STOCK MARKET WATCH, Tuesday February 12

[ozymandius]

Source: du

STOCK MARKET WATCH, Tuesday February 12, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 344
DAYS SINCE DEMOCRACY DIED (12/12/00) 2578 DAYS
WHERE'S OSAMA BIN-LADEN? 2304 DAYS
DAYS SINCE ENRON COLLAPSE = 2595
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.

AT THE CLOSING BELL ON February 11, 2008

Dow... 12,240.01 +57.88 (+0.48%)
Nasdaq... 2,320.06 +15.21 (+0.66%)
S&P 500... 1,339.13 +7.84 (+0.59%)
Gold future... 926.70 +4.40 (+0.47%)
30-Year Bond 4.41% -0.03 (-0.77%)
10-Yr Bond... 3.62% -0.04 (-0.99%)






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: An Inverted Pyramid Scheme

BY ROB KIRBY

Last week on February 5, the Australian Central Bank raised interest rates by a quarter-point to 7.00% in an “effort” to rein in inflation.

Two days later on February 7, the European Central Bank (ECB) held rates steady at 4.00% while the Bank of England (BOE) lowered interest rates by a quarter-point to 5.25%.

Both the ECB and the BOE were reported in the mainstream financial press as ‘weighing concerns’ of inflation against those of a global economic slowdown.

These actions along with this reporting, taken together, almost makes you want to believe that interest rates are the sole determinant of inflation, eh?

Sadly, almost everyone believes this, usually because some accredited news outlet like Bloomberg or Reuters says so. Interest rates, unto themselves, have very little to do with Inflation. Money Growth on the other hand, has everything to do with inflation. This is why the Federal Reserve canceled M3 Money Supply reporting; they quite simply do not want us to know how fast they are growing the money supply because it would make a complete mockery of their “officially published” inflation reports in the 2 – 3% range:
.....

Folks should understand that all fiat money is loaned into existence. Thus, when fiat money is ‘created,’ explicitly, the principal sum (loan) is created out of thin-air, but the interest to be repaid is not. Hence, to service the newly created debt, ever increasing amounts of additional new fiat money must be created. This necessitates an ever-increasing money supply that resembles an ever-expanding ‘inverse’ pyramid:

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

[ozymandius]

2. Today's Report

2:00 PM Treasury Budget Jan
Briefing Forecast $15.0B
Market Expects $20.0B
Prior $38.2B

http://biz.yahoo.com/c/e.html

[UpInArms]

41. Economy near contraction in 1st quarter: Philly Fed

http://www.reuters.com/article/bondsNews/idUSN1223852520080212

NEW YORK (Reuters) - The U.S. economy will struggle to grow in the first quarter of this year and faces an almost 50 percent chance of contracting, a quarterly survey issued by the Philadelphia Federal Reserve Bank showed on Tuesday.

Unemployment will edge higher given feeble job creation in the first three months of the year as the world's largest economy teeters on the brink of shrinking for a second consecutive quarter.

Forecasters saw a 47 percent probability of contraction in gross domestic product this quarter and a 43 percent chance in the second quarter, levels not seen since the recession in 2001 in the wake of the dot-com bubble, the survey said.

"Although the forecasters' median estimate for real GDP this quarter and the next suggests slow but positive growth, they think the risk of a contraction is high," it said.

"These current-quarter and one-quarter-ahead risks have not been this high since the survey of 2001 Q4, when they were 82 percent and 49 percent, respectively," the survey added.

The 50 forecasters pegged current-quarter growth in real GDP at a rate of just 0.7 percent, a sharp drop from the previous forecast of 2.2 percent.

...more...

[UpInArms]

42. Jan. federal budget surplus falls to $17.8B vs. $38.3B

01. Jan. federal budget surplus falls to $17.8B vs. $38.3B
2:14 PM ET, Feb 12, 2008 - 11 minutes ago

[ozymandius]

3. Oil falls to $93 after jumping almost $2

SINGAPORE - Oil prices retreated Tuesday after jumping almost $2 in the previous session on concerns about potential supply disruptions in Venezuela and Nigeria.

Crude futures were supported by Venezuelan President Hugo Chavez's threat Sunday to cut off oil sales to the U.S. in retaliation for court orders freezing assets belonging to Venezuela's state oil company, and by reports of new violence in Nigeria, Africa's largest oil producer and a major supplier to the U.S.

Light, sweet crude for March delivery lost 55 cents to $93.05 a barrel in Asian electronic trading on the New York Mercantile Exchange by midday in Singapore. On Monday, the contract jumped $1.82 to settle at $93.59 a barrel.
.....

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

[Roland99]

13. Wholesale gas apparently shot up

I saw last week it was about $2.24 but this morning it's *down* to $2.38.

[ozymandius]

4. Feds to unveil new mortgage-help plan

WASHINGTON - At-risk borrowers with all types of mortgages, not just high-cost subprime loans, could be eligible for help under a new plan involving six big home lenders. The plan, called Project Lifeline, will be announced Tuesday by the Treasury Department and the Department of Housing and Urban Development, said a person familiar with the plan who confirmed earlier news reports about the plan but spoke on condition of anonymity because it had not yet been made public.

Against a backdrop of surging defaults and administration officials' prodding of the mortgage industry, the plan will allow seriously overdue homeowners to suspend foreclosures for 30 days while lenders try to work out more affordable loan terms.

On a pilot basis, the plan will involve six of the largest mortgage lenders, in hopes that more lenders will sign on. The participants are Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co.

All six are involved in Hope Now, an effort the Bush administration brokered with the mortgage industry late last year to freeze rates on some high-cost subprime mortgages for five years to aid borrowers whose teaser rates are jumping sharply higher. Since then, Treasury Secretary Henry Paulson has urged lenders to expand that effort to cover struggling homeowners with conventional mortgages.

http://news.yahoo.com/s/ap/20080212/ap_on_bi_ge/mortgage_mess_rescue

[kickysnana]

5. Uneasy mood on Wall Street

http://money.cnn.com/2008/02/12/markets/stockswatch/index.htm

LONDON (CNNMoney.com) -- U.S. stock futures fell early Tuesday as investors remained nervous about the widening scope of the credit fallout and awaited a string of earnings reports.

At 5:21 a.m. ET, Nasdaq and S&P futures were indicating declines at the start of trading.

<snip>

In global trade, Asian stocks finished mixed. European shares edged higher as bargain hunters offset a steep drop in profit at Credit Suisse. The Swiss bank's fourth-quarter profit dropped 72% after it took credit-related writedowns.

[ozymandius]

6. Chevron, BofA join Dow industrials

NEW YORK - Bank of America Corp. and Chevron Corp. will replace tobacco company Altria Group Inc. and manufacturer Honeywell International Inc. in the Dow Jones industrial average, giving the stock market's best-known indicator bigger slices of the banking and energy sectors.

The changes to the index, which since 1928 has comprised 30 stocks, reflects changes at Altria, better known by its former name, Phillip Morris Cos. The maker of Marlboro cigarettes last year spun off its Kraft Foods Inc. division after earlier selling most of its Miller Brewing unit, and it will soon corral its international tobacco operations into a separate company.
.....

Bank of America, based in Charlotte, N.C., is the nation's biggest bank by deposits. The banking sector has taken on a larger role in the overall economy in the last 10 to 20 years, said John A. Prestbo, editor of Dow Jones Indexes.
.....

Chevron, the energy company based in San Ramon, Calif., joins rival Exxon Mobil Corp. as a Dow component. Chevron had been part of the Dow twice before. The company, then known as Standard Oil Co. of California, had a brief stint in the mid-1920s before what would become Chevron had a long run as a Dow stock from 1930 until 1999.
.....

