STOCK MARKET WATCH, Tuesday, October 4, 2011

[Pale Blue Dot]

Source: du

STOCK MARKET WATCH, Tuesday, October 4, 2011

AT THE CLOSING BELL ON October 3, 2011

Dow 10,655.30 -258.08 (-2.42%)
Nasdaq 2,335.83 -79.57 (-3.41%)
S&P 500 1,099.23 -32.19 (-2.93%)
10-Yr Bond... 1.77 +0.01 (+0.40%)
30-Year Bond 2.75 +0.02 (+0.77%)

---

Market Conditions During Trading Hours

Euro, Yen, Loonie, Silver and Gold

---

Handy Links - Market Data and News:Economic Calendar    Marketwatch Data    Bloomberg Economic News    Yahoo! Finance    Google Finance    Bank Tracker    
Credit Union Tracker    Daily Job Cuts

Handy Links - Economic Blogs:
The Big Picture    Financial Sense    Calculated Risk    Naked Capitalism    Credit Writedowns
Brad DeLong      Bonddad    Atrios    goldmansachs666    The Stand-Up Economist

Handy Links - Government Issues:
LegitGov    Open Government    Earmark Database    USA spending.gov

Handy Links - Videos:
The Coming Collapse of the Middle Class    Charlie Rose talks with Roubini    Charlie Rose talks with Krugman
    William Black: This Economic Disaster    Bill Moyers with Kevin Drum and David Corn

Bush Administration Officials Convicted = 2
Names: David Safavian, James Fondren
Dishonorable Mention: former House majority leader, Tom DeLay

Bush Administration Officials Charged = 1
Name(s): Richard Lopez Razo

Financial Sector Officials Convicted since 1/20/09 = 12

---

---

This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.

Read more: du

[Pale Blue Dot]

1. Today's report

Oct 04 10:00 Factory Orders Aug -0.3% -0.1% 2.4%

Read more: http://www.briefing.com/investor/calendars/economic/2011/10/03-07/#ixzz1ZoL6YCwz

[Roland99]

58. Bernanke not optimistic about labor market

http://www.marketwatch.com/story/bernanke-not-optimistic-about-labor-market-2011-10-04?link=MW_home_latest_news

[Pale Blue Dot]

60. Factory orders down 0.2% - about what was "expected".

So this should have little impact on the market.

Bad, bad news though.

[Roland99]

62. yeah...not seeing much reaction after the initial bounce off the lows. DAX is down 4.5%...youch

[Pale Blue Dot]

2. Oil near $76 as Greece crisis gnaws at confidence

BANGKOK – Oil fell to near $76 a barrel Tuesday in Asia as fears intensified that Greece may not be able to crawl out from beneath a mountain of debt without defaulting.

Benchmark crude for November delivery was down $1.54 to $76.08 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange — its lowest since late September 2010. Benchmark crude fell $1.59, or 2 percent, to close at $77.61 per barrel in New York on Monday.

In London, Brent crude fell $1.05 to $100.64 on the ICE Futures Exchange.

Investor concerns about Greece were heightened when the debt-strapped country said over the weekend it will miss its lower budget deficit targets even after severe cost-cutting. Despite the shortcoming, Europe pledged to loan Greece money to help pay its upcoming bills, but that failed to reassure stock and commodity markets.

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

[Pale Blue Dot]

3. U.S. stock futures drop; Bernanke, Greece in focus

LONDON (MarketWatch) — U.S. stock futures dropped Tuesday, pressured by worries about Greece’s ability to avoid a debt default, as investors awaited comments on the American economy by the Federal Reserve’s chairman.

Futures on the Dow Jones Industrial Average DJ1Z -0.77% fell 71 points to 10,458 and those on the Standard & Poor’s 500 stock index SP1Z -0.67% dropped 7.2 points to 1,079.10.

The blue-chip Dow index DJIA -2.36% fell 2.4% on Monday to post its lowest close since September 2010.

European equity markets fell sharply Tuesday after euro-zone finance ministers signaled last night that they will take a decision on whether to disburse more aid to Greece later in October than previously suggested.

http://www.marketwatch.com/story/us-stock-futures-drop-bernanke-greece-in-focus-2011-10-04?link=MW_latest_news

[burf]

18. Something doesn't add up

CNBS is reporting the Dow futures -119, while Bloomberg is reporting down -178. What gives? With Europe down -3%, I'm a little more inclined to believe Bloomberg.

[Roland99]

33. Futures per Bloomberg as of 8:15

DJIA INDEX 10,424.00 -166.00
S&P 500 1,074.20 -12.10
NASDAQ 100 2,046.25 -19.00

[xchrom]

4. good morning -- the weather here the past 2 days has been gorgeous!

crisp, cool & clear as a bell.:donut:

[Demeter]

6. Ditto, but the Market Sucks

Ever since I found my Confidence Fairy....Coincidence? I don't think so.

[xchrom]

10. lol -- it's true -- ever since you found your fairy!

hey - i hope your week is good.:hi:

[Demeter]

11. So far, It's tolerable

This daily wound care is a real drag on the schedule, though. At least 2 weeks more....now I can't even keep up with the laundry anymore.

[xchrom]

17. sorry -- it's a rough patch you're in.

:hug: i hope to hear things are better soon.

[Demeter]

43. Well, I did somethng to simplify life and shuck some of the load

I deleted anything in the inbox from 2010. I figure the financial status of the world is so different now, that old reports and speculations have no value any more...in any event, I was never going to get through them.

Whew! Inbox below 100 for the first time in...at least a year, and probably longer.

[xchrom]

47. awesome. it's so satisfying to jettison old stuff. nt

[girl gone mad]

64. What happened?

:hug:

[Demeter]

92. The Kid Developed an Abscess

on her back. About kidney height. About 2.5 cm deep at first, but it's healing.

It was apparently caused by a cyst, which I had pointed out to the doctor several years ago. The doctor said (and I quote) "Don't worry about it!"

After the abscess heals, the cyst will be taken out by a dermatologist
...finally.

[Roland99]

35. no 90s in our forecast as far as the eye can see! Makes a great time for redoing landscape beds!

[burf]

44. Looks good!

Been running the chainsaw a lot lately myself. Got about eight cords cut for upcoming winter, probably cut five or six more depending on how long the weather stays nice.

[xchrom]

45. oooh, nice! nt

[Roland99]

48. Thanks, yall. Lowe's was *packed* on Saturday.

My back felt it after that work but my mind really needed it. I missed doing a lot of landscaping like I did back up in Ky.

Trying to figure out what to do with the big part near the front porch. We'll probably add more pavers and put in a bench and some chairs...maybe a glider swing. I'd like some sort of cover, too, as the afternoon sun can be brutal or some type of pull-down screens on the porch itself so we can enjoy being out with being eaten alive by mosquitoes!

