STOCK MARKET WATCH, Wednesday November 26

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday November 26, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 55
WHERE'S OSAMA BIN-LADEN? 2589 DAYS
DAYS SINCE ENRON COLLAPSE = 2880
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 25, 2008

Dow... 8,479.47 +36.08 (+0.43%)
Nasdaq... 1,464.73 -7.29 (-0.50%)
S&P 500... 857.39 +5.58 (+0.66%)
Gold future... 820.50 +0.10 (+0.01%)
30-Year Bond 3.63% -0.12 (-3.28%)
10-Yr Bond... 3.09% -0.25 (-7.43%)






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

Small Signs of Change
BY FRANK BARBERA, CMT

Like a fighter knocked senseless by an upper cut to the jaw, the financial markets have been getting up off the mat and recovering over the last few days. In the Gold Stock Technician Newsletter, we highlighted the recent stock market low in real time, about an hour before the bottom was seen late last week. Since then, stocks have gone on a tear with the DJIA up over 1000 points from our buy signal. Yet, while the rally in the stock market, and in particular, the recovery rally in the financials, does represent a positive step in the right direction, other markets have yet to fully turn. The Dollar, which we highlighted back in late October has been especially tough until recent days.

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

[ozymandius]

2. Today's Reports

08:30 Durable Orders Oct
Briefing.com -2.2%
Consensus -2.5%
Prior 0.8%

08:30 Initial Claims 11/22
Briefing.com NA
Consensus 537K
Prior 542K

08:30 Personal Income Oct
Briefing.com 0.2%
Consensus 0.1%
Prior 0.2%

08:30 Personal Spending Oct
Briefing.com -0.6%
Consensus -0.7%
Prior -0.3%

09:45 Chicago PMI Nov
Briefing.com 39.5
Consensus 38.5
Prior 37.8

10:00 Mich Sentiment-Rev. Nov
Briefing.com 58.5
Consensus 58.0
Prior 57.9

10:00 New Home Sales Oct
Briefing.com 450K
Consensus 450K
Prior 464K

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

[UpInArms]

47. Initial Claims @ 529k - last wk rev'd up 1k - lots of fugly report numbers in:

01. U.S. Oct. durable-goods orders fall 6.2% vs. -2.5% expected
8:30 AM ET, Nov 26, 2008

02. U.S. Sept. durable-goods orders revised to -0.2% from 0.9%
8:30 AM ET, Nov 26, 2008

03. U.S. Oct. durable-goods inventories rise 0.4%
8:30 AM ET, Nov 26, 2008

04. U.S. Oct. durable-goods shipments fall 2.4%
8:30 AM ET, Nov 26, 2008

05. U.S. Oct. core capital equipment orders fall 4%
8:30 AM ET, Nov 26, 2008

06. U.S. Oct. durable-goods orders ex-transportation fall 4.4%
8:30 AM ET, Nov 26, 2008

07. U.S. Oct. personal income up 0.3% vs. 0.1% expected
8:30 AM ET, Nov 26, 2008

08. U.S. Oct. consumer spending down 1% as expected
8:30 AM ET, Nov 26, 2008

09. U.S. Oct. PCE core inflation unchanged at 0.0%
8:30 AM ET, Nov 26, 2008

10. U.S. Oct. consumer spending weakest since Sept '01
8:30 AM ET, Nov 26, 2008

16. U.S. 4-wk. avg. continuing jobless claims rise to 3.92 mln
8:30 AM ET, Nov 26, 2008

17. U.S. continuing jobless claims fall 54,000 to 3.96 mln
8:30 AM ET, Nov 26, 2008

18. U.S. 4-wk. avg. initial jobless claims rise to 518,000
8:30 AM ET, Nov 26, 2008

19. U.S. weekly initial jobless claims fall 14,000 to 529,000
8:30 AM ET, Nov 26, 2008

[UpInArms]

48. October durable orders down 6.2%, transportation orders fall

http://www.marketwatch.com/news/story/October-durable-orders-down-62/story.aspx?guid=%7B331CCA9D%2D390B%2D4038%2DB82B%2DE99400A1DD33%7D

WASHINGTON (MarketWatch) -- Orders for U.S.-made durable goods fell 6.2% in October, the largest decline in two years, the Commerce Department estimated Wednesday, as orders for transportation goods fell 11.1%. Economists surveyed by MarketWatch had expected an overall decline of 2.5%. Excluding transportation, orders fell 4.4%. Orders for core capital equipment - the kind of investments businesses make to expand or update their productive capacity - fell 4% in October, after a 3.3% decline in September. October shipments fell 2.4% after a 0.2% dip in September. Excluding transportation, shipments fell 1.7% in October after a 0.9% decline in September. New orders for September were revised to a decline of 0.2%, compared with the prior estimate of a 0.9% gain.

[UpInArms]

49. Consumer spending drops 1% in October

http://www.marketwatch.com/news/story/Consumer-spending-drops-1-October/story.aspx?guid=%7B901906B1%2DCE96%2D4AE5%2D8502%2DD87A6AB5F25F%7D

WASHINGTON (MarketWatch) -- Consumer spending fell 1% in October, the largest decline since September 2001, the Commerce Department reported Wednesday. The result matched analysts' expectations. Real consumer spending fell 0.5%. Personal income rose 0.3% in October after a 0.1% gain in September. Analysts were looking for a 0.1% income gain for October. Real disposable income rose 1% in October. As expected by analysts, the core personal consumption expenditure price index was unchanged in October. This index gained 0.2% in September, and is up 2.1% in the past year.

[UpInArms]

72. Chicago PMI @ 33.8 - lowest level since 1982

http://www.reuters.com/article/bondsNews/idUSN2530656020081126

CHICAGO, Nov 26 (Reuters) - Business activity in the U.S. Midwest withered in November to the lowest level since the severe 1982 recession as new orders and hiring dried up, a report showed on Wednesday.

The Institute for Supply Management-Chicago business barometer tumbled to 33.8 from 37.8 in October. Economists had forecast the index at 36.7. A reading below 50 indicates contraction.

"This provides yet more confirmation of the industrial collapse that's going on," said Pierre Ellis, senior economist at Decision Economics in New York.

The Chicago report added to buying momentum in U.S. fixed-income markets kicked off earlier by very weak October durable goods orders.

ISM-Chicago's new orders, at 27.2, were down from 32.5 in October and the lowest since 1980, although production ticked up to 34.3 from October's weak 30.9. Production lead-times were the longest in 28 years.

The employment component fell to 33.4 from 41.5 in October, the lowest since January 2002, and consistent with the recent surge in weekly jobless claims.

...more...

[UpInArms]

73. U.S. Oct. new-home sales fall 5.3% - new-home sales down 40.1% in past year

19. U.S. Oct. new-home sales fall 5.3% to 433,000 annual rate
10:00 AM ET, Nov 26, 2008

20. U.S. new-home sales down 40.1% in past year
10:00 AM ET, Nov 26, 2008

21. U.S. Oct. median home price down 7% in past year
10:00 AM ET, Nov 26, 2008

22. U.S. Oct. new-home sales cut by declines in West, South
10:00 AM ET, Nov 26, 2008

23. U.S. Oct. new-home sales below 441,500 expected
10:00 AM ET, Nov 26, 2008

24. U.S. Oct. new-home inventory falls record 8%
10:00 AM ET, Nov 26, 2008

[UpInArms]

74. U.S. Nov. UMich consumer sentiment 55.3 vs. 57.9 previous - not so happy after all

18. U.S. Nov. UMich consumer sentiment 55.3 vs. 57.9 previous
10:02 AM ET, Nov 26, 2008

[UpInArms]

78. Consumer sentiment falls to 28-year low: UMich

http://www.reuters.com/article/ousiv/idUSTRE4AP4UF20081126

NEW YORK (Reuters) - Consumer confidence fell to a 28-year low in November as mounting job losses, falling incomes and tumbling household wealth battered sentiment, a survey showed on Wednesday.

The Reuters/University of Michigan Surveys of Consumers said its final index reading of confidence for November fell to 55.3 from October's 57.6.

The index came in well below economists' expectations of 57.7, according to the median of forecasts in a Reuters poll, and deteriorated sharply since the middle of the month, when lower gasoline prices had cheered many consumers.

"Consumer confidence fell in the last half of November due to mounting job losses, falling incomes and the evaporation of household wealth," the report said.

"Consumers were unanimous in their recognition that the economy was in recession, and nearly three-in-four expected the recession to deepen in the months ahead."

Forecasts for the final reading ranged from 54.6 to 58.5.

The preliminary index reading, released on November 14, was 57.9. The University of Michigan confidence index dates back to 1952. Its record low was 51.7, which it hit in May 1980.

...more...

[UpInArms]

75. US yearly economic growth rate hits new lows-ECRI - negative 29.2% (lowest since 1949)

http://www.reuters.com/article/bondsNews/idUSNAT00460920081126

NEW YORK, Nov 26 (Reuters) - A measure of future economic growth in the United States fell to its lowest in more than 13 years and its annualized growth rate hit a new low, indicating the economic downturn has yet to reach its trough, a research group said on Friday.

