STOCK MARKET WATCH, Monday, October 24, 2011

[Pale Blue Dot]

Source: du

STOCK MARKET WATCH, Monday October 24, 2011

AT THE CLOSING BELL ON October 21, 2011

Dow 11,808.79 +267.01 (+2.26%)
Nasdaq 2,637.46 +38.84 (+1.47%)
S&P 500 1,238.25 +22.86 (+1.85%)
10-Yr Bond... 2.19 -0.03 (-1.44%)
30-Year Bond 3.23 -0.04 (-1.26%)

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Market Conditions During Trading Hours

Euro, Yen, Loonie, Silver and Gold

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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

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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. No reports today. nt

[rdking647]

40. i have no faith in europe

i think they will screw things up between now and wednesday and will do something that will cause a big market drop. im depating how to protect myself
im thinking of buying a heap of sp puts as well as shorting the double long s&p etf

[Ghost Dog]

42. Hmmm.

Cathartic, perhaps.

[Demeter]

46. It's Not As If Governments Will Lower the Boom on Banksters

So how could anyone expect a good outcome? Or any marginal improvement, even?

[Warpy]

49. Well, we started it with those CDOs and SIVs that were nothing but bad mortgages

and if we did a proper job of it, yeah, they'll crash, they'll be back to squabbling and forget all about that Eurozone stuff and competing against the dollar with the Euro and all that other crap.

Oh, we won't get out unscathed. BoA's insane decision to move all the toxic crap that should have bankrupted Merrill Lynch a couple of years ago over to the banking side, jeopardizing the bank to save a bunch of jerks at Merrill, will probably do the same thing here, although it might be slow motion. There is no way the US taxpayer can bail them out to the tune of 75 trillion dollars. When they go, they'll take all the rest because it's a net, not a bunch of individual banks standing solidly against the foolishness of the few. The bright side is that maybe we'll get Glass-Steagall back until another bunch of suckers for right wing bullshit come along.

The ability of the government to bandaid an incredibly bad and unsustainable system has been stretched to the absolute limit, here and in Europe. It's going to be a wild ride and I'm afraid a lot of us will be badly hurt in the process.

[Pale Blue Dot]

2. Oil above $88 amid signs of Asia economic strength

SINGAPORE – Oil prices rose above $88 a barrel Monday in Asia amid signs of resilience in the economies of Japan and China.

Benchmark crude for December delivery was up $1.05 at $88.45 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.33 to settle at $87.40 in New York on Friday.

Brent crude was up $1.14 at $110.70 a barrel on the ICE Futures Exchange in London.

Japan's Finance Ministry said Monday that exports rose 2.4 percent in September from a year earlier, marking the second consecutive month of growth as the country recovers from the March earthquake and tsunami.

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

[Demeter]

8. Which shows how inconsequential the US Economy Has Become

I doubt that more than an vain and idle wish lies behind this continued speculation in commodities.

[Demeter]

21. Saudi stability marks death of crown prince

The death of Crown Prince Sultan bin Abdelaziz is not likely to affect the continuity or stability of the world’s biggest oil exporter

Read more >>
http://link.ft.com/r/WDI4RR/EX9U3S/T10SH/2OOGB7/5V5QCS/B7/t?a1=2011&a2=10&a3=24

[Roland99]

44. Over $90/bbl now. Whee!!

China to the rescue!

[Pale Blue Dot]

3. U.S. Stock Futures Gain on Crisis Talks Progress

U.S. stock futures climbed on signs of stronger growth in China and Japan and as European leaders moved toward a solution to the debt crisis.

Caterpillar Inc. (CAT) advanced and Texas Instruments Inc. (TXN) slipped in Germany before reporting earnings. Garmin Ltd. (GRMN) rallied after rival TomTom NV raised its forecast.

Standard & Poor’s 500 futures expiring in December rose 0.2 percent to 1,238.1 at 11:14 a.m. in London. Futures on the Dow Jones Industrial Average increased 29 points, or 0.3 percent, to 11,786.

“Companies are making money,” Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees about $47 billion, said in a telephone interview. “If we can ease some of the risks related to the European Union, the market has further room to move higher.”

http://www.bloomberg.com/news/2011-10-23/u-s-stock-futures-drop-as-european-leaders-rule-out-using-ecb-for-rescue.html

[xchrom]

4. asia: WTO jangles keys to China censorship

http://www.atimes.com/atimes/China/MJ25Ad01.html

A landmark event occurred last week that could change everything you think you know about censorship in China.