[xchrom]

51. i hate mosquitos. nt

[AnneD]

74. Roland...

philodendrons alway do well in this climate. They grow very large and make a great backdrop for colorful annuals and perennials.

Mosquitos...it has been to dry for those. You would not believe the lost trees. Memorial park has lost at least 55% of the trees. It has been the very old and very young. The bats are coming out early but they are at risk for predators and we don't know how many babies will survive. It really is a climactic calamity here.

[Roland99]

80. Thanks...we'll look into those for the main bed off the porch

[Warpy]

69. Wow, stuff is growing where you are!

We didn't even get tumbleweeds here in NM this summer. I guess that means next fire season won't be a particularly bad one with no brush to feed it.

Those look great. I need to mulch my front shrubbery bed, the only place anything's growing. I'm in no great hurry, I keep hoping all the air let out of the oil spot market futures will start to make things a little cheaper.

If you're going to dream, dream big, after all.

[xchrom]

5. europe: Foreigners back buying property in Spain

http://www.typicallyspanish.com/news/publish/article_32181.shtml

The first six months of this year has seen a marked recovery in sales to foreigners.

The amount of property in Spain being purchased by foreign buyers has increased to reach the levels seen in 2008.

Sales in the first half of this year were 32.8% up on last year at the same time at 2.445 billion €. It follows growth of just 2.6% across all of 2010.

The Bank of Spain, which has released the numbers, has said that the amount invested in property by foreign buyers were over 1 billion between April and June for the second consecutive quarter.

Read more: http://www.typicallyspanish.com/news/publish/article_32181.shtml#ixzz1ZoUXjnT5

[Demeter]

7. Are they Individuals, or Corporations?

I'd be more worried about Corporate purchases.

[Demeter]

24. Property investors drawn to London

Non-European governments, private equity investors and funds pour more than £8bn into commercial property

Read more >>
http://link.ft.com/r/OZMCDD/AMD7W4/EKRAI/R3NX65/VLGRQE/LE/t?a1=2011&a2=10&a3=4

[xchrom]

49. i hate to that stuff happen.

& brits who aren't wealthy get crowded out from this phony buying up of property.

[xchrom]

8. Large jump in Spanish unemployment numbers

http://www.typicallyspanish.com/news/publish/article_32180.shtml

Unemployment in Spain rose by 95,817 in September, making it the worst such month for 15 years. The 2.32% increase takes the total number of unemployed to 4,226,744.

Jobs were lost in all areas with the exception of agriculture and construction, and only the regions of La Rioja, Castilla-La Mancha and the Canaries escaped the job losses.

Women were affected more than men, with female unemployment up 53,908 with respect to August, while 41,909 male jobs were lost.
Minister for Tax and the Economy, Elena Salgado, has said that she still hopes for some improvement before the end of the year.

Speaking at the meeting of the EU finance ministers in Luxembourg, Salgado said ‘The unemployment numbers for September have been up for several years, but it is true that this year the data is somewhat worst than last year, but in any case we will continue with our same plans’.

Read more: http://www.typicallyspanish.com/news/publish/article_32180.shtml#ixzz1ZoV8JZ71

[xchrom]

20. Greece has until mid-Nov to get bailout loans

http://hosted.ap.org/dynamic/stories/E/EU_GREECE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-10-04-07-13-39

ATHENS, Greece (AP) -- Greece has enough money to pay all bondholders as well as pensions and salaries until mid-November, Finance Minister Evangelos Venizelos said Tuesday, amid market fears that the country might default in coming weeks.

Greece had previously said it would start running out of money in mid-October if it didn't get the next euro8 billion ($11 billion) installment of its euro110 billion bailout package.

"Until mid-November it is clear there will be no problem," said Venizelos, who returned from a eurozone finance ministers' meeting in Luxembourg. The ministers indicated early Tuesday that Greece will get the installment, but that the decision would be made later this month.

International debt inspectors delayed their clearance of the bailout installment, which had been originally expected in September, amid talk of missed budget targets in Athens. That has raised the possibility that Greece would run out of money to pay salaries and pensions. If it had found itself unable to pay bondholders, a messy default could have roiled financial markets across the world.

[xchrom]

22. UBS expects profit despite trading loss

http://hosted.ap.org/dynamic/stories/E/EU_UBS_TRADING_SCANDAL?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-10-04-07-15-28

GENEVA (AP) -- Swiss banking group UBS said Tuesday it expects credit gains and bond sales to help it record a modest profit in the third quarter, despite a $2.3 billion rogue trading loss.

Only last month, Switzerland's biggest bank warned that it might be forced to report an overall loss for the three months ending in September in light of unauthorized trading from London-based trader Kweku Adoboli. The 31-year-old was arrested Sept. 15 and has been charged with fraud and false accounting.

The Zurich-based bank said it expects positive net new money in its wealth management businesses to be "broadly similar" to the second quarter, despite the trading loss and 400 million francs ($435 million) worth of restructuring charges due to cost-cutting. It added that the cost reduction program was on track with most of the affected employees notified.

In addition,UBS said it expects to benefit from credit gains elsewhere to the tune of about 1.5 billion Swiss francs ($1.6 billion), and book a 700 million francs profit from the sale of treasury-related investments by its wealth management and Swiss bank divisions.




***ever since enron -- i don't trust the bookkeeping of mega corporations -- & certainly not mega auditors.
i don't think there is such a thing as a clear picture of these organizations accounts.

[xchrom]

38. Norway Strains to Cool Economy on Rebound

http://www.bloomberg.com/news/2011-10-03/norway-struggles-to-cool-economy-as-rebound-proves-too-strong.html

Norway is struggling to cool its oil- rich economy as accelerating credit growth, Europe’s lowest unemployment rate and a strong currency force the government to limit crude-revenue spending for a second year.

“There should be no reason that the budget would increase pressure on Norwegian interest rates and the value of the krone,” Industry Minister Trond Giske said yesterday in an interview. The “overriding goal” for the spending bill was to protect the export industry and competitiveness, he said.

Norway is trying to slow its economy and shield exporters from excessive krone gains while Europe struggles to contain its debt crisis. The government and central bank need to prevent what Norway’s financial regulator has warned may develop into a credit-driven housing bubble. The country’s mainland economy, which excludes oil and shipping, will grow 2.5 percent in 2012, more than triple the 0.8 percent pace in neighboring Sweden, according to Nordea Bank AB, the largest Scandinavian lender.

The currency of the world’s seventh-largest oil exporter has strengthened 17 percent against the dollar and 24 percent to the euro since the global economic crisis peaked at the end of 2008, spurring imports and hurting exports.