The Economic Cycle Research Institute, a New York-based independent forecasting group, said the annualized growth rate of its Weekly Leading Index fell in the week ending Nov. 21 from negative 28.2 percent to minus 29.2 percent, a new low according to data recorded since 1949.

"With the drivers of the business cycle still in a tailspin WLI growth has fallen to another historical low, indicating that there is no economic recovery in sight," said Lakshman Achuthan, managing director at ECRI.

The WLI level fell to 106.8, a low not reached since July 7, 1995.

...more...

[UpInArms]

76. Petroleum Inventories Report:

07. U.S. distillate stocks down 200,000 barrels in latest week
10:37 AM ET, Nov 26, 2008

08. Crude inventories rise 7.3 million barrels last week: EIA
10:36 AM ET, Nov 26, 2008

09. U.S. gasoline inventories up 1.9 mln barrels in latest week
10:36 AM ET, Nov 26, 2008

[ozymandius]

3. Oil steady near $51 after falling overnight

SINGAPORE – Oil prices were steady near $51 a barrel Wednesday in Asia as investors weighed more bad economic news from the U.S. that sparked a sell-off of crude overnight.

Light, sweet crude for January delivery was up 34 cents to $51.11 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.

The contract overnight fell $3.73 to settle at $50.77 after the U.S. said its gross domestic product shrank 0.5 percent in the third quarter, worse than previously estimated.

....

Investors will also be watching for signs of slowing U.S. demand in the weekly oil inventories report to be released Wednesday by the U.S. Energy Department's Energy Information Administration.

....

In other Nymex trading, gasoline futures rose 1.01 cents to $1.11 a gallon. Heating oil gained 1.12 cents to $1.71 a gallon while natural gas for January delivery increased 7.7 cents to $6.46 per 1,000 cubic feet.

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

[UpInArms]

37. January crude up 61 cents to $51.38 a barrel on Globex

01. January crude up 61 cents to $51.38 a barrel on Globex
7:52 AM ET, Nov 26, 2008

[ozymandius]

4. Paulson pulling more tricks to bolster US economy

WASHINGTON – With the economy showing further signs that it is headed into a steep swoon, Treasury Secretary Henry Paulson is pulling more tricks out of his bag to try bolster the country's battered financial sector.

The administration and the Federal Reserve rolled out two new programs Tuesday that would provide up to $800 billion in an effort to get more loans flowing in such critical areas as mortgage lending, credit cards, auto loans and small business loans.

Credit markets liked the new efforts, but private economists said the new moves were not likely to be the last changes in the government's vast rescue program, which has already undergone significant alterations since it was passed by Congress on Oct. 3.

http://news.yahoo.com/s/ap/20081126/ap_on_bi_ge/financial_meltdown

[ozymandius]

23. Analysis: Why Should We Be Surprised? (Treasury Conduct Edition)

The New York Times reports that the General Accounting Office is readying to issue a report that will criticize how Treasury has handled its spending under the $700 billion TARP program. The main shortcomings are failure to track how the money is actually being used and inadequate controls to prevent conflicts of interest.

Gee, I thought those supposed failings as features rather than bugs.

From the New York Times:

The first operational audit of the $700 billion financial rescue plan, to be delivered to Congress next Tuesday, is expected to be critical of the Treasury Department’s failure to set up ways to track how its bailout money is being used in the marketplace, according to people briefed on a draft of the report.

The audit, done by the Government Accountability Office, is also likely to call for tighter controls over the conflicts of interest that are arising as financial specialists, institutions and law firms are hired for Treasury work that could later aid their private-sector clients....

The Treasury Department has been criticized already in Congress for not tying more strings to its investments in banks and other financial institutions.

Through its Capital Purchase Program, it has injected $160 billion into the banking system through the purchase of preferred shares. But auditors found that no plan had been put in place to track how, or whether, that money is being put to use by the first eight institutions that received it.

The personnel consequences of the Treasury’s unexpected shift in strategy in the rescue plan — from the purchase of so-called troubled assets on financial balance sheets to the injection of capital directly into financial institutions — also drew attention from the auditors, those briefed on the study said.

The audit team noted that Treasury already had hired staff members for the initial mission, some of whom were not necessary or best suited for the work required under the new strategy.

....

However, also note that the Department of Defense has been unable to account for trillions of spending, so the Treasury has plenty of company.

http://www.nakedcapitalism.com/2008/11/why-should-we-be-surprised-treasury.html

[Dr.Phool]

34. "some of whom were not necessary or best suited for the work required under the new strategy."

Incompetent? Nobody could have foreseen this train coming down the tracks, with it's bright lights shining and horn blaring. The scariest thing about it is, that it hasn't hit yet.

These people cannot leave soon enough. And Congress too.

[Ghost Dog]

95. Not to mention, the tracks ringing, singing

that special tune...


















Train coming.

http://www.youtube.com/watch?v=B3Ja-YA0tOs (John Coltrane: Chasin' the Trane)

[UpInArms]

46. US Treasury says needs variety of credit programs

http://www.reuters.com/article/bondsNews/idUSWAT01057020081126

WASHINGTON, Nov 26 (Reuters) - The U.S. government will need a variety of programs to deal with troubled credit markets and is open to feedback from the incoming Obama administration in developing them, a senior U.S. Treasury official said on Wednesday.

"There's going to be a number of things we need to do. We're going to have to have targeted solutions to different aspects of the credit market," undersecretary for international affairs David McCormick told the C-SPAN cable television network.

[Birthmark]

54. That should read...

"...more tricks to loot US economy." Because that is, imo, what's happening. We're being looted.

[Hydra]

85. Yup

Watch them flush another $800 Billion of our tax dollars to pump up crony accounts...and to think there we so many loud people here on DU that stated that this was entirely necessary and that there would not be a second bailout.

0-2

[UpInArms]

5. dollar watch

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

Last trade 85.230 Change +0.367 (+0.47%)

US Dollar Tumbles as Q3 GDP Falls 0.5% Amidst Sharpest Contraction in Consumption Since 1980

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_Tumbles_as_Q3_1227651112975.html

The US dollar fell sharply across the majors as US data was broadly disappointing, adding to the pile of evidence suggesting that the nation is in the midst of recession. It seems that the announcement of yet another Federal Reserve lending facility - this time to support consumer and small business loans - and additional bailout measures for Fannie Mae, Freddie Mac, and Ginnie Mae totaling $800 billion didn’t encourage investors. Instead, traders focused on the revision of US GDP for the third quarter down to -0.5 percent compared to the advance reading of -0.3 percent, which signals the worst US economic slowdown in seven years. The decline was led by a 3.7 percent drop in personal consumption, which marks the sharpest contraction since 1980, as the major deterioration of the US labor markets, stagnant wage growth, and a reduction in the availability of credit takes its toll. Meanwhile, the S&P/Case-Shiller Home Price Index tumbled 16.55 percent during the third quarter, which is the worst decline since recordkeeping began in 1988. On the other hand, the Conference Board’s consumer confidence index climbed to 44.9 in November from a record low of 38.8. However, since this latest result is still the second-lowest since 1974, the rise didn’t inspire too much confidence of a rebound in consumer sentiment.

There was something encouraging about today’s dollar decline: the moves suggested that fundamentals are starting to play a role in forex market price action once again. Indeed, there are signs emerging that the financial markets are stabilizing a bit since risk trends have lost some influence on the greenback. Previously, any sort of losses in equities would trigger gains for the US dollar amidst flight-to-quality, but with the Dow Jones Industrial Average barely ending the day higher and the greenback gaining 0.85 percent versus the euro and 1.98 percent against the British pound, it is clear that this relationship has faded a bit. It remains to be seen if this trend will hold, but with upcoming US economic data likely to be disappointing, downside risks may linger for the US dollar.

US Durable Goods Orders are forecasted to have dropped 2.7 percent in October and excluding transportation is anticipated to fall negative for the second consecutive month. Indeed, Boeing orders - a good leading indicator of this headline reading - slumped in October to 14, down from 41 in September. Meanwhile, Personal Income growth during the month of October is anticipated to rise a tepid 0.1 percent while Personal Spending is expected to fall by the most since September 2001 at a rate of 1 percent. Such results would only create additional potential for fourth quarter GDP to be just as disappointing as the third quarter readings, and will likewise lead to increased speculation that the Federal Reserve will cut rates by as many as 50 basis points during their next meeting on December 15-16.

...more...

US Dollar, Japanese Yen Outlook May Hinge on US, European Event Risk

http://www.dailyfx.com/story/special_report/special_reports/US_Dollar__Japanese_Yen_Outlook_1227498756210.html

The US dollar and Japanese yen failed to break above key resistance points on Friday as risk appetite made a last minute recovery. Event risk will pick up this week for the US dollar, euro, and Canadian dollar, but with the US markets on holiday on Thursday, lower volumes may either result in wild volatility or very subdued trading.

