STOCK MARKET WATCH, Monday November 3

[ozymandius]

Source: du

STOCK MARKET WATCH, Monday November 3, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 78
DAYS SINCE DEMOCRACY DIED (12/12/00) 2841 DAYS
WHERE'S OSAMA BIN-LADEN? 2566 DAYS
DAYS SINCE ENRON COLLAPSE = 2857
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

In recognition of those prescient of the Dow's precipitous return of Bush values (9/29/08): JuneBourder and AnneD

AT THE CLOSING BELL ON October 31, 2008

Dow... 9,325.01 +144.32 (+1.55%)
Nasdaq... 1,720.95 +22.43 (+1.32%)
S&P 500... 968.75 +14.66 (+1.54%)
Gold future... 718.20 -20.30 (-2.83%)
30-Year Bond 4.37% +0.09 (+1.98%)
10-Yr Bond... 3.97% +0.03 (+0.79%)






GOLD,EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

[ozymandius]

1. Market WrapUp

BY TIM W. WOOD

Drivel can be found here.

[ozymandius]

2. Today's Reports

10:00 Construction Spending Sep
Briefing.com -0.8%
Consensus -0.8%
Prior 0.0%

10:00 ISM Index Oct
Briefing.com 43.0
Consensus 42.0
Prior 43.5

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

[UpInArms]

38. U.S. Oct. ISM manufacturing index 38.9% vs 43.5% in Sept.

02. U.S. Oct. ISM factory index lowest since Sept. 1982
10:02 AM ET, Nov 03, 2008

03. U.S. Oct. ISM manufacturing index below 41.5% consensus
10:01 AM ET, Nov 03, 2008

04. U.S. Oct. ISM manufacturing index 38.9% vs 43.5% in Sept.
10:01 AM ET, Nov 03, 2008

[Hugin]

39. Really... That's quite shocking.

When paired with last week's unreported statistic.

What was that again?

Especially, when you consider there's a third more people bumping about now than in 1982.

The sole ray of optimistic is that we've almost completely backed out of Reaganomics on every measure at this point.
There's 28 years shot to hell... In an Economic Sense.

[Hugin]

40. Oh, here it is... The UMich PMI numbers.

Oct 31 (Reuters) - The Institute for Supply
Management-Chicago said on Friday its index of Midwest business
activity fell in October to 37.8 from 56.7 in September.

From: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3575630#3575942

That, "lowest in 59 years discretionary income number" also has me a bit shaken up.

[UpInArms]

41. Construction Spending report -0.3% vs 0.3% last month

Construction Spending Sep/10:00 AM -0.3% 0.3%

http://www.reuters.com/article/bondsNews/idUSN0336304120081103

WASHINGTON, Nov 3 (Reuters) - U.S. construction spending fell a smaller-than-expected 0.3 percent in September as private home building fell along with public construction while private non-residential building was nudged slightly higher, a Commerce Department report showed on Monday.

Analysts polled by Reuters ahead of the report were expecting a 0.8 percent decrease in construction spending in September from the unchanged figure in August that was revised to a 0.3 percent increase.

Private residential construction fell 1.3 percent and public construction fell by the same margin, the sharpest fall in more than six months. Overall private construction rose 0.1 percent led by a 1.2 percent increase in nonresidential building.

Spending on construction in September was $1.060 trillion.

[ozymandius]

3. Oil rises above $68, lifted by firm stock markets

KUALA LUMPUR, Malaysia – Oil prices rose above $68 a barrel in Asia Monday, rising in tandem with advancing regional equity markets but traders predicted gains may be capped by lingering worries over the health of the global economy.

Light, sweet crude for December delivery traded as high as $69.19 but pared gains to be up 22 cents at $68.01 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract settled at $67.81 on Friday, up $1.85 following a late-session surge on the back of a Wall Street rally.

....

Oil investors have been tracking equity indexes as a barometer of global economic health. In trading Monday, Hong Kong's Hang Seng index was up 2.7 percent, while South Korea's Kospi was up 1.4 percent. Japan's markets were closed for holiday.

....

In other Nymex trading, gasoline futures rose 0.29 cents to $1.4988 a gallon. Heating rose rose 1.85 cents to $2.1027 a gallon and natural gas for December delivery was up 0.6 cents at $6.789 per 1,000 cubic feet.

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

[ozymandius]

4. Rush of economic data likely to shape week

NEW YORK – Wall Street's steep gains in the final days of October are leaving some investors optimistic that the market has put its scariest days behind it, but they're still wary about the landmines that could send stocks reeling again.

Tuesday's presidential election could help erase some unknowns over how the power structure in Washington will affect investors, but pressing economic questions could ultimately shape the week. Reports due on manufacturing, the service sector and, most important, employment, could determine whether the market stays above its mid-October lows and holds on to some stability or plumbs new depths.

Sunday evening, stock index futures signaled a moderately lower open. Dow Jones industrial average futures fell 31, or 0.33 percent, to 9,267. Standard & Poor's 500 futures fell 4.30, or 0.44 percent, to 963.00 and Nasdaq-100 futures fell 4.00, or 0.30 percent, to 1,333. The market's volatility in September and October, however, has made futures a less reliable indicator of how the market will indeed open.

http://news.yahoo.com/s/ap/20081102/ap_on_bi_ge/wall_street_week_ahead

[ozymandius]

5. Asian stock markets gain; Australia up 5 pct

HONG KONG – Most Asian stock markets rose Monday, with Australia's benchmark gaining its most in almost two weeks, as investors appeared encouraged by government efforts to help the global economy weather the financial crisis. European shares opened modestly higher.

Across Asia, markets seemed to shrug off more dispiriting economic data and focus on fresh stimulus plans.

The Korea Composite Stock Price added 1.4 percent after the government unveiled nearly $11 billion in new spending measures to protect South Korea from sliding into recession.

In Australia, the S&P/ASX 200 closed up more than 5 percent — its best performance in almost two weeks — despite troubling evidence of slowing manufacturing and retail sales, as traders anticipated a further interest rate cut from the country's central bank on Tuesday.

India's main stock index rose 3.5 percent after a central bank decision over the weekend to cut the nation's key interest rate and release $8.1 billion into its financial system.

Hong Kong's blue-chip Hang Seng Index climbed 375.70, or 2.7 percent, to 14,344.37 but closed well off its session highs. Singapore's key index rose more than 4 percent.

http://news.yahoo.com/s/ap/20081103/ap_on_bi_ge/world_markets

[Ghost Dog]

9. China manufacturing sags, focus on domestic demand

Mon Nov 3, 2008 12:35am EST BEIJING, Nov 3 (Reuters) - A measure of Chinese manufacturing activity showed factory output shrank sharply in October in the face of waning orders, while officials pledged further steps to boost domestic demand to keep the economy from slowing too much.

Capital controls and the relative conservatism of China's banks have largely insulated the world's fourth-largest economy from direct hits from the global financial crisis, but its reliance on exports to the United States and Europe makes it vulnerable to a drop-off in Western demand.

Brokerage CLSA's Purchasing Managers' Index (PMI) on Monday gave an indication of the extent of the damage, falling to 45.2 in October from 47.7 in September.

It is the weakest reading since the survey was launched in April 2004 and the third-straight month that it has come in below the boom-bust line of 50 to indicate a manufacturing contraction.