The United States Trade Representative (USTR), which is the department of the United States government responsible for international trade matters, filed a request for consultations at the World Trade Organization (WTO) pertaining to China's Internet censorship regime.

A request for consultations is not a formal complaint. Rather, it is a series of questions posed by one country to another about a


sensitive issue, where the country receiving the request is required to answer the questions or else face a formal complaint. How China answers these poignant questions could hold the key to the future of freedom of information in the People's Republic of China.

The rest of this article will be devoted to explaining the significance of this development. First, we will briefly review two earlier WTO cases between the US and China which touched on censorship. Then, we will explain why China's Internet censorship regime may be illegal under international law and recount the exact questions that the USTR has posed to China in this latest request for consultations. Finally, we will discuss the implications this development may hold for China's domestic politics.

[xchrom]

7. Ill omens for Asian economies

http://www.japantimes.co.jp/text/eo20111024a2.html

Even though Asia is still perceived to be the global economic growth center, there are signs of potential dangers of the regional economy heading toward a collapse because of a vicious circle of inflation and wage increases brought about by huge sums of speculative money being poured into Asian countries.

On the surface, Asia may appear to be assured of continuous high economic growth for the next 10 to 20 years, judging from brisk public-works projects and expanding sales of foodstuffs, daily necessities, home appliances, motorcycles and cars, as seen not only in China and India but also in nearly all other parts of the region, such as Vietnam, Thailand and Indonesia.

A closer look, however, would reveal that both policymakers and business leaders in Asian countries are investing their money without any purpose or target, as they are deluded by the "myth" of growth created by industrialists and financiers in the advanced nations.

The inflationary trend is the best indicator of dark clouds that have started hovering over the future of the Asian economy. In China, for example, the consumer price index (CPI) rose by more than 6 percent for third straight month in and after June, while the wholesale price index (WPI) in India went up 9.8 percent in August and Vietnam's CPI shot up by 22.2 percent in July.

[xchrom]

19. Hong Kong shares surge, China snaps losing streak

http://uk.reuters.com/article/2011/10/24/markets-hongkong-china-stocks-update-idUKL3E7LO1GV20111024

HONG KONG, Oct 24 (Reuters) - Hong Kong shares surged to their best day in two weeks on Monday, on strength in Chinese cyclical names after manufacturing data on China alleviated fears of a hard landing in the world's second-largest economy.

The gains came in thin turnover, suggesting that short covering gave the market a bigger boost than fresh buying.

Still, analysts hoped that the HSBC China Flash Purchasing Managers' Index (PMI) for October, which showed the mainland manufacturing sector snapped a three-month contraction, could encourage investors.

The HSBC report and earnings from Chinese companies this week "should suggest that the pessimism on China is overdone and dissipate a lot of worries," said Peter So, co-head of research at CCB International Securities in Hong Kong.

[xchrom]

27. Nikkei rises on hopes for European debt solution

http://uk.reuters.com/article/2011/10/24/markets-japan-stocks-idUKL3E7LO0J220111024

TOKYO, Oct 24 (Reuters) - The Nikkei stock average rose
nearly 2 percent on Monday, shrugging off further yen strength
and hits to production from Thailand's floods, after the
weekend yielded signs of progress on a plan to contain the euro
zone's sovereign debt crisis.

European Union leaders appeared closer on Sunday towards a
plan to contain the euro zone's sovereign debt crisis, nearing
agreement on bank recapitalisation and leveraging their regional
rescue fund.

"There was more progress than expected. So markets are now
reversing some of their earlier selling in which they were
trying to price in the chance of some banks being unable to
raise cash," said Ryota Sakagami, chief strategist at SMBC Nikko
Securities.

But shares of management dispute-plagued Olympus Corp
fell to their lowest in 13-1/2 years at one point in
heavy trading. The issue was the top-traded share by turnover.

[snot]

37. Interesting. I note that all the questions posed relate to

enforcing copyright protections in China and blocking websites and other activities of non-Chinese companies.

I.e., political censorship is not the point, but rather, protection of U.S. commercial interests.

[Demeter]

47. It's 40 years too late for that

[xchrom]

5. south asia: India bids for closer East Asia ties for regional integration

http://www.japantimes.co.jp/text/nb20111024d1.html

India wants to play a role in the economic integration of Asia through closer ties with East Asian powers including China — despite a long history of political hostility — and Japan, journalists and experts from India said at a recent symposium in Tokyo.

