STOCK MARKET WATCH, Wednesday November 5

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday November 5, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 76
WHERE'S OSAMA BIN-LADEN? 2568 DAYS
DAYS SINCE ENRON COLLAPSE = 2859
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 November 4, 2008

Dow... 9,625.28 +305.45 (+3.17%)
Nasdaq... 1,780.12 +53.79 (+3.12%)
S&P 500... 1,005.75 +39.45 (+4.08%)
Gold future... 757.30 +30.50 (+4.03%)
30-Year Bond 4.22% -0.10 (-2.29%)
10-Yr Bond... 3.77% -0.14 (-3.56%)






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

A Welcome (if only temporary) Return to Stability
BY FRANK BARBERA, CMT

While it is still “too soon to tell” whether or not a long term low will be established in the stock market in the 750 to 800 zone for the S&P, one thing is certain, prices have finally begun to stabilize. At first blush this may sound silly, as we all know the stock market has enjoyed a powerful rally over the last few days. However, Step #1 in arresting a bear market is to STOP going down. Put another way, you need these bullish interludes, these powerful bear rallies, to help begin the process of stabilization. And believe me, stabilizing the capital markets after the kind of pasting they have been through in recent weeks will be a “process” with many powerful rallies and declines.

In my last GST newsletter that went out the morning of October 28th, with the S&P 500 sitting at 859.95, we told subscribers that the S&P was about to embark on a powerful rally back up across the trading range to above 1,000 in the short term. Flash forward five days later and the S&P has now moved above 1,000 and still appears to have some additional strength ahead during the course of this week. At the same time, I also told subscribers that the US Dollar was ready to reverse and that process is also now underway, with the Dollar Index experiencing several of its largest down days in the last few decades over just the last few days.

....

For the S&P, the 50 day average closed Monday at 1098.86, with the 200 day moving average at 1275.37. At present, the 50 day average is dropping 5.20 S&P index points per day, while the 200 day average is dropping approximately 1.50 S&P index points per day. At this rate, it will be at least mid December before the 50 day average is down into the mid 900 zone, and it will be May of next year before the 200 day average reaches the 1,000 mark. Put another way, we see no way that these two moving averages can re-cross one another to the upside before June 2009 at the earliest. As a result, readers should be prepared for a very see-saw market climate for some time to come, and again, that is the best case outcome, and it assumes a ‘recession’ not ‘depression’ scenario for the broad economy. Before getting truly bullish on the stock market, as in, here comes a new bull market bullish, a lot of water needs to flow under this particular bridge, and among the most important elements will be time. The market will need time in a base, time-spent draining downside momentum, and time to allow the price structure to rebuild a launch pad for a renewed and sustainable advance.

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

[Demeter]

2. That's A Downer of a Cartoon

Think Toles was a secret McCain supporter?

I expect we'll see a lot of cockroaches scurrying for shelter. Big ones.

[ozymandius]

4. I think what Toles is trying to say is that there's a huge mess

that needs to be cleaned up. When the euphoria of this decisive victory fades then the work will begin. Lots and lots of work. No way do I believe that Toles secretly supported McCain. His cartoon history emphasizes that view.

[ozymandius]

6. But then, I did like this cartoon. It's a bit more cheery.

[Tigress DEM]

16. I like THIS one

[bain_sidhe]

48. Paging rewrite:

Your sig should now read "Barack ran so our children could fly" :D

[snot]

57. makin me cry.

[Demeter]

66. This One Is My Favorite, Too

Do you think we might be seeing the beginning of the end of the Civil War, finally?

[Tigress DEM]

17. But also, it's the simple truth. We have to clear out all the stuff that's been flying.

NO Toles is just aware of the job going forward. See the other cartoon I posted it's a Toles too.

WE the PEOPLE (who had the determination to follow the TRUTH through the wind paths it kept getting consigned to while the fear mongering was put forth) will have to keep reassuring those who were drinking the koolaid.

THEY would not have voted for McCain if they weren't just filled with fear and mis-information, so we'll have to be patient but persistent in continuing to reveal the TRUTHS WE KNOW to be self evident, the smears against Obama were patently false and this country could NOT be in better hands than it will be Jan 21, 2009.

[ozymandius]

3. Today's Reports

08:15 ADP Employment Oct
Briefing.com NA
Consensus -100K
Prior -8K

10:00 ISM Services Oct
Briefing.com 47.0
Consensus 47.0
Prior 50.2

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

[UpInArms]

23. U.S. Oct. ISM services index 44.4% vs 50.2 in Sept.

02. U.S. Oct. ISM services is at record low level
10:09 AM ET, Nov 05, 2008

04. U.S. Oct. ISM services below consensus 47.5%
10:01 AM ET, Nov 05, 2008

05. U.S. Oct. ISM services index 44.4% vs 50.2 in Sept.
10:01 AM ET, Nov 05, 2008

[UpInArms]

28. Private sector job losses accelerate in Oct.: ADP

http://www.marketwatch.com/news/story/ADP-survey-finds-sharp-decline/story.aspx?guid=%7B3D181500%2D3287%2D440A%2DB038%2DADD3B1772EC9%7D&dist=hplatest

WASHINGTON (MarketWatch) -- Private-sector companies in the U.S. lost 157,000 jobs in October, according to the ADP employment report released Wednesday.
The ADP is further indication that the economy weakened substantially last month given the negative impacts of the credit crunch, housing market recession and Wall Street turmoil.

The weak economy was cited as a leading factor in the election of Barack Obama as the next president on Tuesday.

Service industries lost 31,000 jobs in October, while goods-producing industries cut 126,000 jobs, including 85,000 in manufacturing, ADP reported.

The factory sector seems to have come to a standstill. On Monday, the Institute for Supply Management said its manufacturing diffusion index fell to 39.8% in October, the lowest in 26 years. See full story.

The report comes two days before the Labor Department reports on nonfarm payroll growth for October. Economists expect job losses to total 210,000. See Economic Calendar.

...more...

[UpInArms]

31. Petroleum Inventories Report:

03. U.S. crude supply unchanged last week: Energy Dept.
10:37 AM ET, Nov 05, 2008

04. U.S. distillate supply up 1.2 mln brls: Energy Dept.
10:37 AM ET, Nov 05, 2008

05. U.S. gasoline supply up 1.1 mln brls: Energy Dept.
10:37 AM ET, Nov 05, 2008

[UpInArms]

32. U.S. October Job Cuts Surge 79% From Year Ago, Challenger Says

http://www.bloomberg.com/apps/news?pid=20601103&sid=aZQPQj62rHh0&refer=us

Nov. 5 (Bloomberg) -- Job cuts announced by U.S. employers jumped 79 percent in October from a year earlier as the credit crunch rippled through the economy, according to a private placement firm.