The government's official PMI for October, released on Saturday, also plunged to a record low of 44.6 from 51.2 in September.

...

The economy has already slowed considerably. Annual gross domestic product growth was 9.0 percent in the third quarter, down from 10.1 percent in the second quarter and 11.9 percent in all of 2007.

Beijing has responded with a raft of fiscal and monetary policy measures, including three cuts in interest rates since mid-September and increases in tax rebates for exporters of labour-intensive goods.

The central bank has also stopped imposing strict lending limits on banks to ease the impact of the credit crisis, state media reported on Saturday.

SENSE OF URGENCY

With evidence mounting that even such steps will not be able to stave off a significant slowdown in exports, a key growth driver, a number of senior officials said the country should do yet more to boost domestic consumption.

/... http://www.reuters.com/article/marketsNews/idINPEK29427220081103?rpc=44&sp=true

[ozymandius]

6. KKR delays public listing

LONDON (CNNMoney.com) -- Private equity titan Kohlberg Kravis Roberts is delaying its plan to go public until 2009 amid the credit crisis and turbulence in financial markets.

KKR had planned to list on the New York Stock Exchange through a takeover of its Amsterdam-listed investment fund KKR Private Equity Investors.

KKR Private Equity Investors said Monday it does not expect the transaction to be completed until next year at the earliest.

"Sources of liquidity may be not only more difficult, but also impossible to obtain in the current market environment," KKR Private Equity Investors said in a statement.

http://money.cnn.com/2008/11/03/markets/kkr/?postversion=2008110305

[willing dwarf]

19. Seems they're always level headed

Kohlberg was one of the really spoke out as a leaders when the Gore Bush debacle took place. I remember he took out a full page ad in the NY Times pushing back against the Supreme Court/Bush takeover. I'd buy stock in KKR just to honor his service.

[ozymandius]

7. Economists see recession through 2009

NEW YORK (CNNMoney.com) -- A survey of top economists released Monday shows that the vast majority of them believe the economy has fallen into a recession that will continue throughout all of 2009.

According to the National Association of Business Economists, 90% of the 102 members responding were more pessimistic about the economy than they had been in July.

The economists indicated that a recession is likely to continue at least through the end of next year, with 79% saying the economy will grow less than 1% and 38% saying the economy will shrink next year.

....

Low consumer sentiment and poor economic conditions have sharply reduced demand for goods and services. According to the survey, 35% reported falling demand while just 30% said demand was rising. It was the first time since 2001 in which more respondents reported declining demand than rising demand.

http://money.cnn.com/2008/11/03/news/economy/nabe_survey/index.htm

[ozymandius]

8. EU Says Europe Economy Probably Already in Recession (Update1)

Nov. 3 (Bloomberg) -- The European Commission said the region's economy probably entered a recession this year and will barely grow in 2009, increasing pressure on political leaders to work out a plan to combat the financial crisis at summits this month.

Economic growth in the euro area will slump to 0.1 percent next year, the worst performance since 1993, the Brussels-based commission said in a report today. It lowered its forecast for this year to 1.2 percent from 1.5 percent in April.

Europe's economy, which has already grappled with record oil prices and the euro's strength this year, is now heading into 2009 mired in the credit crisis that has closed off funding to companies and sent consumer and business confidence plunging. European leaders will meet this month to try to hammer out a coordinated EU plan before a summit of world leaders hosted by President George W. Bush on Nov. 15.

.....

European manufacturing contracted at a record pace in October, according to separate figures published today. Paris- based L'Oreal SA, the world's largest cosmetics maker, on Oct. 31 cut sales and profit forecasts for the third time in less than four months. Software maker SAP AG last week withdrew its full-year sales outlook and Deutsche Lufthansa AG, Europe's second-biggest airline, lowered its 2008 earnings forecast.

Gross domestic product in the euro area ``is now expected to have declined in the third quarter'' after contracting 0.2 percent in the previous three months, according to the commission, pushing the region into a recession, defined as two straight quarters of negative growth.

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

[Ghost Dog]

12. European banks suffer, stimulus measures planned

Monday November 3, 4:46 am ET LONDON (Reuters) - Profits evaporated at top European banks on Monday and authorities worldwide pressed on with efforts to bolster weakening economies as data from Europe and China suggested a sharp global downturn was gathering pace.

French bank Societe Generale reported an 83.7 percent drop in third-quarter net profit but said it was strong enough to withstand the global financial crisis. Net profit fell to 183 million euros ($234 million) with losses from the collapse of Lehman Brothers and other writedowns costing the bank 1.208 billion euros in pre-tax income.

Germany's second-biggest bank Commerzbank said it would take an 8.2 billion euro capital injection from the state and another 15 billion to secure refinancing. It posted a third quarter net loss of 285 million euros.

And Britain's biggest home lender HBOS Plc raised its hit from the value of risky assets and bad loans to over 5 billion pounds ($8.14 billion) as its takeover partner Lloyds TSB predicted a sharp fall in profits.

...

France has earmarked 360 billion euros for the country's finance sector and French Prime Minister Francois Fillon was quoted by Le Figaro newspaper on Monday as saying that if the banks did not use the money to lend to businesses, then the government could take direct stakes in them.

The credit crunch, which stemmed from a collapse in the U.S. housing market, has prompted banks to clam up on lending to each other, businesses and households for over a year now.

...

Euro zone manufacturing activity sank in October to a record low as employment shrank faster than at any time since early 2002, a key survey showed on Monday.

The Markit Eurozone Purchasing Managers Index for the manufacturing sector slumped to 41.1 -- the lowest in the survey's 11-year history -- from September's 45.0,

Berlin aims to safeguard one million jobs after putting together a 500 billion euro bank rescue package.

...

Euro zone finance ministers meet in Brussels later on Monday to discuss reform of institutions that manage the global financial market and bodies such as credit rating agencies, accounting rules-setters, banks and their management.

Finance chiefs from the "Group of 20" world economies meet in Brazil later this week to prepare for a November 15 summit of world leaders to chart a way out of the financial crisis.

...

But while trillions of dollars in bank bailouts may have averted financial meltdown, the economic outlook is grim. Many economists and policymakers say the world's top economies are in recession already and prospects for corporate earnings look dim.

...

The global economic upheaval has relegated Tuesday's U.S. presidential election to little more than a footnote for financial markets. Investors have factored in a victory for Democrat Barack Obama, who leads in opinion polls.

/... http://biz.yahoo.com/rb/081103/business_us_financial6.html?.v=7

[clixtox]

17. Good night, Irene!

"French bank Societe Generale reported an 83.7 percent drop in third-quarter net profit but said it was strong enough to withstand the global financial crisis. Net profit fell to 183 million euros ($234 million) with losses from the collapse of Lehman Brothers and other writedowns costing the bank 1.208 billion euros in pre-tax income"

When a huge bank like Societe General stoops to proclaiming their solvency, I am inclined to doubt. Their Investment Banking exposure has to be very troubling in the present milieu.

Heads up!

[Ghost Dog]

22. You may like to refer to this info in the Weekend thread:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=103&topic_id=397813&mesg_id=398305

... I'm noting plenty of worried comment here in Spain on what's likely happening in Latin America ...

[ozymandius]

54. Oh my.

"a huge bank like Societe General stoops to proclaiming their solvency"

Indeed. It's like one being asked if one has committed heinous crimes and responding with a non-denial denial.

