliant on wholesale markets to fund its business than other UK banks, and the cost of borrowing funds in the interbank market continues to rise as the credit crunch has made banks reluctant to lend to each other.

The Bank of England on Thursday said it would allow banks an extra three months to swap their risky assets for government paper, to ease short-term funding strains.

But there was a growing fear that savers with HBOS could withdraw funds and create a bigger problem.

There were no signs of a rush to withdraw on Wednesday and some HBOS customers welcomed the takeover talks.

/... http://www.reuters.com/article/marketsNews/idUSLH43730920080917?sp=true

[UpInArms]

151. Hedge Fund GoldenTree sees sharp rise in syndicated loan defaults

http://www.reuters.com/article/bondsNews/idUSN1744147720080917?sp=true

NEW YORK, Sept 17 (Reuters) - Hedge fund GoldenTree Asset Management is expecting a sharp rise in defaults on high-yield leveraged loans in 2009 as the financial market turmoil derails an economic recovery, a senior director said on Wednesday.

GoldenTree, investment management firm TCW, and other large investors said the collapse of major Wall Street firms over the past week has delayed any recovery after a year-long credit crisis.

But the turmoil may present new opportunities in investing in Collateralized Loan Obligations, or CLOs.

"We're rooting for volatility" to put money to work, Vanitha Milberg, director of structured products at GoldenTree, said during a loan conference sponsored by Reuters LPC in New York.

GoldenTree has run stress tests for loan default scenarios assuming 6 percent defaults this year and 12 percent next year, she said.

"It feels like it could be pretty severe," Milberg said.

CLOs present "a lot of fundamental value" if investors can take a two- to three-year view, particularly in senior parts of the capital structure of CLOs, she said.

...more...

[ozymandius]

152. Thank you UpInArms for the second thread. Here's the closing blah blah.

It's really hard to say anything more than DAMN! I just need to sit and digest this for awhile.

Dow 10,609.66 Down 449.36 (4.06%)
Nasdaq 2,098.85 Down 109.05 (4.94%)
S&P 500 1,156.39 Down 57.20 (4.71%)
10-Yr Bond 3.41% Down 0.081
NYSE Volume 9,653,118,000
Nasdaq Volume 3,160,366,000

4:25 pm : Stocks tumbled nearly 5% for the second day this week after the government extended AIG (AIG 2.06, -1.69) an $85 billion emergency loan in a move that did little to ease credit market turmoil.

The major indices ended on a sour note at session lows. All ten of the economic sectors posted a loss, with financials (-8.9%) falling the most. Weakness was widespread, the best performing sector, energy, posted a loss of 2.4%.

To prevent an AIG bankruptcy filing, the Federal Reserve agreed to provide an $85 billion two-year loan in exchange for a 79.9% stake in the insurance giant. The Fed said a disorderly failure of AIG could add to already significant levels of financial market fragility. The loan does not come cheap; AIG has to pay the three-month Libor rate (currently at 3.06%) plus 8.5%.

The bailout did little to stop the turmoil in the credit markets. The TED spread --the difference between the three-month Treasury bill and the three-month Libor -- spiked to 3.02%, marking its highest level on record. The higher spread indicates increased fears of credit risk and reluctance of banks to lend to each other. In a flight to safety, investors flocked to the three-month Treasury bill, sending its yield to only 0.04%, down sharply from last Friday's yield of 1.47%.

In an attempt to quell some fears, Morgan Stanley (MS 21.17, -7.53) announced its third quarter earnings last night instead of the previously scheduled release of this morning. The company earned $1.32 per share, which blew past expectations by $0.54. Despite the earnings beat, the stock dropped 24% as Morgan Stanley's credit default swap -- which is the cost to protect debt -- rose to 728 basis points yesterday. By comparison, Lehman Brothers' (LEH 0.14, -0.16) swap traded at 707 basis points before it filed bankruptcy. Morgan’s CEO said the decline was unwarranted and blamed short-sellers, which did little to calm fears.

The government made other moves in addition to the AIG bailout. The Treasury is setting up a temporary financing program at the Fed's request. The program will auction Treasury bills to raise cash for the Fed's use. The initiative aims to help the Fed manage its balance sheet following its efforts to enhance its liquidity facilities over the previous few quarters.