Firing announcements rose to 112,884, the highest level in almost five years, from 63,114 in October 2007, Chicago-based Challenger, Gray & Christmas Inc. said today. The figures aren't adjusted for seasonal effects, so economists prefer to focus on year-over-year changes instead of monthly numbers.

Companies cut payrolls as the lending freeze intensified, another blow to Americans facing lower home values and declines in stock prices. The economy shrank in the third quarter as a record expansion in consumer spending ended, and the threat of a deeper slump signals the labor market will worsen.

``Job cuts are now rising across the board,'' John A. Challenger, chief executive officer of the placement company, said in a statement. ``Companies not only have been hit hard by this downturn, but they do not see a rebound any time in the near future.''

Labor Department figures due this week may also show firings accelerated last month. October payrolls fell by 200,000 after declining 159,000 in September, according to the median forecast of economists surveyed by Bloomberg News. Total job losses have climbed to 760,000 so far this year.

...more...

[ozymandius]

5. Oil slides below $68 on weaker demand worries

VIENNA, Austria – Oil prices slid below $68 a barrel Wednesday, retreating after a U.S. Election Day rally, as expectations a slowing global economy will cut crude demand re-emerged as the market's dominant driver.

Even indications that OPEC was enacting its decision to take a daily 1.5 million barrels of crude from the market failed to support prices.

Light, sweet crude for December delivery was down $2.96 to $67.57 a barrel in electronic trading on the New York Mercantile Exchange by noon in Europe. The downward trend came despite a rally in Asian stock markets after Democrat Barack Obama claimed a historic victory in U.S. presidential elections.

.....

In other Nymex trading, gasoline futures fell more than 7 cents to fetch $1.46 a gallon, heating oil plunged more than 8 cents to $2.08 a gallon and natural gas for December delivery fell 10 cents to trade at $7.12 per 1,000 cubic feet.

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

[ozymandius]

7. ASIA MARKETS: Stocks Mostly Higher, Cheering Obama Victory

Most Asian markets ended higher Wednesday after Barack Obama won the U.S. presidential election, with energy and exporter shares racing ahead as investors hoped his administration will reinvigorate the world's largest economy.

....

Japan's Nikkei 225 Average ended 4.5% higher at 9,521.24, on top of its 6.5% jump in the previous session, while the broader Topix index rose 6.2% to 966.91.

Hong Kong's Hang Seng Index ended 3.2% higher at 14,840.16 for its sixth advance in seven sessions, although it narrowed gains in the afternoon as investors locked in some profits. The Hang Seng China Enterprises Index spiked 5.3% to 7,225.69.

China's Shanghai Composite climbed 3.2% to 1,760.61, and Australia's S&P/ASX rose 2.9% to 4,336.60.

South Korea's Kospi added 2.4% to 1,181.50 and New Zealand's NZX 50 index advanced 1.5% to 2,886.11.

http://money.cnn.com/news/newsfeeds/articles/djf500/200811050435DOWJONESDJONLINE000445_FORTUNE5.htm

[ozymandius]

8. What Obama stands for on economy

(liberally excerpted)

Financial crisis

Obama's response to the financial and economic crisis will be guided largely by the parameters set in the massive $700 billion financial rescue package passed by lawmakers and signed into law by President Bush in October.

....

Among the temporary measures he proposed: exempting seniors from having to make withdrawals from retirement savings; exempting jobless workers from having to pay income taxes on unemployment benefits and calling for an extension of those benefits; and offering a tax credit to businesses for every new hire they make in the United States.

Housing and mortgages

He has called for a change to the bankruptcy law that would let bankruptcy judges reduce mortgage principals for bankruptcy filers. Proponents say such a change would encourage lenders to modify more loans for troubled borrowers rather than risk the loan being rewritten by a judge. Opponents say the change could cause a rise in interest rates because mortgage investors would price in the risk of new loan terms.

Taxes

Obama has proposed a host of new tax cuts for lower- and middle-income Americans and has said he wants to preserve for them the ones put in place by President Bush in 2001 and 2003.

To help pay for many of the new programs he's proposing as well as the cost of his new proposed tax breaks, Obama has said he would repeal some of the Bush tax cuts for high-income taxpayers - specifically by increasing the top two income tax rates and the capital gains rate to their pre-2001 levels.

Health care
The Obama campaign describes his health care reform plan as one that builds on the existing employer-based system.

Energy
Obama has said he wants to make long-term investments in clean energy and energy efficiency.

http://money.cnn.com/2008/11/04/news/economy/obama_what_he_stands_for/index.htm

[ozymandius]

10. What I would like to see done by President Obama and our new Democratic Congress:

Domestically:

1) Repeal that onerous 2005 bankruptcy law
2) Repeal No Child Left Behind
3) Repeal the PATRIOT Act
4) Pass laws that strengthen the Fourth Amendment
5) Repeal the Gramm-Leach-Bliley Act
6) Pass laws to reinstate and reinforce the Glass-Steagall Act
7) Repeal the law that allows hedge funds and derivatives to operate with total opacity
8) Regulate and make transparent derivative trading

I could go on but these are the biggies.

[natrat]

21. create a federal structure for elections and ban electronic voting machines

[Tandalayo_Scheisskopf]

27. Commodity Markets:

Get rid of the Enron loophole. Increase margin requirements. More stringent auditing of transactions to the end of the line. Reformation of the CFTC. Mechanisms to decrease time to consumer in drops in prices.

Immediate and exhaustive audit of the Strategic Petroleum Reserve. Investigations into rumored hoarding. Strong investigations into management of petroleum refining and delivery infrastructure.

[abelenkpe]

34. I'd like to see

monopolies in media and finance broken up.

[Demeter]

36. Restore the Constitution and Plug The Loopholes Karl and Co Punched In It

Also, regulate the markets

[mdmc]

45. yes

[snot]

60. forgive me for asking to add

election reform. i think they stole all they thought they could get away with, and we shd have won more -- we've GOT to get rid of electronic voting and tabulation.

media reform. the sheeple will never find truth so long as their main news sources feed them only lies and distraction.

if we don't fix those two, our chances at lasting improvement in other areas are slim.
if we do fix those two, we're more likely to get better results in all other areas.

[Ghost Dog]

79. Yes. I reckon they stole some 5%,

at least. But it wasn't enough.

People stood for hours, waited patiently, and voted.

That system (METHODS) has to be seriously reformed.