[Ghost Dog]

13. Bank overnight deposits at ECB hit record level

Mon Nov 3, 2008 3:25am EST FRANKFURT, Nov 3 (Reuters) - Overnight deposits at the European Central Bank jumped to a new record, figures on Monday showed, as commercial banks continued to hoard their cash.

Banks deposited 279.367 billion euros at the ECB overnight as of Nov. 2, the ECB said on its Reuters information page ECB40, compared with 244.894 billion euros reported on Friday.

The amounts deposited reflect the ECB's recent move to pay proportionately higher interest on overnight deposits, but also shows that banks are continuing to stash money at the ECB rather than lend it on in the interbank market.

The ECB said banks had borrowed 11.230 billion euros from its overnight loan facility, up from the 8.231 billion euros borrowed previously.

Overnight loans attract an interest rate of 4.25 percent and deposits pay 3.25 percent, compared with the ECB's main rate of 3.75 percent.

/. http://www.reuters.com/article/marketsNews/idINFAT00445520081103?rpc=44

[ozymandius]

10. GM-Chrysler Merger Talks to Intensify After Election

Nov. 3 (Bloomberg) -- General Motors Corp. merger talks with Chrysler LLC may intensify this week as the companies wait to see whether the U.S. will provide financial aid to help complete the deal, people familiar with the matter said.

GM and Chrysler LLC owner Cerberus Capital Management LP still support the combination, and discussions haven't stalled during government negotiations, said the people, who asked not to be identified because the negotiations are private.

GM and Chrysler, pressing for an agreement as a slumping economy and a freeze on auto loans push industry sales toward a 15-year low, don't expect to make significant progress on government aid until after the U.S. election, the people said. Combining the companies would require $10 billion to $12 billion in additional cash to mesh operations, Citigroup Global Markets Inc.'s Itay Michaeli said in a note to investors on Oct. 20.

Financing and a union agreement remain the two biggest hurdles for the merger, people familiar with the talks said. The United Auto Workers union has hired former GM adviser and Morgan Stanley auto analyst Stephen Girsky to assist the union in the talks with GM, Girsky confirmed in an e-mail.

http://www.bloomberg.com/apps/news?pid=20601103&sid=a528uC_m40LY&refer=news

[ozymandius]

15. U.S. Rejects G.M.’s Call for Help in a Merger

DETROIT — The Treasury Department has turned down a request by General Motors for up to $10 billion to help finance the automaker’s possible merger with Chrysler, according to people close to the discussions.

Instead of providing new assistance, the Treasury Department told G.M. on Friday, the Bush administration will now shift its focus to speeding up the $25 billion loan program for fuel-efficient vehicles approved by Congress in September and administered by the Energy Department.

Treasury officials were said to be reluctant to broaden the $700 billion financial rescue program to include industrial companies or to play a part in a G.M.-Chrysler merger that could cost tens of thousands of jobs.

.....

The first step is to get the Energy Department to expedite the release of the $25 billion in low-interest loans for G.M., Chrysler and the Ford Motor Company.

Beyond that, the administration is also bringing the Commerce Department into discussions about channeling additional aid to the automakers.

http://www.nytimes.com/2008/11/03/business/03gm.html?_r=1&oref=slogin

Comment from Calculated Risk:

A possible GM-Chrysler merger probably only makes sense to GM with government help - and with tens of thousands of projected layoffs (some estimates are 200 thousand job losses including suppliers and other service providers), this deal probably isn't very appealing to lawmakers.

Without this deal, Chrysler will probably go bankrupt - and the jobs will be lost anyway - and some lenders will be stuck with Chrysler pier loans (more write downs for some banks).

[ozymandius]

11. Commodities Show Worst Recession in 3 Decades, `Scared to Death' of Longer

Nov. 3 (Bloomberg) -- A record plunge in commodities may signal the U.S. is headed for the longest recession since 1981, just after Ronald Reagan became president and the economy began a 16-month slump.

Industrial raw materials measured by the Journal of Commerce fell at an annual rate of as much as 56 percent last week, the most since 1949 and worse than the declines before every recession since then. Crude oil, copper and wheat tumbled more than 50 percent from records this year as the U.S. economy declined in the third quarter by the most since 2001.

....

Not everyone expects a protracted decline in global growth. Federal Reserve Chairman Ben S. Bernanke has been reluctant to label the current slide a recession. The International Monetary Fund forecast on Oct. 8 global growth would drop to 3 percent next year, which the lender calls the dividing line between world recession and expansion.

....

``People say that copper is the commodity with a Ph.D. in economics, but really all you have to do is look at the price of any commodity right now to realize that the world is definitely in a recession,'' said Michael K. Smith, president of T&K Futures & Options in Port St. Lucie, Florida. ``Anyone paying attention to these markets is scared to death right now.''

http://www.bloomberg.com/apps/news?pid=20601103&sid=aXpSoL0MWdek&refer=us

[ozymandius]

14. While Greenspan Slept

from The Big Picture

This Bloomberg special report may have slipped by unnoticed last week during all of the market mayhem. Its worth reviewing, as it places blame not only at the feet of Alan Greenspan, but Arthur Levitt and Robert Rubin as well.

In 1998, the imminent collapse of hedge fund Long-Term Capital Management forced the Fed to organize a bailout by Wall Street. Investment banks had loaned the fund billions and were among counterparties in more than $1 trillion in derivative contracts used to hedge investment risks.

That same year Greenspan, Treasury Secretary Robert Rubin and SEC Chairman Arthur Levitt opposed an attempt by Brooksley Born, head of the Commodity Futures Trading Commission, to study regulating over-the-counter derivatives. In 2000, Congress passed a law keeping them unregulated.

Levitt said he went along with concerns by Greenspan and Rubin that Born's action might throw derivatives contracts into "legal uncertainty.'' He said he now regrets that he didn't press a presidential advisory group "to take a closer look'' at the issue. Rubin said in an interview that ``you could have had chaos'' if Born's plan found existing derivatives contracts invalid because they weren't traded on an exchange. Both Born and Greenspan declined to comment.

There's more at The Big Picture. It's worth reading the whole thing at the source.

http://bigpicture.typepad.com/comments/2008/11/while-greenspan.html

[Dr.Phool]

31. Don't look in that closet, whatever you do!

You might find some bodies in there, and people might get the impression there's a killer on the loose.

Besides, we're not done yet.

[ozymandius]

16. Have a nice day!

:donut: :donut: :donut:

It's time for me to set course to school. I'm on the election team in which students will participate in the national mock election. I'll report the results here tomorrow.

:hi:

[Demeter]

18. Good Morning Marketeers! Happy All Election's Eve!

If you are wondering what the Weekend Economists did, you'll find it here:


http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=103&topic_id=397813&mesg_id=397813

I'll be working the polls, so I probably won't surface much before Weds. evening. I hope to be home at a reasonable hour, but it's not likely. Polls close at 8, and cleanup and data recording if we have write-in candidates could easily take until midnight or beyond....

[Ghost Dog]

23. OT, but surely polls should only close once everyone waiting in the queue

has been able to vote?

[Demeter]

47. That's Right

if you are in the line, you vote, but no one may join the line after 8 pm. how many people can you fit in a gymnasium?