• German IFO Survey – November 24
The IFO index of German business confidence is forecasted to show broad declines in sentiment on the business climate (from 90.2 to a 5-year low of 88.7), current economic conditions (from 99.9 to a 3-year low of 96.8), and the outlook for growth (from 81.4 to a record-low of 81.0). However, the November 11 release of the German ZEW survey shows that investor confidence on the economic outlook improved very slightly, while sentiment on current conditions fell further. Overall, businesses, investors, and consumers are likely to hold a cautious view of growth going forward, especially as the Euro-zone tips into recession and financial market instability shows no signs of easing. The release of this indicator at 4:00 ET tends to be a short term market-mover for the euro, though traders shouldn’t look for follow-through during the rest of the day.

• Canadian Retail Sales – November 25
Consumer spending in Canada is expected to have gained 0.3 percent in September, and excluding autos, retail sales are forecasted to have risen 0.2 percent. However, there is potential for a surprisingly strong reading given the solid employment numbers we’ve seen lately. In fact, the Canadian economy has added on workers for the past three months, and a record 106.9K in September alone. Furthermore, the September reading of Canadian wholesale sales surprisingly jumped 1.5 percent, and can sometimes serve as a good leading indicator for the headline retail sales report. As a result, this 8:30 ET release has the potential to lead the Canadian dollar higher, though a disappointing figure could weigh the Loonie down.

• US 3Q GDP Revisions, Consumer Confidence – November 25
In case the first round of US GDP readings for the third quarter weren’t bad enough for you, the figures are anticipated to be revised even lower at 8:30 ET. Indeed, annualized GDP is forecasted to be revised down to -0.5 percent from -0.3 percent, while personal consumption is expected to be corrected to -3.2 percent from -3.1 percent. However, it will likely take a surprisingly low result to illicit any sort of reaction from the markets, as traders are already well aware that economic conditions in the US remain dismal. Later in the morning at 10:00 ET, the Conference Board’s consumer confidence index is forecasted to hold near the record low of 38.0 reached just last month, though given the gloomy outlook for the economy, there may be downside risks. The key here will be to gauge the impact of the news on risk trends, as disappointing data could trigger flight-to-quality and thus, US dollar buying. On the flip side, readings in line with expectations shouldn’t have a huge impact.

• US Durable Goods Orders – November 26
Can Boeing help US durable goods orders to rebound? Not a chance, as airline orders slumped in October to 14, down from 41 in September. Indeed, Durable Goods Orders are forecasted to have dropped 2.7 percent and even excluding transportation is anticipated to fall negative for the second consecutive month. While the headline will have the most impact on forex trading, the markets should keep an eye on non-defense capital goods orders excluding aircraft, as this number serves as a leading indicator for business investment. The reading has contracted over the past two months, and combined with the weak outlook for the headline reading, risk aversion could linger and ultimately lead the US dollar higher.

...more...

[ozymandius]

9. Good morning UpInArms.

:donut: :donut: :donut:

Thank you for the heads-up on this video the other day. I sat there white-knuckled thinking about the shit we've been forced to endure over these long years.

[UpInArms]

12. g'morning, Ozy

insomnia is my partner this morning - haven't made the coffee yet

these past 8 years have definitely taken their toll

:donut:

[ozymandius]

17. I recently looked at picture of myself from eight years ago.

Eight years have taken their toll. So much silver in my beard. Eyes retain little of their youthful light. What little I knew about so many things eight years ago. It's seems unjustifiably harsh that being witness to sustained assaults on reason and basic human decency would be the method by which to learn.

[UpInArms]

18. I looked at a pic of me from about 10 years ago

and said to myself - my hubby should find that woman and get his money back!

:)

[DemReadingDU]

31. My picture on my drivers license from 4 years ago

looks like something the cat dragged in. Thankfully I get a re-do soon.
:)

[Roland99]

50. I'm aging like a fine wine, myself

:rofl:

[Demeter]

53. We Have All the Pain of Wartime and No Possible Benefits

We'll never have those 8 years and all the losses back. For that alone Bush and Cheney must be impeached.

[Tandalayo_Scheisskopf]

70. Hey, stop talkin' about me like that!

Oh...wait...

Yeah, the last 8 years have done the same number on me. Beard? Check. Eyes? A full set of Samsonite under each one. Disillusioned? Oh, maron a me! Angry? Where's my guillotine? Heh. Heh. Heh.

But, the recent illness and the responses here and from the friends who live near me have also taught me a good lesson about blessings, too. I do have some blessings in my life.

[Dr.Phool]

81. All I want for Xmas is a new liver.

The last 8 years have been hell on the old one.

I got rid of the 'stache a year ago. I was starting to look like John Bolten.

[Tandalayo_Scheisskopf]

84. My well-trimmed beard...

Once caused a stripper to introduce me as "a distinguished gentleman" to one of her co-workers.

:rofl:

[Ghost Dog]

96. Powerful. n/t

[UpInArms]

20. Dollar mixed as risk appetite wanes

http://www.marketwatch.com/news/story/dollar-mixed-risk-aversion-returns/story.aspx?guid=%7B04B18C24%2D98A6%2D4ED3%2DA644%2D0291AEBCE44B%7D&dist=msr_1

LONDON (MarketWatch) -- The U.S. dollar was mixed versus major counterparts Wednesday, clawing back some of the previous day's sharp losses as risk appetite appeared to wane.

The dollar and the Japanese yen, which have both benefited from de-leveraging, liquidation and safe-haven flows during increased bouts of risk aversion, fell Tuesday after U.S. officials pledged to provide another $800 billion in liquidity to ailing credit markets. Read about the Fed measures.

The move initially lifted equity markets and boosted overall risk appetite, but big gains proved fragile, with U.S. stocks ending just slightly higher on the day Tuesday.

"The outlook for the (U.S. dollar) remains one of range-bound stability despite exceptionally high levels of financial market volatility," said Michael Woolfolk, a currency strategist at Bank of New York Mellon.

Strategists at Commerzbank said the resolve demonstrated by U.S. authorities on Tuesday "raised hopes in the market that the crisis can be overcome with government help."

But they cautioned that such enthusiasm could prove fragile.

"As the example of multiple other Fed and Treasury programs have taught, disillusionment could follow later," the strategists wrote.

The dollar also fell Tuesday in response to funding worries, strategists said, tied to the expansion of the Fed's balance sheet.

...more...

[ozymandius]

6. Volcker will head new Obama board

President-elect Barack Obama on Wednesday will announce the creation of a president’s Economic Recovery Advisory Board, chaired by former Federal Reserve Chairman Paul Volcker, to provide outside advice from heavyweight thinkers, officials said.

....

The economic-recovery board’s staff director and chief economist will be Austan Goolsbee, who was senior economic adviser to the Obama campaign and will also be a member of the White House Council of Economic Advisers.

The other board members – eight to 16 people of a caliber of Eric E. Schmidt, chairman and executive officer of Google Inc. – will be named later.

The board initially will exist for two years, but might well be extended for longer. Transition advisers expect it might meet roughly once a month.

http://news.yahoo.com/s/politico/20081126/pl_politico/15997

[tclambert]

28. I'm taking the Volcker announcement as good news

He was the best chairman of the Federal Reserve, and as far as I know, he's clean as far as the recent financial sector disaster. He served under Carter and Reagan, and was the one who got inflation under control. Republicans like to give Reagan the credit. I'll give Reagan this much credit, that he had enough sense not to mess with Volcker's efforts.

[ozymandius]

32. Volker is a good move. But Reagan fired him, so-to-speak.

Reagan replaced him with that worthless hack, Alan Greenspan, who swiftly and energetically loosened monetary controls and abandoned oversight that Volker instituted.

[Demeter]

52. And Every President After Kept Him

Of course, he really went off the rails when Clinton won a 2nd term.

[Tandalayo_Scheisskopf]

71. The financial sector is gonna need...

Some people with authority in government and new regulations that are gonna make them feel like they have signed themselves over to a bunch of very, very stern S&M tops.

Of course, I could give some very detailed suggestions on how to effect the discipline upon markets and institutions in such a scenario, but I really like it on DU and don't want a pizza delivery this early in the AM. ;-)

[UpInArms]

7. Fund managing Ross Perot's money closes - report

http://www.reuters.com/article/bondsNews/idUSBNG37477420081126

Nov 26 (Reuters) - Parkcentral Capital Management, an investment firm that manages money for the family of Ross Perot, is liquidating a fixed-income hedge fund because it is "no longer viable," Bloomberg reported.

This year through October, Parkcentral Global Hub's assets fell as much as 40 percent, to $1.5 billion, the news agency said.

The Plano, Texas-based fund is selling its remaining holdings to pay creditors, Eddie Reeves, a spokesman, told Bloomberg.

Perot, who ran unsuccessfully for U.S. president in 1992, and members of his family are the fund's biggest investors, the agency said.