[Demeter]

67. Universal Health Care and Green Technology

[Ghost Dog]

80. And infrastructure good for some 500 years

at least, (and institutions), if you really want to be like for example Romans, before the end.

[Festivito]

9. Debt: 11/03/2008 10,556,177,748,045.20 (DOWN 17,916,714,923.00) (Just monthly FICA.)

(Upped the private yesterday, downed the FICA today. Beginning of month, time for SS payment cashing. It's also time for a change... Yes we did! Now, on to the hard work.)

= Held by the Public + Intragovernmental(FICA)
= 6,302,221,478,108.20 + 4,253,956,269,937.01
DOWN 572,269,490.77 + DOWN 17,344,445,432.25
(NOTE: Excel 2007 cannot handle ten-trillion plus to the penny. It zeroes 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 20 reports in the last 30 to 31 days.
The average for the last 20 reports is 18,495,437,042.31.
The average for the last 30 days would be 12,330,291,361.54.
The average for the last 31 days would be 11,932,540,027.29.
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$/day.
There were 23 reports in 34 days of FY2009 averaging 23.11B$ per report, 15.63B$/day.

PROJECTION:
GWB** must relinquish the presidency in 78 days.
By that time the debt could be between 10.7 and 11.8T$.
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)
11/03/2008 10,556,177,748,045.20 GWB (UP 4,827,981,951,863.63 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: 531,452,851,132.80 so far this fiscal year.

Heavy borrowing seems to start 10/18/2008.
US borrowed $891,545,944,786.13 in last 46 days.
That's 892B$ in 46 days.
More than any year ever, except last year, and it's 88% of that highest year ever only in 46 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 46 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=3582458&mesg_id=3582473

[DemReadingDU]

11. 892B$ in 46 days, almost a trillion

It wouldn't surprise me it the Repubs ran up a couple trillion in debt by 1/20/09. Obama needs to get his economic team in place very soon.

NPR says it is rumored that Obama has 3 people for Treasury
Larry Summers
Paul Volcker
Tim Geitner from NY Fed

But someone on TV thought it could be Warren Buffet

:shrug:

[Festivito]

19. Looks like FY2009 T$ by Jan-20 with 8 months left for Obama.

The 700B$ looks taken. They still have a blank check with some other bailouts.

They spent a T$ FY2008, but 380B$ of that I think was part of the 700B$.

This turnover from a Bush to a Barack is far more backloaded than from Bush I to Clinton. They mean to hamstring Barack for years to come.

It will be interesting. But, I don't suggest popcorn, we need raw meat.

[DemReadingDU]

49. CNN - memo to Obama: Your $3 trillion bailout

11/5/08 Your $3 trillion bailout
Washington is waging war on the financial crisis. Mr. Obama: You have to see it through.
By David Goldman, CNNMoney.com staff writer

Congratulations Mr. President-elect. Now get to work. It's a little more than 10 weeks until Jan. 20, and there's an economy in dire need of fixing.

Here's the executive summary: The economy's cracks started showing a year ago. Home prices plummeted and foreclosures soared. Financial institutions carrying mortgage-backed securities on their books took an enormous hit. Banks wanted to take fewer risks, so lending to businesses and consumers froze up.

Then things really broke down in September. The government took over mortgage giants Fannie Mae and Freddie Mac. The collapse of Lehman Brothers sent investors worldwide into a cold sweat.

To combat the crisis, Congress and the current administration have taken a number of steps aimed at boosting the housing market - providing critical liquidity to financial institutions and saving businesses from collapse.

Thus far, the government has pledged as much as $3 trillion for the crisis, although the ultimate cost to the federal budget won't be known for years to come since much of that money is effectively investment.

more...
http://money.cnn.com/2008/11/05/news/economy/three_trillion_dollar_bailout/index.htm?postversion=2008110511

[Festivito]

58. Could be 50T$. No one knows. /nt

[Festivito]

59. Debt: 11/04/2008 10,566,146,196,490.50 (UP 9,968,448,445.30) (Just FICA.)

(FICA dropped yesterday, today up half of that drop.)

= Held by the Public + Intragovernmental(FICA)
= 6,302,535,948,012.36 + 4,263,610,248,478.22
UP 314,469,904.16 + UP 9,653,978,541.21
(NOTE: Excel 2007 cannot handle ten-trillion plus to the penny. It zeroes 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 to 32 days.
The average for the last 21 reports is 18,089,389,966.26.
The average for the last 30 days would be 12,662,572,976.38.
The average for the last 32 days would be 11,871,162,165.36.
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$/day.
There were 24 reports in 35 days of FY2009 averaging 22.56B$ per report, 15.47B$/day.

PROJECTION:
GWB** must relinquish the presidency in 77 days.
By that time the debt could be between 10.7 and 11.8T$.
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)
11/04/2008 10,566,146,196,490.50 GWB (UP 4,837,950,400,308.93 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: 541,421,299,578.10 so far this fiscal year.

Heavy borrowing seems to start 10/18/2008.
US borrowed $901,514,393,231.43 in last 47 days.
That's 902B$ in 47 days.
More than any year ever, except last year, and it's 89% of that highest year ever only in 47 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 47 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=3584504&mesg_id=3584534

[Ghost Dog]

12. Dollar, euro, stg Libors fall broadly; stg spread widens

Wed Nov 5, 2008 6:50am EST LONDON, Nov 5 (Reuters) - The interbank cost of borrowing
three-month dollar funds fell on Wednesday, according to the
latest daily fixing from the British Bankers' Association,
helping to narrow the spread over anticipated policy rates.

Euro and sterling interbank rates fell across the board too,
but benchmark sterling 'Libor/OIS' spreads widened.

These spreads express the three-month premium paid over
anticipated central bank rates, or Overnight Index Swap rates
and are seen as a gauge of banks' willingness to lend to each
other and broader credit market conditions.

A wider spread is seen as an indication of greater market
strain.

Below is a table of the London interbank offered rates
(Libor) for dollar, euro and sterling funds in percentage terms,
with the change from the previous session in parentheses.

/... http://www.reuters.com/article/marketsNews/idINL531683220081105?rpc=44

[Maeve]

13. I don't care about the economic figures, America's future is looking UP!!

A big :hi: to all the Marketeers today!

[Ghost Dog]

14. European shares down; pharmaceuticals, oil fall

Wed Nov 5, 2008 7:05am EST LONDON, Nov 5 (Reuters) - European share prices were down at midday on Wednesday as investors turned their attention back to the economy after Barack Obama's victory in the U.S. presidential election, with pharmaceutical and oil stocks the main drags on the index.