[Hugin]

36. Salute.

:patriot:

[DemReadingDU]

20. Columbus, Oh - National Century Trial: Poulsen guilty!

10/31/08 Poulsen guilty in National Century fraud trial
Friday, October 31, 2008 - 4:02 PM
by Kevin Kemper

A federal court jury has found National Century Financial Enterprises’ co-founder Lance Poulsen guilty of directing what the government called the biggest corporate fraud to surface at a privately held U.S. business.

Friday’s verdict marked the second time this year that Poulsen, once National Century’s CEO, was convicted on federal charges.

The 12-member jury in U.S. District Court in Columbus came to its decision Friday afternoon following nearly five hours of deliberations and ending the month-long trial.

The 65-year-old Poulsen was found guilty on all of the charges facing him – one count each of conspiracy to commit securities fraud, wire fraud and conspiracy to commit money laundering, as well as three counts of money laundering and six counts of securities fraud.

While National Century’s collapse and the criminal trials of its executives generated considerable public attention, Poulsen’s day in court was strikingly devoid of observation. Only about a dozen people peppered the gallery as Judge Algenon Marbley read the verdict.

Poulsen’s wife, Barbara, who testified this week on his behalf, cried alone in the courtroom Friday. Poulsen briefly hung his head after the verdict was delivered. U.S. marshals later handcuffed Poulsen and led him out of the courtroom.

“We’re obviously extremely disappointed,” said Peter Anderson, Poulsen’s attorney.

Anderson said defense lawyers think evidence of Poulsen’s prior conviction on witness tampering charges should not have been allowed into the fraud trial. William Terpening, another Poulsen attorney, said an appeal is expected.

Justice Department lawyers declined to comment following the verdict.

Poulsen founded and ran National Century until the suburban company collapsed into bankruptcy in 2002.

A financier for health-care providers like doctors’ offices and hospitals, National Century’s bread and butter was buying accounts receivable from care providers at a discount, then securitizing the receivables into AAA-rated bonds for sale to investors.

At its peak, the company employed more than 350 workers at its office campus in Dublin while recording annual revenue of more than $250 million.

But government lawyers alleged much of that revenue was due to fraud that cost investors billions of dollars. In addition to purchasing legitimate accounts receivable, the government says National Century also funded companies owned by Poulsen without getting receivables in return, effectively making risky unsecured loans with investor cash.

The company charged its clients for those advances, the government said, which inflated National Century’s revenue and generated bonuses for senior executives. Prosecutors accused Poulsen of directing that the advances be hidden from auditors, investors, bank trustees and lawyers by keeping two sets of books and moving money between accounts to disguise shortfalls.

Investors never lost money until the company fell apart, but prosecutors said that was only because National Century was operating a pyramid scheme, paying off old investors with newly attracted money.

During his trial, which began Oct. 1, Poulsen argued National Century’s governing documents allowed executives to make advances. He insisted the company disclosed everything to investors.

Had National Century not made the advances, he claimed several hospitals would have gone out of business, hurting inner-city patients.

National Century went out of business not at the hand of fraud, Poulsen said in his trial, but because it was swamped by a series of events, including its inability to get a clean audit and an economy in recession following the dot-com bubble.

Poulsen heard a guilty verdict earlier this year on a related case. He and associate Karl Demmler were convicted in the witness tampering trial in March after trying to bribe government witness Sherry Gibson into changing her planned testimony. Poulsen was given 10 years in prison and ordered to pay a $17,500 fine on the bribery conviction, but Demmler has yet to be sentenced.

It also was the second time a federal jury found National Century executives guilty of crimes. Five of Poulsen’s co-executives were convicted in March of multiple fraud-related charges. Donald Ayers, Rebecca Parrett, Roger Faulkenberry, Randolph Speer and James Dierker are serving prison terms. Parrett, a co-founder of National Century, disappeared in March before she was scheduled for a court appearance and remains at large.

Jon Beacham, John Snoble and Gibson, also senior executives at the company, pleaded guilty to similar charges.

James Happ, the eleventh executive indicted, is scheduled to stand trial in December.
http://www.bizjournals.com/columbus/stories/2008/10/27/daily41.html?jst=b_ln_hl




10/31/08 Former National Century Financial Enterprises CEO Convicted of Conspiracy, Fraud and Money Laundering

WASHINGTON, Oct 31, 2008 /PRNewswire-USNewswire via COMTEX/ -- Fraud cost investors more than $2 billion
A federal jury today convicted Lance K. Poulsen, former president, owner and chief executive officer of National Century Financial Enterprises (NCFE) of conspiracy, fraud and money laundering, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division and U.S. Attorney Gregory G. Lockhart for the Southern District of Ohio announced. The charges stemmed from a scheme to deceive investors about the financial health of NCFE that cost investors more than $2 billion. The company, which was based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002.
The Columbus, Ohio, jury convicted Poulsen, 65, after a four-week trial on all 12 charged counts contained in a July 2007 superseding indictment, including one count of conspiracy, six counts of securities fraud, one count of wire fraud, one count of money laundering conspiracy and three counts of concealment money laundering.
At trial, witnesses testified that Poulsen engaged in a scheme from 1995 until the collapse of the company to deceive investors and rating agencies about the financial health of NCFE and how investors' money would be used. NCFE bought accounts receivable from healthcare providers using money NCFE obtained through the sale of asset-backed notes to institutional investors, including pension funds, insurance companies and churches.
Evidence at trial showed that NCFE misused investors' money and made unsecured loans to health care providers, including those owned in whole or in part by Poulsen and other owners. Former employees testified that Poulsen and other NCFE executives covered up the fraud by lying to investors and ratings agencies. The government presented evidence that Poulsen and others created investor reports containing fabricated data, and moved money back and forth between programs, in order to make it appear that NCFE was in compliance with its own governing documents. Evidence showed that Poulsen knew the business model NCFE presented to the investing public differed drastically from the way NCFE did business within its own walls.
"Today's conviction closes another chapter in the long effort to bring former NCFE executives to justice for deceiving investors," said Acting Assistant Attorney General Matthew Friedrich of the Criminal Division. "The Department will continue to hold accountable those corporate executives who misrepresent a company's financial health and then leave the public to pick up the pieces."
"Poulsen and others made millions of dollars in unsecured loans to companies they owned," U.S. Attorney Lockhart said. "Their actions were designed to hide a financial house of cards from investors, eventually costing investors $2 billion."
"The IRS, along with our law enforcement partners, will vigorously pursue corporate officers who victimize their investors and violate the public trust," said Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge Jose A. Gonzalez. "Today's verdict demonstrates the government's determination to restore and ensure that trust."
FBI Cincinnati Special Agent in Charge Keith L. Bennett stated, "The FBI notes that today's convictions are the culmination of a six year investigation which included the review of millions of pages of financial documents by federal investigators. The resolve of this cooperative effort demonstrates that the FBI and other law enforcement will not permit a few corporate executives to hijack our financial system for personal gain."
The maximum penalty for each count of concealment money laundering, money laundering conspiracy and wire fraud is 20 years in prison and a $500,000 fine. The securities fraud and conspiracy charges are each punishable by up to five years in prison and a $250,000 fine. A sentencing date has not been set.
Poulsen, the sixth NCFE executive convicted in connection with the fraud, has been in custody since he was arrested on Oct. 17, 2007, on charges of witness tampering. A jury convicted him of conspiracy, witness tampering and obstruction on March 26, 2008, and Poulsen was sentenced to ten years in prison on those charges.
On March 13, 2008, five former NCFE executives were found guilty for their roles in the scheme to defraud investors. Donald H. Ayers, of Fort Myers, Fla., an NCFE vice chairman, chief operating officer, director and an owner of the company, was found guilty on charges of conspiracy, securities fraud and money laundering. Rebecca S. Parrett, of Carefree, Ariz., an NCFE vice chairman, secretary, treasurer, director and an owner of the company, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering. Randolph H. Speer, of Peachtree City, Ga., NCFE's chief financial officer, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering. Roger S. Faulkenberry, of Dublin, Ohio, a senior executive responsible for raising money from investors, was found guilty on charges of conspiracy, securities fraud, wire fraud and money laundering. James E. Dierker, of Powell, Ohio, associate director of marketing and vice president of client development, was found guilty on charges of conspiracy and money laundering.
The case was prosecuted by Assistant U.S. Attorney Douglas Squires of the Southern District of Ohio, Senior Litigation Counsel Kathleen McGovern and Trial Attorneys Leo Wise and N. Nathan Dimock of the Criminal Division's Fraud Section, with assistance from Fraud Section Paralegal Specialist Sarah Marberg, FBI Agents Matt Daly, Ingrid Schmidt and Tad Morris, IRS Special Agents Greg Ruwe and Mark Bailey, U.S. Postal Inspector Dave Mooney and Immigration and Customs Enforcement Agent Celeste Koszut.
SOURCE U.S. Department of Justice
http://www.marketwatch.com/news/story/Former-National-Century-Financial-Enterprises/story.aspx?guid=%7BA6352BF5-F060-4E86-86D2-8F4D85E3A840%7D