"Parkcentral Global has been impacted dramatically by the unprecedented upheaval of the capital markets in general and the freezing of credit markets in particular," Reeves was quoted as saying. "The fund is no longer viable."

...more...

[UpInArms]

8. Ex-AIG exec under probe by U.S. prosecutors: report

http://www.reuters.com/article/ousiv/idUSTRE4AP0Z620081126

NEW YORK (Reuters) - Former American International Group Inc executive Joseph Cassano is under investigation by U.S. prosecutors for possibly misleading auditors and investors about subprime mortgage-related losses, according to a Bloomberg report citing people familiar with the probe.

The report said investigators are asking auditors at PricewaterhouseCoopers about memos they wrote last fall on how Cassano and other AIG executives valued contracts protecting $62 billion in mortgage-backed securities.

The U.S. government is also investigating AIG's reliance on valuations that have been questioned by auditors and banks, according to the report.

Cassano previously led AIG Financial Products, the source of billions of dollars of losses which led to the insurance company needing to be rescued by the U.S. government in a $85 billion deal in September.

In October, U.S. lawmakers criticized AIG for giving Cassano a $1 million-a-month consulting contract after he retired in March.

...more...

[UpInArms]

10. AIG gets $40 billion injection from Treasury

http://www.reuters.com/article/ousiv/idUSTRE4AP0JZ20081126

(Reuters) - American International Group Inc (AIG.N: Quote, Profile, Research, Stock Buzz) says it has completed completed a $40 billion preferred stock sale to the U.S. Department of Treasury under TARP.

* Says to use proceeds to reduce borrowings under original credit agreement with Federal Reserve Bank of New York.

so few words - so much money

[UpInArms]

16. AIG closes $40 bln stock placement with Treasury under TARP

http://www.marketwatch.com/news/story/AIG-closes-40-bln-stock/story.aspx?guid=%7B594E6E12%2DC76F%2D465B%2DA96A%2DDA0CF1A5D1B5%7D

TEL AVIV (MarketWatch) -- American International Group Inc., (AIG: 1.77, 0.00, 0.0%) the New York insurer, closed its $40 billion stock placement with the U.S. Treasury under the government's Troubled Assets Relief Program, the company said late on Tuesday. The Treasury bought 4 million shares of AIG Series D preferred and a warrant to buy common stock equaling 2% of the company on the date of the investment. The preferred pays 10% annual interest. The 10-year warrant is exercisable for as many as 53.8 million common shares; the price equals the common stock's par value when the warrant is exercised. AIG said it would use the proceeds to reduce its borrowings outstanding under the credit agreement the Federal Reserve Bank of New York extended to the insurer in September. The maximum capacity of that credit agreement will be reduced to $60 billion from $85 billion, AIG said.

[UpInArms]

33. AIG says no 2008 bonus for top execs

http://news.yahoo.com/s/nm/20081125/bs_nm/us_aig_compensation

NEW YORK (Reuters) – American International Group Inc (AIG.N) Chief Executive Edward Liddy will receive $1 in salary this year and next, and there will be no 2008 bonuses for the company's seven most senior executives, the troubled insurance conglomerate said on Tuesday.

Fifty more AIG executives will be locked out of pay raises in 2009, AIG said in a statement.

In a period when Americans are losing jobs and homes, executive perks and bonuses have become a hot topic. Compensation has been under greater scrutiny, especially after missteps by banks and lenders have contributed to the global financial crisis.

AIG's salary and bonus curbs follow New York Attorney General Andrew Cuomo earlier this month asking AIG for full disclosure on plans for executive bonuses and pay increases.

Cuomo told reporters on Tuesday that he is pressing forward with requests for bonus and pay disclosure from other Wall Street firms receiving government money.

Not all have responded, he said, declining to name names, but warning that he would take a hard view of firms that did not adopt an approach similar to AIG's.

"I encourage other firms to wake up to the new reality on Wall Street and follow AIG's step quickly," said Cuomo.

He is reviewing moves made by Citigroup Inc (C.N), the giant U.S. bank that on Sunday was the recipient of the biggest government bailout yet.

AIG, once the world's largest insurer, was forced in September to seek a government bailout to stay afloat. Days after accepting $85 billion in government loans, it emerged that AIG had funded hundreds of thousands of dollars for luxury executive retreats, hunting trips and a golf outing.

The cost of the United States' rescue of AIG, which nearly collapsed under bad mortgage bets, ballooned to $152 billion earlier this month. The firm is currently trying to sell off assets to repay part of the federal debt.

Cuomo said AIG's earlier agreement to freeze $19 million of bonuses to former Chief Executive Martin Sullivan and halt disbursements from a $600 million pool for AIG's financial products division still stand. The insurer has also canceled any retreats and junkets.

...more...

[Demeter]

55. Now, Sackcloth and Ashes for Every Employee!

I can't believe they have only 50 highly overpaid executives.....


oh, and regular flogging. How could I forget the flogging?

[JDPriestly]

43. One of the problems with the bail-out is that it makes it less likely

that shareholders will sue. The shareholders have to show a loss to sue, I think. And a lot of the fraud in the management of companies is revealed by shareholder suits. That is why big business and the Republican Party hates the lawyers who represent shareholders in the class action suits. The conservatives see those suits as attorney enrichment projects. There may be some truth in that, but those suits can force disclosure of a lot of evidence of wrongdoing by corporate boards and management if litigated properly.

[Demeter]

63. Good Point!

Same issue about impeachment---it's an extension of don't ask/ don't tell!

[catzies]

105. Whoa. That is literally jaw-dropping. Another reason to be angry re the bailout

:wow: A lot of wrongdoing will stay hidden, it sounds like. Which is just that they wanted in the first place.

[ozymandius]

11. U.S. strip malls suffer as retail tenants disappear

NEW YORK (Reuters) – Along a congested highway in New Jersey lies a small strip mall whose challenges illuminate those of malls throughout the the United States as their tenants are brought low by the economic slump.

....

U.S. retail vacancy rates rose to 6.6 percent in the third quarter from 6.1 percent a year earlier, according to CoStar Group, a provider of commercial real estate information and data.

Shopping centers, a category that includes strip malls, are doing much worse than that, reporting vacancy rates of 9.4 percent. Larger, enclosed malls are doing better, with vacancy rates of about 3.9 percent.

The store closings have come as the U.S. economic downturn forces retailers to scale back expansion plans, close outposts or file for bankruptcy protection. The trend is expected to accelerate as the financial crisis has tightened credit, say retail analysts and restructuring experts.

....

"The real problem is we haven't seen bottom yet. It's the general feeling in the market that post-Christmas there are going to be a number of retail bankruptcies, the result of which, among other things, will be more dark stores."

http://news.yahoo.com/s/nm/20081126/us_nm/us_stripmalls

[UpInArms]

13. LandAmerica files for Chapter 11 bankruptcy protection

http://www.reuters.com/article/ousiv/idUSTRE4AP1W420081126

(Reuters) - Title insurer LandAmerica Financial Group Inc (LFG.N: Quote, Profile, Research, Stock Buzz) said it has filed for bankruptcy protection and its bigger rival Fidelity National Financial Inc (FNF.N: Quote, Profile, Research, Stock Buzz) will buy two of its underwriting units.

The recent termination of a merger agreement with Fidelity National Financial and the closure of its 1031 Exchange Company's business caused it to accelerate these actions, LandAmerica said.

On Friday, Fidelity National Financial withdrew its $126 million stock offer for LandAmerica.

The title insurer said along with the company, its unit LandAmerica 1031 Exchange Services Inc also filed for bankruptcy protection in order to facilitate the sale of its two principal title underwriting subsidiaries.

Separately, Fidelity National Financial said it would buy LandAmerica's underwriting units Lawyers Title Insurance Corp and United Capital Title Insurance Co for $139.4 million.

Also, Chicago Title Insurance Co will buy LandAmerica's Commonwealth Land Title Insurance Co for $158.6 million, Fidelity said.

...more...

[ozymandius]

19. Fortunes turns on a dime in this case.

It was just November 7th that LandAmerica shares soared with Fidelity's interest.

[Tansy_Gold]

59. I cannot even begin to tell you how much I loathe

LandAmerica.

There are no words.


I am VERY happy to see this outfit fall.



Tansy Gold, who hasn't memorized the happy celebration icons and is too time-strapped to look them up

[ozymandius]

65. :woohoo: Is this appropriate, Tansy?

:woohoo:

[Tansy_Gold]

68. A few dozen more would be appropriate

I hate those people.

I have a file two inches thick on them.

They are scum, and that's an insult to scum.



:bounce: :hi: :woohoo:

:bounce: :hi: :woohoo:


:bounce: :hi: :woohoo:


:bounce: :hi: :woohoo:

[ozymandius]

14. Fed Risks ‘Spitting in the Wind’ With New $800 Billion Pledge

Nov. 26 (Bloomberg) -- The Federal Reserve’s new $800 billion effort to combat the financial crisis is designed to make credit more accessible to shaken consumers who aren’t sure they want more debt.