By 1131 GMT, the FTSEurofirst 300 index of leading European shares was down 1.8 percent at 956.59, breaking six straight days of gains.

The index has lost nearly 37 percent so far this year. The new Obama administration, which takes office in January, will face the world's worst financial crisis since the Great Depression, and a potentially steep downturn in the global economy.

Pharmaceuticals were the bigest losers on the index. AstraZeneca (AZN.L: Quote, Profile, Research, Stock Buzz), GlaxoSmithKline (GSK.L: Quote, Profile, Research, Stock Buzz), Novartis (NOVN.VX: Quote, Profile, Research, Stock Buzz) and Sanofi-Aventis (SASY.PA: Quote, Profile, Research, Stock Buzz) down 3.8-4.5 percent.

"The market will always say that a (U.S.) Democratic (election) victory will always be bad news for pharmaceuticals and there has been selling there," said Jim Wood-Smith, head of research at William de Broe. "Ever since former president Bill Clinton's key policy was to reduce the cost of drugs to the consumer, the market has said a Democratic victory is not good for the sector. However, it is all half-hearted stuff and I would not read too much what Obama will or will not do, it is another story getting legislation passed," added Wood-Smith. <-- Bastards

Simon Mather, an analyst at WestLB, said: "The victory of Barack Obama opens the door for accelerating pricing pressure."

Energy stocks dragged the index lower as crude CLc1 fell 3.3 percent and analysts said an Obama win could mean a windfall tax on oil companies as he favours green or alternative energy.

...

Banks also weighed. BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) lost 4.3 percent after the group said its third-quarter net profit more than halved due to higher provisions related to the financial crisis. Allied Irish Banks (ALBK.I: Quote, Profile, Research, Stock Buzz) fell 2.8 percent after it cut its full-year earnings forecast, increased its bad debt charge expectations and cancelled its 2008 cash dividend to raise capital ratios.

Across Europe, the FTSE 100 index was down 1.9 percent, Germany's DAX was 1.3 percent lower and France's CAC 40 was down 2.3 percent.

...

Insurers were up as analysts suggested that Barack Obama is likely to place a higher tax on income which will lead the affluent to buy more tax-deductible insurance products. <-- More Bastards

Insurers with exposure to the United States such as Aegon (EDF.PA: Quote, Profile, Research, Stock Buzz) and Prudential (PRU.L: Quote, Profile, Research, Stock Buzz) were 1 to 5 percent higher.

"If Obama were to raise taxes for wealthy people they would have an incentive to save more for their pension, because that's tax deductible," said Michael Van Wegen, insurance analyst at Societe Generale. <-- Maybe, for the already over-rich, that can be changed

/... http://www.reuters.com/article/marketsNews/idCAL538948720081105?rpc=44&sp=true

Note: European opening in this thread: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3584289

"Analysts said that an Obama win had been largely priced in after six days of gains for European shares."

[Ghost Dog]

15. Emerging Markets-Stocks touch 3-wk highs post-US vote

Wed Nov 5, 2008 7:32am EST LONDON, Nov 5 (Reuters) - Emerging equities briefly hit three-week highs on Wednesday following the election of new U.S. president Barack Obama, but stocks trimmed gains and debt spreads widened as attention refocused on the economy. Investors are hoping a change of presidency will benefit the global economy, including emerging markets, but some post-election gains evaporated.

"There's been a great deal of euphoria of the past few days on the prospect of political change, but the focus will shift back to the economy, especially with U.S. employment figures out on Friday," said Nigel Rendell, emerging markets strategist at RBC. "Emerging markets have bounced back but how much this can continue is doubtful given the global slowdown. The outlook is bumpy to say the least as I don't think poor corporate earnings have been fully discounted in equity prices. Risk premiums have definitely returned for emerging markets."

Benchmark emerging equities .MSCIEF hit three-week highs, before trimming gains to 607.19, up 0.67 percent on the day.

Emerging stocks have had a steaming recovery, rising 36 percent from four-year lows set just over a week ago, on global rate cuts and new measures from the Federal Reserve and International Monetary Fund to help emerging economies.

/... http://www.reuters.com/article/marketsNews/idINL547802520081105?rpc=44&pageNumber=2&virtualBrandChannel=0&sp=true

[AnneD]

18. Morning Marketeers.....

:donut: and lurkers. Yes we can and we did.

Excuse me for being a medical person so early and I really hate to put you off your donut but i can't help my nature. I have to do some of this election autopsy while the corpse is still fresh.

1) Howard Dean and his 50 state strategy is right. The DNC has been screwing up because they have not been giving financial backing to candidates in red states. It is so bad here in Texas that I have stopped giving to the DNC and give directly to the candidate. We have been doing house cleaning in our state party leadership, and we will continue until we start getting some folks with spine. We have candidates with spine-we just need party leaders with ca jones to match the candidates spines.

2)The long primary among the DEM's WAS a good thing. Obama was a good fighting, his message got honed, and his organization bulked up. It didn't deplete his funding, more people heard him and reached into their coin purses and under their couch cushions and donated what they could-AND IT TURNED OUT TO BE MORE THAN WHAT LOBBYIST COULD GIVE. Obama goes in as the first candidate since the founding fathers that is beholding to no one but the people that voted him in.

3)I will look at the stats but I trust very few of the talking heads. And I still content that the biggest mistake McCain made was not going dirtier sooner-he's still old GOP in his heart and I do respect him for not going down that road as long as he did.

$) We have not seen the last of Palin. Sorry guys. She has charisma and we need to keep bringing our A game to these races and not be afraid to prosecute our own when they screw up.

So I'll leave you with a happy thought...

www.youtube.com/watch?v=Pe5p1BXNCQM

Happy hunting and watch out for the bears.....

[Ghost Dog]

22. Cojones, indeed. Courage.

And an excellent, beholden to real honest ordinary people, young and old, multicultural, and especially, I think, women, rather than corrupt K-Street irrational warmongering business as usual.

The 75% or so Hispanic vote is certainly not to be overlooked.