link backwards to Thursday's articles, and older
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3575630&mesg_id=3575726

[Festivito]

21. Debt: 10/30/2008 10,530,893,033,778.20 (UP 5,069,889,660.60) (Five days, normal R borrowing.)

(Five reports show US back to normal. That is normally rediculous increases in debt.)

= Held by the Public + Intragovernmental(FICA)
= 6,257,578,457,250.88 + 4,273,314,576,527.33
UP 8,339,266,330.60 + DOWN 3,269,376,670.03
(NOTE: Excel 2007 cannot handle this many digits and zeroes the last digit -- the penny.)

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 21 reports in the last 30 days.
The average for the last 21 reports is 24,103,244,612.66.
The average for the last 30 days would be 16,872,271,228.86.

There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 21 reports in 30 days of FY2009 averaging 24.10B$ per report, 16.87B$/day.

PROJECTION:
GWB** must relinquish the presidency in 82 days.
By that time the debt could be between 10.6 and 11.9T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
10/30/2008 10,530,893,033,778.20 GWB (UP 4,802,697,237,596.63 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 506,168,136,865.80 so far this fiscal year.

Heavy borrowing seems to start 10/18/2008.
US borrowed $866,261,230,519.13 in last 42 days.
That's 866B$ in 42 days.
More than any year ever, except last year, and it's 85% of that highest year ever only in 42 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 42 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) YESTERDAY'S POST LINK:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3573140&mesg_id=3573156

[DemReadingDU]

43. National Debt Soars $500B In Under A Month

11/1/08 Financial Bailout Plan The Primary Culprit In Record-Setting Debt Accumulation
by Mark Knoller

It’s the surge you won’t hear anyone boast about.

Never before in U.S. history has the national debt increased as much and as rapidly as it has over the past month.

Since September 30, the day the national debt hit the $10-trillion mark for the first time, the government has run up over $500 billion in new debt.

That’s more than the federal deficit for the entire 2008 fiscal year, which ended September 30. And it’s the most rapid increase in the national debt ever: over half a trillion dollars in less than a month - 23 days to be exact.

The government’s latest calculation of the national debt stands at $10,530,893,033,778.21 - that’s $10.5-trillion for short. It took less than four months for it to rocket to that level from $9.5 trillion on July 21.

Less than four months! To put it in perspective, consider this: it took the U.S. government over four decades, from 1940 to 1982, to run up its first trillion dollars of debt.

The second and third trillions were racked up much more quickly - each in just four years. And it only took from 1990 to 1992 for the national debt to hit $4 trillion.

On the day President Bush was sworn in, the debt stood at $5.7 trillion. Less than eight years later, the it’s within days of having swelled $5 trillion dollars on his watch - an embarrassing milestone for a president who considers himself a conservative and an advocate of fiscal discipline.

What’s to blame for the most recent surge in the debt? Above all else, it’s the federal government's response to the financial crisis.

“It’s the Supplementary Financing Program being run by Treasury to provide cash for the Federal Reserve,” says Corrine Hirsh, spokeswoman for the White House Office of Management and Budget.

By that, she means the billions of dollars disbursed by the Fed to keep the financial markets at home and abroad from collapsing. It includes the $124 billion used to keep insurance industry giant American International Group from going bust.

And this week, the Treasury Department started to spend the $700 billion dollars in the congressionally authorized bailout program, so the national debt can be expected to soar even more rapidly in the coming months.

But on January 20, it becomes another president’s problem. And unless he slashes federal spending or enacts major tax hikes, the ballooning deficit and debt leave no money for any of the big ticket programs he's promised to deliver.

Instead, the 44th president will have to deal with the problem of how to pay the interest on the expanding debt. If past practice holds, it’s a good bet the government will just borrow the money.

http://www.cbsnews.com/stories/2008/10/31/politics/main4562416.shtml

[Festivito]

45. They carefully missed $380B$ for a total of 880B$ in 36 days.

The month of September. In fact only the last two weeks of September are needed, and they ignore it.

Then, not looking at the total of 880B$, they go on to say that we'll be borrowing more for the well known figure of 700B$, hiding that it has already been taken out, or, worse, that they are hiding other payments they've been making and that they fully intend to take more more and more.

AND THIS BUGS ME:
"an embarrassing milestone for a president who considers himself a conservative and an advocate of fiscal discipline"

Embarrassing? Tripe! Try a complete repudiation of a president and his party's so-called fiscal conservatism.

Thanks DemReadingDU.

ON EDIT: added total of 36 days in title

[Festivito]

55. Debt: 10/31/2008 10,574,094,462,968.20 (UP 43,201,429,190.00) (It's BACK!)

(Back to a big borrowing day. Had five little reports, then… boom again. CBS article yesterday, LINK BELOW, tried to say they had only borrowed 500B$ of $700B$ intended, instead of the 880B$ they did borrow.)
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3580248&mesg_id=3580628
= Held by the Public + Intragovernmental(FICA)
= 6,302,793,747,598.97 + 4,271,300,715,369.26
UP 45,215,290,348.09 + DOWN 2,013,861,158.07
(NOTE: Excel 2007 cannot handle this many digits and zeroes the last digit -- the penny.)

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 21 reports in the last 30 days.
The average for the last 21 reports is 21,422,352,182.89.
The average for the last 30 days would be 14,995,646,528.02.

There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 22 reports in 31 days of FY2009 averaging 24.97B$ per report, 17.72B$/day.