The changes, which occur Feb. 19, are the first since April 2004 when the index added insurer American International Group Inc., drug maker Pfizer Inc. and telecommunications company Verizon Communications in place of what was then AT&T Corp., Eastman Kodak Co. and International Paper Co. The AT&T name has since resurfaced in the Dow through phone-company mergers.

http://news.yahoo.com/s/ap/20080211/ap_on_bi_ge/dow_jones_components

[ozymandius]

7. Weak inflation data boost FTSE

London stocks moved higher on Tuesday as surprisingly weak UK inflation data raised hopes that interest rate cuts were still on the agenda.

Consumer price inflation rose to an annual 2.2 per cent in January, from 2.1 per cent in December, which was less than the 2.3 per cent that had been expected.

In contrast with Monday's surprisingly high factory gate inflation data, the CPI numbers raised hopes that the Bank of England may have room to cut interest rates further.

Despite this, Howard Archer, strategist at Global Insight, said aggressive cuts in UK interest rates were still unlikely.
....

The financial sector remained under pressure after AIG revealed $5bn in losses from insuring mortgage-related investment instruments. The biggest fallers on the UK market on Monday were the insurers, and they were weaker again on Tuesday.

http://news.yahoo.com/s/ft/20080212/bs_ft/fto021220080549417889

[Ghost Dog]

15. Oil majors lift European shares, financials weigh

FRANKFURT, Feb 12 (Reuters) - European shares inched higher on Tuesday as gains in oils majors offset weaker financials after Credit Suisse's (CSGN.VX: Quote, Profile, Research) earnings and market talk of a large writedown at Dutch group ING (ING.AS: Quote, Profile, Research).

Heavyweight oil shares BP (BP.L: Quote, Profile, Research), Shell (RDSa.L: Quote, Profile, Research) and Total (TOTF.PA: Quote, Profile, Research) rose by 1.1 to 1.6 percent each as oil stayed above $93 a barrel. The Dow Jones Stoxx oil and gas index was up 1.2 percent.

Rising commodity prices boosted mining shares with Rio Tinto (RIO.L: Quote, Profile, Research) and BHP Billiton (BLT.L: Quote, Profile, Research) and Anglo American (AAL.L: Quote, Profile, Research) rising 1.1 percent.

ING was the top percentage loser in Europe, sliding 5.3 percent on market talk of large writedowns linked to U.S. real estate. ING declined to comment on the talk, but a spokeswoman said the firm "was perfectly aware of its obligation to report any material deviations."

Credit Suisse fell 3.4 percent after the Swiss bank said it trimmed its full-year writedowns linked to the subprime crisis to 2.0 billion Swiss francs ($1.82 billion), but also reported a 49 percent fall in fourth-quarter net profit, slightly below analysts' expectations.

By 0915 GMT, the pan-European FTSEurofirst 300 index was up 0.3 percent at 1,294.86 points, after the index fell almost 1 percent on Monday.

/... http://www.reuters.com/article/marketsNews/idCAL124258320080212?rpc=611

[Ghost Dog]

16. Oils boost FTSE, insurers ignite credit concerns

LONDON, Feb 12 (Reuters) - Britain's top share index rebounded on Tuesday, led by oil majors, while financial stocks lagged as potential trouble at Standard Chartered's (STAN.L: Quote, Profile, Research) and a major U.S. insurer fed ongoing credit worries.

At 1007 GMT, Britain's FTSE 100 index .FTSE was up 0.6 percent at 5,738.9, helped by overnight gains on Wall Street and UK consumer inflation data that was tamer than expected.

BP (BP.L: Quote, Profile, Research) rose 1.1 percent and Royal Dutch Shell (RDSa.L: Quote, Profile, Research) gained 1.7, as crude prices remained above $93 a barrel benefiting from Venezuela's threat to stop sales to the world's top consumer, the United States.

Life insurers were the largest drag on the index, after AIG (AIG.N: Quote, Profile, Research), the world's largest insurer, unveiled potential losses in its derivatives portfolio. London-listed peers Old Mutual (OML.L: Quote, Profile, Research) fell 3.5 percent, while Standard Life (SL.L: Quote, Profile, Research) shed 1.6 percent.

"There's a lot going on beneath the surface. These subprime stories are continuing to (float) around, we've seen the write-off AIG have announced, Standard Chartered (STAN.L: Quote, Profile, Research) allowing its funds to go under," said Peter Dixon, economist at Commerzbank.

"All of these factors I think suggest that investors will remain extremely cautious with regards to overly-exposing themselves to an equity market which could easily turn south when we get bad news out there," Dixon said.

Standard Chartered's plan to provide $7 billion of backing to a structured investment vehicle fell through on Monday as deeper losses in the underlying assets forced it to appoint a receiver for the SIV.

/... http://www.reuters.com/article/marketsNews/idCAL1220512320080212?rpc=611

[Ghost Dog]

17. German economic sentiment lifts

German investor confidence has unexpectedly improved despite falling exports and signs of a global slowdown.

According to research firm the Zew Institute, its main gauge of confidence was at -39.5 points in February, up from -41.6 points in January.

February's reading is still well below the survey's average of 30.7 points, but was much better than expected.

Zew said the figures indicated that the global financial crisis would not affect Germany's long-term prospects.

Stability return?

There have been mounting fears that the cautious economic recovery in Germany, the largest in the 15-nation euro bloc, would be derailed by problems in the US, a key export market.

At the same time, a stronger euro was also expected to dampen demand for German-made products.

However, Zew forecast an improving environment for German exporters over the next six months.

"The positive development of the economic sentiment for Germany signals that the current crisis is not expected to trigger a downward spiral for the German economy," said Zew president Professor Wolfgang Franz.

/.. http://news.bbc.co.uk/2/hi/business/7240552.stm

[Ghost Dog]

29. Buffett plan lifts European stocks

European equities moved sharply higher on Tuesday, as financial stocks rallied after billionaire US investor Warren Buffett offered to help out troubled bond insurers.

Mr Buffett's Berkshire Hathaway company is to offer reinsurance on up to $800bn in municipal bonds to Ambac, MBIA and FGIC.

Just ahead of the Wall Street open, the FTSE Eurofirst 300 was up 1.7 per cent to 1,312.93, Frankfurt's Xetra Dax added 2.1 per cent to 6,884.31, the CAC 40 in Paris rose 1.8 per cent to 4,775.84 and London's FTSE 100 gained 2 per cent to 5,809.3.

The mood was also lifted by a survey showing investor confidence in Germany unexpectedly improved in February, the first time it has done so since May last year.

Banks reversed earlier losses, with some traders pointing to technical buying after recent losses. Among them, BNP Paribas was up 3.2 per cent to EU60.35 and UniCredit rose 4.6 per cent to EU4.77.

"This is a small technical spike, most of the buying we're seeing isn't people taking long positions, it's people closing shorts," said a trader.

Credit Suisse (NYSE:CS), the Swiss bank, was unable to hold early gains, however, despite confidence in its investment and private banking business and proposal of a 12 per cent increase in its dividend.

The shares were only 0.2 per cent higher at SFr56.20 after the bank reported weaker-than-expected full-year net profit.

Insurers recovered some poise, shrugging off Monday's news that US group AIG had announced $5bn losses from insuring mortgage-related investment instruments.

German insurer Allianz was up 0.6 per cent to EU113.90, France's Axa added 1.2 per cent to EU21.28 and Swiss Re climbed 2 per cent to SFr74.25.

Oil companies and utilities added further weight to the gains. The energy sector was buoyed by an overnight $2 rise in crude to $93 a barrel.

Norway's StatoilHydro rose 2.5 per cent to NKr145.10, Spain's Repsol (NYSE:REP) gained 3.5 per cent to EU21.82 and Italy's Eni added 3 per cent to EU21.87. Among the utilities, Germany's Eon rose 2.4 per cent to EU130.56 and Spain's Gas Natural gained 3.1 per cent to EU39.08.

Hopes of consolidation in the European truck industry lifted shares of Germany's Man 3.5 per cent to EU84.66. Man's largest shareholder Volkswagen, which owns nearly 30 per cent, on Monday raised its stake in Sweden's Scania, the long-time target of both Man and VW.

Scania's B shares rose 1.1 per cent to SKr124, while VW gained 1.2 per cent higher to EU151.63.

Carmakers were also lifted from recent lows. Germany's Porsche rose 4.3 per cent to EU1,140.04 and Italy's Fiat added 3.3 per cent to EU14.18.

Solar power group Renewable Energy Corp rose 10 per cent to NKr121 after reporting a forecast-beating 25 per cent rise in fourth-quarter underlying profit. The company said it expected revenue growth of about 25 per cent in 2008, disappointing market forecasts of 40 per cent.

Rival green energy companies were lifted by REC's results. Germany's biggest solar group Q-Cells rose 7.4 per cent to EU59.04, while Danish wind turbine maker Vestas Wind Systems gained 5.2 per cent to DKr524.

/. http://news.yahoo.com/s/ft/20080212/bs_ft/fto021220080905287897

[ozymandius]

8. Cheaper Wi-Fi at Starbucks good for customers, bad for T-Mobile

Give a tip of the winter hat today to T-Mobile, which did a lot of the heavy lifting to spread the goodness that is Wi-Fi into public locations, including the Starbucks coffee chain.

T-Mobile started building out Wi-Fi “hot spots” at Starbucks six years ago, well before the mass market really knew what a wireless Web connection could do—and before most laptops and hand-held devices could take advantage.

Now that Wi-Fi is available practically everywhere—and often for free—T-Mobile’s biggest Wi-Fi ally has a new partner, AT&T. This is good news for Wi-Fi consumers as the prices to get online at Starbucks will drop sharply. But it's bad omen for T-Mobile, the nation's most innovative wireless carrier.

Starting in the spring, the first two hours of wireless surfing will cost nothing at Starbucks. After that, it’s $3.99—the cost of a grande latte—for a two-hour session. Right now, it costs up to $10 a day to use Wi-Fi at Starbucks through T-Mobile.
.....

As for T-Mobile, losing Starbucks is clearly a blow. The carrier will honor the existing deals it has with its T-Mobile Wi-Fi customers at Starbucks as it also maintains Wi-Fi relationships with Borders, FedEx Kinko’s outlets, numerous hotel chains and airport lounges.

T-Mobile will continue to pioneer another Wi-Fi initiative, its “HotSpot @ Home” service. Any call made by a T-Mobile customer with this service and a proper phone is routed over the Internet rather than a cellular network. That makes the call free.

http://featuresblogs.chicagotribune.com/eric2_0/2008/02/cheaper-wi-fi-a.html

[ozymandius]

9. Asia mixed as AIG troubles keep subprime fallout in the spotlight UPDATE2

SINGAPORE, Feb. 12, 2008 (Thomson Financial delivered by Newstex) -- Stock markets across Asia were mixed Tuesday with Hong Kong ending a three-session losing streak as investors searched for bargains while Japan struggled as financials were hit by continued concerns about credit markets.
......

The major US indexes reversed early losses to close higher overnight, after earlier falling on the disclosure from insurance giant AIG (NYSE:AIG) that it's having trouble putting a value on some of its credit derivatives, the latest sign of stress in the financial sector.

AIG said its portfolio lost 4.9 billion dollars in gross market value in the October to November period, more than four times the 1.5 billion-dollar loss that executives had estimated in December.

The company, a component of the Dow Jones Industrial Average, said its auditor,
PricewaterhouseCoopers, believes it has a 'material weakness ' in its internal controls over financial reporting and oversight although it disagrees with that assessment.

Fitch Ratings said it may cut the company's Triple-A rating. The stock closed down 12 percent at a five-year low.

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-22948089.htm

[Ghost Dog]

11. Asian Stocks Gain, Led by BHP and Inpex; Japan's Millea Drops

Feb. 12 (Bloomberg) -- Asian stocks advanced for the first time in three days, led by BHP Billiton Ltd. and Inpex Holdings Inc. on speculation gains in metals prices will help commodities producers withstand global growth.

BHP gained after copper prices rose to a three-month high. Inpex, Japan's largest oil and gas explorer, jumped the most in five months after raising its profit forecast. Esprit Holdings Ltd. led Hong Kong retailers higher on a report the government will offer rebates to the city's taxpayers. Millea Holdings Inc. paced a decline among Japanese insurers on concern credit losses will widen.

``Commodities demand is holding up quite well and we still prefer the resources and energy-related sectors,'' said Beat Lenherr, who helps oversee about $20 billion as Singapore-based chief global strategist at LGT Capital Management. ``The aftershock of the credit crisis will be felt on the companies' balance sheets.''

The MSCI Asia Pacific Index added 0.4 percent to 139.76 at 5:19 p.m. in Tokyo, reversing an earlier drop of 0.4 percent and snapping a two-day, 2 percent decline. All Asian benchmarks gained apart from Taiwan and Indonesia.

The Topix index fell 0.1 percent in Japan, where markets were closed yesterday. Hong Kong's Hang Seng Index added 1.4 percent, ending a three-day, 9.7 percent tumble. China's stock markets were shut for the final day of the weeklong Lunar New Year holidays.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=ayGbNViAYzDk&refer=asia

[Ghost Dog]

12. (India) Industrial growth rate declines (to) 7.6% in Dec '07

NEW DELHI: Dismal performance by manufacturing, mining and electricity sectors has pushed down the industrial growth rate to 7.6 per cent in December 2007 from 13.4 per cent in the corresponding month in 2006.

The decline in the index of industrial production (IIP) in December was mainly on account of the manufacturing sector growth rate, which decelerated to 8.4 per cent from 14.5 per cent in the corresponding period last financial year, showed the quick estimates of IIP released on Tuesday.

The mining and electricity sectors too performed poorly during the month, recording growth rates of 3 per cent and 3.8 per cent respectively as compared to 6.1 per cent and 9.1 per cent in December 2006.

The cumulative industrial growth rate (April-December 2007) also slipped to 9 per cent from 11.2 per cent a year ago.

The nine-month growth rate for manufacturing sector declined to 9.6 per cent from 12.2 per cent in the previous fiscal.

/... http://timesofindia.indiatimes.com/Business/India_Business/Industrial_growth_rate_declines_76_in_Dec_07/rssarticleshow/2776081.cms

[Ghost Dog]

34. China retail sales rise 16% during Spring Festival holiday

BEIJING, Feb. 12 (Xinhua) -- China's retail sales, the country's key gauge of consumer spending, surged 16 percent during the weeklong Spring Festival holiday despite the worst winter storms in half a century.

Consumers spent 255 billion yuan (34.9 billion U.S. dollars), up from 219.8 billion yuan in the same period last year, the Ministry of Commerce reported on its website.

The growth rate compares with 16.8 percent for all of 2007 and 15 percent during last year's holiday.

The ministry attributed the surge to the country's efforts to increase market supply and stabilize prices.

China promised before the holiday it would maintain a stable market and that commodities necessary to the lives of common people would not be out of stock due to the heavy snow that blanketed much of the country.

The government released part of its meat reserves to the market and redistributed 400,000 tons of vegetables between the different regions.

It also exempted vehicles carrying fresh farm products from all road tolls and wholesale suppliers of such products from "as many charges as possible".

Such moves were made following inflation in China rising at its fastest pace in a decade last year, with the consumer price index (CPI) increasing 4.8 percent.

Major retailers in the southwest city of Chongqing saw a year-on-year increase of 35 percent in sales during the Lunar New Year holiday, while those in the snow-hit eastern province of Anhui reported a 23.9 percent rise.

Sales soared 35 percent in Guangdong where 12 million migrant workers, 40 percent of the southern province's total number, chose to stay because of blizzards in their hometowns.

High-end household appliances, digital products, jewelry and thick overcoats became hot sellers in major cities.

/.. http://news.xinhuanet.com/english/2008-02/12/content_7594216.htm

[Pale Blue Dot]

10. GM reports biggest-ever automotive loss

http://www.msnbc.msn.com/id/23124844/

General Motors Corp. is reporting the largest annual loss ever for a U.S. automotive company.

GM said Tuesday it lost $38.7 billion in 2007. The loss largely was due to a third-quarter charge related to unused tax credits.

The loss topped the previous record GM set in 1992, when it lost $23.4 billion. That’s according to Standard & Poor’s Compustat.

Separately, GM is offering a new round of buyouts to 74,000 U.S. hourly workers.

[radfringe]

14. Bush to sign stimulus package Wednesday

Bush to sign stimulus package Wednesday
President said he's looking forward to signing $170 billion economic stimulus package passed last week by Congress. Consumers could see tax rebate checks by May.
February 11 2008: 3:22 PM EST


NEW YORK (CNNMoney.com) -- President Bush said Monday he is pleased with the $170 billion economic stimulus package passed by Congress last week. The White House announced that he plans to sign it Wednesday (correct).

--snip--

The package will pay most individual taxpayers $600 and $1,200 for married taxpayers filing joint returns as long as they are below income caps of $75,000 for individuals and $150,000 for couples. There is also a $300 per child tax credit.

Those rebates will put about $120 billion in the hands of individuals in the hopes that they will spend it and boost a faltering U.S. economy.

Bush made his comments as he signed an in-depth economic outlook prepared by the Council of Economic Advisors. That report forecasts that the economy will be in for a period of slower growth this year, but should be able to avoid a recession.

But there have been other reports in recent weeks showing increasing signs that the U.S. economy has already slipped into a recession.

---------REBATES: WHAT YOU NEED TO KNOW---------

http://money.cnn.com/2008/02/08/pf/taxes/rebates_what_you_need_to_know/index.htm

Do I qualify for a rebate and how much can I expect?

One-time rebates will be sent to at least 117 million low- and middle-income households, 20 million senior citizens living off of Social Security, and 250,000 disabled veterans.

To be eligible for a full rebate, single tax filers must have 2007 adjusted gross income (AGI) below $75,000 and joint filers must have AGI below $150,000.

Do I have to pay the rebate back?

No. And here's why.

Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.

It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.

"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized."

[Roland99]

18. Things are gonna be rockin' now!!

:eyes:

[Ghost Dog]

22. Economy Rebounds Before Election, Treasuries Show

Feb. 11 (Bloomberg) -- Before you can say ``Barack Obama is president of the United States,'' the economy will be growing faster again.

That forecast is based on the rise in the five-year Treasury yield from its lowest level relative to two- and 10- year notes since 2001. The last two times that happened was during the recessions of 1990 and 2001, and the economy began to expand within nine months.

``We're actually starting to see tell-tale signs by the market that it expects the economy to be in recovery in six to nine months,'' said James Caron, head of U.S. interest-rate strategy in New York at Morgan Stanley. The five-year note ``tends to be the most forward-looking point on the curve,'' said Caron, whose firm is one of the 20 primary dealers of U.S. government securities that trade with the Federal Reserve.

If past is prologue, then the five-year note's yield indicates the economy will be on the mend by the Nov. 4 general election. Whoever wins the White House may have Fed Chairman Ben S. Bernanke to thank for cutting interest rates at the fastest pace in almost two decades and President George W. Bush and Congress for a proposed $168 billion stimulus package.

Obama, the junior senator from Illinois, and New York Senator Hillary Clinton each control about half the delegates needed for the Democratic Party's nomination. Arizona Senator John McCain is the front-runner among Republicans.

`Put in Place'

While the risk of a recession is now even, growth will accelerate to a 2.5 percent annual rate in the final three months of the year from 0.6 percent last quarter, according to the median forecast of 62 economists polled by Bloomberg News from Jan. 30 to Feb. 7.

``The economy in the second half will definitely get a boost from the fiscal plan'' and Fed rate cuts, said Stuart Spodek, co-head of U.S. bonds in New York at BlackRock Inc., which manages $513 billion in debt. ``The pieces are being put in place.''

/... http://www.bloomberg.com/apps/news?pid=20601009&sid=ae1U8qzSaYKo&refer=bond

( :sarcasm: icon probably not necessary).

[Roland99]

23. Total denial

[radfringe]

24. my partner and I

are planning on tucking that money away to buy cord wood for heating use next winter

this year we put up about 10 cords, went through about 7-1/2 cords already. With my partner home all day, we keep the stove burning, so have used more than we originally anticipated.

cord wood for this year ran us about $900, if we didn't use woodstove, the heating fuel costs would have been in the $1,500-$2,000 range. We bought 100 gallons of heating fuel in october, we have a bit less than 1/8th tank left (our oil tank is 550 gallons, and at the most we only get it filled 1/2 way). partner called oil company yesterday, getting the minimum delivery amount this week. Should hold us well into June.

last year we were looking at pellet stoves, problem with those is they need electricity to run the augur and fan - and if we lose power, we're SOL for heat. Still debating about going that route, and at this point it's moot - don't have the money to buy and install one anyways.

we've also been going into the woods behind our house, picking up/dragging the "dropped wood" and trees that have fallen over. We'll be cutting that up and stacking for drying for use in the 2010 season.

ennywho - any money left over after we buy the cordwood will be going towards utility and other household bills.

[SpiralHawk]

25. "But...Mercury is still retrograde." - Ronald Reagan's Dead Republicon Astrologer

"Just thought that Commander AWOL Bush would like a tip from the previous generation of republicon occultists & chickenhawks."

- Ronald Reagan's Dead Republicon Astrologer

[kineneb]

38. doubt we will see any $

The info I have seen says nothing about those living on SSDI payments. Never mind we live on $14K/yr.

[cosmicdot]

44. re SSDI

haven't seen SSDI mentioned either ...

many minds think SS = seniors only, and don't even think of the disabled wing of SSA

[Ghost Dog]

19. Gold Little Changed in Asia After G7 Approves IMF Bullion Sales

Feb. 12 (Bloomberg) -- Gold was little changed in Asia amid uncertainty over the impact of possible sales of the precious metal by the International Monetary Fund.

Group of Seven officials, who met in Tokyo at the weekend, said they supported sales of gold from IMF reserves as part of its budget reforms. The IMF is the third-largest holder of gold reserves behind the central banks of the U.S. and Germany.

The IMF news ``had a mild tempering influence on the gold price,'' David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney, said in a report today. ``However, the U.S. congress would still be required to vote in support of the gold sales.''

Bullion for immediate delivery fell 70 cents, or 0.1 percent, to $922.80 an ounce at 2:49 p.m. Singapore time. Silver added 0.2 percent to $17.52 an ounce at the same time.

Platinum for immediate delivery rose to a record high of $1,954.50 today and traded at $1,953.50 an ounce at 2:52 p.m. Singapore time, also boosting demand for other precious metals.

IMF gold sales ``may lead to some near-term profit taking'' but professional traders ``will be cautious in establishing short positions following repeated failed attempts to play corrections in gold of late,'' John Reade, analyst at UBS AG, said in a report yesterday.

The IMF has 3,217 metric tons of gold in its reserves, according to the World Gold Council.

Gold Resilience

``The resilience of the gold price in the past week was despite a firming of the U.S. dollar,'' Commonwealth's Moore said. ``Dollar fragility had been seen as an important factor behind the increase in the gold price over the past four months, with investors viewing gold as a hedge against dollar weakness.''

Gold has risen 11 percent since the start of the year and is only 1.5 percent below the record $936.92 an ounce reached on Feb. 1. Prices have remained firm even as oil has drifted below its early-January peak. Some investors favor gold as a hedge against inflation from rising energy and food costs.

Gold for April delivery was little changed at $925.80 an ounce at 3:12 p.m. Singapore time in after-hours electronic trading on the Comex division of the New York Mercantile Exchange.

/... http://www.bloomberg.com/apps/news?pid=20601012&sid=aHCPvrsNPHnM&refer=commodities

[Ghost Dog]

20. Euro= USD 1.453, GBP 0.744, CHF 1.600 and JPY 155.5 at this time

[Ghost Dog]

28. Euro= USD 1.460, GBP 0.745, CHF 1.605 and JPY 157.1 at this time

[UpInArms]

21. dollar watch

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

Last trade 76.531 Change -0.037 (-0.05%)

US Fed: Still Adding To The Punch Bowl?

http://www.dailyfx.com/story/topheadline/US_Fed__Still_Adding_To_1202816105527.html

For a central bank that has faced criticism for sparking the problems the US economy is facing today given former Fed Chairman Greenspan’s aggressive reduction in interest rates over the course of 2001, Dallas Fed President Richard Fisher’s comment that monetary policy is akin to adding “stimulus” to the punch bowl seems surprisingly candid. However, he was also the sole dissenter in the vote for the last rate cut by the Federal Reserve on January 31 and has proven to be an inflation hawk in the past, suggesting that he remains cautious to vote for another round of rate cuts in March. Nevertheless, fed fund futures are betting on a 50bp reduction and with 9 other members on the FOMC showing little hesitance to slash rates further, Fisher may be the lone dissenter once again.

<snip>

Richard Fisher, Federal Reserve Bank of Dallas President (Voting Member)

“The Fed has to be very careful now to add just the right amount of stimulus to the punch bowl without mixing in the potential to juice up inflation once the effect of the new punch kicks in.” – February 7, 2008

Janet Yellen, Federal Reserve Bank of San Francisco President (Alternate Voting Member)

“I consider it most probable that the US economy will experience slow growth, and not outright recession, in coming quarters. Current indicators point to continued anemic growth for at least the first half of this year as well as significant downside risks even to those weak expectations…an important objective of Fed policy is to mitigate the possibility that such a negative feedback loop and could develop and take hold.” – February 7, 2008

Dennis Lockhart, Federal Reserve Bank of Atlanta President (Alternate Voting Member)

“With the surge in energy prices last year, recent measures of inflation have been elevated and above my personal comfort zone as a policymaker.” – February 8, 2008

William Poole, Federal Reserve Bank of St. Louis President (Non-Voting Member)

“I think the best bet is that we will not have a recession.” However, Poole also says, “There is no question that the odds (of recession) are higher than they used to be.” Regarding inflation expectations, he notes, “So far we're standing with very sticky shoes on that slippery slope. We do watch it very closely; there's no question that there's a risk.” – January 12, 2008

...more...

Euro: ZEW Bounces But Little Help; Pound CPI Reverses PPI -- Back to Easing For BoE?

http://www.dailyfx.com/story/bio2/Euro__ZEW_Bounces_But_Little_1202813097326.html

The ZEW survey printed at –39.5 vs. –43.0 as investor sentiment bounced from 15 year lows, but the news provided only a modest lift to EURUSD and the pair was trading essentially unchanged on the day after the news hit the screen. Part of the reason for the non-response was the horrid decline in the current conditions gauge which slipped to 33.7 from 56.6 the month prior. The current conditions reading suggests that the credit crunch that has gripped most of the G-10 universe may be exerting a particularly painful toll on the EZ economy which is further hampered by the restrictive monetary policy of the ECB.

In fact the current conditions reading which is derived by polling analysts, may have been a not-so-subtle appeal for relief from the EZ financial sector to Mr. Trichet and company. The ZEW however, carries only a minimal impact on policy considerations and for a more complete picture of economic conditions traders will have to wait for next week’s IFO report to see if the deterioration of growth has reached the region’s industrial sector. Should that occur the ECB may become much more serious about considering the potential downside risk to growth that have developed over the past several months.

Meanwhile in UK, CPI data reversed all of the speculative gains from yesterday’s stronger than expected PPI print as it printed much lower than expected. On a core basis CPI registered a very timid 1.3% gain – far colder than the 1.5% forecast - and well below BoE’s 2% target rate. Tonight’s news confirmed cable bear’s argument that despite escalating price pressures on producers, pricing power in UK economy remains remarkably weak as consumers, burdened by record debt are beginning to curb spending.

The CPI news stood in contrast to the latest report from the BRC released earlier in the night, which showed an jump of 2.6% on a year over year basis, the fastest pace in four months. Many analysts however noted that the gain in the retail spending was made at the expense of heavy discounting. In short, the latest economic data from UK suggests that revenue growth for UK businesses will be challenging while costs will continue to remain elevated putting a squeeze on profit margins. Under such conditions the BoE may feel compelled to ease more aggressively and sterling is likely to remain under selling pressure especially if tomorrow claimant count numbers begin to show a deterioration in the labor markets as well.

The North American session again has very little event risk as the US calendar is back end loaded with most of the key reports beginning tomorrow. The general theme over the past several weeks has favored the greenback on the “growth” policy initiatives of the Fed as currency markets have focused less on interest rate differentials and more on possible severity of economic slowdown scenarios amongst the G-3. However, we think the attention of the market may begin to shift towards considering structural issues, if the TICS report due Friday shows a downside surprise. Capital flows remain critical to the viability of US economy and so far they have been more than sufficient to finance the Trade Deficit. However, if the market begins to see signs of slowdown in investment flows for US financial assets that fact may be more important to the fate of the dollar than any slowdown in US economic activity and the EURUSD could resume its upward trend.

...more...

[Ghost Dog]

33. Fed auctions $30 billion

WASHINGTON - The Federal Reserve, seeking to combat the effects of a serious credit crisis, said Tuesday it had auctioned $30 billion in funds to commercial banks at an interest rate of 3.010 percent.

It marked the fifth in a series of auctions that so far have pumped $130 billion in money into the nation's banking system in affort to provide cash-strapped banks with extra reserves. The Fed's hope is that the increased resources will keep banks lending and prevent a severe credit squeeze from making the current economic slowdown worse.

The latest auction results showed that the Fed's effort is having success. The 3.010 percent interest rate is the lowest rate for any of the five auctions held so far. It was slightly below the previous auction where the interest rate had been 3.123 percent.

The first two auctions in December had seen rates for the funds provided at 4.65 percent and 4.67 percent while the first auction in January had seen a rate of 3.95 percent.

/.. http://news.yahoo.com/s/ap/20080212/ap_on_bi_ge/fed_credit_crisis;_ylt=ArQsIECEwNqx1KfTe2BihPmyBhIF

[Hugin]

26. More evidence of the *coff* PPT *coff*?

Reference Ozy

Okay, yesterday it was announced that the DOW will be reconfigured to include BoA starting next Monday.
(And also, Condi's former oil giant Chevron... )

Today they are to annouce a big hoopla great deal for those laggard Sub-prime folks who are woefully behind
on payments for mortgages they may have been fraudulently lured into... Starring, you guessed it! BoA!

Nope... No, manipulation here. :eyes:

Oh, and they forget to mention a heavy US Treasury involvement. It's a deliberate omission, however, to maintain
the illusion the 'Market Fixes Itself'. :eyes: :eyes:

Oh, and by Countrywide Financial's involvement I suspect this is yet another attempt to establish a paper trail
so that these properties can be foreclosed on at some far distant time. (Like after the elections) :eyes: :eyes: :eyes:

Oh, and if anyone sees AnneD around (I'll be away most of today) Pls, ask her about what adjustments to the "Great
Re-do Pool" rules will be made due to the reset of the Dow or if a reset actually means that the Re-do begins at
the time of reconfiguration.

[Roland99]

27. Berkshire offered plan to assume muni liability (Buffet to bond's rescue?)

http://www.marketwatch.com/news/story/berkshire-offered-plan-assume-muni/story.aspx?guid=%7BB2E0A5F5%2DB303%2D4ADE%2DA771%2D8C6158AB4C00%7D

NEW YORK (MarketWatch) -- Warren Buffett said in a televised interview on Tuesday that his firm, Berkshire Hathaway, last week made an offer under which it would assume liability for insurance on $800 billion worth of municipal bonds that three major bond insurers now cover.

Buffett said that under the offer, Berkshire would assume the liability for the bonds in exchange for a payment, from the current insurers, of 1.5 times the premium they are receiving.

Buffett said one firm has rejected the offer, and the other two have not responded.

Buffett's offer would cover only municipal bonds, and not the billions of dollars worth of complex securities known as collateralized debt obligations.

[Hugin]

35. Mighty civil of Warren to pick up those municipal bonds...

They're the bonds which really have an effect on the average folks.

(He's pretty sure they're the only bonds worth their face value, too. ;) )

[Ghost Dog]

45. Comment from foxbusiness (sorry, but relevant, I thought):

Buffett said he made offers to MBIA (MBI: 11.81, -1.77, -13.03%), Ambac (ABK: 8.95, -1.53, -14.59%) and FGIC -- but that one of them declined and two have yet to respond to the offer. After initially rallying on the news, shares of the bond insurers plunged this afternoon after Fitch Ratings downgraded the mortgage-backed securities tied to Ambac.

...

While the offer is only to provide reinsurance on the traditional (and more profitable) municipal bonds and not the more risky and complex mortgage-related instruments, it would still be important toward the financial health of the bond insurers.

“It will never happen, never in a million years. It's cherry picking to the thousandth degree. It's like walking into any business and saying, 'I want to take your most profitable and least risky part of the business and you get a lot of the garbage,'" said William Smith, president and senior portfolio manager at Smith Asset Management.

“Its no different from me saying I just want to own General Motors' emerging markets division. Unfortunately, what comes with that is the absolute bleeder in North America," said Smith.

/... http://www.foxbusiness.com/markets/article/buffett-rescue-stocks-soar-bond-insurer-offer_475224_2.html

[Roland99]

48. It's what Halliburton did, essentially, right?

Dump the losses onto KBR and keep the profits in tax-free Dubai?

[Hugin]

49. Highly relevant, Ghost Dog!

Good find. :thumbsup: :)

[Demeter]

51. Cherry-Picking

No flies on Warren Buffett

[Ghost Dog]

30. (US) Stocks rise after Buffett offer

NEW YORK - Stocks rose Tuesday after billionaire investor Warren Buffett offered to help out troubled bond insurers, easing some of Wall Street's concerns about further deterioration in the credit markets.

In an interview on CNBC, Buffett said his Berkshire Hathaway Inc. holding company has offered a second level of insurance on up to $800 billion in municipal bonds. The reinsurance offer is for bond insurers Ambac Financial Group Inc., MBIA Inc. and Financial Guaranty Insurance Co., known as FGIC.

Word of the offer gives some investors relief although Buffett says a deal would only back municipal bonds, and not the risky and complicated financial instruments that many see as more likely to have problems. Still, offering investors further assurances on the soundness of municipal bonds could help shore up Wall Street's confidence and reinforce the differences in quality among various levels of debt.

General Motors Corp. appeared to please investors with a fresh round of buyouts to all 74,000 of its U.S. hourly workers represented by the United Auto Workers. The company also reported losses of $38.7 billion in 2007, the largest annual loss for an automotive company.

In the first hour of trading, the Dow Jones industrial average rose 92.82, or 0.76 percent, to 12,332.84. The blue chip index at times gained more than 100 points.

Broader stock indicators also rose. The Standard & Poor's 500 index advanced 9.06, or 0.68 percent, to 1,348.19, and the Nasdaq composite index rose 12.93, or 0.56 percent, to 2,332.99.

/... http://news.yahoo.com/s/ap/20080212/ap_on_bi_st_ma_re/wall_street;_ylt=AnARhxgGw8gRcmp13LggAeCyBhIF

[Ghost Dog]

31. Brazil's stocks, real gain on Buffett bond plan

SAO PAULO, Feb 12 (Reuters) - Brazil's stocks and currency gained on Tuesday boosted by a rally in global markets after billionaire investor Warren Buffett offered to take over liabilities of troubled bond insurers.

The Bovespa index .BVSP of the Sao Paulo Stock Exchange rose 2.4 percent to 62,085.03 points, led by gains in iron ore giant Vale after a report rival Xstrata rejected Vale's $76 billion takeover offer.

Brazil's currency, the real BRBY<BRL=>, gained 0.57 percent to 1.748 to the dollar, even after the central bank bought the U.S. currency in an auction in the spot market.

Buffett told CNBC television that his Berkshire Hathaway's plan would cover $800 billion in municipal bonds, helping ease one of the biggest credit market concerns that had pushed markets down in recent weeks.

/... http://www.reuters.com/article/marketsNews/idLTAN1223411220080212?rpc=44

[Ghost Dog]

32. Dollar climbs vs yen on Buffett rescue plan

NEW YORK, Feb 12 (Reuters) - The dollar fell against the euro on Tuesday but gained on the yen after Warren Buffett told CNBC he had offered to assume troubled bond insurers' liabilities, a move that may ease recent credit turmoil.

U.S. stock futures shot higher after Buffett said the Berkshire Hathaway plan would cover $800 billion in municipal bonds. That helped lift the dollar against the low-yielding yen and Swiss franc.

"At face value, it's taking a little uncertainty away from the bond insurers, which have been a major worry for the markets for some time now," said Ron Simpson, director of FX research at Action Economics in Tampa, Florida.

"The perception is that we're reducing a bit of risk and therefore that's a green light to sell" yen and Swiss franc, he said.

Both of those low-yielding currencies tend to rise with risk aversion but struggle when investors' outlook improves.

Bond insurers guarantee more than $2.4 trillion of debt and have been struggling to hold onto their top credit ratings after suffering heavy losses from backing mortgage securities that have plunged in value.

Markets have feared that downgrades would rattle credit markets even further and possibly set off another round of market turmoil and large write-offs on Wall Street.

/... http://www.reuters.com/article/marketsNews/idINN1223326820080212?rpc=44

[TrogL]

36. Loonie Watch - the "Oh Crap Now What" version

Highlights

Current:



30-day and 90-day vs.greenback:



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




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

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

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

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

2008-01-01 Tuesday, January 1 1.01204 USD
2008-01-02 Wednesday, January 2 1.00786 USD
2008-01-03 Thursday, January 3 1.00959 USD
2008-01-04 Friday, January 4 1.0012 USD
2008-01-07 Monday, January 7 0.995025 USD
2008-01-08 Tuesday, January 8 1.0015 USD
2008-01-09 Wednesday, January 9 0.991768 USD
2008-01-10 Thursday, January 10 0.986291 USD
2008-01-11 Friday, January 11 0.980584 USD
2008-01-14 Monday, January 14 0.979432 USD
2008-01-15 Tuesday, January 15 0.983574 USD
2008-01-16 Wednesday, January 16 0.976753 USD
2008-01-17 Thursday, January 17 0.971817 USD
2008-01-18 Friday, January 18 0.97144 USD
2008-01-21 Monday, January 21 0.97144 USD
2008-01-22 Tuesday, January 22 0.9758 USD
2008-01-23 Wednesday, January 23 0.972573 USD
2008-01-24 Thursday, January 24 0.99295 USD
2008-01-25 Friday, January 25 0.995619 USD
2008-01-28 Monday, January 28 0.995818 USD
2008-01-29 Tuesday, January 29 1.0022 USD
2008-01-30 Wednesday, January 30 1.00644 USD
2008-01-31 Thursday, January 31 0.998203 USD
2008-02-01 Friday, February 1 1.00614 USD
2008-02-04 Monday, February 4 1.00735 USD
2008-02-05 Tuesday, February 5 0.995718 USD
2008-02-06 Wednesday, February 6 0.997705 USD
2008-02-07 Thursday, February 7 0.988631 USD
2008-02-08 Friday, February 8 1.0006 USD
2008-02-11 Monday, February 11 0.998203 USD

Current values

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

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     1.0003 1.0045 1.0003 1.0038 +0.0052 +0.52% 
CD.H08 Mar 2008 1.0002 1.0055 1.0000 1.0040 +0.0065 +0.64% 
CD.M08 Jun 2008 1.0010 1.0010 1.0008 1.0008 +0.0054 +0.53% 
CD.U08 Sep 2008 0.9785 0.9785 0.9780 0.9935 -0.0012 -0.12% 
CD.Z08 Dec 2008 0.9750 0.9750 0.9750 0.9916 -0.0012 -0.12% 
CD.H09 Mar 2009 0.9810 0.9825        0.9897 -0.0012 -0.12% 
CD.M09 Jun 2009 0.9995 0.9995        0.9878 -0.0012 -0.12% 
 

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

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (NYBOT:AS)
AS.H08 Mar 2008 0.88340                 0.90160 +0.00885 +1.02% 
AUSTRALIAN $/US$ (NYBOT:AU)
AU.H08 Mar 2008 0.90420                 0.90005 +0.00865 +0.99%  
CANADIAN $/JAPANESE YEN (NYBOT:HY)
HY.H08 Mar 2008 107.000 107.000 107.000 106.505 -0.360   -0.32%   
EURO/AUSTRALIAN $ (NYBOT:RA)
RA.H08 Mar 2008 1.6115  1.6115  1.6115  1.6115  +0.0005  +0.03%  
EURO/BRITISH POUND (NYBOT:GB)
GB.H08 Mar 2008 0.7455  0.7455  0.7455  0.7455  0.0000   +0.00%   
EURO/CANADIAN $ (NYBOT:EP)
EP.H08 Mar 2008 1.48700 1.48700 1.48700 1.45265 +0.00115 +0.08%  
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.H08 Mar 2008 155.05  156.02  155.00  156.32  +1.61    +0.99%   
EURO/US$ (SMALL) (NYBOT:EO)
EO.H08 Mar 2008 1.44750 1.44770 1.44750 1.45005 +0.00090 +0.06%  

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

The March Canadian Dollar was higher overnight and is trading above the 10-day moving average crossing at 99.89. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near-term. If March renews the rally off January's low, the reaction high crossing at 101.67 is the next upside target. Closes below the 20-day moving average crossing at 99.08 would confirm that a short-term top has been posted. First resistance is last Friday's high crossing at 100.44. Second resistance is the reaction high crossing at 101.20. First support is the 20-day moving average crossing at 99.08. Second support is January's low crossing at 96.31.


Analysis

I wasn't going to post today. I listened to the morning news (I was running late) and there were no particular issues. Last nights news said the loonie lost a 1/4 point which pretty much matches up with what I saw yesterday. Today it's gained a cent already on teh graphs so I figured I may as well post and find out why.

...

OK, so I wrote that before I posted the blather. Looks like it jumped overnight, presumably after I saw the evening news 'cause the graph I'm looking at now shows it opening basically at par and drifting up. They're calling for it to rise dramatically. I'm not. Unless something Bad Happens, I mean like what else could possibly go wrong, I don't see any movement until the Alberta elections are over March 3rd or if the Federal government falls on a vote of non-confidence. (We run a Parliamentary system up here.)

The guy on the drive-in show did say one odd thing. Something about the US government saying that doomsday would happen unless foreigners spent a whole lotta money. They recommended spending it on US foreclosed property. Granted, this is the CBC and their announcers are known for bad puns, straight-faced hoaxes and a fairly loose grip on reality. Be that as it may, foreign ownership of local housing IS an issue. In British Colombia, much of the shore-front property has been bought up by Middle Eastern and Asian owners looking for investments. This has driven all property values up to the point where people have to move 'cause they can't afford the taxes. The other problem has to do with off-site landlords. I'm on a Safe Streets committee and we're constantly battling slum landlords and dealing with squatters on abandonned properties - and that's with landlords and absentee owners who are still in town. Imagine if they were out of country.

Anyhow, it looks like it's going to be another watching the loonie yo-yo either side of par and drive the bots nuts. (When ARE they going to get around with reprogramming them to get a grip?)

[KoKo]

37. Thanks for the analysis and the info on BC property buyers. n/t

[Roland99]

39. 1:45pm - YEE HAW!!

Dow 12,429.09 +189.08
Nasdaq 2,336.37 +16.31
S&P 500 1,355.54 +16.41
10 YR 3.69% +0.07
Oil $93.20 $-0.39
Gold $910.50 $-16.20

[Roland99]

40. Holy Mackerel...and thanks to all the heart donors!

:grouphug:

[DemReadingDU]

43. Whitney: The Mother of All Rip-offs

2/11/08 The Mother of All Rip-offs
“Get Ready For A Real Hosing”
By Mike Whitney

some snippets...

The same gaggle of investment sharpies who cooked up the subprime swindle are putting the final touches on a plan to off-load hundreds of billions of dollars of mortgage-backed slop onto the American taxpayer. If they succeed, the country's biggest GSE's---Fannie Mae and Freddie Mac---will be crushed by the expanded debt-load and probably go belly-up within the year.

Don't believe me?

Bush's new “Stimulus Package will allow Fannie and Freddie to raise their loan limits from $417,000 to $729,750.The idea is to keep interest rates as low as possible on new mortgages in order to revive the moribund California and New York housing markets. Jumbo loans—mortgages that are over $417, 000—-are nearly impossible to get now that the market for mortgage-backed securities (MBS) has dried up and the banks have tightened up their lending standards. Sales in California have dropped 40% or more for the last 4 months. Price declines are in double digits. It is a housing Depression.

Still, there's no guarantee that the plan will work. After all, Fannie Mae requires a substantial down payment as well as documentation of earnings and a good credit record. The whole lending environment has changed dramatically in the last year. It's gotten a lot tougher and the pool of potential loan applicants has shrunk considerably. Besides, how many people are going to plunk down $700,000 for a home in a falling market? That same MacMansion might dip to $625,000 by the end of the year. No one wants to take a bath like that.

More importantly, why should taxpayers have to guarantee a $700,000 loan just so some brandy-swindling tycoon can get a better deal on his mortgage? That's nuts.

more...
http://www.informationclearinghouse.info/article19324.htm

[Demeter]

50. Nuts Indeed!

California has been insane since they picked Reagan as Gov. It may never be right.

[Karenina]

53. Mike is on a roll!

:wow:

[AnneD]

46. Afternoon Marketeers.....

:beer: It has been an interesting day, I slept oddly this weekend and developed a muscle spasm in my neck. I endured yesterday {couldn't do half of what I needed to do), Missed today so I could have 2 chiropractic treatments (to go along with my accupuncture and chiropractic treatment from yesterday). I like coming back after I have been absent (I am seldom if ever sick). I get treated really nicely because everyone tends to forget everything I do in a given day. I love to see the e-mails the office sends out telling teachers to send only emergencies to the office-several times.:rofl:

So outside of having Dr. B beat my trapizoid muscle to a pulp-I tried accupuncture with very good results. I also tried some pressure points with good success. I also got something I never get at school.....an uninterrupted lunch. Houston is such an international city. You pick a nationality or a dish and you can find it in Houston. I decided to try some Vietnameese beef noodle soup called Pho. It was delicious-light but it fills the soul. If you haven't had it before-it is a clear beef stock with paper thin slices of beef and beef parts , noodles, green onions and cilantro, cooked various ways. It is servied with an assostment of garnishes (limes jalepeno, beansprouts, unions, and fresh basil). There was a wonderful Vetnamese bakery near by-and if you aren't aware-the Vietnamese make the best bread outside of Paris-one of the legacies of the French occupation. I wonder what the American legacy was-beside dust bin children.

Well, heard my first ad today-for Barack Obama. The election is May 4th:eyes: Still going to vote my first choice-after thatI could flip a coin

See you tomorrow. And thanks for the Valentines-I figure since this is where I mainly post-they came from some of you dear Marketeers.

Happy hunting and watch out for the bears,

[Roland99]

47. My lunch was a bit more bland...Lean Cuisine Cheese Ravioli. Oh, Markets are giving up gains.

Dow 12,316.67 +76.66
Nasdaq 2,310.79 -9.27
S&P 500 1,342.38 +3.25
10 YR 3.68% +0.06
Oil $92.78 $-0.81
Gold $911.10 $-15.60

[UpInArms]

52. closing with mexed missages

Dow 12,373.41 133.40 (1.09%)
Nasdaq 2,320.04 0.02 (0.00%)
S&P 500 1,348.86 9.73 (0.73%)
10-Yr Bond 3.679% 0.061

NYSE Volume 4,044,641,750
Nasdaq Volume 2,233,153,000

The stock market covered its fair share of ground Tuesday, moving mostly in bullish fashion until a late-day retreat led by the big-cap technology issues cut into its gains.

Warren Buffett provided the fuel for a broad-based rally in the early going when he told business channel CNBC that Berkshire Hathaway offered to assume $800 billion in municipal bond liabilities from the three major bond insurers, MBIA (MBI 11.50, -2.08), Ambac Financial (ABK 8.90, -1.58) and FGIC Corp.

His offer mitigated the market's concerns about a large-scale municipal bond selloff that might occur in the event the bond insurers lose their AAA rating.

Buffett was quick to note that one bond insurer already said no to his offer and that he hadn't heard from the other two. The lack of interest is certainly understandable since the offer only extends to the municipal bond portfolio. The bond insurers would still be strapped with their CDO business. The market recognized the desperate nature of the situation for the bond insurers that was exposed by Buffett's offer, and hence, their stocks languished in its wake.

From a broader standpoint, though, Berkshire Hathaway's offer left the market cognizant that Mr. Buffett expressed an economic interest in assuming these liabilities now, and presumably, will have that same desire in the future if the bond insurers get tripped up for good with the loss of their AAA rating. Accordingly, it was comforted by the realization that a safety net of some sort seemed readily available for the municipal bond market.

The offer put a bid in the financial sector (+1.4%), which led the early advance, although every sector went along for the relief ride that was also aided by the government's announcement of "Project Lifeline" which involves six, major mortgage lenders and is designed to help homeowners avoid foreclosure. At their highs of the session, the Dow, Nasdaq and S&P 500 were up 229, 29 and 23 points, respectively.

Even General Motors (GM 26.60, -0.52), which reported a $1.5 billion adjusted loss before taxes for its North American business in 2007, gained ground.

GM's gain ultimately didn't hold, as the market reflected on the idea that profitability for the North American business still seems a long way off. Moreover, it was not overlooked that the company's fourth quarter adjusted profit of $0.08 per share was driven by a $1.6 billion, or $2.82 per share, tax credit. When the latter is excluded, GM came up well short of the consensus loss estimate of $0.55 that did not include the benefit.

Similarly, the tech sector did some backtracking in the afternoon trade, paced by its big-cap components which had been outperforming in recent sessions. That selling pressure weighed on the broader market, as did a retrenchment in most sectors in the final hour. The tech sector, up as much as 1.2%, ended down 0.2%.

The market, to its credit, gained some traction in the closing minutes to finish on an upbeat note. Still, the major indices closed the day well off their best levels of the session.
DJ30 +133.40 NASDAQ -0.02 NQ100 -0.7% R2K +0.8% SP400 +0.2% SP500 +9.73 NASDAQ Dec/Adv/Vol 1297/1702/2.21 bln NYSE Dec/Adv/Vol 1173/1976/1.52 bln

3:35 pm : The stock market has fallen back to the day's opening levels, posting a modest gain for the day. The Nasdaq has fallen into negative territory.

Financials (+0.6%) had been offering a large leadership role, but are now performing in-line with the broader market. Investment banks and brokerages (-2.1%) are weighing on the sector.

Tech (-0.4%) and materials (-0.2%) have fallen into negative territory.

The Commodity Price Index has declined 0.7% this session. Gold is down 1.8%, while crude is down 1.1%.DJ30 +119.17 NASDAQ -1.40 SP500 +8.04 NASDAQ Dec/Adv/Vol 1120/1852/1.67 bln NYSE Dec/Adv/Vol 1023/2109/1.08 bln

3:00 pm : Stocks are moving higher after a recent pullback. The S&P 500 is currently sporting its highest one-day gain this month.

The tech sector (+0.5%) and energy sector (+0.7%) have retreated from earlier levels but remain in positive territory. Tech is being led lower by Apple (AAPL 126.52, -2.93), while the energy sector has moved downward in conjunction with lower oil prices. Crude has lost nearly 1.0% today.DJ30 +190.87 NASDAQ +16.19 SP500 +16.36 NASDAQ Dec/Adv/Vol 1119/1815/1.4