Um, and please allow me to take the opportunity to point out that Spain, the Spanish government led by Sr. Zapatero, is politely and firmly requesting a place at the G20 table on November 15th that will attempt to make global systemic economic decisions in the face of what is confronting us all. This is at present well inside the top ten economies in the world, in terms of formal GDP and however else these things are measured, at around about the wealth level of Italy and Canada; has long-standing and very current connections and understandings with lots of important players in the world, including the rest of Europe, all the Americas, North Africa (and elsewhere in Africa), the Middle East (and elsewhere in the Muslim world); has suffered a (relatively 'soft', but not so soft) fascist dictatorship and has emerged as an exemplary democracy; is an active loyal NATO ally (but not in Iraq); has, in spite of overborrowing and overbuilding at home, some of the soundest banks and financial policies in the world (and some good ideas); has the support, to sit at the G20 table, of, as far as I can see, everyone from China, Japan through Russia, Europe including UK, Latin America, African Union, ... Only, it seems, the Bushies oppose. I read that representatives of the Spanish government have already forged close ties with Obama's people and Obama has already committed to visit Spain... I'd like to see a strong push to Get Mr. Zapatero and Spain onto that table.

And, before I check out your youtube link, AnneD, I'll leave you with this: :hi:

http://www.youtube.com/watch?v=as3Hb6p7pcI (Otis)
http://www.youtube.com/watch?v=_XjLafQUyUY (Seal)
http://www.youtube.com/watch?v=onN9qSTLaAo (Aretha)
...
http://www.youtube.com/watch?v=8bCVDXTIynY (Patti)
...

[AnneD]

29. I can't access you tube at work.....

but I will look forward to enjoying those tonight. While Obama can't make up totally for the last 8 years of Bush-he goes a long way. I don't think that many in Europe can truly appreciate what has happened. He won by such a majority of Americans that the election could not be rigged or flipped. And had they tried-hell would have broken loose. That is why I am thankful McCain is the type of GOP he is.......old school. As my years of political have taught me-these are the GOP that the DEM's should embrace. Dem's were not always on the right side of the issues. We only got on the right side of the Civil Rights issue with Lyndon Johnson. He had the courage to strong arm the legislation through, but he said as he signed it that we would lose the South for at least a generation (but it was the right thing to do as time has proved). We also didn't pick up the environment issue until Nixon signed the clean air act. When push comes to shove, I don't care a person's political affiliation, just what they stand for. It was once said "He who doesn't stand for something will fall for anything." I haven't stumbled in a while.

Sleep well my friend. It's a new day here.

[Ghost Dog]

35. The word 'strategy' is missing from the first sentence above. n/t

[Ghost Dog]

30. Ah, thanks for that song

in that version, AnneD.

I'll have to complement that voice now with this voice (notice comments to all these, btw):

http://www.youtube.com/watch?v=dn0OFhDAE18 (Terence)
...

[AnneD]

33. I have been a hopeless.....

dreamer since early childhood-and that film and that song are in my etched in my earliest memories. Imagine by John Lennon is another. One day, one day....... it will just take more time and work.

[Ghost Dog]

39. Let me send you this, with love from Cuba,

also (as Ms. Palin would say). :)

http://www.youtube.com/watch?v=NE1ijoIxMo0

Ed. Damn. Unlike Dr. Phool, I have not opened a bottle of vodka.

I have opened a bottle of white rum (with the correct government seal)

from Santiago de Cuba, exported/imported directly from/to the Canary Islands... (nothing to do with "Madrid").

So I'll keep quiet, if I can, for, oh, 3 days or so (my love had to travel to Barcelona, her family business, today).

Seguiremos llorando, por supuesto. :cry:

http://www.youtube.com/watch?v=SbVUsV-OZGo&NR=1

[Ghost Dog]

50. ... And to which I would like to add these historical United Nations

addresses::

http://www.youtube.com/watch?v=DO7yxx7Y81w (& avoiding the old, once-usual, dishonest, not-really-very-soviet propaganda):
...
http://www.youtube.com/watch?v=xpJFtUXf67o
...
http://www.youtube.com/watch?v=gWc2QFTiTa0

[AnneD]

73. Thank you...

for the Cuban dulcetes. The first was especially tender. We get very little from Cuba except what family members could sneak back, and lots of old albums. My daughter's musical skills are from my side of the family, but she absorbed rhythm from her arbuella.

Can't wait to share. Thanks!

[Ghost Dog]

78. Cool. I'll just add this, this morning:

http://www.youtube.com/watch?v=LQTTFUtMSvQ (Beethoven)

(This one helps, too: http://www.youtube.com/watch?v=2tGieanN5JQ )

[Ghost Dog]

81. ... And then this:

http://www.youtube.com/watch?v=vQVeaIHWWck&NR=1

...and this:

http://www.youtube.com/watch?v=duSL3y2LASI (Mahler)

[UpInArms]

40. here's another for you

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

[Ghost Dog]

42. Far out. n/t

No, not n/t. US-style 'democracy' can indeed be truly inspiring, sometimes.

[AnneD]

74. Sweet......

A wonderful end to a wonderful day.

[UpInArms]

20. dollar watch

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

Last trade 84.918 Change +0.306 (+0.39%)

Euro and Pound Trade Choppy Ahead Of Rate Decisions, As Fundamentals Deteriorate

http://www.dailyfx.com/story/bio1/Euro_and_Pound_Trade_Choppy_1225883693928.html

The Euro spent the overnight sessions seesawing between 1.2800 and 1.2900. The EURUSD was headed toward near-term support at 1.2800 when a 0.2% drop in retail sales crossed the wires. Although, the print was better than the 0.4% decline that was expected, it shows that despite easing inflation consumers have started to retrench. The final reading of Euro-zone PMI came in at 43.6 which was lower than the preliminary read of 44.6 an already record low for the series. The deterioration in the service and manufacturing sectors would lead to Euro weakness before it ultimately found support at 1.2840.

The declining fundamentals will give the ECB all the evidence that it needs to aggressively cut rates at tomorrow’s policy meeting. Recent rhetoric from council members has signaled that the MPC is abandoning their price stability focus for measures to promote growth. Demonstrated by these comments from member Juergen Stark ``We're ready to use all instruments at our disposal and the main instrument is interest-rate policy as long as our mandate'' to contain inflation ``allows it,'' . There has been some speculation that a rate cut from the central bank may spur hope that it will stabilize the region’s economy and lead to Euro strength. However, we do not subscribe to that view as fundamentals are clearly showing the economic union is heading into a recession and may have to significantly reduce their benchmark rate to reverse the current growth trend. Therefore, although we may see the Euro settle in a short –term trading range between 1.2500 and 1.3000, ultimately the pair will look to test 1.2000 and below.