PROJECTION:
GWB** must relinquish the presidency in 81 days.
By that time the debt could be between 10.7 and 12.0T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
10/31/2008 10,574,094,462,968.20 GWB (UP 4,845,898,666,786.63 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 549,369,566,055.80 so far this fiscal year.

Heavy borrowing seems to start 10/18/2008.
US borrowed $909,462,659,709.13 in last 43 days.
That's 909B$ in 43 days.
More than any year ever, except last year, and it's 89% of that highest year ever only in 43 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 43 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) YESTERDAY'S POST LINK:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3580248&mesg_id=3580302

[UpInArms]

24. dollar watch

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

Last trade 85.229 Change -0.605 (-0.78%)

Revenge of the Machines

http://www.bktraderfx.com/site/fx-weekly-reports/bk-trader-fx-weekly-revenge-of-the-machines-111-708

excerpt:

Most computer algorithms are moment based - they buy when prices are rising and sell when they are falling. The net effect is that volatility, which is already extremely high in today’s markets is amplified even more by the action of the robots. Ironically enough, the cold, calculating machines are now actually exaggerating rather than tempering the human emotion behind the price flow.

As I noted last week, this dynamic is unlikely to change anytime soon. Price ranges will remain wide, especially next week with the US election and US unemployment numbers due to report. Although an Obama win looks increasing likely, a McCain upset cannot be ruled out and should it occur the price reaction might be quite violent as markets generally hate surprises. In this environment there are only three strategies to use.

1. Stay out of the market and let the volatility compress as it eventually will
2. Trade very small and very wide using almost no leverage and enormously large stops
3. Trade frequently, staying glued to the screen while keeping your risk/reward ratio no worse than 1:1 and hope than when the dust settles your winners will outnumber the losers

Whatever you choose, be careful out there, its likely to be another historic week of incredible volatility.

...more...

Easing risk aversion cools dollar, yen rally

http://www.reuters.com/article/bondsNews/idUSL313969720081103?sp=true

The euro and high-yielding currencies rose against the dollar on Monday, while the yen retreated broadly as abating risk aversion lifted stocks.

The scale of investors' deleveraging was highlighted in October, when the dollar index .DXY posted its biggest monthly percentage gain in 17 years and the euro suffered its largest monthly fall against the dollar and yen since its 1999 launch.

Concern about the prospect of a global recession was expected to limit gains in riskier assets and offer support to the low-yielding dollar and yen.

"The problem for the market is that all the trades that worked well for the past 5 years went badly very quickly," said Michael Rosborough, senior global FX strategist at Citigroup in London.

"On bounces like this you would expect to see people still liquidating and using them as an opportunity to lighten up on positions," he added.

...more...

[UpInArms]

25. U.S. rescue cash attracts 1800 institutions- WSJ

http://www.reuters.com/article/bondsNews/idUSBNG27131920081103

Nov 3 (Reuters) - As many as 1,800 publicly held institutions could apply for U.S. government investment in coming weeks, the Wall Street Journal said, citing Treasury and banking regulators.

Depending upon conditions still being crafted by the Treasury thousands more private banks could apply for government capital as well, a Treasury spokeswoman was quoted as telling the paper on Sunday.

Treasury spokeswoman Brookly McLaughlin told Reuters that she couldn't confirm any specific numbers and added that both publicly-traded and privately-held federally-regulated banks and thrifts were eligible for assistance.

The government's $700 billion rescue plan, known as the Troubled Asset Relief Program (TARP), has earmarked about $250 billion to recapitalize the troubled banking sector and spur lending.

...more...

[UpInArms]

26. Fed's Lacker says U.S. in a recession

http://www.reuters.com/article/bondsNews/idUSL240891720081103

JERUSALEM, Nov 3 (Reuters) - Richmond Federal Reserve Bank President Jeffrey Lacker said on Monday the U.S. economy was definitely in a recession but he believed it would be fairly moderate in size.

"We are in a contraction. Up until the summer it was a fairly mild recession," Lacker, who will become a voting member of the Fed's interest rate-setting committee next year, told reporters after a speech at the Hebrew University of Jerusalem.

"I think it's definitely a recession at this point. How deep, how steep, and long it's going to be is uncertain. We don't know if it's going to be a garden variety recession or something steeper. I think it's most likely to be of a fairly moderate size," he said.

I wonder if we the taxpayers got to pick up the tab for him being in Israel?

[UpInArms]

27. Illinois based Midwest Banc posts huge Q3 loss

http://www.reuters.com/article/bondsNews/idUSBNG40490220081103

Nov 3 (Reuters) - Midwest Banc Holdings Inc (MBHI.O: Quote, Profile, Research, Stock Buzz) posted a huge third-quarter loss, hurt by higher provision for loan losses, and charges related to investments in the government-sponsored enterprises.

The Melrose Park, Illinois-based company said it has got a preliminary approval to receive $85.5 million of new capital in the form of preferred stock, to be issued to the U.S. Treasury under the TARP Capital Purchase Program.

The company expects the preferred shares to be issued and the new capital to be received during the fourth quarter of 2008, it said in a statement.

The company reported a loss of $159.7 million, compared with a net income of $4.8 million, or 20 cents a share, a year earlier.

Analysts expected the company to earn 11 cents a share, excluding items, according to Reuters Estimates.

Midwest Banc said in September it will write down all of its $67 million of Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) preferred securities in the third quarter and record a charge of $80 million in the period.

The company, which suspended its third-quarter dividend earlier in the quarter, said provision for loan losses rose 23-fold to $42 million.

...more...

[UpInArms]

28. PepsiCo to invest $1 billion in China

http://news.yahoo.com/s/nm/20081103/bs_nm/us_pepsi_china_investment

BEIJING (Reuters) – PepsiCo Inc (PEP.N), a U.S.-based food and beverage company, said on Monday it plans to invest $1 billion in China over the next four years, as part of the company's strategy to expand in emerging markets.

PepsiCo's investment in China will fund a variety of major capital programs to expand manufacturing capacity, particularly in interior and western areas, said PepsiCo's chairman and chief executive officer, Indra Nooyi, who is in China this week.

"This is our largest investment in China in the nearly 30 years we have been doing business here, and it is consistent with our broader global strategy of investing in high-growth developing markets," Nooyi said in a statement.

Beverage sales in the U.S., especially sales of bottled water, have been hit hard as a housing slump, credit crunch, job losses and high gas prices have forced cash-strapped consumers make fewer trips to gas stations and convenience stores, eat out less often and drink tap water to save money.

PepsiCo cut its full-year outlook last month as an economic slowdown sapped soft drink demand.

The investments are expected to create thousands of new jobs in China, where PepsiCo and its bottling partners already directly employ more than 22,000 people, it said in the statement.

The announcement was made during a four-day visit by Nooyi, who has been holding meetings with government officials and local business executives and visiting the company's local operations.

The money will also be used to expand local research and development facilities and build the company's sales force to boost product distribution, the company said in the statement.

...more...

[UpInArms]

29. Microsoft unveils 60 million dlr investment in SKorea

http://news.yahoo.com/s/afp/20081103/bs_afp/skoreaitmicrosofthyundai

SEOUL (AFP) – Microsoft chief Steve Ballmer on Monday unveiled a plan to invest 60 million dollars in South Korea's software industry as part of the US giant's drive to strengthen its presence in the country.