The SEC took several actions to tighten rules regarding the short-selling of stocks. Short-sellers will now have to deliver securities by the close of business on the settlement date. The SEC eliminated an option market-maker exception for the close-out agreement. In addition, short-sellers who deceive market participants are now committing a fraud.

The uncertainty over the financial markets and concern that the Fed is getting funding from the Treasury sparked a rally in hard assets, as investors look to preserve wealth. Oil spiked 5.9% to $96.52 per barrel, gold rallied 11.0% and commodities as a whole gained 3.2%.

Conversely, the dollar fell 1.2%, losing 1.4% against the euro and 1.9% against the pound.

In corporate news outside the financial world, flash memory maker SanDisk (SNDK 20.93, +5.89) rejected a $26 per share offer from Korean conglomerate Samsung, despite the offer representing a 93% premium over SNDK's closing price on Sept. 4, the day before media reported the possible takeover. SanDisk, which traded at $55.98 in October 2007, said the offer undervalues the firm.

Nortel (NT 2.64, -2.66) gave a preliminary third quarter view of $2.3 billion in revenue, which falls short of the $2.7 billion consensus. Nortel, which provides networking solutions, expects customers to cut back on spending.

Software developer Adobe Systems (ADBE 36.41, -1.73) reported third quarter earnings that topped Wall Street's forecast, helped by sales of Adobe Acrobat.

General Mills (GIS 69.88, +1.33) easily beat estimates thanks to a strong 14% year-over-year increase in sales.

Economic news did not help sentiment, with the number of new housing starts declining 6.5% to 895,000, which is the lowest rate since January 1991. Economists expected that there would be 950,000 starts. Building permits fell 8.9% to 854,000, compared to the median economist estimate of 928,000. On the positive side, fewer building permits will presumably clear some of the excess inventory of homes for sale. Single-family starts declined just 1.9% from the prior month.

The S&P 500 is down 7.6% week-to date, putting it on pace for the largest one week percent decline in more than six years.DJ30 -449.36 NASDAQ -109.05 NQ100 -5.3% R2K -4.8% SP400 -4.4% SP500 -57.20 NASDAQ Adv/Vol/Dec 428/3.11 bln/2452 NYSE Adv/Vol/Dec 217/2.14 bln/2984

[Capn Sunshine]

156. MSM isn't mentioning RUSSIAN MARKET FORCIBLY CLOSED "INDEFINITELY"

What's the harm now?

I guess it's like the Hurricane Ike fuckup; they'd rather not go there.

[Ghost Dog]

157. Retreat from Moscow: Investors take flight as global fears stoke Russian crisis

... snip ...

Chris Weafer, chief strategist at Uralsib investment bank, blames what he calls “politicophobia” for the current investment climate. “There are two big issues that concern investors. One is the politics and how that might play out, with Russia at the next stage of its development, and whether it will change after the Georgia conflict. And secondly, whether Georgia . . . has strengthened the hand of those who prefer to see a strong state.”

Many Russians lay blame for the crisis entirely at the door of the US housing market plunge, which has brought about the collapse of several banks in Europe and the US. “We are part of the global economy and these relate to the world economy,” said Mr Putin, speaking to western academics on September 11. “It is in no way linked to the crisis in the Caucasus.” He said the US housing crisis “led to an outflow of speculative capital. Western institutions began to repatriate capital long before the crisis in the Caucasus.”

The last golden days of the Russian stock market came in May, as investors flooded into the country after the election as president of Mr Medvedev, seen as a liberal and a moderating influence on the hard-headed nationalist policies of some officials in Mr Putin’s team. Analysts saw the government as ready to push forward with the next stage of development.

But in a matter of months, such optimism has dissipated. By late May, things had started to go wrong when the UK’s largest investment in Russia, BP’s 50 per cent stake in the TNK-BP oil venture, came under pressure from Russian shareholders and the government seemed powerless – or unwilling – to intervene. As the dispute escalated Robert Dudley, the BP-backed chief executive, left the country in July blaming official harassment.

The day Mr Dudley left, Mr Putin spooked markets further. At a meeting of metals industry chieftains in Siberia, Mr Putin lashed out at Igor Zyuzin, the owner of Mechel, the Russian steel and coal producer, for price-gouging. With trademark gallows humour, he threatened to send a doctor to “cure” Mr Zyuzin, who was absent from the meeting claiming illness. Markets sank and half the value of Mechel, which is listed on the New York Stock Exchange, was erased amid fears that the company was finished.