An economic partnership agreement with Japan that recently took effect is hoped to boost bilateral trade and investment ties that have so far remained well below the potential, they said.

The veteran journalists and experts from India were taking part in the symposium organized Sept. 15 by the Keizai Koho Center under the theme, "Japan-India relations in a new era of the Asia-Pacific region." Yasukuni Enoki, a former Japanese ambassador to India, served as moderator of discussions.

As India's economy has expanded four to five times since it started liberalization efforts two decades ago, its trade and investment relations with East Asia have grown sharply, noted Rajeev Anantaram, senior associate editor of the Business Standard daily.

[xchrom]

6. to the start of a new week

:donut:

[Demeter]

9. May it be somewhat less awful than last week

Had a thunderstorm last night, woke me up.

Today will be a no-fun day for me, personally.

Can't think why it would be different for the global economy.

[xchrom]

17. may the day go by quickly for you

:toast:

[Demeter]

20. That is the only way out, I suppose

That and Doc's patent remedy...

[xchrom]

22. so, what's happening today?

do you have dr's appointments?

or board stuff?

[Demeter]

25. No, I'm doing paid employment today

just for a change.

[xchrom]

26. ah! -- well really -- i do hope it goes by quickly then

& stresses you the least it can.

it's terrible to be weighed down by work.

[Demeter]

24. Dawn has broken, might as well get on with it

Once more into the breach, dear friends...maybe see you later on the other side...

[xchrom]

34. take care, miss demeter!

:hi:

[Roland99]

45. yeah...the weekend is over

had a lot of Food and a fair amount of Wine (well, more like margaritas and beer)

Epcot's Food and Wine festival is going on. Diet kinda went out the window this weekend!


Sorta like common sense has gone out the window in the markets.

[AnneD]

51. BTW....

how is that working for you? Inquiring minds want to know.

[Roland99]

52. the diet?

went great! until this weekend. lol

take me a few days to "recoup the gains" but otherwise, I'm surprised at how stable my weight was maintaining over the previous 2 weeks. no more than 1 lb up or down.

[AnneD]

56. I thought you were doing a high protein thing......

but I am glad to here you enjoyed the weekend anyway.:)

[Roland99]

57. Yeah...that's actually what i have been doing but it came after an earlier phase in the diet

you've probably heard of the hcg diet? shot down as a fad by many but loved by others (incl me and my fiancee :) )

We both did that and it's been amazing at how well it works.

It has very specific protocols to follow but we kinda changed it up for the later phase to do the high protein breakfast and no snacking during the day and it was working wonders for me...cannot believe how well my weight stabilized.

Just takes a while to get out of the habit of eating stuff that's bad and also eating at times that aren't actual meal times :)

[AnneD]

58. I have actually ....

been considering it. I am aware of the specifics. I am glad you have been doing well. I need to hear first hand before I commit to something like that.

[Roland99]

59. I can tell you about anything you'd like to know!

:)

My fiancee has done several rounds of hcg...has lost about 80lbs total. My mom's done a couple of rounds, my younger sister is on her 2nd. Plus, we have several other friends who have done at least one round and everyone praises it and no one had any issues on it.

I tend to suffer from low-blood sugar so I was worried how this would affect me. Didn't have any issues at all.

I'm at my lowest weight in about 15 years! :)

[Demeter]

10. VW heading for car industry crown

Forecasts show relentless global growth means the German carmaker will claim top spot for both sales and production

Read more >>
http://link.ft.com/r/OZMCDD/62W9SQ/4VXHZ/ORFS7S/R3H23O/E4/t?a1=2011&a2=10&a3=24

[Demeter]

11. China milk group eyes Pfizer baby food unit

Mengniu Dairy is considers bid for Pfizer’s infant nutrition business as potential buyers prepare for the start of the sales process next month

Read more >>
http://link.ft.com/r/OZMCDD/62W9SQ/4VXHZ/ORFS7S/XH04H5/E4/t?a1=2011&a2=10&a3=24

WORDS FAIL ME. PFIZER SHOULD BE SHOT LIKE A RABID DOG IN THE STREET

[bread_and_roses]

31. Hey - according to some around here, capitalism is "benevolent"

ROFL. Yeah. Like Nestle - how "benevolent" they were, getting mothers to formula instead of breast-feed and poison their own children with dirty water.
K&R

edit - forgot to add today's offering http://www.commondreams.org/headline/2011/10/24-0

Last year, although enough food was produced to satisfy the world's needs, at least one billion people went hungry, according to UN estimates.