The plan was disclosed at talks between Ballmer and President Lee Myung-Bak, the president's office said.

The Ministry of Knowledge Economy said Microsoft agreed to train software designers, support venture firms and establish a technology centre in South Korea over three years.

Microsoft, which has been hit by a string of costly disputes with industry rivals, is expanding its investment in South Korea and other countries.

Ballmer earlier told Korean businessmen that growth through investment is the key for companies struggling to ride out an economic slowdown.

"The best solution for tough business times is growth, not contraction," he said, adding that "now is not the time to forget that lesson."

...more...

[UpInArms]

30. The bailouts will backfire - Commentary: What's a bond investor to do?

http://www.marketwatch.com/news/story/The-bailouts-backfire-Whats-a/story.aspx?guid=%7B9960DDD2%2D435F%2D4803%2D8696%2D68988D2E8BAA%7D&dist=hplatest

JUPITER, Fla. (MarketWatch) -- Since the credit crisis struck 15 months ago, every government intervention to bail out the global credit markets has backfired. So don't be surprised if the most recent Herculean efforts to reinvigorate credit markets backfire as well.

Temporarily, these interventions do calm investors to a degree. We see a decline in the premiums that lenders charge higher-risk borrowers. And we see a revival in the short-term money markets, especially commercial paper. But this initial success is consistently followed by even greater market panic.

For example, in August of 2007, when central banks injected hundreds of billions in new liquid funds into the banking system, and again, in March of 2008, when the U.S. Federal Reserve rescued Bear Stearns, the goal was essentially the same as today's: To boost investor confidence in the credit markets.

In retrospect, however, it's clear that the goal was often accomplished in a perverse way: Investors were encouraged to buy more shares in insolvent banks and more junk bonds of overrated corporations -- despite the fact that bank balance sheets were continuing to deteriorate and the probability of major bond defaults was rising.

Thus, each time governments intervened, the cost charged for risk came down, but the level of risk continued to rise -- a discrepancy that could only be corrected by an explosive market adjustment.

Sure enough, before long, investors realized they had erred in taking more risk, they fled in fear, and the debt crisis returned with a vengeance. Instead of restoring realism, the authorities had created a deceptive calm. Rather than bringing stability, they fostered instability. Inadvertently, they helped create conditions for the very panic they sought to prevent.

...more...

[formercia]

33. History shows this to be true

It never worked in the past. Junior was just trying to make the economy look good in time for the election.

I don't think it worked. The market has too much inertia.

[Demeter]

48. It's Like Painting a Nuclear Bombing

Total waste of paint.

[AnneD]

32. Morning Marketeers.....

:donut: and lurkers. As my colourful adopted Grandmother was fond of saying-somebody is showing their asses-namely the GOP. First they try to stop voters from voting with the flimsiest of excuses, them show themselves as poor losers.Wish this would be indelibly be burned into the American psyche-but it won't.

I would like to reach across the aisle in friendship (once Bush ,Cheney, et al are brought up on charges). So here are some nice things I will say about McCain. Despite is forays into slimy politics of late-McCain is a decent man-far more honourable than Bush ever will be. It is his decency that has played on his conscious and kept him from totally going into the slime a la Rove. If he had-he wouldn't have been behind as he is now. Folks don't like dirty campaigns, but they work. He has a great sense of humour-far more self deprecating and mature than the current occupant. And despite some things said about him, he does love his country, has served and will continue to serve with distinction. The tragedy of John McCain is that he should be in the WH now instead of the current occupant. We would all be in a better place.

I can also say many nice things about Obama-but I will issue a warning to him and all the other DEM leaders. It's not about you and never has been. You are voted in by the people to make out lives a bit easier. To protect us from all enemies foreign and domestic. You are our representative to the rest of the world. Should you chose to forget who worked their asses off to get you their with their time and hard to come by money. You rode the wave in you can ride the wave out. Please lead us in what we know is the right direction.

Happy hunting and watch out for the bears.

[dweller]

34. off topic, but as i've been absent for a few days

and just saw this news late last nite, and searched about in the SMW threads from last week, and saw no mention, http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4358409

in case any of you weren't aware.

perhaps he'll be back appendixless today.
dp

[Roland99]

35. Thanks for the news.

My daughter had her appendix removed a few years ago.

Not a fun time.

[Hugin]

37. Was wondering where our Commodities Updates had gone.

Best Wishes for a speedy recovery... :)

[Dr.Phool]

42. Circuit City to close 155 U.S. stores

Circuit City to close 155 U.S. stores
A bid to regain profitability; thousands will be laid off

BREAKING NEWS
updated 1 hour, 14 minutes ago

RICHMOND, Va. - Circuit City Stores Inc. said Monday it is pulling the plug on about 20 percent of its U.S. stores in an effort to return the nation’s No. 2 consumer electronics retailer to profitability.

The Richmond, Va.-based company said it will shutter 155 of its more than 700 stores in 55 markets, including Phoenix and Atlanta, by Dec. 31, laying off about 17 percent of its domestic work force. Circuit City also said it will further reduce new store openings and plans to work with landlords to renegotiate leases, lower rent or terminate agreements.

The company said it expects the stores it is shuttering, which generated about $1.4 billion in net sales in fiscal 2008, will not open on Tuesday and store closing sales will begin on Wednesday.
Story continues below ↓

(snip) http://www.msnbc.msn.com/id/27515440/

Don't buy any gift cards or extended warranties there.

[DemReadingDU]

44. NPR: Howard Davidowitz: Retail Analyst

Interesting audio from NPR...

11/3/08 NPR: Consumers are showing signs of spending more modestly, which doesn't bode well for businesses heading into holiday season. Steve Inskeep speaks with Howard Davidowitz of Davidowitz and Associates about how retailers are faring.
For every 10 'loser' stores, there will be 1 'winner'
Our living standards are never going to be the same
http://www.npr.org/templates/story/story.php?storyId=96487178
audio 5 minutes

10/14/08 NPR: 'Tis the season for retail sales. But will shoppers stay home because of the economic collapse? And if they are, what does that mean for the rest of the economy? Madeleine Brand turns to retail analyst Howard Davidowitz for answers.
Consumer is in survival mode, unemployment is going to skyrocket, Christmas will be negative
http://www.npr.org/templates/story/story.php?storyId=95691851
audio 3 minutes

From last summer...
8/7/08 NPR: In the past few weeks, some retail chains have gone out of business, or filed for bankruptcy protection. Retail consultant Howard Davidowitz traces the problem to increasing online sales and the credit crunch, among other factors. Davidowitz talks with Steve Inskeep.
Thousands of stores are closing, the living standards of Americans are going down for 20 years.
http://www.npr.org/templates/story/story.php?storyId=93364759
audio about 3.5 minutes

[antigop]

46. Judge: AIG fraud worth $500 million

http://money.cnn.com/2008/11/03/news/companies/aig_trial.ap/index.htm?postversion=2008110313

A federal judge has ruled that shareholders of American International Group Inc. lost more than $500 million as a result of a scheme to manipulate the financial statements of the world's largest insurance company.

The ruling Friday by judge Christopher Droney means five former insurance executives convicted of the scheme could face up to life in prison under advisory sentencing guidelines.

Four former executives of General Re Corp. and a former executive of AIG (AIG, Fortune 500) were convicted in February of conspiracy, securities fraud, mail fraud and making false statements to the Securities and Exchange Commission.