Then the anti-monopoly service began to investigate other big metals companies for price-gouging as part of a battle to fight rampant inflation, later extending the probe to “price fixing” in fertilisers and cement. Investors began to fear the government could start imposing price caps on some of Russia’s biggest blue chips, limiting their earnings capacity.

For many, the war in Georgia was the final straw. Fear of a capricious and arbitrary Kremlin put flight to foreign investors, with analysts estimating that $21bn left the country in the weeks that followed Russia’s military intervention. Adding to the pressure was the weakness in global stock markets and the falling price of oil, on which Russia is dependent for its fiscal health. Mr Kudrin said on September 16 that the federal budget would begin to run a deficit if oil fell below $70 a barrel – with Russian oil selling for roughly $89 a barrel today.

Market falls driven by the flight of foreign investors then took on a much more serious momentum of their own, as domestic investors began facing margin calls on shares that they had borrowed money to buy. A clutch of the country’s richest business people had made billions this way, with many other smaller businessmen joining them in this one-way bet as the market continued to climb. “If you add all these people up, you’ve got a pyramid,” said one market participant, speaking on condition of anonymity.

Starting at the end of August, however, such over-leveraged investors are being forced either to cover their losses with cash or to sell shares, and a wave of forced selling has ensued. Traders and analysts say this is what is causing the biggest slide since the 1998 rouble crisis. “The main cause of this is margin calls, which are leading to forced sales and lowered prices,” says Andrei Sharonov, managing director of Troika Dialog, the Moscow investment bank, and a former deputy economy minister.

The drop in stocks is certain to slow economic growth as access to funding dries up. It could lead to mid-sized businesses, particularly in the property and retail sectors, going out of business, bankers and analysts say. “There were a lot of domestic investors. If you were two times leveraged and the underlying stock has gone down more than 50 per cent, that’s it, you’ve lost everything,” says one market insider, speaking on condition of anonymity. “A lot of minigarchs are very rapidly becoming nanogarchs.”

Not everyone is dreading the consequences of the credit squeeze, which looks like it could unleash a wave of consolidation in a number of sectors. Those with cash or access to credit could emerge winners, in industries from banking to spirits.

Alexander Mechetin, chairman of the board of Synergy, Russia’s second largest vodka producer, says three less fortunate rivals have offered to sell out to Synergy over the past month. “There are a lot of fire sales at the moment. Not all companies can raise money in this market, and its hurting them.” He insists his company is in good health.

Russia’s broader population, more­over, has next to no exposure to stocks. With the rouble practically impregnable, they will only feel the pain if bank failures began to cost them their deposits, or growth slows dramatically.

Few expect this to happen. Surreally, amid all the turmoil, the economy continues to surge. “I don’t know any economist who thinks there is going to be less than 6 per cent growth this year and next,” says Cliff Kupchan, an economist at the Eurasia Group, the New York-based risk forecaster. “And the fact that there isn’t 8 per cent growth is probably a good thing because Moscow dry cleaners are already charging $15 to do a shirt.”

... much more ...

/... http://www.ft.com/cms/s/0/af5f1488-84e1-11dd-b148-0000779fd18c,s01=1.html?nclick_check=1

[UpInArms]

158. ahhhh - the glories of the glorious globalization of all markets

:scared:

[Ghost Dog]

161. “A lot of minigarchs are very rapidly becoming nanogarchs.”

That's not bad, is it. Not a bad phrase.

I guess most of the oligarchs are still doing just fine, though. Unless the Russian, probably not entirely clean and independent, Justice System decides to send some of them to Siberia.

Which, come to think of it, is probably what the US-UK, ditto, Justice Systems probably ought to be thinking about doing round about now, if not long before.

[amandabeech]

160. Indefinitely?

Is this possibly a return to Soviet economic days?

Or will Vlad the Mad decide to attack the homes of western stock markets?

[ozymandius]

165. Ow! Ow!

How much value has left the global economy with this event, I wonder?

[Hugin]

159. "In addition, short-sellers who deceive market participants are now committing a fraud."

As it should be!

I may be alone in this, but, I think reigning in the Shorts is a good move.