The Pound similarly to the Euro has traded choppy as it bounced between 1.5800 and 1.600 throughout out the Asian and European trading sessions. An unexpected jump in consumer confidence to 55 from 47, which was the first rise since December, 2008 as easing inflation and the measures taken by the government to stem the credit crisis, has raised optimism. Although this may help domestic growth down the line, a drop in the service industry to its lowest level since the series began in 1996 shows that the economy may be headed for a deep recession. The sector which accounts for 75% of GDP fell to 42.4 from 46.0 and remained in contraction for the fourth straight month. Similarly the manufacturing sector declined 0.8% in September after a 0.6% drop the month prior, marking the seventh straight month of declines. The BoE is expected to cut rates by 100 bps at tomorrow’s policy meeting, which should lead to the pound trading heavy leading up to the policy meeting. However, there is long-term trend line support near 1.5800.

The U.S. calendar will also reveal its reading for the service sector. The ISM Non-Manufacturing report is expected to show the sector contracted for the first time in three months as the credit crunch and slower spending forced companies to cut payrolls. This is expected to be evident in the ADP employment report that is anticipated to show a 100,000 reduction in private jobs, which would be the first triple digit loss since November, 2002. The weak fundamentals may lead to dollar weakness as expectations may increase that the country will endure a severe recession. The reports are also leading indicators for Friday’s Non-farm payroll report which is expected to show 200,000 in job losses. A declining labor market will dim the outlook for domestic growth and could add to dollar weakness. However, with the expectations that the BoE and ECB will cut rates tomorrow as their economies follow the U.S. into recession, the relative outlook for the economies could spur bullish dollar momentum.

...more...

U.S. MBA Mortgage Applications Falls to an Eight Year Low on Higher Borrowing Costs

http://www.dailyfx.com/story/market_alerts/fundamental_alert/U_S__MBA_Mortgage_Applications_Falls_1225886911659.html

U.S. mortgage applications dropped 20% to 379.9 to reach its lowest level since 2000 as potential home buyers face higher borrowing costs. The downturn in the housing and credit market has certainly taken a toll on the economy as the world’s largest economy heads into a recession, and despite the extraordinary efforts by policy makers, conditions may only get worse as banks continue to cutback on lending practices.

...more...

[UpInArms]

24. Stealth Wealth Transfer Continues: Fed again raises interest rates paid on bank reserves

06. Fed again raises interest rates paid on bank reserves
10:00 AM ET, Nov 05, 2008

those reserves are made up of our bailout money - now we get to give them even more unearned money from the taxpayers' pockets

[UpInArms]

25. Fed to pay more on banks' reserve deposits

http://www.reuters.com/article/bondsNews/idUSWEQ00035220081105

WASHINGTON, Nov 5 (Reuters) - The Federal Reserve said on Wednesday it is altering a formula it uses for paying interest on reserves that banks maintain with it, effectively offering more to induce banks to do so.

Previously, the rate on required reserves was the average target federal funds rate over a reserve maintenance period minus 10 basis points but it now will be set equal to theaverage federal funds rate over the period.

...more...

[TrogL]

26. 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

2008-09-24 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
2008-11-04 Tuesday, November 4 0.869414 USD

Current values

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

Market            Open   High    Low   Last  Change    Pct Time
CD.Y$$ Cash     0.8679 0.8683 0.8663 0.8663 -0.0019 -0.22% 10:01 
CD.Z08 Dec 2008 0.8658 0.8680 0.8658 0.8680 +0.0008 +0.09% 08:54 
CD.H09 Mar 2009 0.8680 0.8680        0.8675 +0.0226 +2.60% set 15:05 
CD.M09 Jun 2009 0.9880 0.9880 0.9880 0.8689 +0.0232 +2.67% set 15:05 
CD.U09 Sep 2009 0.9350        0.9340 0.8692 +0.0227 +2.61% set 15:05 
CD.Z09 Dec 2009 0.7000 0.7000 0.7000 0.8696 +0.0216 +2.48% set 15:05 
CD.H10 Mar 2010 0.8800 0.8800 0.8800 0.8700 +0.0212 +2.44% set 15:05 
  

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

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.Z08 Dec 2008 0.8007 0.8007 0.8007 0.8007 -0.0036 -0.45%   
BRITISH POUND/US$ (SMALL) (NYBOT:MP)
MP.Z08.E Dec 2008 (E) 1.5873 1.5873 1.5756 1.5890 +0.0106 +0.67%   
EURO/BRITISH POUND (NYBOT:GB)
GB.Z08.E Dec 2008 (E) 0.8096 0.8134 0.8096 0.8134 +0.0146 +1.79%     
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.Z08.E Dec 2008 (E) 127.300 128.100 126.100 127.320 -1.535 -1.19%      
EURO/US$ (SMALL) (NYBOT:EO)
EO.Z08.E Dec 2008 (E) 1.28000 1.28000 1.28000 1.28000 -0.01305 -1.01%   

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

The December Canadian Dollar was steady to slightly higher overnight as it extends this week's rally above the 20-day moving average crossing at 83.14. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off October's low, the reaction high crossing at 88.42 is the next upside target. Closes below the 10- day moving average crossing at 81.83 are needed to confirm that a short-term low has been posted. First resistance is the overnight high crossing at 87.24. Second resistance is the reaction high crossing at 88.42. First support is the 20-day moving average crossing at .8314. Second support is the 10-day moving average crossing at 81.83.

Analysis

I would imagine markets are going to "wait and see" a bit. The loonie's working its way back hopefully to a stable level. I'm trying to get a loan to fix my daughter's teeth.

[antigop]

37. Obama urged to forge "new deal" for world economy

http://financialweek.com/apps/pbcs.dll/article?AID=/20081105/REG/811059990

Political leaders urged U.S. President-elect Barack Obama on Wednesday to help forge a new economic order and lead the world out of its worst financial crisis since the 1930s.

Excitement about the election of Democrat Obama as the first black U.S. President was tempered by an awareness of the challenges he faces as the world’s biggest economy labors in recession.

“We need to change the current crisis into a new opportunity. We need a new deal for a new world,” said European Commission President Jose Manuel Barroso.

“I sincerely hope that with the leadership of President Obama, the United States of America will join forces with Europe to drive this new deal,” he added.

[antigop]

38. Quickly...go to the Wall Street Journal home page and look at the first photo in the slideshow

http://online.wsj.com/public/us

What a wonderful picture.

[Demeter]

41. Dow Down 264; Looks Like Wall Street Isn't Happy About the Election

Good! That means they know the jig is up. Maybe we'll start seeing some volutary self-regulation, even.

[Demeter]

43. Blast from the Past

"Historically, the United States has been a hard money country. Only has the United States operated on a fiat money system. During this period, paper money has depreciated over 87%. During the preceding 140 year period, the hard currency of the United States had actually maintained its value. Wholesale prices in 1913... were the same as in 1787."