[Demeter]

49. So, We Bailed Out Crooks? Surprise, Surprise!

[TrogL]

50. Loonie Watch

Highlights

Current:

Loonie: Toronto Stock Exchange:

30-day and 90-day vs.greenback:



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




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

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

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

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

2008-09-23 Tuesday, September 23 0.965717 USD
2008-09-24 Wednesday, September 24 0.96609 USD
2008-09-25 Thursday, September 25 0.967305 USD
2008-09-26 Friday, September 26 0.965997 USD
2008-09-29 Monday, September 29 0.962186 USD
2008-09-30 Tuesday, September 30 0.943663 USD
2008-10-01 Wednesday, October 1 0.942774 USD
2008-10-02 Thursday, October 2 0.928591 USD
2008-10-03 Friday, October 3 0.924642 USD
2008-10-06 Monday, October 6 0.906865 USD
2008-10-07 Tuesday, October 7 0.904568 USD
2008-10-08 Wednesday, October 8 0.889205 USD
2008-10-09 Thursday, October 9 0.870853 USD
2008-10-10 Friday, October 10 0.840336 USD
2008-10-13 Monday, October 13 0.840336 USD
2008-10-14 Tuesday, October 14 0.862143 USD
2008-10-15 Wednesday, October 15 0.84717 USD
2008-10-16 Thursday, October 16 0.83661 USD
2008-10-17 Friday, October 17 0.846024 USD
2008-10-20 Monday, October 20 0.834934 USD
2008-10-21 Tuesday, October 21 0.819135 USD
2008-10-22 Wednesday, October 22 0.800256 USD
2008-10-23 Thursday, October 23 0.795355 USD
2008-10-24 Friday, October 24 0.785238 USD
2008-10-27 Monday, October 27 0.773096 USD
2008-10-28 Tuesday, October 28 0.772678 USD
2008-10-29 Wednesday, October 29 0.812876 USD
2008-10-30 Thursday, October 30 0.817728 USD
2008-10-31 Friday, October 31 0.817728 USD
2008-11-03 Monday, November 3 0.842744 USD

Current values

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

Market            Open   High    Low   Last  Change    Pct Time
CD.Y$$ Cash     0.8377 0.8437 0.8361 0.8437 +0.0113 +1.36% 13:01 
CD.Z08 Dec 2008 0.8341 0.8420 0.8310 0.8420 +0.0095 +1.14% 11:55 
CD.H09 Mar 2009 0.8022 0.8022 0.8022 0.8342 +0.0084 +1.01% set 15:06 
CD.M09 Jun 2009 0.9880 0.9880 0.9880 0.8350 +0.0081 +0.97% set 15:06 
CD.U09 Sep 2009 0.9350        0.9340 0.8358 +0.0081 +0.97% set 15:06 
CD.Z09 Dec 2009 0.7000 0.7000 0.7000 0.8366 +0.0083 +0.99% set 15:06 
CD.H10 Mar 2010 0.8800 0.8800 0.8800 0.8374 +0.0085 +1.02% set 15:06 

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

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.Z08 Dec 2008 0.7995 0.7995 0.7995 0.7995 -0.0231 -2.89%   
BRITISH POUND/US$ (SMALL) (NYBOT:MP)
MP.Z08.E Dec 2008 (E) 1.5873 1.5873 1.5833 1.5833 -0.0274 -1.70%   
EURO/BRITISH POUND (NYBOT:GB)
GB.Z08.E Dec 2008 (E) 0.7978 0.7978 0.7978 0.7978 +0.0065 +0.82%     
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.Z08.E Dec 2008 (E) 127.00 127.50 124.94 125.00 -0.64 -0.51%      
EURO/US$ (SMALL) (NYBOT:EO)
EO.Z08.E Dec 2008 (E) 1.2799 1.2799 1.2665 1.2740 -0.0223 -1.75%    

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

The December Canadian Dollar was higher overnight and is trading above the 20-day moving average crossing at 83.43. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 83.43 are needed to confirm that a short-term low has been posted. If December renews this fall's decline, weekly support crossing at 73.88 is the next downside target. First resistance is the 20-day moving average crossing at 83.43. Second resistance is last Thursday's high crossing at 84.01. First support is the 10-day moving average crossing at .8065. Second support is last Tuesday's low crossing at 76.86.

Analysis

My simplistic explanation (which probably totally wrong) is that the price of oil has stabilized hence panicked buyers leaving the loonie are cautiously making their way back.

[Roland99]

51. Not much excitement today and I have a feeling volume is super light, too.

[CatholicEdHead]

52. Everybody is waiting for the election results

I am guessing tomorrow will be pretty flat. Wednesday will go dependent on the election results and how different people take it.

[ozymandius]

53. Except for the ISM and auto sales news today was pretty dull.

Symbol Last Change Dow 9,319.83 Down 5.18 (0.06%)
Nasdaq 1,726.33 Up 5.38 (0.31%)
S&P 500 966.30 Down 2.45 (0.25%)
10-Yr Bond 3.904% Down 0.066
NYSE Volume 4,564,247,000
Nasdaq Volume 1,840,072,750

4:15 pm : Stocks settled near the unchanged mark following relatively quiet day.

Specifically, the S&P 500 posted a loss of 0.3%, while the Nasdaq ended with a gain of 0.3%. Trading on the NYSE was light with 1.02 billion shares exchanging hands, marking the lowest level since August.

In economic news, U.S. manufacturing activity in October fell to the lowest level since 1982, according to the ISM Index survey. Specifically, the ISM Manufacturing Index declined 4.6 to 38.9 in October, which was worse than the expected reading of 41.0. The number indicates contraction in manufacturing and the overall economy.

The Federal Reserve said in its quarterly survey that 85% of domestic banks have tightened lending standards on commercial and industrial loans. Roughly 60% of banks tightened standards on consumer credit card loans and 70% have tightened on prime mortgages.

Credit markets continue to show improvement, however, with interbank lending rates, known as Libor, declining across most terms.

In corporate news, struggling retailer Circuit City (CC 0.36, +0.10) is closing 155 domestic stores, roughly 20%, due to its "deteriorating" liquidity position and the weak macroeconomic environment.

Automakers reported dismal sales numbers for October, impacted by the slowing economy and credit market turmoil. General Motors (GM 5.64, -0.15) reported a 45% year-over-year drop in October North American auto sales on an adjusted basis and said it was probably the worst industry sales month in the post-WWII era. Ford Motor (F 2.13, -0.06) reported a 30.2% drop in North American October sales and Toyota Motor (TM 76.46, +0.37) reported a 25.9% decrease in October U.S. sales.

In commodity trading, crude oil fell 5.2% to $64.30 per barrel as traders worry that the slowing global economy will sink demand. Meanwhile, the dollar climbed 0.8% against a basket of world currencies.

Five of the ten economic sectors posted a gain, led by telecom (+4.8%). The energy sector (-2.0%) was the main laggard, falling in conjunction with crude oil prices. DJ30 -5.18 NASDAQ +5.38 NQ100 0.0% R2K +0.2% SP400 0.0% SP500 -2.48 NASDAQ Adv/Vol/Dec 1509/1.79 bln/1234 NYSE Adv/Vol/Dec 1748/1.02 bln/1346