[xchrom]

46. Franco-Belgian bank Dexia's shares fall by over a fifth

http://economictimes.indiatimes.com/news/international-business/franco-belgian-bank-dexias-shares-fall-by-over-a-fifth/articleshow/10231396.cms

BRUSSELS: Another half a billion euros was wiped off the market value of Dexia on Tuesday as investors grew increasingly concerned about its survival in its current form despite government promises to prop up the bank and insure every cent of its deposits.

Belgium's caretaker prime minister promised that his government and France's were ready to help Dexia, while the finance ministers from both countries also pledged to back the bank's financing needs via government guarantees.

Dexia is at the forefront of investor concerns over its exposure to potentially bad debt from Europe's most indebted countries. With the markets pricing in a Greek debt default soon, investors are very fidgety about what debts Europe's banks are holding.

The Franco-Belgian bank's stock began its plummet Monday after Moody's warned it could be downgraded, leading the board of directors to call an emergency meeting. It was down another 24 per cent Tuesday.

[Demeter]

9. Ask Five Friends to Sign our Petition at No-Cuts.com

http://www.congressmanwithguts.com/TAF_nocuts

Alan Grayson has a petition against cutting Medicare, Medicaid and Social Security at this website. That young man wants to go places...

[xchrom]

14. done. nt

[Demeter]

12. Morgan Stanley, Goldman Credit Risk Soar as Europe Debt Concern Increases

http://www.bloomberg.com/news/2011-10-03/u-s-company-credit-risk-gauge-rises-to-highest-since-may-2009.html

The cost to protect the debt of Morgan Stanley (MS) and Goldman Sachs Group Inc. (GS) surged to the highest levels since the weeks after Lehman Brothers Holdings Inc.’s bankruptcy as concern intensified that Europe’s debt crisis will infect the global banking system.

Contracts on Morgan Stanley, the New York-based owner of the world’s largest retail brokerage, soared 92 basis points to a mid-price of 583 basis points as of 4:30 p.m. in New York, the highest since October 2008, according to London-based data provider CMA. Those on Goldman Sachs increased 65 basis points to a mid-price of 395.

Traders pushed the cost of protecting banks and U.S. companies higher after German Finance Minister Wolfgang Schaeuble opposed moves to increase the scale of the euro rescue fund, complicating efforts to prevent a Greek default. Swaps on Bank of America Corp. (BAC) jumped to a record and a measure of U.S. corporate credit risk rose to the most since May 2009.

“It’s such a difficult situation for the markets here,” Chris Rupkey, chief financial economist at Bank of Tokyo- Mitsubishi UFJ in New York, said in a telephone interview. “People are primed for bad news. They’re quick to believe the worst.”

[Pale Blue Dot]

59. Egan-Jones Downgrades Morgan Stanley From A+ To A, Negative Outlook

It never rains, but it pours. From Egan-Jones:

Morgan Stanley: EJR lowered A+ to A (Neg.) (S&P: A) (MS)



Synopsis: Questions about MS's French bank exposure and level of derivatives exposure. While June results were good, MS' French bank exposure (all asset and off balance sheet classes except derivatives) is estimated at $39B (57% of equity of $68B and 150% of market cap of $26B) of which interbank placements is believed to be a small component. These exposures are significant and unusually large as a percentage of capital. Of equal concern is the estimated $1.78T in notional value of CDS' on MS' books although EJR does acknowledge the netting effect (the net estimated exposure is $457M). The US is likely to provide MS additional support if needed, despite wind-down procedures contained in Dodd Frank. We are downgrading with a neg outlook.


http://www.zerohedge.com/news/egan-jones-downgrades-morgan-stanley-negative-outlook

[xchrom]

13. New iPhone expected from Apple on Tuesday

http://hosted.ap.org/dynamic/stories/U/US_TEC_APPLE_NEW_IPHONE?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-10-04-07-49-10

SAN FRANCISCO (AP) -- Apple Inc. is unveiling a new, more powerful version of its wildly popular smartphone - more than a year after it launched the iPhone 4.

Last week, Apple Inc. e-mailed invitations to a media event at its headquarters in Cupertino on Tuesday morning. The invite says "let's talk iPhone," implying the secretive company intends to show off the latest version of the device.

The first iPhone came out in 2007, and the phone's signature slick looks, high-resolution screen and intuitive software has gained millions of fans over the years. There were 39 million iPhones sold just between January and the end of June.

Beyond the iPhone itself, the Tuesday event is anticipated as Apple's first major product unveiling in years that won't be led by Steve Jobs, who resigned from the CEO post in August after being out on indefinite medical leave since January. The Apple co-founder is now its executive chairman. And though Jobs did emerge from medical leave twice this year to present Apple's innovations - most recently in June to show off its new mobile software and iCloud content storage service - his successor, Tim Cook, is expected to take the lead this time.

[Demeter]

15. Fannie Mae Knew Early of Abuses, Report Says By GRETCHEN MORGENSON

http://www.nytimes.com/2011/10/04/business/fannie-mae-ignored-foreclosure-misdeeds-report-says.html?_r=2&partner=EXCITE&ei=5043

Fannie Mae, the mortgage finance giant, learned as early as 2003 of extensive foreclosure abuses among the law firms it had hired to remove troubled borrowers from their homes. But the company did little to correct the firms’ practices, according to a report issued Tuesday.

Only after news reports in mid-2010 began to describe the dubious practices, like the routine filing of false pleadings in bankruptcy courts, did Fannie Mae’s overseer start to scrutinize the conduct. The report was critical of that overseer, the Federal Housing Finance Agency, and was prepared by the agency’s inspector general.

In one notable lapse, even after the agency reported problems to Fannie Mae in late 2010 about some of the approved law firms, it did not request a response from the company, the report said.

“American homeowners have been struggling with the effects of the housing finance crisis for several years, and they shouldn’t have to worry whether they will be victims of foreclosure abuse,” said Steve Linick, inspector general of the finance agency. “Increased oversight by F.H.F.A. could help to prevent these abuses.”

BUSH AND HIS BUDDY JOHNSON WERE IN CHARGE...DID YOU THINK THEY WOULD STOP THE FRAUD?

[DemReadingDU]

41. FBI saw mortgage fraud early

1/27/09 FBI saw mortgage fraud early

The FBI was aware for years of "pervasive and growing" fraud in the mortgage industry that eventually contributed to America's financial meltdown, but did not take definitive action to stop it.

"It is clear that we had good intelligence on the mortgage-fraud schemes, the corrupt attorneys, the corrupt appraisers, the insider schemes," said a recently retired, high FBI official. Another retired top FBI official confirmed that such intelligence went back to 2002.