The same number lacked access to clean water and more than 2.6 billion people still have no adequate sanitation. Most of the world's population now live in towns and cities, not the countryside, for the first time in history. But the urban centres that people are joining are the world's burgeoning megacities, in each of which tens of millions of people live in penury without electricity, water, toilets or enough to eat.

Child seven billion will be born into a different world to that which Adnan entered – one threatened by terrorism, economic crisis, climate change and new wars unthought of in 1999. But the problems that the exploding population will unleash may, according to some commentators, make today's crises seem mild.

no worries though - stock market is doing just fine, lots of profit to be made off death and suffering

[xchrom]

12. europe: Sarkozy and Merkel at odds over Spanish efforts to rein in deficit

http://www.elpais.com/articulo/english/Sarkozy/and/Merkel/at/odds/over/Spanish/efforts/to/rein/in/deficit/elpepueng/20111023elpeng_4/Ten

Depending on which European leader one listens to, Spain is either no longer at risk of being dragged down by the Greek default débâcle, or else in serious need of making a renewed bid to restore market confidence.

French President Nicolas Sarkozy on Sunday praised the "enormous efforts" made by Spanish Prime Minister José Luis Rodríguez Zapatero and the "responsibility" of opposition leader Mariano Rajoy in dealing with the economic crisis. "Spain is no longer on the front lines" of the euro-zone debt crisis, said the French leader after an emergency meeting of the European Council in Brussels to discuss solutions for the single-currency bloc. Another meeting is set for Wednesday.

But a day earlier, German Chancellor Angela Merkel demanded more action from the Spanish government. "Spain has done a lot, but it will probably have to do much more to restore market confidence," she warned.

Spanish government sources reacted to Merkel's words by pointing out that Spain has already taken "additional measures" to ensure that the public deficit target of six percent of GDP by the end of 2011 is met. "The supplementary effort that Merkel is demanding has already been made," said sources at La Moncloa, the seat of government.

[xchrom]

15. Britons' finances squeezed and outlook bleak

http://uk.reuters.com/article/2011/10/24/uk-britain-consumer-finances-idUKLNE79N00720111024

(Reuters) - Families' household finances were marginally worse in October than in the previous month and their expectations for the year ahead slumped to a six-month low, with public sector workers among the most downbeat, a survey showed on Monday.

The monthly Markit Household Finance Index crept down to 35.0 in October from 35.1 in September, still well below the 50 level that separates improvement from a deterioration in household finances.

After picking up over the summer, expectations for their finances in a year's time fell sharply to reach 34.5, its lowest point in six months. That was its biggest month-on-month fall since the survey began in February 2009.

"Household finances were once again gripped in a vice of subdued real incomes and heightened job insecurity in October," said Tim Moore, senior economist at Markit.

[xchrom]

32. Eurozone debt crisis live: Eurozone lurches closer to recession

http://www.guardian.co.uk/business/2011/oct/24/european-debt-crisis-live

1.10pm: There will be a full German parliamentary session to vote on a proposal to leverage the EFSF, Reuters is reporting.

It had been thought that only the budget committee would vote on the proposal, but it now seems that Germany's lower house of parliament will vote on the issue.
Live blog - France flag

12.38pm: While everyone is trying to guess how much extra capital European banks will need, Bank of France governor Christian Noyer has helpfully provided some guidance. He said French banks would need less than €10bn to raise their core capital ratio to levels agreed by EU finance ministers at the weekend. He added that French banks, which are heavily exposed to Greek debt, could raise their capital levels without needing an injection of state funds.

12.07pm: Louise Cooper, markets analyst at BGC Partners, has looked at the prospects for Italian reform.

How keen will Ms Merkel be to help Italy given that she has personally been the butt of many of Berlusconi's "jokes" for years. Only last month it was widely reported that he called her an "un****able lard arse' and back in April 2009, he kept Merkel waiting on the tarmac for 15mins on his arrival at the NATO summit while he took a phone call. I wonder if her regrets such rudeness now given that Germany holds the purse strings should his country need more help?

[Demeter]

13. ABN Amro seeks new life as global force

Dutch bank is on a mission to re-emerge as a force in the sector and has vowed to buy eurozone financial assets that capital-stretched banks are selling

Read more >>
http://link.ft.com/r/OZMCDD/62W9SQ/4VXHZ/ORFS7S/TUGZUB/E4/t?a1=2011&a2=10&a3=24

[xchrom]

23. oy. nt

[Demeter]

14. China braced for wind turbine slowdown

World’s biggest market expects a sharp reduction in installations this year, a move that will spark a ‘bloodbath’ among producers

Read more >>
http://link.ft.com/r/OZMCDD/62W9SQ/4VXHZ/ORFS7S/SPBAPO/E4/t?a1=2011&a2=10&a3=24

[Demeter]

16. ‘Obama doctrine’ begins to take shape

Foreign analysts say the approach underlines a form of high-tech, low-budget and politically astute intervention that maximises the influence of the US

Read more >>
http://link.ft.com/r/WDI4RR/EX9U3S/T10SH/2OOGB7/WTO5LI/B7/t?a1=2011&a2=10&a3=24

THE REPUBLIC IS DEAD, LONG LIVE THE EMPIRE. IMV

[Demeter]

18. Libyans awake from a ludicrous nightmare

Cunning and ruthless, Gaddafi held on to power for 42 years, but beyond that and despite all his buffoonery, in the end he achieved nothing

Read more >>
http://link.ft.com/r/WDI4RR/EX9U3S/T10SH/2OOGB7/U187UY/B7/t?a1=2011&a2=10&a3=24

IF GADDAFFI HAD DONE "NOTHING", HE WOULDN'T HAVE BEEN ATTACKED AND MURDERED. HE ALONE STOOD IN THE WAY OF RECOLONIZING AFRICA MILITARILY AND ECONOMICALLY.

[xchrom]

28. COMMODITIES-Copper, oil rise on Europe's debt steps, China PMI

http://uk.reuters.com/article/2011/10/24/markets-commodities-idUKL3E7LO17R20111024

KUALA LUMPUR, Oct 24 (Reuters) - Commodities gained across the board on Monday after Europe made progress in its plan to contain the region's debt crisis and an index showed China's manufacturing sector expanded in October.

Spot gold rose for a second day after four straight days of declines last week. Brent crude LCOc1 climbed more than $1 to above $110.56 a barrel after tumbling almost 3 percent last week.

Investors await Europe's unveiling of a plan on Wednesday to stave off a Greek default, write down debt and recapitalise banks as leaders near agreement on how to leverage their rescue fund to try stop the crisis from spreading.

HSBC's flash purchasing managers' index showed China's manufacturing sector expanded in October, snapping three months of contraction and easing concern demand may slump in the main driver of commodities demand growth.

[xchrom]

29. Gold rises 1 pct on Europe prospects, China data

http://uk.reuters.com/article/2011/10/24/businesspro-us-markets-precious-idUKTRE78M11C20111024

(Reuters) - Gold rose more than 1 percent on Monday, as European leaders edged toward a solid plan to resolve the euro zone debt crisis and signs that China's economy is in better shape than feared.

In recent weeks gold prices have followed moves in riskier assets, with the precious metal's safe-haven appeal diminishing after wild price swings in the past quarter. Gold gained along with other commodities and world stocks.

Spot gold rallied more than 1 percent to $1,658.55 an ounce and was at $1,656.90 by 1118 GMT, after falling more than 2 percent last week. U.S. gold rose more than 1.4 percent to $1,660.5 before easing to $1,656.

"The equity markets are rising, the rest of commodities are rising, but the gold price is not coming under pressure. It's also probably pointing to the possibility that the situation could again become critical," Commerzbank analyst Eugen Weinberg said.

[xchrom]

30. United States tipped to lose another AAA credit rating

http://www.guardian.co.uk/business/2011/oct/23/united-states-aaa-credit-rating

The United States will probably suffer the loss of its triple-A credit rating from another rating agency by the end of this year because of concerns over the deficit, Bank of America Merrill Lynch is forecasting.

The trigger would be a likely failure by Congress to agree on a credible long-term plan to cut the deficit.

A second downgrade – either from Moody's or Fitch – would follow Standard & Poor's downgrade in August and represent an additional blow to the sluggish US economy, Merrill said.

"The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan to cut the deficit," Merrill's North American economist, Ethan Harris, said. "We expect at least one credit downgrade in late November or early December when the super committee crashes."

[AnneD]

41. Last time we dropped...

money moves from greenbacks to precious metals.

IMHO: Now if I were a speculating person, or had extra money in my pocket, I think now is the time to add a little extra while it is priced so low.

I do not think the super committee has the spine to do what is really needed...raise taxes esp on the 1%, cut defense spending, and leave human services alone. Promoting policies that promote manufacturing in this country and repair our crumbling infrastructure would also go a long way to improve the situation. But hey, that's just me. We have tried what the GOP has suggested for the last 10 years and it hasn't worked. Think is is time to try something different.

[mrdmk]

43. This speculation coming from B of A is truly vile...

Then again, these assholes may know something considering they just dumped $53 trillion of worthless securities onto USA taxpayer.

[AnneD]

50. I just heard about that...

in the Keiser Report. Trying to unload their gambling debts at our expense. Let them fail. Pay the depositors and let the bank go under.

[xchrom]

33. Caterpillar quarterly earnings rise 44 percent

http://www.guardian.co.uk/business/feedarticle/9910757

Oct 24 (Reuters) - - Caterpillar Inc reported a 44 percent quarterly earnings increase and record revenue due to strong demand, far exceeding analyst estimates.
The world's largest heavy machinery manufacturer reported third-quarter net income attributable to common shareholders of $1.14 billion, or $1.71 per share, compared with $792 million, or $1.22 per share, a year earlier.
Analysts on average had expected Caterpillar to earn $1.54 per share in the third quarter.
Sales rose 41 percent to $15.7 billion, which is a record, according to the company.
Caterpillar said full-year 2011 results would come in at the highest end of its previous outlook.

[xchrom]

35. Argentine economy may test victorious Fernandez

http://www.guardian.co.uk/business/feedarticle/9910759

BUENOS AIRES, Oct 24 (Reuters) - Argentine President Cristina Fernandez has breezed to re-election but she may need to make changes soon to the quirky policy mix that is behind the fastest economic growth in Latin America.
Fernandez won a second four-year term on Sunday with around 54 percent of the votes, about 37 percentage points ahead of her nearest rival. She also appeared to have regained a working majority in Congress.
The center-left president owes her popularity to a nearly nine-year economic boom, sustained by high global prices for grains exports as well as free-spending policies aimed at creating jobs and expanding welfare and pension payouts.
Growth this year is seen topping 8 percent but at a cost of high inflation, estimated by private economists at about 25 percent.

[xchrom]

36. Collapse of a clearing house could cause 'mayhem' warns Bank

http://www.guardian.co.uk/business/blog/2011/oct/24/clearing-house-collapse-mayhem-bank

Paul Tucker, deputy governor of the Bank of England, has warned today that the collapse of a clearing house could be worse than the failure of a big bank.

Tucker, in fact, reckons there would be "mayhem" if one of the so-called central counterparties (CCPs) were to run into difficulty.

A central counterparty is a clearing house that essentially guarantees trading activity between different banks and institutional investors. They are used to "clear" activity on stock exchanges and derivatives exchanges but since the 2007 credit crunch there have been calls for so-called over-the-counter trading - which does not take place on exchanges - to also be cleared through one of these exchanges. The idea is that CCPs make such trading activities less risky.

In a speech in Brussels, Tucker states

There is a big gap in the regimes for CCPs – what happens if they go bust? I can tell you the simple answer: mayhem. As bad as, conceivably worse than, the failure of large and complex banks.

Amid all the talk about solving the "too big to fail" dilemma of banks, Tucker is arguing that there also needs to be "resolution regime" for these CCPs.

[snot]

38. Have CCPs been speculating, too?

Off-hand, I don't see why they'd be in danger otherwise.

[DemReadingDU]

39. Who is not speculating?

I really have no idea if CCPS have been speculating or not.

[RUMMYisFROSTED]

48. Bully Bully

http://www.youtube.com/watch?v=MHF558u6Q_8


Or


Wholly Bully? :shrug:

[Roland99]

53. read a new term today re: QE3 - Bank Asset Reflation Fund ... or... BARF

[DemReadingDU]

55. I feel sick

:puke:

[AnneD]

60. If ever there were an accurate anacronym....

BARF would be that one.:rofl:

[Roland99]

54. ouch, Netflix (Cramer said BUY on Sept. 26 at $135)

Netflix Implodes After Reporting Horrific Guidance; Notes It Repuchased Stock At $218 Avg Cost Basis
http://www.zerohedge.com/news/oops-netflix-sees-revenue-profits-4q-lower-expected