Households and lenders may not respond much because of the wealth destruction from plunging property and stock values, and the deepening economic slump, economists say. That means banks may end up returning the Fed’s new liquidity through deposits at the central bank.

....

The announcement of the new efforts yesterday came amid rising criticism that officials were excessively focused on saving Wall Street firms, with the Citigroup Inc. rescue Nov. 23 the latest example. President-elect Barack Obama said repeatedly in the past two days he’ll compose a plan to help “Main Street” as well as the financial industry.

....

Bank regulators have tried to cajole lenders, saying they “expect” them to lend, in a guidance letter issued Nov. 12. The Fed’s most recent quarterly survey of bank loan officers showed that 70 percent of domestic firms had tightened lending standards for their best mortgage borrowers in the third quarter, and 60 percent had raised standards on credit-card loans.

‘Non-Functioning’

“The root of the problem is our securitization markets are non-functioning,” said Josh Rosner, managing director at New York research firm Graham Fisher & Co. “We have capital problems at the banks so they can’t take over.”

http://www.bloomberg.com/apps/news?pid=20601068&sid=ag3TJyGD73qk&refer=home

[ozymandius]

27. Ahhh... the memories.

From Atrios:

Just a couple of months ago.

Christopher Dodd (D-CT), who leads the Banking, Housing and Urban Affairs Committee, agrees that "doing nothing would be even more disastrous." He says the AIG takeover is "sad and tragic," but he believes it's the beginning of the end for the financial crisis, as long as the root cause — the nation's foreclosure problem — is addressed.

Both senators say they see no more government bailouts on the horizon. No other financial entities in trouble meet the standard of Fannie Mae, Freddie Mac or AIG — "that they would melt down the entire system if they went under," Gregg says.

http://www.eschatonblog.com/2008_11_23_archive.html#7895493349991676416

[UpInArms]

35. hmmm.... is Bloomberg reading Information Clearing House?

http://www.informationclearinghouse.info/article21318.htm

Colossal Financial Collapse

The Truth behind the Citigroup Bank "Nationalization"

By F. William Engdahl

On Friday November 21, the world came within a hair’s breadth of the most colossal financial collapse in history according to bankers on the inside of events with whom we have contact. The trigger was the bank which only two years ago was America’s largest, Citigroup. The size of the US Government de facto nationalization of the $2 trillion banking institution is an indication of shocks yet to come in other major US and perhaps European banks thought to be ‘too big to fail.’

November 25, 2008 "Global Research" -- The clumsy way in which US Treasury Secretary Henry Paulson, himself not a banker but a Wall Street ‘investment banker’, whose experience has been in the quite different world of buying and selling stocks or bonds or underwriting and selling same, has handled the unfolding crisis has been worse than incompetent. It has made a grave situation into a globally alarming one.

‘Spitting into the wind’

A case in point is the secretive manner in which Paulson has used the $700 billion in taxpayer funds voted him by a labile Congress in September. Early on, Paulson put $125 billion in the nine largest banks, including $10 billion for his old firm, Goldman Sachs. However, if we compare the value of the equity share that $125 billion bought with the market price of those banks’ stock, US taxpayers have paid $125 billion for bank stock that a private investor could have bought for $62.5 billion, according to a detailed analysis from Ron W. Bloom, economist with the US United Steelworkers union, whose members as well as pension fund face devastating losses were GM to fail.

That means half of the public's money was a gift to Paulson’s Wall Street cronies. Now, only weeks later, the Treasury is forced to intervene to de facto nationalize Citigroup. It won’t be the last.

Paulson demanded, and got from a labile US Congress, Democrat as well as Republican, sole discretion over how and where he can invest the $700 billion, to date with no effective oversight. It amounts to the Treasury Secretary in effect ‘spitting into the wind’ in terms of resolving the fundamental crisis.

It should be clear to any serious analyst by now that the September decision by Paulson to defer to rigid financial ideology and let the fourth largest US investment bank, Lehman Brothers fail, was the proximate trigger for the present global crisis. Lehman Bros.’ surprise collapse triggered the current global crisis of confidence. It was simply not clear to the rest of the banking world which US financial institution bank might be saved and which not, after the Government had earlier saved the far smaller Bear Stearns, while letting the larger, far more strategic Lehman Bros. fail.

...more...

[UpInArms]

39. more (and this one is sounding the alarm at high decibels)

Consider the details of the latest Citigroup government de facto nationalization (for ideological reasons Paulson and the Bush Administration hysterically avoid admitting they are in the process of nationalizing key banks). Citigroup has more than $2 trillion of assets, dwarfing companies such as American International Group Inc. that got some $150 billion in US taxpayer funds in the past two months. Ironically, only eight weeks before, the Government had designated Citigroup to take over the failing Wachovia Bank. Normally authorities have an ailing bank absorbed by a stronger one. In this instance the opposite seems to have been the case. Now it is clear that the Citigroup was in deeper trouble than Wachovia. In a matter of hours in the week before the US Government nationalization was announced, the stock value of Citibank plunged to $3.77 in New York, giving the company a market value of about $21 billion. The market value of Citigroup stock in December 2006 had been $247 billion. Two days before the bank nationalization the CEO, Vikram Pandit had announced a huge 52,000 job slashing plan. It did nothing to stop the slide.

The scale of the hidden losses of perhaps the twenty largest US banks is so enormous that if not before, the first Presidential decree of President Barack Obama will likely have to be declaration of a US ‘Bank Holiday’ and the full nationalization of the major banks, taking on the toxic assets and losses until the economy can again function with credit flowing to industry once more.

[Tansy_Gold]

92. "Hidden losses" -- Why are they hidden in the first place, and

where did they come from?

In order to have a "loss" of $150 billion, you have to have the $150 billion to start with. Where was it? Where did it come from? WHAT was it?

WE AREN'T ASKING THE RIGHT QUESTIONS!!!!!!!!!!!!!!



My head is exploding.




Tansy Gold

[Karenina]

101. They're nothing more than blips on a screen?

And cease to exist if there's a power outtage? :shrug:

[burf]

40. I dunno

but it seems to me there is a common thread associated with all these bailouts. The explanation that if the government doesn't do something "right now", the end of the world is right around the corner. It started with Bear Stearns, continues with the Freddie/Fannie bail, AIG and now with Citi. Maybe it is the case, but perhaps it is just the continuation of the policy of fear of the last eight years.

Eitherhow, may all on SMW find something to be thankful for and from our house to yours, HAPPY THANKSGIVING!

[UpInArms]

41. it would be different, imho, if all of the "bail outs" weren't done so poorly

with still a complete adherence to a broken ideology and cronyism culture.

and, Burf, Happy Thanksgiving to you and yours!

:grouphug:

[Demeter]

58. Thanks, and the Same to You and Yours

I for one am grateful for SMW and all who are electronically holding hands in vigil....

[CatholicEdHead]

69. I expect a Bank of America bailout sooner than later

It was sometime last week on SMW there were rumblings they were in trouble and they have been a major player picking up much of the early mess in Sept. So far I have not heard any rumblings about Wells Fargo imploding (yet?).

[DemReadingDU]

77. Happy Thanksgiving to you!

I still wonder how it is possible to give billions/trillions of our tax money for the banksters, yet nothing for the autos (gotta have a plan first).

:eyes:

[Demeter]

57. I Really Don't Think That Having a Lehman's Bailout Would Have Made Us Any Better Off

and I 'm beginning to think that a few other of these spinning plates should fall and crash into splinters. Defying gravity is stupid.

[Joe Chi Minh]

103. And who were those people proclaiming what a brilliant choice Paulson was?

I think one was George Soros, who you would have thought should have known better. But there were others. Did Warren Buffet?

[UpInArms]

15. Getting in line for Gov Handout: Life insurers seek aid to stabilize investments

http://www.reuters.com/article/ousiv/idUSTRE4AO7PH20081125?sp=true

NEW YORK (Reuters) - Life insurance companies, nervous over massive investment losses that could ultimately threaten their viability, are hoping they are next in line to get a piece of the U.S. financial bailout.

They argue federal funds could stabilize their trillions in investments and warn that any failure of a life insurer could dry up a key source of corporate financing.

But U.S. officials are not convinced.

Treasury Secretary Henry Paulson said Tuesday he had not yet decided whether other insurers would get federal funds. The only insurer to get government help so far is American International Group Inc (AIG.N: Quote, Profile, Research, Stock Buzz), which was saved from bankruptcy with a rescue package that has ballooned to $152 billion.

As the biggest buyers of U.S. corporate bonds, life insurers say they grease the wheel of corporate America. Industry officials insist the failure of a large U.S. life insurer would drastically shrink bond financing, potentially creating another hurdle to the nation's economic recovery.

<snip>

Life and retirement policy holders are largely protected if an insurer fails through state guaranty funds into which all insurers pay to insure that obligations are met.

...more...