The problem, according to the two FBI retirees and several other current and former bureau colleagues, is that the bureau was stretched so thin that no one noticed when those lenders began packaging bad mortgages into bad securities.

"We knew that the mortgage-brokerage industry was corrupt," the first of the retired FBI officials told the Seattle P-I. "Where we would have gotten a sense of what was really going on was the point where the mortgage was sold knowing that it was a piece of dung and it would be turned into a security. But the agents with the expertise had been diverted to counterterrorism."

The FBI not only lacked the resources, but also never got the tips it needed from the banking regulatory agencies. The Securities and Exchange Commission, the Office of Thrift Supervision and the Office of the Comptroller of the Currency also failed to detect the securities issue, said the first retired FBI official.

more...
http://www.seattlepi.com/national/article/FBI-saw-mortgage-fraud-early-1298591.php


edit to add

7/4/07 FBI lacks resources to fight boom in mortgage fraud
2,500 agents reassigned to terrorism weren't replaced

The increase in mortgage fraud has developed in the post-9/11 era as Bush administration budgets have drastically reduced the number of special agents the FBI has to investigate crime. That's because the administration failed to budget for replacements for 2,500 agents reassigned to investigate terrorism.

more...
http://www.seattlepi.com/news/article/FBI-lacks-resources-to-fight-boom-in-mortgage-1242751.php

[Demeter]

16. SLAVE LABOR

[xchrom]

19. ...

:evilgrin:

[Demeter]

21. AMR shares fall 33% on bankruptcy fears

American Airlines’ parent company denies claims that the company will file for bankruptcy in order to carry out a corporate restructuring

Read more >>
http://link.ft.com/r/OZMCDD/AMD7W4/EKRAI/R3NX65/JEJ4ZC/LE/t?a1=2011&a2=10&a3=4

[Roland99]

42. AMR upgraded at Rodman & Renshaw after selloff. (up 10% in pre-market trading)

http://www.marketwatch.com/story/amr-upgraded-at-rodman-renshaw-after-selloff-2011-10-04?link=MW_home_latest_news

[Demeter]

23. Investors seek protection from extremes

Investors are funnelling more assets to hedge funds that protect them against extreme events amid the sovereign debt crisis and recession

Read more >>
http://link.ft.com/r/OZMCDD/AMD7W4/EKRAI/R3NX65/VLGRQ9/LE/t?a1=2011&a2=10&a3=4

[Demeter]

25. Goldman Sachs to run Eon gas sale

Distribution network move could raise up to €2.5bn to help German utility pay down its debts and refocus away from Europe

Read more >>

http://link.ft.com/r/CTBPCC/XHOPDC/3CWTA/EXW69E/SPTE0A/B7/t?a1=2011&a2=10&a3=3

[xchrom]

26. Lacker Says Fed’s Twist Won’t Spur U.S. Jobs

http://www.bloomberg.com/news/2011-10-03/fed-s-lacker-says-more-easing-may-not-spur-u-s-economic-growth.html

Federal Reserve Bank of Richmond President Jeffrey Lacker said last month’s move to reduce long- term interest rates is unlikely to spur a job market hampered by uncertainty over fiscal policy and government regulation.

“I tend to think it would cause higher inflation and have only a transitory or fleeting effect on growth,” Lacker said yesterday in response to audience questions after a speech in Madison, Wisconsin.

Fed Chairman Ben S. Bernanke said last week the U.S. is facing “a national crisis” with the jobless rate at around 9 percent since April 2009. The European debt crisis, political haggling in the U.S. and a plunge in stock prices have prompted a drop in consumer and business confidence that may hurt spending and hiring. Bernanke is scheduled to testify today to a congressional panel about the economic outlook.

Policy makers voted Sept. 21 to push down mortgage and other loan rates in bid to spur growth and employment. The Fed plans to do so by extending maturities of the Treasuries in its portfolio, buying $400 billion of long-term debt and selling an equal amount of shorter-term securities.

[Demeter]

27. New York Fed May Seek Liquidity Details From European Banks

WHY? IT'S NOT LIKE THEY WOULD DO ANYTHING WITH THE INFO...UNLESS IT'S FOR PERSONAL FINANCIAL REASONS...

http://www.businessweek.com/news/2011-10-03/new-york-fed-may-seek-liquidity-details-from-european-banks.html

The Federal Reserve Bank of New York may ask foreign lenders for more detailed daily reports on liquidity as the U.S. steps up monitoring of risks from Europe’s sovereign debt crisis, according to two people with knowledge of the matter...Regulators held informal talks with some of the largest European lenders about producing a “fourth-generation daily liquidity” or 4G report, according to the people, who asked for anonymity because communications with central bankers are confidential. The reports may cover potential liabilities such as foreign-exchange swaps and credit-default swaps, said one person. The U.S. has already increased the number of examiners embedded in these banks, the person said.

Concern is growing that European lenders may falter as Greece teeters on the brink of insolvency. U.S. Treasury Secretary Timothy F. Geithner has warned that failure to bolster European backstops would threaten “cascading default, bank runs and catastrophic risk” for the global economy. European finance ministers were scheduled to meet today on how to shield banks from the fallout of a Greek default. “The Fed is trying to understand what the pressure points are in terms of liquidity and potential risks that are imposed by foreign banks to domestic institutions in our financial system,” said Kevin Petrasic, an attorney at the Washington- based law firm of Paul, Hastings, Janofsky & Walker LLC. “There is a little bit more sense of urgency as a result of what’s going on in Europe.”

Liquidity Risk

U.S.-based money funds, which buy short-term commercial paper, have been shunning securities issued by some banks based on the continent, and European Central Bank Governing Council member Yves Mersch said Sept. 28 that liquidity shortages pose the main risks to the region’s banking system. Jack Gutt, a spokesman for the Federal Reserve Bank of New York, declined to comment. The largest European bank holding companies by assets in the U.S. include units of Deutsche Bank AG, HSBC Holdings Plc. and Banco Bilbao Vizcaya Argentaria S.A., according to Federal Reserve data. Duncan King, a spokesman for Frankfurt-based Deutsche Bank, Thaddeus Herrick, a spokesman for Spain-based BBVA and London-based HSBC’s Rob Sherman said they couldn’t comment.