[AnneD]

166. What an exciting day at the pool.....

I'll be adding extra chlorine to the water tonight to compensate for all the Reggie bars that were pitched in today. As of now the pool is closed to wagers. If we have a sucker rally tomorrow-we may have a window of opportunity-but I wouldn't hold my breath.

[Capn Sunshine]

162. NIKKEI down 5% in early trading

God, they've only been up and running 45 minutes

[UpInArms]

164. per CNN Futures

http://money.cnn.com/data/premarket/

Sep 17 8:15pm†
NIKKEI 225 -381.29 -3.25% 11,368.50

[depakid]

168. Just a historical thought- the people who stay calm in a panic

and hold or purchase solid performing assets at a discount, win out over time (sometimes big) once the dust has settled.

[Ghost Dog]

172. GLOBAL MARKETS-Raw fear pummels stocks, helps bonds

Thu Sep 18, 2008 12:12am EDT

HONG KONG, Sept 18 (Reuters) - Asian stocks tumbled 3-7 percent on Thursday, with emergency actions by central banks and governments around the world failing to ease a financial crisis that has sent investors fleeing to government bonds.

The seismic shift on Wall Street this week continued to create a sense of global panic, with frenetic consolidation in the financial sector in the world's largest economy, sending the MSCI all-country world stocks index .MIWD00000PUS to its lowest since November 2005.

Investors piled into short-term U.S. Treasuries, pushing yields down close to zero as investors bailed from money market funds. Even the Federal Reserve had to receive a $40 billion injection from the U.S. Treasury to help it manage its balance sheet, after the Fed offered $85 billion in loans to rescue American International Group (AIG.N: Quote, Profile, Research, Stock Buzz) on Wednesday.

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"Credit fears have now reached a climax. It's presumptuous to assume it would end in one day," said Harushige Kobayashi, head of research department at broker Securities Japan.

"The market ignores fundamentals and is now 95 percent driven by psychological factors."

The Chicago Board Options Exchange Volatility Index .VIX or VIX, Wall Street's main barometer of investor fear, closed on Wednesday at its highest level in almost six years.

Another measure of investor distaste for risk, the TED spread of 3-month interbank lending rates over 3-month U.S. Treasury bill yields blew out to more than 300 basis points, far exceeding levels reached during the U.S. savings and loan crisis of the 1980s.

Japan's Nikkei share average .N225 fell 3.6 percent to a three-year low early on Thursday, with shares in high-profile exporters such as Sony (6758.T: Quote, Profile, Research, Stock Buzz) and Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) the biggest drags.

The MSCI Asia-Pacific ex-Japan stocks index .MIAPJ0000PUS fell 3.9 percent to its lowest since July 2006. The index is down 39.3 percent so far this year.

Hong Kong's Hang Seng index .HSI dropped 6.6 percent to the lowest in two years, led by HSBC stock, down 5.9 percent.

Industrial and Commercial Bank of China (1398.HK: Quote, Profile, Research, Stock Buzz), which gave up its title of world's biggest bank to HSBC on Wednesday, saw its shares drop 12 percent.

Russia on Wednesday halted stock and bond trading on the country's MICEX and RTS exchanges as investors and dealers desperately liquidated positions for cash. It was not clear when the exchanges would open again.

NO SAFETY

Gold prices were whipsawed in the spot market, slipping 0.4 percent after earlier rising to a 1-month high <XAU=>. Gold posted its biggest nominal rise ever in dollars on Wednesday as frenzied investors sought relatively safe assets.

"This is stunning, and testimony to these historic times," said Alan Ruskin, chief international strategist with RBS Greenwich Capital, in a note. "It is clear that fear and a desperate search for a hedge against risk has trumped all."

Central banks in Japan and Australia pumped $17 billion into money markets to prevent banks of hoarding cash amid an environment of distrust and uncertainty.

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Investors are quickly learning that in the current crisis almost nothing is safe, even U.S. money market funds.

Late Wednesday, Moody's Investors Service sharply downgraded the Reserve Primary Fund after it fell below $1 a share in net asset value due to losses on debt issued by Lehman Brothers (LEH.P: Quote, Profile, Research, Stock Buzz), which has filed for bankruptcy protection.

Crude oil CLc1 held steady at a little above $97 a barrel after jumping $6 on Wednesday.

/... http://www.reuters.com/article/marketsNews/idINSP22565320080918?rpc=44&sp=true


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