-- Kenneth Gerbino, former chairman of the American Economic Council

"Some people think the Federal Reserve Banks are US government institutions. They are not... they are private credit monopolies which prey upon the people of the US for the benefit of themselves and their foreign and domestic swindlers, and rich and predatory money lenders. The sack of the United States by the Fed is the greatest crime in history. Every effort has been made by the Fed to conceal its powers, but the truth is the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will."

-- Louis McFadden(1876-1936)US Congressman (R-PA) (1915-1935),Chairman of House Banking and Currency Committee. Poisoned in 1936. Source: June 10, 1932


Money becomes evil not when it is used to buy goods, but when it is used to buy power... economic inequalities become evil when they are translated into political inequalities.

-- Samuel Huntington - Political Scientist


The abuse of buying and selling votes crept in and money began to play an important part in determining elections. Later on, this process of corruption spread to the law courts. And then to the army, and finally the Republic was subjected to the rule of emperors..

--Plutarch - Historian of the Roman Republic

[Ghost Dog]

56. We have thrown at/invested how much money in Mr. Obama

(since such is the nature of the 'system').

And you call that 'democracy'?

http://www.youtube.com/watch?v=q6QPjMFzl4Y
...
http://www.youtube.com/watch?v=C7Zsb0Y8Tpg
...
http://www.youtube.com/watch?v=15JfnrqBqSI&NR=1
...
http://www.youtube.com/watch?v=xdBMY3R4C0Q (Victor Jara).

[UpInArms]

44. GMAC has $2.52 bln loss; ResCap unit may fail

http://www.reuters.com/article/bondsNews/idUSN0554852620081105?sp=true

NEW YORK, Nov 5 (Reuters) - Finance company GMAC LLC lost $2.52 billion in the third quarter, hurt by slumps in the housing and auto markets, and said its Residential Capital LLC mortgage unit may fail.

GMAC has been in the red for five straight quarters, losing $7.9 billion over that time. ResCap lost $1.91 billion in the third quarter, and has lost $9.1 billion in eight straight quarterly losses.

Despite halting many risky loans and cutting 10,000 jobs over two years, ResCap is struggling to maintain sufficient capital and liquidity. GMAC excused $197 million of its obligations in the third quarter, and more in October.

"Absent economic support from GMAC, substantial doubt exists regarding ResCap's ability to continue as a going concern," GMAC said.

Private equity firm Cerberus Capital Management LP owns 51 percent of Detroit-based GMAC, and the automaker General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) owns 49 percent.

"If GMAC can't provide support that ResCap needs, then bankruptcy is an option for ResCap," said Christopher Wolfe, an analyst at Fitch Ratings. "GMAC is running out of options. There is a limit to how much support GMAC can provide, and we don't believe it can provide the support it has historically."

The fates of ResCap and GMAC also depend on a potential merger of GM with Chrysler LLC, also controlled by Cerberus.

...more...

[Demeter]

46. First Rule of Holes Applies Here

"When you find yourself in a hole, the first rule is: Stop Digging!"

Adding Chrysler's money problems onto GM's and thinking this will help the residential mortgage unit recapitalize is delusional. Pull the plug on this terminal enterprise.

[AnneD]

51. Second Rule of holes

If one is in your apple...... proceed with caution.

[TalkingDog]

53. ugh...been there....n/t

[Demeter]

68. Good Point!

[Psephos]

52. what should be done about the 200,000 jobs that would go poof with them?

and the additional hundreds of thousands of jobs that would also disappear after that all that wage and tax money starts getting sent overseas instead?

[Demeter]

69. Those 200,000 Jobs Are NOT Involved in the Mortgage Business

Which is the fouled anchor on this boat.

[Psephos]

77. I'm sorry, I read your post as a comment on GM and Chrysler, not GMAC

Which leaves me a lot closer to your position. :hi:

[Psephos]

76. self-delete - wrong subthread

[Demeter]

47. Capitalism Without Capital? By Ron Paul

http://www.informationclearinghouse.info/article21038.htm

October 16, 2008 "Lew Rockwell" -- It has been long understood that our federal government is going deeper into debt, consistently raising the debt ceiling and demonstrating no fiscal restraint. In recent years, debt ceiling increases have been placed in “must pass” legislation as a means to guarantee that Republicans as well as Democrats would vote for them when Congress was under Republican control.

We also know our nation’s “negative savings rate” reflects the habits of private citizens, showing those habits to be not tremendously different than the habits of the public sector. Yet, the signs of decline are becoming ever more apparent. So apparent, in fact, that it seems unlikely that bailouts or other gimmicks will have even short-term success. More inflation, and creating moral hazard by bailing out egregious offenders, is a recipe for disaster. These activities can seem to provide some short-term relief, but it seems we are now at a significant crisis point, where monetary policy gimmicks don’t provide the band-aids they did in the past.

Not only is our nation on the verge of bankruptcy, but so are its people and private institutions. We are now repeatedly hearing about businesses “needing to access the credit market to make payroll.” This is an unmistakable sign of more dire consequences ahead for the economy. If businesses must borrow just to make payroll, this is evidence of a severe undercapitalization that cannot be sustained, even for the short run.

Couple these facts with items such as the explosion of the “payday loan” industry and the unmasking of the false sense of economic well-being is nearly complete. These payday loan companies use preferred access to easy credit to inject cash into the hands of the working poor. They are nearly always set up in lower-income neighborhoods. These people, who are struggling to buy food and pay rent, get addicted to the credit drug. Their standard of living is only further depressed by the interest payments on these loans that make them profitable to their providers. Thus, the recipients are left even less capable of paying for items such as food and housing in the long run, without using this credit again and again.

These people are often the very ones being paid by businesses who “borrow to make payroll.” This is the dark underbelly of the fiat money, borrow-and-spend economy this nation has been building. As the government takes over more and more functions of the economy many see the rise of socialism as an antidote to this failure of “capitalism.” However, the fact remains that our economy has been increasingly running on debt, not capital. Capitalism does not exist without capital and debt is not, has never been and will never be a form of capital. Only now are we seeing the more dire implications of an economy without capital.

Dr. Ron Paul is a Republican member of Congress from Texas.

WHEN GREENSPAN BROKE THE FAIR INTEREST MECHANISM, THERE WAS NO REASON TO SAVE--UNLESS YOU WANT TO LOSE GROUND!

[specimenfred1984]

54. When does America start arresting corrupt repukes?

That's when the market will have bottomed. It's called "credibility" and "accountability".

[Dr.Phool]

55. Good morning Marketeers. Yeah, I know it's after 4:00.

But, I just got out of bed with one hellatius hangover. I see Obama has already destroyed the economy. I was up till about 4:00am going over election returns. I even went outside last night, and hoisted an American flag in front of the house. It's been sitting in the closet for about 5 years.