U.S. banks are starting to provide a 4G report and they are being phased in this month, said Karen Shaw Petrou, managing partner of Washington-based Federal Financial Analytics Inc. Some Europeans are asking U.S. counterparts for information on how to prepare the report even though there has been no formal request from the Fed so far, one of the people said. “The report requires rapid and in some cases daily data on a banks’ assets, liabilities and potential claims to measure the degree to which the bank could be caught in the classic borrow- short, lend-long squeeze,” Petrou said. “The 4G is one of the tools to reveal liquidity risk.” The forms aren’t public, according to Petrou, and the New York Fed declined to provide a copy...Euro-zone banks and other institutions were more than $350 billion in debt to the Fed’s emergency-lending facilities at one point during the 2008-2009 financial crisis, according to data compiled by Bloomberg News. The analysis was based on Fed documents released earlier this year after court orders upheld Freedom of Information Act requests by Bloomberg LP, the parent company of Bloomberg News, and News Corp.’s Fox News Network LLC. Fed lending to these entities totaled more than $100 billion on an average day...Regulators lack access to data on foreign institutions operating in the U.S. that would allow them to “make informed judgments about the adequacy of such firms’ capital and liquidity buffers,” William C. Dudley, president of the New York Fed, said in a Sept. 23 Washington speech...

[xchrom]

28. asia: View: China’s Fall, Not Its Rise, Is the Real Global Threat

http://www.bloomberg.com/news/2011-10-04/china-s-fall-not-its-rise-is-the-real-threat-to-the-global-economy-view.html

China’s rise to global prominence has long preoccupied the leaders of the developed world. They should be more concerned about what happens if the country’s growth falters.

With its combination of cheap labor, easy money, undervalued currency, heavy investment in manufacturing and focus on exports, the nation of 1.3 billion has built an impressive economic engine. From 2008 through 2010, China contributed more than 40 percent of the world’s growth.

But the Chinese model has its limits, and that has far- reaching consequences for the U.S. and Europe, both of which are increasingly dependent on China. The country’s share of global exports already exceeds 10 percent, larger than that of Japan at its peak in 1986. Barring some miracle, Chinese exporters can’t expand their market share much further without lowering prices and wiping out their own profits, research by economists at the International Monetary Fund suggests. China’s dependence on exports also makes it highly vulnerable to slowing growth in the developed world, and to rising trade tensions: The U.S. Senate today began debating a bill that could ultimately lead to punitive tariffs on Chinese imports in retaliation for undervaluing its currency.

Meanwhile, economic stress is mounting at home. Labor costs are surging as the supply of young, capable factory workers wanes and living conditions rise along with expectations of better wages. Cheap and abundant credit has driven over- investment and pushed up real-estate prices to levels many families can’t afford, adding to social tensions and possibly setting the country up for a bust. China’s approach to managing its exchange rate is fueling inflation, which government figures put at 6.2 percent in August.

[xchrom]

29. H&M Targets Asia Expansion for Growing Brands

http://www.bloomberg.com/news/2011-10-03/h-m-targets-expansion-in-asia-for-fast-growing-monki-cos-upmarket-brands.html

Hennes & Mauritz AB (HMB), Europe’s second- largest clothing retailer, plans to step up the expansion of its new brands in Asia, anticipating that Chinese consumers will favor more-expensive labels such as Monki and COS.

H&M is looking at locations in Hong Kong for the upmarket COS brand, Pernilla Wohlfahrt, head of new business at Stockholm-based H&M, said in a telephone interview. Hong Kong “could be a testing ground for China,” she said.

H&M is adding stores in China more rapidly than anywhere else, turning to the world’s fastest-growing major economy to help reverse falling profit. The retailer opened its first Monki outlet in Hong Kong a year ago, having gained control of the brand’s owner and two other labels in 2008. Larger rival Inditex SA (ITX) has eight brands, including Zara and Bershka, and has opened 150 Chinese stores in five years, compared with 61 for H&M.

“We are seeing very healthy growth across the newer business,” said Wohlfahrt, who oversees H&M’s Monki, Weekday, Cheap Monday, COS and H&M Home units. “All these brands have a great opportunity to grow.

[PassingFair]

53. I've had a couple of highschool-age Chinese exchange students....

They were only interested in shopping for high-end, full-price,
up to the minute designer stuff...with the exception
of H&M. They loved H&M....

[xchrom]

52. Creditors win early round against Tepco

http://search.japantimes.co.jp/cgi-bin/nn20111004x1.html

Creditors of Tokyo Electric Power Co. have won a victory by shutting the door, at least for now, on a debt waiver for the operator of the damaged Fukushima No. 1 nuclear plant.

A government report Monday by a third-party panel scrutinizing the utility's financial situation excluded a clause on the responsibility of Tepco's creditors, agreeing with their argument that as long as the utility's assets exceed its debt, a waiver is unreasonable.

The clause deleted from a draft states: "The possibility that creditors will be asked to waive debt or turn the debt into shares cannot be denied."

Negotiations between the panel's secretariat and Tepco's creditors went down to the wire.

[xchrom]

30. south asia: Higher Borrowing Means RBI to Buy First Bonds in Nine Months: India Credit

http://www.bloomberg.com/news/2011-10-04/higher-borrowing-means-rbi-to-buy-first-bonds-in-nine-months-india-credit.html

India’s central bank may buy bonds for the first time in nine months to cap rising yields as outflows from national savings accounts forced the government to increase debt sales.

The Reserve Bank of India will probably acquire 500 billion rupees ($10.2 billion) of notes, according to Nomura Holdings Inc. and Kotak Mahindra Bank Ltd. Benchmark 10-year yields were steady at 8.54 percent, the highest level since 2008, after the Finance Ministry said last week it would borrow 32 percent more than its 1.67 trillion rupee target in the six months to March. Yields have climbed 60 basis points in 2011, the most in Asia after Vietnam, according to data compiled by Bloomberg.

Finance Minister Pranab Mukherjee is struggling to trim the budget deficit to a targeted four-year low of 4.6 percent of gross domestic product as India’s economy slows. Further deterioration in the government’s finances may “weigh” on the nation’s BBB- debt rating, already the lowest among the world’s largest emerging economies, according to Fitch Ratings.

“The additional borrowing was quite a shock and the RBI will consider buying bonds to support liquidity in the system,” Vivek Rajpal, a fixed-income strategist at Nomura, Japan’s biggest brokerage, said in an interview yesterday. “The end game will be to cap yields.”

[xchrom]

39. Sensex ends below 16k, down 287 pts

http://timesofindia.indiatimes.com/business/india-business/Sensex-ends-below-16k-down-287-pts/articleshow/10232052.cms

MUMBAI: The BSE benchmark sensex ended below the 16,000 level on Tuesday, losing 287 points on brisk selling by foreign funds amid weak global trend on fears of worsening euro-zone debt crisis and a sharp dip in banking stocks led by SBI after its rating was lowered.

The sensex, which lost over 546 points in the last two trading sessions, plunged further by 286.59 points or 1.77 per cent to 15,864.86, with most of the banking and other interest related stocks ending sharply lower. It last dipped below the 16k mark on August 26.

The broad-based National Stock Exchange index Nifty dropped 77.35 points, or 1.60 per cent to 4,772.15 and tested day's low of 4,728.30 on all-round selling.

Banking heavyweight, State Bank of India plunged after reports that Moody's Investors Service has lowered the financial strength rating of the largest lender. It plunged over 4.08 per cent to its lowest close in two years, pulling down the banking index by 3.09 per cent to 10,291.03.

[xchrom]

40. Moody's downgrades SBI over poor Tier-I capital ratio, NPAs

http://timesofindia.indiatimes.com/business/india-business/Moodys-downgrades-SBI-over-poor-Tier-I-capital-ratio-NPAs/articleshow/10232148.cms

NEW DELHI: Global ratings firm Moody's on Tuesday donwgraded its rating of State Bank of India's (SBI) financial strength by one notch to 'D+' on account of the lender's low Tier-I capital ratio and deteriorating asset quality.

"Moody's Investors Service has downgraded the State Bank of India's bank financial strength rating (BFSR), or standalone rating, to 'D+' from 'C-'," the agency said in a statement.

As per Moody's, a 'D' rating suggest "modest intrinsic financial strength, potentially requiring some outside support at times", while a 'C' rating denotes "adequate intrinsic financial strength".

Moody's cited a likely rise in the bank's non-performing assets in the near future as one of the reasons for the downgrade.

[xchrom]

50. India looking to conclude FTA with EU this year: Anand Sharma

http://economictimes.indiatimes.com/news/economy/foreign-trade/india-looking-to-conclude-fta-with-eu-this-year-anand-sharma/articleshow/10232489.cms

JAKARTA: India today said it is looking to conclude the proposed comprehensive free trade pact with the European Union (EU) this year, as the negotiations are in advanced stage with the 27-nation bloc.

Commerce and Industry Minister Anand Sharma, who is here on a three-day visit, said "I am not looking at next year, I might rather look at this year...I remain optimistic. We will be able to conclude it (the negotiations) this year".

India is in talks with the EU, its biggest trading partner, since June 2007 for liberalising trade in goods, services and investment through a Broad-based Trade and Investment Agreement (BTIA). Already 13 rounds of talks have taken place.

When asked about the resolution of contentious issues like child labour and environment, Sharma said, "I don't think there is any room for extraneous issues. Our position has been appreciated and accepted, this is my impression."

[Demeter]

31. Don't expect a euro breakup ... yet

WHEN CNN SAYS IT WON'T HAPPEN...IT'S ALL OVER.

http://money.cnn.com/2011/10/02/news/international/euro_breakup/?source=cnn_bin

Economists are convinced the euro will survive as a currency without losing any members ... not even Greece. Of the 22 economists surveyed by CNNMoney, 17 are predicting that the euro will hold together, even though almost all of them believe Greece will default on its debt by the end of next year.

Typically when a country is facing a sovereign debt crisis, it can devalue its own currency to make its goods more attractive in export markets and perhaps lower its debt burden. But the shared euro has prevented Greece and other troubled European economies such as Portugal, Ireland, Italy and Spain from turning to devaluation. It's also one of the reasons the richer European countries such as Germany and France are scrambling to prevent a Greek default.

Default speculation has led to fears that the eurozone will break apart. But economists say the barriers to exiting the euro are too significant to make it a viable option, even with a looming default. "The benefit of leaving the eurozone is simply not strong enough for a country to leave," said Russell Price, senior economist for Ameriprise Financial...Jay Bryson, international economist for Wells Fargo Securities, said it's tough to project what will happen with the euro membership five or more years from now. But he sees little chance of anyone dropping the euro anytime soon. "The barriers to doing it are very, very high," said Bryson. "Germany and France can't kick Greece out, as much as they might like to. And it would be difficult for Greece to leave on its own. It would likely have to leave the European Union, and that would take a unanimous vote of the entire EU."

If such an exit were to happen, Greek consumers and businesses would probably transfer their cash to other European banks in order to protect its value, causing a collapse of the Greek banking system and likely the nation's economy...

[xchrom]

32. Emerging Equity Bears Buyers on BRIC Retreat

http://www.bloomberg.com/news/2011-10-03/emerging-equity-bears-turn-bullish.html

The longest losing streak for developing-market equities in more than a decade is turning investors who shunned the stocks a year ago into buyers after valuations fell to the lowest levels since March 2009.

TCW Group Inc.’s Komal Sri-Kumar, who advised purchasing options as insurance against emerging-market declines in October 2010, now recommends shares of consumer companies after inflation slowed in China and central banks in Brazil and Turkey cut interest rates. HSBC Private Bank’s Arjuna Mahendran is adding Chinese stocks with dividend yields of more than 4 percent. Harris Private Bank’s Jack Ablin said he may boost emerging-nation shares to 10 percent of holdings from 3 percent.

MSCI Inc. (MSCI)’s emerging-market gauge sank 30 percent from its May 2 high and slumped 23 percent in the three months to Sept. 30, trailing the advanced-nation index for four straight quarters for the first time since Russia’s 1998 default, as Europe’s debt crisis and concern the U.S. economy may contract led investors to flee riskier securities. The drop sent shares in the MSCI Emerging Markets Index to 1.5 times net assets, the lowest level versus the MSCI World Index in 30 months.

[Hawkowl]

76. Catch a falling knife

If you try and get in now on the basis of "good valuations", all you are going to do is catch a falling knife right in the kisser. The markets have a LONG way to fall yet. But, crashes to new lows always takes less time than expected.

[Demeter]

34. Banking crisis set to trigger new credit crunch

http://www.telegraph.co.uk/finance/financialcrisis/8802846/Banking-crisis-set-to-trigger-new-credit-crunch.html

The global financial system is on the edge of a new credit crunch as the cost of insuring the bonds of banks across the world hits new highs, analysts have said. Credit default swaps on lenders as far afield as China and Australia, countries that until recently seemed immune to the chaos, have doubled in the last two months to levels not seen since the financial crisis. In Europe, French and Belgian government officials are due to meet on Monday to discuss the crisis enveloping Dexia as speculation mounts about a possible break-up of the Franco-Belgian lender. Last week, the cost of insuring Dexia bonds hit an all-time high of 900 basis points, nearly double the level just two months ago, meaning the annual cost to insure €10m (£8.59m) of the bonds is £900,000.

"The money ran out in June and what you are seeing now is the beginning of a new credit crunch, except this time it will be truly global, not Western," said one senior London-based credit analyst.

Dexia, along with other European lenders, has been hard hit by the closure of the interbank lending markets and the continuing unwillingness of investors to buy the bonds of eurozone banks. "Nothing is really working at the moment. None of the markets are functioning. Until Greece defaults it's hard to see any resolution," said one senior London-based credit analyst...

[xchrom]

36. africa: Gordhan Says South African Economic Growth Targets ‘Far Too Ambitious’

http://www.bloomberg.com/news/2011-10-03/gordhan-says-south-africa-s-february-growth-forecasts-far-too-ambitious-.html

South Africa’s economic growth forecasts are “far too ambitious” as financial market turmoil derails the global recovery, undermining the government’s goal of slashing unemployment, Finance Minister Pravin Gordhan said.

The rout on world markets has “cast a shadow” on South Africa’s economic outlook, Gordhan said in a speech in Johannesburg yesterday.

“Our growth projections at the time of the budget and before the current market turmoil were for the economy to grow 4 percent a year for the next three years,” Gordhan said. “Clearly that is far too ambitious in the current context unless we do something spectacular for ourselves.”

Gordhan’s comments indicate he may trim projections that the economy will expand 3.4 percent this year and 4.1 percent in 2012 when he presents his mid-term budget on Oct. 25. The central bank on Sept. 22 cut its forecast for economic growth this year to 3.2 percent from 3.7 percent, while lowering next year’s estimate to 3.6 percent from 3.9 percent.

[Roland99]

37. Europe Markets being hit hard...again. DAX around a 2-year low.

FTSE 100 4,925 -150 -2.96%
CAC 40 2,831 -96 -3.27%
DAX 5,166 -211 -3.92%
FTSE MIB 14,170 -473 -3.23%
IBEX 35 IDX 8,103 -251 -3.01%
GlobalDow 1,649 -27 -1.60%

[Roland99]

54. out of the chute DJIA down 114. S&P500 to 1,087. Oil under $76/bbl

[RUMMYisFROSTED]

55. Eek!

[Hugin]

65. Not to worry...

The cat bounces at least once on the way down.

:hide:

[Tansy_Gold]

70. .

:hi: :hi: :hi:

where you been?

[Hugin]

72. This and that...

But, I'm always here. ;)

[Fuddnik]

73. You're always here.

And I'm not all there!

[RUMMYisFROSTED]

98. That cat musta been made outta rubber!

[Pale Blue Dot]

56. Welcome To The Bear Market

The S&P fought reality valiantly, and after every other market in the world entered a bear market long ago, reality won. The S&P 500 is now over 20% lower from the highs, and we are officially in a bear market. Gun to our head, and with an eye on where MS is trading, we are going much lower. But even gun to our head we are unsure if the S&P will enter triple digits first, or if that will be preceded by Morgan Stanley "Benjamin Button-ing" its teenager status...

http://www.zerohedge.com/news/welcome-bear-market

[Roland99]

57. Bears double down from the open. DJIA under 10,500. S&P under 1,080.

Dow 10,437 -218 -2.05%
Nasdaq 2,305 -31 -1.32%
S&P 500 1,078 -21 -1.95%
GlobalDow 1,630 -46 -2.75%
Gold 1,647 -11 -0.68%
Oil 75.89 -1.72 -2.22%
Euro /$1US 1.3191 0.0015
$1US / Yen 76.7500 0.1130
Pound / $1US 1.5354 -0.0078
Dollar Index 79.68 0.11
10yr T-note 1.75 -0.01 ... WOW
2yr T-note 0.25 0.02

[Roland99]

63. 10-year yield down to 1.72%.

[Roland99]

61. GE shares tumble to two-year low

http://www.marketwatch.com/story/ge-shares-tumble-to-two-year-low-2011-10-04?link=MW_home_latest_news


suck it, Immelt.

[Roland99]

66. More layaway options at Toys R Us

http://www.marketwatch.com/story/more-layaway-options-at-toys-r-us-2011-10-04?link=MW_home_latest_news

Toys R Us is expanding its layaway service and is offering flexible payment options as we head to the holiday season. And as John Wordock and Steve Potisk explain it is happening this week, which the company behind Sears has declared "National layaway week." It's all here in Red, White and Blue Chips.


audio at link

[Roland99]

67. Markets recouping. NASDAQ positive. 10-year yield up from open. S&P flat.

[Festivito]

68. Debt: 09/30/2011 14,790,340,328,557.15 (UP 95,238,220,319.21) (Fri, UP big. Q4 ends.)

(UNDER the new 2011 debt limit of 14.694-trillion dollars by 496.340-billion dollars. **WARNING** Some of this report today may be wrong due to changing over for the end of fiscal year. I will change it again later. Good day.)
Switch to afternoons after dinner with neighbor and front lawns mowed.
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 10,127,031,384,654.10 + 4,663,308,943,903.05
UP 52,048,010,849.90 + UP 43,190,209,469.31

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 312-Million person America.
If every American, man, woman and child puts in $3.20 THAT'S 1B$, and $3,201.72 makes 1T$.
A family of three: Mom, Dad, Child: $9.61, ABOUT TEN BUCKS for a 1B$ 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 the 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)

PERSONALIZED DEBT:
Every 13 seconds we net gain another American, so at the end of the workday of the report, there should be 312,331,694 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2011 02:44 -> 312,354,328
Currently, each of these Americans owe $47,354.59.
A family of three owes $142,063.78. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 23 reports in the last 30 to 31 days.
The average for the last 23 reports is 7,291,103,955.66.
The average for the last 30 days would be 5,589,846,366.01.
The average for the last 31 days would be 5,409,528,741.30.
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$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 249 reports in 365 days of FY2011 averaging 4.93B$ per report, 3.37B$/day.
There were 0 reports in 366 days of FY2012 averaging 0.00B$ per report, 0.00B$/day.
NOTE: Fiscal year end reporting needs a manual update that is in progress.

PROJECTION:
There are 478 days remaining in this Obama 1st term.
By that time the debt could be between 15.4 and 17.4T$.
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)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
09/30/2011 14,790,340,328,557.15 BHO (UP 4,163,463,279,644.07 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
FY2010 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +1,228,717,297,665.40 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2012 +0,000,000,000,000.00 ------------BHO
Endof12 +1,228,717,297,665.40 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
09/12/2011 -000,033,661,156.40 ---- Mon
09/13/2011 -000,041,637,039.50 ----
09/14/2011 +000,269,185,032.20 ------------********
09/15/2011 +011,965,856,345.50 ------------**********
09/16/2011 +000,192,253,298.50 ------------********
09/19/2011 +000,239,468,823.00 ------------******** Mon
09/20/2011 +000,489,658,328.70 ------------********
09/21/2011 -000,003,830,602.70 -----
09/22/2011 -006,079,650,583.40 --
09/23/2011 -000,223,062,427.90 ---
09/26/2011 -000,182,235,462.20 --- Mon
09/27/2011 +000,549,667,986.00 ------------********
09/28/2011 +000,753,695,258.10 ------------********
09/29/2011 -000,640,969,006.30 ---
09/30/2011 +052,048,010,849.90 ------------**********

The total is 59,302,749,643.50 of 15 above reports.

Heavy borrowing seems to start after 09/18/2008 while Bush was in power JUST BEFORE fiscal year end.
Bush admin borrowed $962,245,245,654.01 in those last 124 days in office crossing two fiscal years.
$360,093,093,653.42 in last 12 days of FY2008, and $602,152,152,000.59 in subsequent 112 days before leaving office.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock
http://www.usdebtclock.org/
DUer primer on National debt

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=5013790&mesg_id=5013921

[DemReadingDU]

94. yep, that is up a lot

[bread_and_roses]

71. This is hilarious - "Recovery "close to faltering""

http://finance.yahoo.com/news/Bernanke-says-Fed-ready-to-do-rb-505010811.html?x=0&sec=topStories&pos=main&asset=&ccode=

what recovery? tell it to the - what is it now, 1 in 10? - Americans out of work, students staggering under debt, families on food stamps, people dying from lack of health care...."close to faltering" !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

And some wonder why people are angry? Why they have no faith in our so-called "Representatives" and POTUS?

[AnneD]

75. It is that attitude....

that people are protesting. These people just don't have a clue or want one.

I was listening to NPR's evening market report and they were talking about the OWS. I was disappointed in Ky Risdal. He truly did not have a clue.

[RUMMYisFROSTED]

77. Glug, glug...

[RUMMYisFROSTED]

78. "Hand me a rope!"

[Roland99]

79. Aww...wook at the cute widdle faeries!

[DemReadingDU]

84. from -250 to +150

:wow: :wow:

[hamerfan]

86. No kidding!

:wtf:

[bread_and_roses]

96. A miracle, I tell you, a MIRACLE!

:puffpiece: :puffpiece: :puffpiece: :woohoo: :woohoo: :sarcasm:

[Pale Blue Dot]

81. (Non) News Of Dexia "Bad Bank" Sends Market Soaring

If anyone had any doubt this market is broken beyond compare and controlled by complete idiots, this should put all doubts to rest. Anyone wondering why stocks are soaring, the reason is that according to non-news, because this was first reported yesterday by the FT, Dexia will park €180 billion in worthless assets in a bad bank. This is beyond ridiculous as Belgium, even in JV with France, will be unable to ringfence and hence fund this amount of capital for the now nationalized bank. It also means that Belgium is about to be downgraded following a long-overdue warning by S&P and Moodys to cut the country. It also means that Belgian CDS will soon trade points up front. It also means that Belgian funding costs will soar. It also means that French CDS will explode tomorrow and that interbank markets in Europe will implode tomorrow once the market realizes that France has just diluted its "bailout dry capital" by rescuing a Belgian bank. And so on. And so on. But for now the ripfest is here. Fade every uptick as this is sheer desperation out of Belgium which pretends it is Switzerland and can do with Dexia what the Swiss did with UBS. Hint: it is not and no, it can't.

http://www.zerohedge.com/news/non-news-dexia-bad-bank-sends-market-soaring

[Roland99]

82. digging the comments.

[Hawkowl]

83. Excellent post

I was just going to post this. It is well worth reading the whole article. Dexia should be the trigger for a whole lot of bad things moving the markets downward at an increasing pace. Doubled down on my puts with this last minute market melt-up.

[Pale Blue Dot]

85. FT Causes Massive Short Squeeze With Mother Of All End Of Day Rumors

Here are the key selected sections from the FT story that sent the Dow Jones soaring 400 points from its intraday lows: "Although the details of the plan are still under discussion, officials said EU ministers meeting in Luxembourg had concluded that they had not done enough to convince financial markets that Europe’s banks could withstand the current debt crisis... “There is an increasingly shared view that we need a concerted, co-ordinated approach in Europe while many of the elements are done in the member states,” Olli Rehn, European commissioner for economic affairs, told the Financial Times. “There is a sense of urgency among ministers and we need to move on.” Mr Rehn cautioned that while there was “no formal decision” to begin a Europe-wide effort, co-ordination among EU’s institutions – including the European Central Bank, European Banking Authority and the European Commission – on necessary measures had intensified." So, there is .... nothing definite, just more speculation, more rumors, and more innuendo. But hey, it worked last week with the Liesman rumor. It obviously would work for the FT which has become the End of Day rumor source du jour, first with China bailout rumors (since denied), then with recapitalization rumors (denied), and now with this joke. Pathetic.

http://www.zerohedge.com/news/ft-causes-massive-short-squeeze-mother-all-end-day-rumors

[Roland99]

89. And Italy just got downgraded. S&P and DJ moving lower after hours, too, apparently

[Demeter]

87. Fairies Rule!

If that wasn't market manipulation, nothing is....

I've decided, if I don't fall asleep by 8PM like yesterday, that I will be getting drunk tonight...you are all welcome to join me, but remember, with my lack of capacity, it shouldn't take more than 20 minutes, and 8 oz of wine...

[DemReadingDU]

90. That's all it takes for me

then I puke.

But I love Shirley Temples!

[Fuddnik]

91. I might just join you.

I was just finishing up packing for the trip for DC in the morning. Then, my sister called from Cleveland to say my father may have had a stroke, so I may be heading to Shithole, SC instead.

Just waiting for more phone calls.

[Demeter]

93. My thoughts and best wishes to you and your family

Betweeen the Kid and one of my clients and my father, my worry circuit is on overload....but I can spare one or two for you.

[DemReadingDU]

95. Oh dear

Thoughts are with you

[Hugin]

97. I'm so sorry you had bad news, Fuddnik.

:(

I was so looking forward to your reports from DC, too.

[Hawkowl]

88. Kaboom! Italy downgraded again!

http://www.businessinsider.com/moodys-downgrades-italy-by-3-notches-2011-10


KABOOM: Moody's Ruins The Party With A Big 3-Notch Downgrade Of Italy

Way to spoil the fun, Moody's!After that monster market comeback, the ratings agency has just delievered a big 3-notch downgrade of Italy's sovereign debt, downgradeing it to A2 from Aa2.The agency cites 3-main reasons:

(1) The material increase in long-term funding risks for euro area sovereigns with high levels of public debt, such as Italy, as a result of the sustained and non-cyclical erosion of confidence in the wholesale finance environment for euro sovereigns, due to the current sovereign debt crisis.