[ozymandius]

21. I wonder if this instability has any association with people

borrowing from their life insurance policies. That can be a resource of last resort when people are pushed to the edge.

[Dr.Phool]

36. My father played hell last year trying to collect on my moms policy.

They tried to pay him half the value, and tried to convince him that they were doing him a favor.

[Demeter]

62. The Life Insurance People Were Buying All the "Structured Finance" Counterfeit Securities

so they could offer their annuity products. They are up the creek without a boat, let alone a paddle.
This could be the end of not only investment banking, but for-profit insurance.

If the government ran banking and insurance, as they used to run the Post Office, the efficiency alone would save the country and probably cover most of the liabilities that are crucial...health insurance, business operations.

But NO leveraged buyouts, no mergers and acquisitions, none of that paper-pushing crap.

And strict regulations about building in flood plains, fire zones, earthquake faults, hurricane targets, etc. would minimize disaster insurance costs.

If there's an expensive way to do it, it's done that way here. Perhaps that will all begin to change, finally.

[DemReadingDU]

79. A couple years ago, we went to a couple of those 'seminars'

where, for a free dinner, someone will talk about their latest annuity program. Thankfully, we did not invest, but we sure enjoyed the free dinners!

[Dr.Phool]

82. I get a lot of mail for those.

Probably enough to make a serious dent in our food budget. Hmmmm.

[ozymandius]

22. Toyota debt rating cut, Suzuki holds out hope for GM

TOKYO (Reuters) - Toyota Motor Corp had its top-notch credit ratings cut for the first time in a decade, hitting its shares and raising borrowing costs as an unprecedented slowdown reshapes the global auto industry.

Fitch Ratings on Wednesday downgraded Toyota's long-term foreign and local debt ratings to AA from AAA, with a negative outlook, saying the company needed to review its global investments, product mix and speed of expansion to address the challenges it faces.

"The negative developments in the industry are so substantial and fundamental that even the strongest player -- Toyota -- can no longer support an 'AAA' rating," said Fitch Director Tatsuya Mizuno.

Sales in the United States and Europe have plunged as access to credit dried up, with the slowdown spreading to China, India, Russia and other markets on which automakers had placed their last hopes for near-term growth.

http://www.reuters.com/article/topNews/idUSTRE4AP1UE20081126

[tclambert]

29. The usual thought in the auto industry is that sales will be that much higher later.

People still need cars. The underlying demand is pretty constant. But people put off new car purchases during tough times. When the economy recovers, that pent-up demand causes a boom in auto sales. In, say, two years time, we may be amazed at the success of the auto companies. I hope there are American companies around to take part in it.

[ozymandius]

24. Dividends Cut Fastest Since 1950s as Citigroup Conserves Cash

Nov. 26 (Bloomberg) -- Stock dividends are disappearing at the fastest rate in 50 years as the worsening recession forces U.S. companies to conserve cash.

Citigroup Inc., Genworth Financial Inc. and New York Times Co. are leading 91 companies listed on the biggest U.S. exchanges in reducing or suspending payouts to shareholders this month, the most since May 1958, when 113 companies slashed dividends, according to data compiled by Standard & Poor’s. The reductions in November exceeded the 81 dividend cuts in October and 60 in September.

.....

The recession and global credit crunch are reducing profits for the fifth straight quarter and leaving less spare cash for quarterly payments to shareholders. Curtailing dividends adds more injury to investors battered by this year’s 42 percent decline in the S&P 500 Index, the worst performance since 1931.

.....

Citigroup, which lost 69 percent of its market value in the past two months, said it would pay a quarterly dividend of no more than 1 cent a share over the next three years after receiving a $20 billion cash injection from the government this week. The New York-based lender, which paid 54 cents a share last year, has reduced its payment three times in 2008.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aKVN9wFDKavU&refer=home

[ozymandius]

30. too big to succeed

A Bailout Steeped in Irony

Of all the rescues mounted by the government this year, none carries with it more symbolism, or more irony, than that of Citigroup.

The combination of Citibank with Salomon Smith Barney under the bright red umbrella of Travelers Insurance was accepted with a regulatory wink and nod by the Federal Reserve until Fed Chairman Alan Greenspan could persuade Congress to make it legal. The hurdle was the Glass-Steagall Act, put in place during the Great Depression to prevent another market crash like that of 1929. Now that another market crash has required the government to rescue a commercial bank done in by its investment banking subsidiary, there will certainly be those who wonder whether the New Dealers didn't have it right all along.

....

The rationale for saving Citi is that with $3 trillion in assets, more than 300,000 employees and operations in more than 100 countries, this was a bank that was too big and too connected with the rest of the financial system to be allowed to fail. The question now is whether an institution of that size and scope is also too big to succeed.

Sandy Weill stitched together his Citi empire from more than a hundred acquisitions. No sooner was his work complete, however, than it began to unravel as the result of soured investments and embarrassing ethical scandals that cost shareholders tens of billions of dollars and eventually cost Weill his job. In the years since, it has become obvious that the promised economies of scale had been over-hyped, the synergies across business lines never developed. The whole thing was simply too big and too complex to be managed.

---

This column guides us through the core who's-who of the banking crisis. No effort is spared to roast Geithner for his relationship with Rubin.

[ozymandius]

25. U.S. Stock-Index Futures Decline on Recession Concern; GM Drops

Nov. 26 (Bloomberg) -- U.S. stock futures fell, indicating the Standard & Poor’s 500 Index may snap a three-day advance, on concern reports today will show the recession is deepening.

General Motors Corp. and Home Depot Inc. sank more than 2 percent in Germany as investors speculated consumer spending dropped the most since the 2001 contraction. Separate data may show orders for durable goods, sales of new houses and consumer sentiment also declined, according to economists’ estimates. Goodyear Tire & Rubber Co. slid 3.3 percent after Goldman Sachs Group Inc. cut its U.S. auto sales estimates through 2010 and lowered the tiremaker’s share-price projection.

Futures on the S&P 500 expiring in December lost 1.1 percent to 843.6 at 11:09 a.m. in London. Dow Jones Industrial Average futures fell 0.8 percent to 8,376, while Nasdaq-100 Index futures slipped 0.6 percent to 1,128.25.

http://www.bloomberg.com/apps/news?pid=20601084&sid=a7rZdkJSTZE4&refer=stocks

[ozymandius]

26. Latest Numbers

S&P 500 -9.80 843.40 11/26 6:25am

NASDAQ -8.25 1127.25 11/26 5:54am

Dow Jones -70.00 8375.00 11/26 6:19am

[Roland99]

51. New latest futures numbers...darker.

DJIA INDEX 8,298.00 -147.00
S&P 500 834.60 -18.60
NASDAQ 100 1,129.50 -6.00

[ozymandius]

56. That hubbub-come-rally over Citi's rescue was just a wad of spit.

The contrasting descent will feel more painful given the three-day rise in stocks. All people were doing were covering short positions anyway. I don't think anyone with a brain in investment arenas saw Citi's rescue as an overall improvement in financials. It was just smoke to cover damage control.

[ozymandius]

60. Someone put perfume on the rubbish heap.

S&P 500 -12.70 840.50 11/26 9:06am

NASDAQ -3.50 1132.00 11/26 9:06am

Dow Jones -119.00 8326.00 11/26 8:56am

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

[safeinOhio]

61. Any reason silver dropped off a cliff today?

Gold, pretty much stayed the same. Check the chart.

[UpInArms]

38. Cleveland's 4th largest bank: AmTrust's response to regulatory order includes job cuts

http://www.cleveland.com/business/plaindealer/index.ssf?/base/business-8/122769199867090.xml&coll=2

AmTrust Bank said Tuesday it will cut an undisclosed number of jobs as it tries to cope with a regulatory order to improve its finances.

AmTrust, the Cleveland area's fourth-largest bank, also has been ordered to stop soliciting deposits by offering high interest rates.

Meanwhile, the bank is trying to raise money through outside investors, spokeswoman Donna Winfield said in a written statement.

If AmTrust doesn't comply with the formal order from the Office of Thrift Supervision, regulators could take steps such as changing the management or seizing the 119-year-old bank.

AmTrust hasn't completed plans for the job cuts and affected employees have not yet been notified, Winfield's statement said.

Word of more layoffs at the bank - which employs 2,700 in three states, including about 1,800 in Ohio - comes a day after revelations that AmTrust has been ordered to increase its reserves and to stop writing certain kinds of riskier mortgage loans, including those with no documentation required. Most banks nationwide stopped doing risky loans six to 12 months ago or more. AmTrust is one of the nation's 15 largest mortgage lenders.

AmTrust's government regulator said the bank "has engaged in unsafe and unsound banking practices," based on an exam in August.

...more...

is this one on the deathwatch list?

[UpInArms]

42. banks record lowest profit since December 1990?

http://news.yahoo.com/s/ap/20081126/ap_on_bi_go_ec_fi/economy

Meanwhile, the Federal Deposit Insurance Corp. said the list of banks it considers to be in trouble shot up nearly 50 percent to 171 during the third quarter — the highest level since late 1995.

The FDIC also said that commercial banks and savings institutions suffered a 94 percent drop in third-quarter profits to $1.7 billion. Except for the fourth quarter of 2007, it was the lowest profit since the fourth quarter of 1990.

The FDIC does not reveal the institutions on its "troubled" list, but on average, about 13 percent of them end up failing.

Nine banks failed in the third quarter, reducing the FDIC's deposit insurance fund to $34.6 billion from $45.2 billion in the second quarter. Both figures are below the target minimum level set by Congress.

Twenty-two banks have failed so far this year compared with three for all of 2007, and more failures are expected.

[UpInArms]

45. US banks to write-down about $44 bln in Q4 - Whitney

http://www.reuters.com/article/bondsNews/idUSBNG40696920081126

Nov 26 (Reuters) - U.S. banks will incur about $44 billion in write-downs and loss provisions in the fourth quarter on risky exposures and loans, and much of the U.S. Treasury capital will be diverted to plug holes on their balance sheets, prominent banking analyst Meredith Whitney said.

Capital raises through the Troubled Asset Relief Program (TARP) will not spur meaningful growth for the industry, she said in a research note titled "Gobble Gobble."

Pressures on capital due to credit-rating downgrades on risky assets will make getting capital back into the system that much more difficult, she added.

The write-downs will erode a chunk of the recent capital raises, Whitney said, adding that rating downgrades will pressure regulatory capital ratios and require banks to hold more capital against these assets.

New accounting changes slated to be in effect in late 2009 will also require the banks to hold onto capital in the form of reserves, she said.

Accounting rule changes effective over the next year will force banks to post an additional $25 billion in loss reserves over the next 12 months, the Oppenheimer & Co analyst said in a note to clients.

...more...

[Festivito]

44. Debt: 11/24/2008 10,654,259,430,730.10 (DOWN 1,209,218,247.90) (Tiny drop.)

(FICA fluctuates. Public debt down a tiny amount again. Typical for Mondays.)

= Held by the Public + Intragovernmental(FICA)
= 6,393,688,876,791.61 + 4,260,570,553,938.56
DOWN 86,920,504.20 + DOWN 1,122,297,743.70
(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 31 days.
The average for the last 21 reports is 6,204,955,946.36.
The average for the last 30 days would be 4,343,469,162.45.
The average for the last 31 days would be 4,203,357,253.98.
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$/day.
There were 37 reports in 55 days of FY2009 averaging 17.01B$ per report, 11.45B$/day.

PROJECTION:
GWB** must relinquish the presidency in 57 days.
By that time the debt could be between 10.7 and 11.3T$.
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)
11/24/2008 10,654,259,430,730.10 GWB (UP 4,926,063,634,548.53 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: 629,534,533,817.70 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
11/03/2008 -000,572,269,490.77 --- Mon
11/04/2008 +000,314,469,904.16 ------------********
11/05/2008 -000,077,530,396.02 ----
11/06/2008 +056,540,493,221.63 ------------**********
11/07/2008 -000,129,624,570.02 ---
11/10/2008 -000,178,876,517.33 --- Mon
11/12/2008 +000,116,562,137.90 ------------********
11/13/2008 -037,830,308,231.82 -
11/14/2008 +039,714,906,312.49 ------------**********
11/17/2008 -001,168,758,314.18 -- Mon
11/18/2008 +035,027,406,490.17 ------------**********
11/19/2008 -000,433,628,717.22 ---
11/20/2008 -000,189,695,810.14 ---
11/21/2008 -000,151,096,322.01 ---
11/24/2008 -000,086,920,504.20 ---- Mon

90,895,129,192.64 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $989,627,627,471.03 in last 67 days.
That's 990B$ in 67 days.
More than any year ever, except last year, and it's 97% of that highest year ever only in 67 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 67 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=3617309&mesg_id=3617453

[Festivito]

110. Debt: 11/25/2008 10,658,356,277,853.80 (UP 4,096,847,123.70) (67% of report-avg)

(Nearly average. Not much happening day after day lately.)

= Held by the Public + Intragovernmental(FICA)
= 6,395,157,193,349.84 + 4,263,199,084,504.05
UP 1,468,316,558.23 + UP 2,628,530,565.49
(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 22 reports in the last 30 to 32 days.
The average for the last 22 reports is 6,109,132,818.05.
The average for the last 30 days would be 4,480,030,733.24.
The average for the last 32 days would be 4,200,028,812.41.
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$/day.
There were 38 reports in 56 days of FY2009 averaging 16.67B$ per report, 11.31B$/day.

PROJECTION:
GWB** must relinquish the presidency in 56 days.
By that time the debt could be between 10.7 and 11.3T$.
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)
11/25/2008 10,658,356,277,853.80 GWB (UP 4,930,160,481,672.23 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: 633,631,380,941.40 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
11/04/2008 +000,314,469,904.16 ------------********
11/05/2008 -000,077,530,396.02 ----
11/06/2008 +056,540,493,221.63 ------------**********
11/07/2008 -000,129,624,570.02 ---
11/10/2008 -000,178,876,517.33 --- Mon
11/12/2008 +000,116,562,137.90 ------------********
11/13/2008 -037,830,308,231.82 -
11/14/2008 +039,714,906,312.49 ------------**********
11/17/2008 -001,168,758,314.18 -- Mon
11/18/2008 +035,027,406,490.17 ------------**********
11/19/2008 -000,433,628,717.22 ---
11/20/2008 -000,189,695,810.14 ---
11/21/2008 -000,151,096,322.01 ---
11/24/2008 -000,086,920,504.20 ---- Mon
11/25/2008 +001,468,316,558.23 ------------*********

92,935,715,241.64 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $993,724,474,594.73 in last 68 days.
That's 994B$ in 68 days.
More than any year ever, except last year, and it's 98% of that highest year ever only in 68 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 68 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.) TUESDAY'S POST LINK:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3617309&mesg_id=3617453
Wednesday's:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3618843&mesg_id=3618947

[Demeter]

64. And They're Off! Off the Cliff, that is: Down 149 at 9:45am

and so am I. Have fun, kiddies.

[ozymandius]

66. 10:10 numbers ad blather

Dow 8,353.07 Down 126.40 (1.49%)
Nasdaq 1,465.97 Up 1.24 (0.08%)
S&P 500 845.77 Down 11.62 (1.36%)
10-Yr Bond 3.003% Down 0.089
NYSE Volume 822,362,125
Nasdaq Volume 227,357,734.375

10:00 am : The stock market recovers some ground and then goes on the defensive as a new home sales report is released.

Just hitting the wires, the number of new home sales in October slipped 5.3% month-over-month to a seasonally adjusted annual rate of 433,000. This was worse than the expected reading of 444,000 and the lowest amount of sales since 1991.

The November University of Michigan Consumer Confidence reading was revised down to 55.3 from 57.9. This was below the consensus estimate of 57.5.

Reported at 9:45 AM ET, Chicago manufacturing in November contracted the most since since 1982, according to a regional survey. Specifically, November Chicago PMI fell 4.0 to 33.8, which was worse than the expected reading of 37.0. A reading below 50 represents contraction in manufacturing activity in the Chicago region. Chicago manufacturing was holding up well, with an expansion indicated in September, but like other areas of the economy, a steep drop in activity was seen in October.DJ30 -89.37 NASDAQ +0.56 SP500 -9.44 NASDAQ Adv/Vol/Dec 1038/163 mln/1207 NYSE Adv/Vol/Dec 1031/122 mln/1715

09:35 am : The stock market gets off to a negative start following three straight positive sessions. Dour economic data has done little to support buying.

Durable goods orders plunged 6.2% in October, more than twice the expected 2.5% drop. Excluding transportation, orders fell 4.4%.

Personal spending fell 1.0% in October. Although this met estimates, it sets a very negative tone for fourth quarter GDP calculations. Income rose 0.3%.

The number of new jobless claims for the week ended Nov. 22 declined 14,000 to 529,000, which was slightly better than the consensus estimate of 535,000. The elevated state of claims reflect a weak labor market.

In earnings news, both Tiffany & Co (TIF 19.22, -1.61) and Deere (DE 30.86, -2.24) gave a disappointing earnings outlook.

In overseas developments, China cut its benchmark rate 1.08 percentage points to 5.58% and Europe is reportedly considering a 200 billion euros fiscal stimulus package. In Asian trading, China's CSI 300 rose 0.5%, Japan's Nikkei fell 1.3% and Hong Kong's Hang Seng rose 3.8%. In Europe, France's CAC is down 2.9%, London's FTSE is down 2.2% and Germany's DAX is down 2.4%.DJ30 -144.40 NASDAQ -13.63 SP500 -13.71

[Changenow]

67. If it takes another couple trillion dollars

the Dow will close in the black today.

[Dr.Phool]

80. Turkeys are being set for the slaughter as we speak.

Verily, I say unto thee, Thank God It Passed!"

Paulsons letter to the Gulliblations, Chapter 13, verse 11.

[Demeter]

106. Are You Sure It Isn't Chapter 7?

[antigop]

83. Labor pained: Labor Sec. not on econ team

http://www.politico.com/news/stories/1108/15972.html

The markets rose on the news of Barack Obama’s economic policy team Monday, but some labor spirits fell.

Obama’s team of treasury secretary and four top economic advisers, introduced as the hands that will steer America’s economy, had no particular ties to the labor movement. And Obama’s secretary of labor was not introduced as part of that team — a suggestion that that post will retain its second-tier status and quiet voice in matters central to economic policy.

“I wish that would have been among them,” former Michigan congressman David Bonior, a labor stalwart and member of Obama’s transition team, said of the group at the Chicago press conference. “I hope they take that job seriously.”

Labor’s low profile in Obama’s transition is striking because of unions’ vital role in the general election campaign. While Wall Street split its contributions between Obama and John McCain, labor, after dividing its efforts in the Democratic primary, united behind the Democrat and emerged as by far the strongest outside force in the general election. Unions reportedly spent well over $100 million communicating with their members and other voters. The Service Employees International Union alone spent more than $30 million on an independent campaign for Obama, while many of the AFL-CIO unions played key roles in overcoming potential prejudice among their older, white members.
...
In maneuvering for the top job, the labor movement is crippled by its internal split. Though leaders would like a pro-labor figure with national stature in the job — “someone with the stature to get into Larry Summers’ face,” Tasini said — the leading candidates seem to have been disqualified. Bonior and SEIU President Andy Stern have taken themselves out of the running.

[specimenfred1984]

86. "Street" wants 10% rally, Bob Pisani said so so it must be true!

Of course he also said everyone expects more downside so I guess he's covered all the bases, ahhhh the life of a sociopath whore. He's right all the time except when he's wrong all the time!

[Roland99]

90. It's the Obama Rally!

And here we thought Obama was an evil Socialist who was going to destroy Wall St. Silly us.

[tama]

87. What's with bonds?

They've taken serious plunge since november 13, 10-year from 3,8 to historical low of below 3,0 today. Over 20% drop in couple weeks.

[Dr.Phool]

88. According to one site I've been reading,

They're telling us that the shit is about ready to hit the fan.

I (they) could be wrong. I didn't even stay at a Holiday Inn Express last night. (I do, however, live in Holiday, Florida!)

[tama]

89. Chinese rioting

and their CB dropping rates again and plenty somehow connected?

SHTF is obvious, but how exactly, in the next phase of the shitstorm of global capitalism?

[ozone_man]

104. Deflation coming. n/t

[antigop]

91. Krugman: About that advisory board (he wants progressive economists at the table)

http://krugman.blogs.nytimes.com/2008/11/26/about-that-advisory-board/

A thought I’ve had: there have been some complaints from movement progressives about the centrism/orthodoxy of Obama’s economics appointments. To some extent this was unavoidable, I think: someone like the Treasury secretary has to be an experienced hand who can deal with Wall Street, and I haven’t heard anyone proposing particular individuals with clearer progressive credentials to hold that position. (And for those of you wondering about yours truly — I’m temperamentally unsuited, have never had any desire for the job, and probably have more influence as an outside gadfly than I ever could in DC.)

But the Obama administration’s new economics advisory board would seem like a very good place to give progressive economists a voice. There are a number of excellent people whom Obama might not want to put in line positions but would be very much worth bringing in to offer well-informed alternative views. At the risk of insulting those I forgot to mention, I would think immediately of James Galbraith, Larry Mishel, Dean Baker, Jared Bernstein.

Let’s see whether progressives do in fact get a seat at this particular table.

[Hugin]

108. Thanks for pointing that out antigop.

I'm still wondering what is wrong with going with progressives in power positions.

[Dr.Phool]

93. OK My Fellow Marketeers! Raise your glasses!

:toast: :party: :toast:

It's been a tough year so far, but every day has been a learning experience.

I'm thankful for all of the wisdom and wit here.:yourock:

Thank you Oz for this thread, and to Demeter for keeping us informed on the week-ends. And thanks many others who take the time to contribute heavily every day.

And may we be thankful that the pestilence on the White House is almost gone. But, we'll be reminded it was there for many years to come.

May you all have a safe, happy, and enjoyable holiday with family and friends.

Sincerely, with Stoli in hand :toast:

Rick, Lenore, and The Fudd

[BelgianMadCow]

94. Happy Holiday good Doctor !

on behalf of the extensive SMW lurker community :-)

:toast:

[ozymandius]

97. It's always five o'clock somewhere.

So I started a few minutes early. :beer:

Here's a glass hoisted in your general direction (I have a southern exposure out the living room windows) with a sip and a nod. And for all Marketeers who reside in the other corners of the earth, the same honorable tip of the cup is offered to you as well.

Thank you for your reliable knowledge and rapier-sharp witticisms. I sincerely hope your holiday is peaceful with good spirits (of all kinds).

ozymandius :hi:

[UpInArms]

98. and here's the everflowing bottle for everyone of you

Happy Thanksgiving to each and everyone!

UpInArms

[saigon68]

100. Thx for an interesting week of Lurking

[Hugin]

107. Cheers to y'all!

:toast:

:fistbump:

:beer:

[ozymandius]

99. End of the day numbers and blather.

See what happens when abysmal economic news is interpreted by drunks on the trading floor.

Dow 8,726.61 Up 247.14 (2.91%)
Nasdaq 1,532.10 Up 67.37 (4.60%)
S&P 500 887.68 Up 30.29 (3.53%)
10-Yr Bond 3.001% Down 0.091
NYSE Volume 6,407,386,000
Nasdaq Volume 2,001,559,250

Market Higher Despite Poor Econ Data
Dow +247.14 at 8726.61, Nasdaq +67.37 at 1532.10, S&P +30.29 at 887.68

(BRIEFING.COM) Stocks opened sharply lower following a barrage of economic reports that painted an overall weak picture of the economic environment, but buying interest in tech and automaker stocks helped reverse sentiment, sending stocks to their fourth consecutive gain.



In the end, the S&P 500 surged 3.5%, marking a 19.7% gain from its multi-year low reached on Friday. All ten sectors advanced, with notable strength in consumer discretionary stocks as automakers spiked 31% on speculation that a bailout agreement may be reached next week. The tech sector (+4.2%) also sported solid gains. Defensive-oriented consumer staples (+1.4%), utilities (+0.5%) and healthcare (+1.2%) underperformed on a relative basis.



The 10-year Treasury also rallied, with its yield falling to 2.98%, marking the lowest level since records began in 1962.



In economic news, October personal spending dropped 1.0% month-over-month, which met estimates, although it will set a negative tone for fourth quarter earnings estimates. Income was up 0.3%, and the real PCE deflator, an inflation measure, dropped 0.6%, reflecting the sharp drop in energy prices.



The housing industry continues to show weakness as new home sales drop to the lowest level since 1991. The high supply of homes at current sales rates indicate a recovery is going to take time. The number of new home sales in October dropped 5.3% month-over-month to a seasonally-adjusted annual rate of 433,000, which was worse than the expected reading of 441,000. New home sales are down 40% from last year and down 69% from the all-time high reached in July 2005. The median sales price declined 1.7% month-over-month to $218,000 and the month's supply of homes for sale at 11.1 is the fifth highest on record.



Despite the dour housing data, homebuilders rose 13.6%. The Fed’s $600 billion plan to support housing lending spurred a drop in the average 30-year fixed mortgage rate to 5.81% from 5.98%, according to BankRate.com. The drop in rates gave a lift to housing related stocks.



The number of new unemployment claims dropped 14,000 to 529,000 for the week ended Nov. 22. Although this was slightly better than the expected reading of 535,000, it still represents a very weak labor market.



In other economic news, October durable goods orders plunged by a larger-than-expected amount, Chicago manufacturing in November contracted the most since 1982 according to a regional survey, and consumer confidence dropped to a 28 year low in November, according to the University of Michigan.



In corporate news, Tiffany (TIF 20.86, +0.03) reported higher-than-expected third quarter earnings, but cut its full year earnings guidance to below expectations. Deere (DE 35.62, +2.52) reported a 14% drop in earnings per share and said the outlook for the year ahead is highly uncertain.



Oil futures had a volatile session. Prices eventually rose 7.6% to $54.62 per barrel despite a larger-than-expected increase in both crude and gasoline stockpiles.



In overseas news, China cut its benchmark lending rate by 1.08 percentage points to 5.58% in an effort to support its economy. China's CSI 300 rose 0.5%.



As a reminder, U.S. stock and bond markets are closed tomorrow in observance of Thanksgiving. Markets will reopen Friday for a half day.
..Nasdaq 100 +4.4%. ..S&P Midcap 400 +5.8%. ..Russell 2000 +5.3%.

[UpInArms]

102. on this Thanksgiving Eve, I offer up this song to all

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

[Dr.Phool]

109. Outstanding