I hope everyone else survived the election.

Now, when the aspirin kicks in, we can get back to the futile work of saving the economy and the country.

[Ghost Dog]

61. Hiya, Dr. I'm crashing out just now, listeningto, for example:

http://www.youtube.com/watch?v=xdBMY3R4C0Q ...

:woo hoo: :hi:

Sorry.

(it's only 22:10 here).

(in relation to whom, in english, may i offer, for example:

http://www.youtube.com/watch?v=lGtCeyu9hxQ
...
http://www.youtube.com/watch?v=en8yqVxuT
...
http://www.commondreams.org/archive/2008/06/01/9341

[ozymandius]

63. With you there Dr. Phool.

I too nursed a hangover this morning. Feeling kinda listless all day but eager to set course to reverse the damage inflicted upon us over the past eight years.

Funny how I feel very similarly to hearing the news that the Berlin Wall had fallen.

[Demeter]

70. I Didn't Have to Drink to Get A Hangover Headache

The polls worked very smoothly, but it was a lot of work. We had 500 people go through our precinct in the first 3 hours, and over 200 absentee ballots to process. That was 50% right there. We ended up with 1100 out of 1600, of which there are many who have moved away or died (Michigan doesn't purge its polling lists unlike some states).

There were 2 valid write-in candidates for President, Alan Keyes and somebody else, but neither one got a single vote, so we didn't have to spend hours on that process, and got out at 10:30. Which means, 16.5 hours, with 2 of those hours off for meals. So my eyes hurt from staring at the poll list, trying to pry those little sticker labels up, and stuff like that. And the lack of sleep (I stayed up to hear the speech and get caught up on events).

But it was worth it.

It's a good day to be a Democrat!

[AnneD]

75. We love you tooo...

I had kids in all day that needed more sleep. As I told one-that's the price we pay for watching history. All the kids were happy. In the club house we have nothing but idiots and bigots. I have had to endure Rove, that big steaming pile-O'Reilly, Insanity and Colms. They have been so brainwashed and paranoid they can't tell the truth anymore and scared shit less of their own shadow. God there's not enough alcohol in the world.I refuse to reach across the aisle and touch that.....I want the media monopolies broken up and fairness doctrine re instituted.

At least I can tell who is who even better these days. I see more smiles than frowns.

[Roland99]

62. Big drop today? A message or just back to reality (ISM dropping)

[ozymandius]

64. profits, I'll guess.

Prices went up yesterday when most people were not looking. Profits were taken today (I guess) when only a few more people were looking compared to the numbers yesterday. Of course, employment figures did not help one damn bit.

Dow 9,139.27 Down 486.01 (5.05%)
Nasdaq 1,681.64 Down 98.48 (5.53%)
S&P 500 952.77 Down 52.98 (5.27%)
10-Yr Bond 3.6940% Down 0.0710
NYSE Volume 5,524,001,000
Nasdaq Volume 2,201,961,000

4:15 pm : On Wednesday, stocks tumbled 5.3%, ending at session lows in broad-based weakness. The decline was driven by profit taking, and discouraging economic data on employment and the services sector. Meanwhile, investors digested Barack Obama winning the presidency and other election results.

According to the ADP national employment report, nonfarm private employment declined by 157,000 in October, which is the largest decline since 2002. The result was worse than the expected drop of 100,000. September was revised to a decrease of 26,000 from a decrease of 8,000. The ADP data have had a spotty track record compared to the government's report, which includes both public and private nonfarm payrolls, and is set for release on Friday.

The services sector contracted by the most since at least 1997 and the sixth time this year, according Institute for Supply Management's national nonmanufacturing survey, which dates back to 1997. Specifically, the October ISM Services Index registered 44.4 in October, 2.6 worse than expected and 5.8 lower than the 50.2 reading in September. A reading below 50 is intended to imply contraction in the services sector.

In corporate news, Google (GOOG 342.57, -24.37) announced on its blog that it decided to end its advertising agreement with Yahoo! (YHOO 13.93, +0.58) after it became clear that government regulators and some advertisers continued to have concern about the pact. Google traded down on the news, while Yahoo saw a boost as traders speculated this may open the door to another Microsoft (MSFT 22.07, -1.46) offer.

All ten of the economic sectors posted a loss.

Financials (-8.8%) were the main laggard. A wider-than-expected quarterly losses from bond insurers Ambac (ABK 2.06, -1.34) and MBIA (MBI 8.31, -2.15) along with a disappointing earnings and outlook from REIT General Growth Properties (GGP 2.09, -2.40) added to selling interest.

The energy sector fell 4.6% as crude prices plunged 7.4% to $65.28 per barrel. The drop in oil prices was fueled by economic concerns and weekly energy inventory data that showed the sixth increase in crude stockpiles and an increase in gasoline levels.

Quarterly earnings results were mixed, with outlooks leaning negative. Some notable companies that reported worse-than-expected earnings include Arcelor Mittal (MT 25.16, -6.54), Duke Energy (DUK 15.61, -1.31), Marsh McLennan (MMC 26.07, -3.63), MBIA (MBI 8.31, -2.15), Molson Coors (TAP 41.87, +3.29) and Transocean (RIG 80.61, -3.91).

Devon Energy (DVN 79.64, -3.36), Medco Health Solutions (MHS 41.45, +3.45), Polo Ralph Lauren (RL 48.54, -0.97), Sara Lee (SLE 10.22, -1.64), and Time Warner (TWX 10.15, -0.68) beat in their latest quarters.

The S&P 500 is now down 1.7% this week, but is still up 13.5% from its Oct. 10 multi-year low. It is down 37.5% this year.DJ30 -486.01 NASDAQ -98.48 NQ100 -5.7% R2K -5.7% SP400 -5.1% SP500 -52.98 NASDAQ Adv/Vol/Dec 534/2.18 bln/2232 NYSE Adv/Vol/Dec 603/1.31 bln/2490

[TrogL]

65. The Plunge Protection Team is no longer interested

[Demeter]

71. Not to Mention Broke

[Roland99]

82. Or perhaps it really is? >>>>>>>

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3586480#3586555

A build up of the markets and then letting it drop after Obama won?


:tinfoilhat:

[ozone_man]

72. Reality check?

You can't make up news this bad, so it's just a matter of time before it sinks in.

And election euphoria is quick to wear off, especially when half are not happy with results, and perhaps more than half when it comes to Wall Street.

Also, shorts have come back out of hiding. :hide: