STOCK MARKET WATCH, Wednesday December 10

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday December 10, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 41
WHERE'S OSAMA BIN-LADEN? 2597 DAYS
DAYS SINCE ENRON COLLAPSE = 2894
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

U.S. FUTURES &
MARKETS INDICATORS>
NASDAQ FUTURES-----------------------------S&P FUTURES

---

AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.
$1 USD = EUR 1.06678
$1 USD = JPY 116.6200

In recognition of those prescient of the Dow's precipitous return of Bush values (9/29/08): JuneBourder and AnneD

AT THE CLOSING BELL ON December 8, 2008

Dow... 8,691.33 -242.85 (-2.79%)
Nasdaq... 1,547.34 -24.40 (-1.55%)
S&P 500... 888.67 -21.03 (-2.31%)
Gold future... 774.20 +4.90 (+0.63%)
30-Year Bond 3.08% -0.08 (-2.44%)
10-Yr Bond... 2.67% -0.07 (-2.38%)






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

Big Extremes in Bonds and Yen
BY FRANK BARBERA, CMT

With the evidence of the global recession deepening steadily over the last three months, we have seen a near continuous liquidation work its way through the hedge fund community, where highly leveraged trades borrowed in Yen have been forced to liquidate. The result has been a tremendous flight to quality and a flight to liquidity with US long term bonds a prime beneficiary. Thus, as the Dollar, Yen and Treasury Bond have gained strength, virtually all other markets have collapsed with asset values across a very wide spectrum under very steady selling pressure throughout this time. Perhaps no asset has been under more pressure than Oil, where prices briefly approached $40 earlier this week. Yet even as the air waves of cable TV fill with fervent deflationary forecasts for even lower Oil prices and even lower bond yields, the evidence continues to mount that the current extremes look historically overdone. I believe Treasury Bonds are the last great bubble yet to pop. As the New Year approaches and a great deal of the forced hedge fund liquidation comes to its end, odds are high the Treasury Bond yields will begin to reverse and chart an upward course during the first quarter of 2009. In my view, Bond yields are near what promises to be an historic secular low.

.....

In my analysis of Bond yields, I approach the market from several different angles including the more controversial Elliott Wave Theory. In looking at long term bonds thru the lens of Elliott Wave, I believe the entire decline from the 1981 peak near 15% has been a set of ‘three’s” which are “A-B-C” movements. From September 1981 to September 1993 bond yields fell from 14.14% to 5.37% creating a low for Primary Wave (A) in September 1993. This was then followed by a counter-trend A-B-C correction which peaked Primary Wave (B) at 6.67% in January 2000. From there, the second declining, A-B-C sequence began with the most recent decline from the June 2006 peak at 5.25% to present representing the final ‘C-Wave’ decline and theoretically bringing the secular low into view. With yields in the 2.50% range, the second A-B-C decline is now equal in percentage decline (see bold lines on chart above) to the scope of the first A-B-C decline seen between 1981 and 1993. That means the 2.50% zone on the 10 Year Bond is likely to host a very important secular low.

-chart-

.....

In addition to the historic move to the downside in Treasury Bond yields, (flight to liquidity), we have also seen a dramatic spike to the downside in the Euro-Yen Cross. This cross-rate is the very heart of the downside selling pressure which has plagued so many markets over the last few weeks and the poster-child for massive hedge fund redemptions. The chart below shows the close relationship between the Euro-Yen Cross and the price of Oil as bout after bout of selling pressure has battered Oil prices below $50 in recent weeks.

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

[ozymandius]

2. Today's Reports

10:00 Wholesale Inventories Oct
Briefing.com 0.2%
Consensus 0.2%
Prior -0.1%

10:35 Crude Inventories 12/06
Briefing.com NA
Consensus NA
Prior -456K

14:00 Treasury Budget Nov
Briefing.com NA
Consensus -$171.0B
Prior -$98.2B

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

[UpInArms]

29. U.S. mortgage applications dip after big surge -MBA

http://www.reuters.com/article/bondsNews/idUSN0928913720081210

NEW YORK , Dec 10 (Reuters) - Applications for U.S. home mortgages slipped last week in a setback from the record jump in the previous period after a Federal Reserve proposal aimed at lowering interest rates, according to data from an industry group on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity fell 7.1 percent to 796.8 in the week ended Dec. 5.

The index had more than doubled in the week before after the Fed announced a plan to purchase up to $500 billion in mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae. While anticipated, the MBS purchases have yet to begin, and consumer rates barely extended their big drop from the previous week, according to MBA data.

Greater demand for MBS lowers yields, allowing lenders planning to sell loans into the bond market to offer lower rates to consumers.

The MBA index of refinancing applications declined 0.9 percent to 3,767.3 last week. Its gauge of loan requests for home purchases fell 17.4 percent to 298.1.

...more...

last week's "good news" had no basis in reality - there was not an increase in home buying or refinancing - it was more smoke and mirrors



RPT-TABLE-U.S. mortgage applications fell in week -MBA

Select seasonally adjusted historical data from Mortgage Bankers Association's (MBA) weekly
mortgage application survey:

               WEEK  4-WEEK  4-WEEK  WEEK            WEEK          30-YEAR      1-YEAR
WEEK     MARKET   CHG   MOVING   CHG  PURCHASE CHG   REFINANCE  CHG  MTG CONTRACT ARM CONTRACT
ENDING   INDEX    (PCT)   AVG    (PCT) INDEX   (PCT)   INDEX   (PCT)  RATE (PCT)  RATE (PCT)
======   =====    ===== ======== ==== ======== ===== =========  =====  =======    =====

12/05/08  796.8   -7.1   614.4  +17.8   298.1  -17.4   3,767.3   -0.9    5.45      6.76
11/28/08  857.7 +112.1   521.4  +29.7   361.1  +38.0   3,802.8 +203.3    5.47      6.61
11/21/08  404.4   +1.5   402.0   -4.3   261.6   +5.3   1,254.0   -2.1    5.99      6.87
11/14/08  398.6   -6.2   420.1   -0.6   248.5  -12.6   1,281.2   +2.6    6.16      6.80
11/07/08  425.0  +11.9   422.4   -3.7   284.4   +9.0   1,248.4  +16.1    6.24      6.77
10/31/08  379.9  -20.3   438.5   -4.7   260.9  -13.9   1,075.4  -27.8    6.47      6.86
10/24/08  476.7  +16.8   459.9   +1.2   303.1   +8.5   1,489.4  +28.5    6.26      6.90
10/17/08  408.1  -16.6   454.6   -9.2   279.3  -10.9   1,158.8  -23.5    6.28      6.97
10/10/08  489.3   +5.1   500.4   -7.9   313.5   -0.3   1,514.2  +12.5    6.47      6.67
10/03/08  465.5   +2.2   543.5   -1.4   314.5   +3.2   1,345.8   +0.9    5.99      6.60
09/26/08  455.4  -23.0   551.2   +0.1   304.8  -10.9   1,333.9  -34.7    6.07      6.60*
09/19/08  591.4  -10.6   550.6   +8.4   342.2  -10.0   2,043.4  -11.2    6.08      6.51*
09/12/08  661.7  +33.4   508.2  +13.5   380.4   +2.4   2,300.0  +88.1    5.82      6.58*
09/05/08  496.2   +9.5   447.6   +4.1   371.5   +6.4   1,222.9  +15.4    6.06      6.70*
08/29/08  453.1   +7.5   430.0   +1.2   349.0  +10.5   1,059.7   +2.1    6.39      6.81*
08/22/08  421.6   +0.5   424.9  +0.05   315.9   +0.6   1,038.0   +0.3    6.44      6.81*
08/15/08  419.3   -1.5   424.7   -4.0   314.0   -0.4   1,034.5   -3.7    6.47      6.75*
08/08/08  425.9   -1.5   442.2   -5.2   315.2    0.0   1,074.6   -4.2    6.57      6.84*
08/01/08  432.6   +2.8   466.3   -4.2   315.2   +1.8   1,121.8   +4.4    6.41      6.8*
07/25/08  420.8  -14.1   486.5   -2.8   309.5   -7.8   1,074.4  -22.9    6.46      6.93*
07/18/08  489.6   -6.2   500.7   +1.4   335.6   -6.7   1,392.7   -5.6    6.59      6.95*
07/11/08  522.2   +1.7   493.7   +0.7   359.7   -1.7   1,474.9   +6.9    6.22      6.97*
07/04/08  513.4   +7.5   489.7   -2.3   365.8   +6.7   1,379.3   +8.7    6.43      7.04*
06/27/08  477.7   +3.6   501.1   -1.2   342.8   +2.8   1,269.2   +4.7    6.33      6.93*
06/20/08  461.3   -9.3   507.3   -6.1   333.4   -7.4   1,212.2  -12.1    6.39      6.88*
06/13/08  508.4   -8.7   540.3   -5.0   360.2   -4.3   1,378.6  -15.0    6.57      7.04*
06/06/08  557.1  +10.9   568.6   -2.8   376.2  +12.8   1,622.1   +8.4    6.24      6.73*
05/30/08  502.3  -15.3   597.9   -6.0   333.6   -5.4   1,496.1  -25.7    6.17      6.80
05/23/08  593.3   -4.6   636.2   +1.0   352.7   +0.1   2,013.5   -8.9    5.96      6.92
05/16/08  621.6   -7.8   629.6   -0.6   352.5   -6.9   2,210.5   -8.7    5.90      6.71
05/09/08  674.4   +2.9   633.6   -2.7   378.5   -0.7   2,422.1   +6.5    5.82      6.60
05/02/08  655.4  +15.6   650.8   -2.6   381.3  +12.1   2,273.8  +19.3    5.91      6.77
04/25/08  567.0  -11.1   668.4   -4.3   340.1   -4.8   1,905.2  -16.7    6.01      6.86
04/18/08  637.6  -14.2   698.7  -10.5   357.3   -6.4   2,286.3  -20.2    6.04      6.93
04/11/08  743.4   +2.5   780.8   +3.0   381.6   -0.8   2,866.0   +5.2    5.74      7.02
04/04/08  725.6   +5.4   758.0   +1.8   384.7   +8.1   2,724.7   +3.4    5.78      7.06
03/28/08  688.3  -28.7   744.5   +0.11  356.0  -11.8   2,636.0  -38.1    5.75      7.00
03/21/08  965.9  +48.1   743.6  +11.3   403.7  +10.6   4,255.2  +82.2    5.74      7.02
03/14/08  652.0   -2.9   668.4   -6.0   365.0   -1.0   2,335.0   -4.6    5.98      6.99
03/07/08  671.7   -1.9   711.1  -12.1   368.8   +1.6   2,448.2   -4.7    6.37      6.72
02/29/08  684.9   +3.0   809.1  -11.0   363.1   +1.4   2,569.0   +4.5    5.98      5.83
02/22/08  665.1  -19.2   909.5   -9.7   358.2   +0.2   2,458.9  -30.4    6.27      5.84
02/15/08  822.8  -22.6 1,007.0   -3.8   357.6  -11.5   3,533.8  -27.9    6.09      5.72
2/08/08 1,063.5   -2.1 1,046.6   +3.9   403.9   -0.3   4,901.5   -3.0    5.72      5.72
2/01/08 1,086.6   +3.0 1,007.4  +10.4   405.3  +12.0   5,054.0   -1.0    5.61      5.62
1/25/08 1,054.9   +7.5   912.2  +16.7   362.0  -17.7   5,103.6  +22.1    5.60      5.70
01/18/08  981.5   +8.3   782.0  +13.7   439.9   -4.6   4,178.2  +16.9    5.49      5.51
01/11/08  906.4  +28.4   687.5  +10.1   461.2  +11.4   3,575.5  +43.4    5.62      5.77
01/04/08  706.0  +32.2   624.4   -4.1   414.0  +14.7   2,494.2  +53.9    5.73      6.04
12/28/07  533.9  -11.6   650.8   -9.0   360.8   -8.5   1,620.9  -15.4    6.05      6.00
12/21/07  603.8   -7.6   715.3   -1.5   394.5   -6.6   1,915.3   -8.5    6.10      6.03
12/14/07  653.8  -19.5   725.9   -1.0   422.2  -10.6   2,093.6  -27.3    6.18      6.48
12/07/07  811.9   +2.5   732.9   +3.7   472.0   +1.7   2,879.8   +4.3    6.07      6.31
11/30/07  791.8  +22.5   706.8   +4.5   464.3  +15.2   2,761.3  +31.9    5.82      6.28
11/23/07  646.3   -5.2   678.0   -1.1   403.2   -4.9   2,093.0   -4.9    6.09      6.24
11/16/07  681.7   -3.6   685.3   +0.9   424.1   -2.0   2,199.9   -5.0    6.18      5.98
11/09/07  707.3   +5.5   679.0   +1.9   432.6   +4.8   2,315.7   +6.4    6.19      5.98
11/02/07  670.6   -1.6   666.3   +0.7   412.7    0.0   2,176.1   -3.2    6.16      5.94
10/26/07  681.7   +3.8   661.6   +1.7   412.9   -0.7   2,249.0   +9.2    6.15      5.93
10/19/07  656.5   +0.0   650.4   +0.1   415.9   -3.1   2,059.3   +4.0    6.21      6.10
10/12/07  656.3   +0.7   649.8   -0.6   429.1   +2.1   1,980.9   -1.1    6.40      6.17
10/05/07  652.0   +2.4   654.0   -0.2   420.2   +2.1   2,003.2   +2.7    6.40      6.15
09/28/07  636.7   -2.7   655.4   +0.5   411.4   -1.8   1,950.4   -3.8    6.32      6.21
09/21/07  654.2   -2.8   651.9   +1.5   418.8   -7.3   2,026.5   +3.3    6.38      6.09
09/14/07  673.2   +2.4   642.2   +1.3   452.0   +0.9   1,962.0   +4.6    6.29      6.39
09/07/07  657.4   +5.5   634.2   -0.8   448.0   +5.2   1,876.6   +6.0    6.25      6.34
08/31/07  622.9   +1.3   639.5   -1.3   425.8   +0.4   1,770.2   +2.3    6.42      6.52
08/24/07  615.2   -4.0   647.9   +0.3   424.0   -4.0   1,729.6   -4.2    6.41      6.51
08/17/07  641.1   -5.5   645.8   +1.3   441.5   -5.0   1,806.3   -6.4    6.49      5.84
08/10/07  678.7   +3.4   637.8   +1.9   464.9   +3.9   1,929.6   +2.6    6.45      5.81
08/03/07  656.5   +8.1   626.0   +1.2   447.4   +7.4   1,881.1   +9.1    6.41      5.69
07/27/07  607.1   -0.3   618.5   -0.5   416.6   -1.8   1,724.1   +1.8    6.50      5.73
07/20/07  609.0   -3.6   621.6   -0.4   424.2   -5.0   1,692.9   -1.4    6.59      5.62
07/13/07  631.6   +0.9   624.0   -0.5   446.5   -1.6   1,717.4   +4.9    6.61      5.60
07/06/07  626.2   +1.1   627.0   -1.6   453.9   +3.8   1,636.9   -3.0    6.65      5.60
06/29/07  619.4   +0.1   637.1   -0.2   437.3   +2.0   1,687.2   -2.6    6.50      5.49
06/22/07  618.6   -3.9   638.5   -0.7   428.9   -4.9   1,731.6   -2.5    6.60      5.51
06/15/07  643.7   -3.4   643.0   -1.6   450.9   -3.0   1,776.8   -4.2    6.60      5.70
06/08/07  666.5   +6.6   653.6   -0.3   464.7   +7.2   1,854.8   +5.6    6.61      5.48
06/01/07  625.3   -1.7   655.8   -2.1   433.6   +1.5   1,757.1   -6.3    6.35      5.74
05/25/07  636.4   -7.3   669.7   -0.8   427.0   -2.5   1,874.6  -13.0    6.32      5.74
05/18/07  686.2   +1.6   674.9   +1.2   438.1   +1.3
05/11/07  675.5   -0.8   666.7   +1.7   432.3   -1.4   2,115.5   +0.0    6.13      5.61
05/04/07  680.7   +3.6   655.4   +1.3   438.3   +2.6   2,115.2   +4.9    6.10      5.71
 For complete MBA data for the latest week, please double-click MTGEBKRS
 SOURCE: The Mortgage Bankers Association

[Pale Blue Dot]

54. Wholesale inventories, sales plunge in October

WASHINGTON - Wholesalers cut back on their inventories in October by the largest amount since the period following the 2001 terrorist attacks while they watched their sales plunge by a record amount.

Analysts predict more grim news in the months ahead as the current recession deepens.

The Commerce Department reported Wednesday that wholesalers, the companies in the supply chain between manufacturers and retailers, reduced their inventories by 1.1 percent in October, the biggest cutback since a similar drop in inventories in November 2001.

The inventory decline was much bigger than the 0.2 percent decrease economists expected.

Sales at the wholesale level plunged by 4.1 percent in October, the largest decline on record.

The inventories-to-sales ratio increased to 1.16 in October, up from 1.12 in September. That means that it would take wholesalers 1.16 months to sell off their stockpiles at the current sales pace.

http://www.msnbc.msn.com/id/28157537/

[ozymandius]

3. Oil rises to near $43 as investors await OPEC cut

SINGAPORE – Oil prices rose to near $43 a barrel Wednesday in Asia as investors looked to an expected OPEC production cut next week to help stabilize prices that have plummeted amid a global economic slowdown.

...

The Organization of Petroleum Exporting Countries, which accounts for about 40 percent of global crude supply, has signaled it plans to reduce output quotas at a meeting Dec. 17 in Algeria.

Investors expect OPEC to slash production by at least 1.5 million barrels a day, matching the group's cut in October.

...

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

The report is expected to show that oil stocks rose 2.7 million barrels last week, according to the average of estimates in a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.

...

In other Nymex trading, gasoline futures rose 3.26 cents to 97 cents. Heating oil gained 1.96 cents to $1.46 a gallon while natural gas for January delivery jumped 6.1 cents to 5.64 per 1,000 cubic feet.

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

[UpInArms]

34. U.S. average retail gasoline prices dip to $1.68 a gallon

http://www.marketwatch.com/news/story/US-average-retail-gasoline-prices/story.aspx?guid=%7B1B55A270%2D13F8%2D4BBE%2DB925%2D403A818B5871%7D

NEW YORK (MarketWatch) -- Average U.S. retail gasoline prices fell a penny to $1.68 a gallon on Wednesday, according to the AAA Daily Fuel Gauge Report. A month ago, gasoline sold for $2.24 a gallon. A year ago, it sold for $3.00 a gallon

[ozymandius]

4. Asian markets rise as Congress nears auto deal

SEOUL, South Korea – Asian markets shrugged off negative economic news to rise Wednesday, underpinned by continued faith in government measures to boost flagging economies as Congress neared a deal to rescue ailing U.S. automakers. European markets were mixed.

Japan's benchmark Nikkei 225 stock average rose 264.37 points, or 3.2 percent, to close at 8,660.24, and Hong Kong's Hang Seng index advanced 824.52 points, or 5.6 percent, to finish at 15,577.74.

Benchmark indexes in Australia, South Korea, India, China and Singapore also rose. New Zealand's market ended down.

As European trading opened, Germany's DAX advanced 0.3 percent to 4,792.48 but Britain's FTSE-100 fell 0.6 percent to 4,355.25 and France's CAC-40 declined 0.5 percent to 3,282.01.

http://news.yahoo.com/s/ap/20081210/ap_on_bi_ge/world_markets

[ozymandius]

5. White House, Dems reach loan deal for Detroit automakers

WASHINGTON -- A $15-billion salvation of Detroit's automakers came closer to reality Tuesday evening after the Bush administration and congressional Democrats agreed in principle on a compromise -- but the pact still faces a tough road to passage, including the threat of a Republican filibuster in the Senate.
Advertisement

Democratic aides and senior administration officials told the Free Press the compromise strengthens the power of the federal overseer, or so-called car czar, who will lend to General Motors Corp. and Chrysler LLC. If those companies don't make the cuts and reach deals with creditors and the union by March 31, the overseer must call back any loans and essentially force them into bankruptcy.

....

The draft had given the overseer flexibility to judge whether automakers made enough progress by March 31. The compromise provides only one 30-day extension for the companies; if they are still faltering, the government must call back its loan and likely trigger their collapse.

The overseer still can't order cuts by creditors and unions, but officials said the requirement that the loan come back would sharpen the overseer's powers. The bill also bars automakers from drawing money from any other government program to stave off bankruptcy, in an attempt to calm fears of repeat pleas for rescue.

http://www.freep.com/article/20081210/BUSINESS01/812100383?imw=Y

[Ghost Dog]

11. Oils, banks lead European shares down; Rio surges

Wed Dec 10, 2008 4:56am EST LONDON, Dec 10 (Reuters) - European shares fell early on Wednesday after two days of gains, led lower by banks and oils and tracking U.S. markets hit by company profit warnings, though Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) jumped on its plans to cut jobs and spending.

At 0940 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 0.6 percent at 854.61 points.

The index rose 1.4 percent on Tuesday, but it has lost more than 43 percent this year, battered by a credit crisis that has helped to push several major economies into recession.

Banks, the sector worst hit by the credit market ructions, were broadly weaker. HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) was the top-weighted loser, down 1.4 percent. Banco Santander (SAN.MC: Quote, Profile, Research, Stock Buzz), Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) and UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) were down between 1 and 1.9 percent. Analysts said markets were torn between reacting to poor news on the corporate front and robust policy responses.

"There's a two-way pull. Bad earnings news, the likes of FedEx, is baked in the cake now," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin.

"Markets have adjusted so much to an appalling view of the future, but we've never seen such a massive policy response before. And there's a lot of cash sitting on the sidelines."

Japan's Nikkei .N225 rose 3.2 percent on Wednesday on hopes governments worldwide will help out ailing industries and implement stimulus measures as they fight back against a deepening economic crisis.

The White House and U.S. Congressional Democrats neared agreement on a bailout for beleaguered U.S. auto makers, sending counterparts such as Honda Motor (7267.T: Quote, Profile, Research, Stock Buzz) sharply higher.

Oils gave up early gains, despite crude prices CLc1 rising more than 2 percent to $42.95 a barrel, recovering Tuesday's losses. Total (TOTF.PA: Quote, Profile, Research, Stock Buzz), BP (BP.L: Quote, Profile, Research, Stock Buzz), Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), Repsol (REP.MC: Quote, Profile, Research, Stock Buzz) and Statoil (STL.OL: Quote, Profile, Research, Stock Buzz) fell between 0.7 and 3 percent. Data on U.S. oil inventories is due for release later in the session.

Across Europe, Germany's DAX .GDAXI rose 0.3 percent. Britain's FTSE 100 .FTSE and France's CAC-40 .FCHI were down 0.8 and 0.5 percent, respectively.

...

Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) rose 10 percent after the company said it would cut 13 percent of its workforce, slash capital spending and boost asset sales as it battles a collapse in commodity markets.

The sector gained from rising prices of copper and other metals.

/... http://www.reuters.com/article/marketsNews/idINLA42813020081210?rpc=44&sp=true

[Ghost Dog]

13. China's exports, imports fall as economy hits wall

Wed Dec 10, 2008 5:36am EST BEIJING, Dec 10 (Reuters) - Chinese exports and imports unexpectedly fell in November from year-earlier levels, dramatically illustrating how abruptly the world's fourth-largest economy has slowed in response to the global credit crunch.

The drop in exports was the largest since April 1999, while the decline in imports was the steepest since monthly records kept by bankers began in 1993.

Other Asian export power houses, including South Korea and Taiwan, had already reported a drop in shipments last month as the shock to confidence that followed the collapse of Lehman Brothers in mid-September reverberated through the world economy.

But the extent of the downturn in China was startling.

Economists had expected exports to rise 15 percent and imports to be up 12 percent compared with November 2007. But the data showed exports fell 2.2 percent from a year earlier and imports dropped by 17.9 percent.

"Global demand for Chinese products is vanishing," said Gene Ma, an economist at China Economic Monitor, a Beijing consultancy. "Secondly, the credit freeze in importing countries has made it hard for Chinese exporters to sell abroad."

...

The government has been unusually frank in acknowledging its worries that the economic downturn will cause unemployment to soar, jeopardising social stability.

Export firms employ tens of millions of rural migrants. With factories closing by the thousands in southern China, many of these workers are heading home much earlier than usual for the Lunar New Year, which falls in late January.

"With few policy options with which to revive exports, Chinese authorities are understandably focusing on measures to boost domestic demand and push forward with infrastructure initiatives, in an effort to absorb some of the migrant workforce," Jing Ulrich, head of China equities at J.P. Morgan, said in a note to clients.

...

In another sign that the economy has simply run into a wall, the statistics office reported earlier that wholesale price inflation collapsed to 2.0 percent in the year to November from October's reading of 6.6 percent.

Economists polled by Reuters had expected a rate of 4.4 percent. The lowest forecast was 3.3 percent.

"The situation is quite severe. We are slipping into a deflationary recession risk pretty fast," said Isaac Meng, an economist with BNP Paribas in Beijing. LINKS > For comments on the trade data. > For comments on producer prices. (Reporting by Zhou Xin, Langi Chiang and Simon Rabinovitch; Writing by Alan Wheatley)

/... http://www.reuters.com/article/marketsNews/idINPEK3160420081210?rpc=44&sp=true

[Ghost Dog]

15. Deflation risks in China, Japan as demand slumps

Wed Dec 10, 2008 5:01am EST BEIJING/TOKYO, Dec 10 (Reuters) - Deflationary fears spreading over the global economy are crashing into Asia's manufacturing base as data on Wednesday showed a sharp slowdown in wholesale price growth in the region's top two economies, Japan and China.

Recessions in developed economies spawned by the financial crisis have whipsawed policy makers from battling upward cost pressures during the middle of the year to what is now a dire drop in prices, reflecting rapidly vanishing business and consumer demand.

Annual producer price inflation in China, Asia's second-biggest economy, collapsed for the third consecutive month to 2 percent in November, well down from October's reading of 6.6 percent.

In Japan, which only emerged from a decade of falling prices in 2005, annual growth in factory-gate prices slowed rapidly in November to a one-year low of 2.8 percent from 5.0 percent in October.

/... http://www.reuters.com/article/marketsNews/idINHKG17438120081210?rpc=44

[Ghost Dog]

17. China reaffirms yuan policy, will cut taxes

Wed Dec 10, 2008 6:11am EST BEIJING, Dec 10 (Reuters) - China's top leadership wrapped up a three-day strategy meeting on Wednesday with a pledge to ramp up public spending and cut taxes to promote domestic demand in the world's fourth-largest economy.

The Central Economic Work Conference, judging that the economy was heading into rougher waters as the global financial crisis spread, set the pursuit of steady growth as the top priority for 2009, state radio reported.

"The general requirements for next year's economic work are maintaining stable but rapid economic growth by boosting domestic demand," radio summarised the meeting as concluding.

It said the leadership reaffirmed China's long-standing policy of maintaining the yuan's <CNY=CFXS> exchange rate basically steady at a reasonable, balanced level.

However, the meeting agreed on the need to take measures, which were not spelled out, to stabilise external demand.

...

The report made no mention of a numerical target for growth in 2009, but state media have said the authorities would do all they could to "protect eight" -- a reference to the 8 percent growth rate widely thought to be necessary to create enough jobs for the millions of people entering the work force every year.

The economy expanded 11.9 percent in 2007 its fifth straight year of double-digit growth. But the pace has slowed sharply in recent months and the World Bank is forecasting just 7.5 percent growth in 2009.

To prop up growth, the government launched a 4 trillion yuan ($586 billion) stimulus plan on Nov. 9 and the central bank followed up on Nov. 26 by slashing interest rates by 1.08 percentage points -- four times its usual margin. (Reporting by Eadie Chen and Zhou Xin; Writing by Alan Wheatley, editing by Mike Peacock)

/... http://www.reuters.com/article/marketsNews/idINLA62085120081210?rpc=44

[Ghost Dog]

25. China crude imports slump in November

Wed Dec 10, 2008 7:05am EST BEIJING, Dec 10 (Reuters) - China's crude oil imports in November hit their lowest this year as the country's giant refiners reined in buying due to brimming storage and weakening demand amid a spreading global economic recession.

The world's second-largest oil user shipped in 13.36 million tonnes of crude last month, or 3.25 million barrels per day, official customs data showed on Wednesday, a 14.6 cut in daily volumes from October and 1.8 percent down on November last year.

The lower import figure came despite diving crude oil prices and renewed efforts by China to build strategic stockpiles.

/... http://www.reuters.com/article/marketsNews/idINPEK524620081210?rpc=44

[ozymandius]

6. AIG owes Wall Street firms $10 bln from bad bets: Journal

TEL AVIV (MarketWatch) -- American International Group Inc., the New York insurer, owes Wall Street firms about $10 billion for speculative trades that went bad, people familiar with the matter told The Wall Street Journal. The debt highlights the challenges the insurer faces as it seeks to recover under a U.S. government rescue, the Journal reported.

http://www.marketwatch.com/news/story/aig-owes-wall-street-firms/story.aspx?guid={169AE45C-06A3-4069-84DD-ABA0F14B4738}&dist=msr_2

[Demeter]

52. I Wonder if AIG isn't the corporate version of BCCI

Still computerless, anybody got a recommendation for my next computer purchase?

[UpInArms]

55. check your PM

:hi:

[Karenina]

73. Dollars to doughnuts anyone digging deep enough

will uncover moldy, foul smelling connexions. :puke:

[Hugin]

77. Check your PM.

'puter talk. :)

[ozymandius]

7. Fed Weighs Debt Sales of Its Own

The Federal Reserve is considering issuing its own debt for the first time, a move that would give the central bank additional flexibility as it tries to stabilize rocky financial markets.

Government debt issuance is largely the province of the Treasury Department, and the Fed already can print as much money as it wants. But as the credit crisis drags on and the economy suffers from recession, Fed officials are looking broadly for new financial tools.

Fed officials have approached Congress about the concept, which could include issuing bills or some other form of debt, according to people familiar with the matter.

It isn't known whether these preliminary discussions will result in a formal proposal or Fed action. One hurdle: The Federal Reserve Act doesn't explicitly permit the Fed to issue notes beyond currency.

....

At the core of the deliberations is the Fed's balance sheet, which has grown from less than $900 billion to more than $2 trillion since August as it backstops new markets like commercial paper, money-market funds, mortgage-backed securities and ailing companies such as American International Group Inc.

http://online.wsj.com/article/SB122888021757894023.html?mod=googlenews_wsj

[CatholicEdHead]

47. Wow, this says alot

[ozymandius]

50. I think Congress would need to re-write the Fed's charter.

And then there's the Constitution to consider. Can a non-governmental agency accrue debt to the government? It sounds like a license to steal if you're an insider with the Fed's ear.

[CatholicEdHead]

66. Yes it does, of course it seems like everying is stealing anything that is not nailed down

right now, from AIG to the auto companies the epic fleecing continues.

[Demeter]

53. What Idiot Would Buy Such Bonds?

Anything to avoid paying taxes, eh?

[ozymandius]

8. Dark Days for Mall Dynasty

....

An internal investigation showed that Mr. Bucksbaum's family trust had violated company policy by making private loans to two company officers and failing to inform the board. The departure of Mr. Bucksbaum -- whose father and uncle founded the giant mall owner 54 years ago -- would mark an end to the family's management control of the company.

....

Yet the harm to the legacy and the fortune of the Bucksbaum family -- one of the richest and oldest real-estate dynasties in America -- had already been done. Aside from the loans, made to prevent a massive stock selloff by executives, Mr. Bucksbaum and his deputies in recent years loaded the company with debts totaling more than $27 billion. General Growth's stock has plunged more than 97% in the past year, dragging down the Bucksbaum family fortunes with it. The Bucksbaums' 25% ownership stake, worth $3.2 billion just six months ago, is now worth $116 million.

....

The Bucksbaum's losses show how the 2008 financial crisis is hitting not just risk-loving Wall Street firms and leveraged upstarts but also long-established, family-run companies with histories of conservative growth. The crisis has sparked the most rapid and severe destruction of wealth in recent history, rivaled only by the Great Depression, when the number of millionaires plunged by an estimated 75%.

The fallen fortunes span the globe, from Sheldon Adelson, the Las Vegas casino king whose paper fortune has dropped by more than $25 billion in the past year, to Germany's old-money Merckle family and Indian steel magnate Lakshmi Mittal. Even Bill Gates and Warren Buffett, the dynamic duo at the top of the global billionaire ranks, have seen the value of their corporate shares shrink by $12 billion and $15 billion, respectively.

http://online.wsj.com/article/SB122875588694888349.html

[ozymandius]

9. FCC Chairman Abused Power, House Probe Finds

Congressional Democrats yesterday sharply criticized the Federal Communications Commission, calling it a dysfunctional agency led by a chairman who manipulated and withheld data and reports to advance his own policy positions.

The Democratic lawmakers made their accusations in a 110-page report released by the House Energy and Commerce Committee's oversight and investigations subcommittee after a year-long investigation into the management and regulatory practices of FCC Chairman Kevin J. Martin.

....

The report does not, however, state that Martin violated any law.

....

The report, scathing at certain points, states that Martin pressed staff to rewrite an agency report that didn't support his push for rules allowing cable subscribers to pick and choose channels instead of buying bundled program packages.

http://www.washingtonpost.com/wp-dyn/content/article/2008/12/09/AR2008120903132.html

[Tansy_Gold]

12. And how is this different from just about any agency headed by

a booooosh pick?

:grr:


Tansy Gold, up very early for the day job but also monumentally bored by it

[ozymandius]

10. AIG: A Black Hole?

From the WSJ: AIG Faces $10 Billion in Losses on Trades

American International Group Inc. owes Wall Street's biggest firms about $10 billion for speculative trades that have soured ... American International Group Inc. owes Wall Street's biggest firms about $10 billion for speculative trades that have soured ... The $10 billion in other IOUs stems from market wagers that weren't contracts to protect physical securities held by banks or other investors against default. Rather, they are from AIG's exposures to speculative investments unrelated to insurance, which were essentially bets on the performance of bundles of derivatives linked to subprime mortgages, commercial real-estate bonds and corporate bonds.

Meanwhile, from Bloomberg: AIG Says More Managers Get Retention Payouts Topping $4 Million

AHHHHHH!

[Tansy_Gold]

14. "Please make it stop."

Indeed.

And BF had the nerve to suggest the other night that executives like those at AIG "deserved" those bonuses more than auto workers deserved a living wage and comfortable retirement because, after all, the executives "do more." As soon as those words were out of his mouth, he stopped, and I got up from the table. I wouldn't even dignify his remark with a scathing glare, and he knew it.

:grr:


Tansy Gold

[tclambert]

19. But Tansy, they DO do more.

Executives take more cruises, longer vacations to Hawaii, buy more Rolls Royces and yachts, go to the ballet, and eat at every one of Gordon Ramsey's restaurants.

Your typical auto worker takes the ferry to Mackinac Island every few years, buys Chevys and bass boats, goes to Tiger games, and eats at Big Boy once a month.

See? The executives do a LOT more. Some of them even work almost as many hours as an auto worker, if you count business lunches and power breakfasts.

[nc4bo]

16. Payouts!!? CASH rewards!! %^#*&!!!!

You gotta be kidding me?! :wtf:

American International Group Inc., the insurer whose bonuses and perks are under fire from U.S. lawmakers, offered cash awards to another 38 executives in a retention program with payments of as much as $4 million.

The incentives range from $92,500 to $4 million for employees earning salaries between $160,000 and $1 million, Chief Executive Officer Edward Liddy said in a letter dated Dec. 5 to Representative Elijah Cummings.

[UpInArms]

41. AIG's loss creation Commentary: Infinite losses create a quandary for the government

http://www.marketwatch.com/news/story/A-bottomless-pit-losses-AIG/story.aspx?guid=%7BAA4E87AA%2D9025%2D4C14%2D9D24%2DD5318D0AA2FC%7D

NEW YORK (MarketWatch) -- Another layer to the onion that is American International Group Inc. has been peeled away, and again, what's underneath is not pretty.

AIG may stand to lose another $10 billion on previously undisclosed bets it made in its financial products unit, according to a report in Wednesday's Wall Street Journal. See full story.

Once the crown jewel of the insurance industry and the darling of ratings agencies such as Standard & Poor's and Moody's Investors Service (MCO: 22.21, -0.96, -4.1%) , AIG is revealing itself to be a bottomless box of bad bets and speculation that raises questions about the insurer's disclosure practices and regulation of the industry.

As the Journal notes, AIG became a free-wheeling investment bank selling protection against defaults on seemingly low-risk securities, put billions of dollars of the company's money at risk through speculative bets on the direction of pools of mortgage assets and corporate debt.

More troubling is that the government already has committed more than $150 billion to AIG's bailout, an amount that does not cover these potential losses. It also raises legitimate questions about AIG's relationship with Goldman Sachs Group Inc. (GS: 72.77, -4.38, -5.7%) -- the former firm of U.S. Treasury Secretary Henry Paulson. AIG was in danger of defaulting on billions in obligations to Paulson's former firm, according to the report.

Even if the relationship is valid, AIG's debts across the financial services industry present what the regulators call a systemic risk. Without the bailout, AIG would likely have defaulted to Societe Generale, Deutsche Bank AG (DB: 36.05, -0.36, -1.0%) and Merrill Lynch & Co. (MER: 14.50, -0.75, -4.9%) .

...more...

fockers

[Dr.Phool]

48. Instead of passing out retention bonuses,

They should be passing out long prison sentences and seizing assets. All of them.

[Demeter]

74. Retention--in the Big House!

The less drastic option to FRS Packages!

I still think capitulation would be the way to go, though.

[Zenlitened]

43. Good thing the stern, disciplined Powers That Be...

... those righteous dignitaries in Washington and the Pundit-caste... it's a good thing they demanded a Realistic Plan For Immediate Reform and Recovery from AIG, just as they've done with Detroit.

:grr: :grr: :grr:

Seriously, auto workers (bad, bad terrible people that they are, being all -- y'know -- "worker-y" and all)... they have to make more "concessions," take one for the team, watch their futures grow dimmer and more constrained...

Yet there's limitless taxpayer money available to make sure AIG execs and the wheeler-dealers of the world don't experience even a bit of "pain" for making crazy bets at their swank casino. 'Cause then they only be multi-millionaires, instead of multi-multi-millionaires.

:grr: Torches and pitchforks. It's the only solution.

[DemReadingDU]

18. Columbus, Oh - National Century Trial - Shaky loans no secret

12/10/08 Shaky loans no secret, official says
By Jodi Andes

Outside auditors knew about unsecured loans that National Century Financial Enterprises approved for some health-care providers, a former company official testified yesterday.

Lori McGuire said that reports about the advances typically were given to auditors at an end-of-the-year audit during her nearly 10 years with the company.

McGuire's testimony bolstered claims by former National Century executives that outsiders -- including auditors and bank officials -- knew the Dublin-based company was making loans that likely never would be repaid.

Her testimony came during the trial of James K. Happ, the 11th National Century executive to be tried or admit guilt in the collapse of the company that cost investors billions of dollars.

Happ, 48, is charged with conspiracy, money-laundering conspiracy and three counts of wire fraud.

Also yesterday, a former friend of Happ's testified that, while working at National Century, Happ boasted that he never could be charged with any fraud because he didn't sign anything.

Much of the day's testimony came from McGuire, who was an associate vice president when the company collapsed in November 2002. On further questioning by Assistant U.S. Attorney Doug Squires, McGuire said she had never actually talked to auditors about the fraud.

Craig A. Gillen, Happ's attorney, used McGuire's statements to point out that the advances were not hidden from investors but disclosed in company documents -- if outsiders had only looked.

McGuire said she became suspicious about Happ's business practices in October 2002 when he ordered eight changes made in National Century's computer system that would benefit Med-Diversified, a health-care provider that Happ was leaving to work for.

Med-Diversified and its subsidiaries, Chartwell and Tender Loving Care, all were advanced millions of dollars in unsecured loans by National Century, prosecutors proved in past trials of National Century executives.

However, under cross-examination, McGuire conceded that the changes Happ ordered had been talked about for up to two years.

"It's what they were supposed to get and deserved," Gillen said.

National Century bought accounts-receivable from health-care providers and collected the bills for a fee. Bonds were sold to investors so National Century could give providers cash to pay their bills upfront.

McGuire, however, said National Century was advancing millions of dollars without buying the accounts receivable, an amount she referred to as "the black hole."

Happ was in charge of overseeing which accounts receivable were bought by National Century in its final years of business.

His former friend, Frank Magliochetti, former president of Med-Diversified, testified about Happ's boasting.

Magliochetti is expected to continue on the stand this morning.

edit to add link to the article...
http://www.columbusdispatch.com/live/content/business/stories/2008/12/10/Nat_cent_10.ART_ART_12-10-08_C8_F9C6HBC.html?sid=101


link backwards to previous articles
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3628478&mesg_id=3628684

[Roland99]

20. idiots. greed was their downfall.

[DemReadingDU]

32. all of them

Bear Stearns, AIG, Freddie, Fannie, and others too numerous to mention

[Pale Blue Dot]

21. Investors Buy U.S. Debt at Zero Yield

When was the last time you invested in something that you knew wouldn’t make money?

In the market equivalent of shoveling cash under the mattress, hordes of buyers were so eager on Tuesday to park money in the world’s safest investment, United States government debt, that they agreed to accept a zero percent rate of return.

The news sent a sobering signal: in these troubled economic times, when people have lost vast amounts on stocks, bonds and real estate, making an investment that offers security but no gain is tantamount to coming out ahead. This extremely cautious approach reflects concerns that a global recession could deepen next year, and continue to jeopardize all types of investments.

While this will lower the cost of borrowing for the United States government, economists worry that a widespread hunkering-down could have broader implications that could slow an economic recovery. If investors remain reluctant to put money into stocks and corporate bonds, that could choke off funds that businesses need to keep financing their day-to-day operations.

Investors accepted the zero percent rate in the government’s auction Tuesday of $30 billion worth of short-term securities that mature in four weeks. Demand was so great even for no return that the government could have sold four times as much.

In addition, for a brief moment, investors were willing to take a small loss for holding another ultra-safe security, the already-issued three-month Treasury bill.

http://www.nytimes.com/2008/12/10/business/10markets.html?_r=1

[Pale Blue Dot]

22. As Demand Slows, Rio Tinto Will Cut 14,000 Jobs

HONG KONG — Rio Tinto, The mining company, said Wednesday that it would cut 14,000 jobs and sharply reduce spending as demand for raw materials slows sharply.

The company cited the “unprecedented rapidity and severity of the global economic downturn,” and said it was shedding 14,000 jobs, or which 8,500 are contract positions. It will also cut capital expenditures next year by more than half. It said the measures would help to reduce operating costs by $2.5 billion a year by 2010.

The announcement came just weeks after BHP Billiton, the world’s biggest mining company, walked away from a long battle to acquire Rio Tinto. BHP, faced with demands by European regulators that it sell significant assets to secure approval, abandoned the hostile $66 billion bid on Nov. 25, saying the turmoil in the financial markets and declining commodity prices made the transaction too risky.

Luc Pez, an analyst who covers metals and miners at Oddo & Cie. in Paris, said the Rio Tinto announcement was “not very surprising, given the focus on reducing debt after BHP abandoned its offer.”

Rio Tinto is struggling to reduce debt of nearly $40 billion, most of which stems from its purchase last year of Alcan. It hopes to cut $10 billion from that by the end of next year, and said it was cutting capital expenditure from to $4 billion from more than $9 billion. Severance payments will cost $400 million, the company said.

http://www.nytimes.com/2008/12/11/business/worldbusiness/11riotinto.html?partner=rss&emc=rss

[Tansy_Gold]

27. Has demand for food dropped? n/t

.

[Dr.Phool]

51. It will soon.

When I go on a diet.:hi:

[Roland99]

63. The ability to pay for it has.

[Tansy_Gold]

69. Maybe some of these people who are out of work should

become small farmers.

Seriously.

Around the world, too much wage labor has pulled people out of the business /sic/ of growing food. Maybe we need to return to a little of that.

And yes, I'm well aware that too much industry has gobbled up too much arable land and polluted too much water. I don't think in terms of small pictures.


But I do think.



Tansy Gold

[Lasher]

23. S&P 500 has lost 21.84% so far since January 22, 2001.

Based on annualized performance in unadjusted dollars. That's an average loss of 2.73% for each of these long eight years. The index gained an average of 16.05% per year during Clinton's time in office, for a total annualized performance of +128.43%.

George W. Bush truly is the worst president ever.

[truthisfreedom]

24. Fucking piece of shit resident.

Not mine.

[DemReadingDU]

26. video - U.S. Labor history in 25 minutes

12/9/08 U.S. Labor history in 25 minutes by TheModernMystic
Not much to watch, just listen.
The majority of people today have no clue what people fought for throughout history.
http://www.youtube.com/watch?v=zNi-T5byBTw


edit
Some of the text is in this link in comment by S Brennan
http://www.ritholtz.com/blog/2008/12/why-are-banks-so-different-from-autos/


which originally came from this link, containing full list
An Eclectic List of Events in U.S. Labor History
Compiled by allen lutins (all small letters)

Most citizens of the United States take for granted labor laws which protect them from the evils of unregulated industry. Perhaps the majority of those who argue for "free enterprise" and the removal of restrictions on capitalist corporations are unaware that over the course of this country's history, workers have fought and often died for protection from capitalist industry. In many instances, government troops were called out to crush strikes, at times firing on protesters. Presented below are a few of the many incidents in the (too often overlooked) tumultuous labor history of this country.
http://www.lutins.org/labor.html

Article Reproduction Policy
http://www.lutins.org/policy.html

[DemReadingDU]

39. Mike Whitney: Card Check

12/8/08
Card Check
"You Have Nothing To Lose But Your Chains"
By Mike Whitney

last four paragraphs of article

Magdoff and Bellamy's theory confirms that there was a coherent plan to expand financial markets into riskier areas to compensate for the stagnation which unavoidably occurs in capitalist economies. The real problem is rooted in the hostility of corporate bosses towards workers which translates into wages that don't keep pace with production. When wages languish, in an economy that is 70 percent consumer spending, the only way to increase GDP is by expanding credit. And that, in fact, is exactly how it has played out. Trickle down ideologues, like Henry Paulson, make every effort to extend credit to anyone with a pulse and a body temperature of 98.2 degrees, but they fight tooth and nail to crush the unions or any attempt to raise salaries. And Paulson, of course, is not alone in waging class warfare; he is just an extreme example.

The bottom line, is that financialization, which rests on the twin pillars of easy credit and ballooning debt, creates an inherently unstable system which is prone to wild swings and frequent busts. Bernanke is trying to restore this system ignoring the fact that workers--whose personal balance sheets are already bleeding red--can no longer support it. No amount of tinkering in the credit markets will reduce the overcapacity bulging throughout the system or add one farthing a poor man's bank account. There is a historic mismatch between supply and demand that cannot be reconciled by Bernanke's market meddling. Workers need a raise; that's how demand is created.

The same message goes out to Obama's economic team, too. The stimulus package might get the economy through the short-term crisis, but if wages don't rise, the economy will continue to underperform. That's why the new Prez would be well advised to quickly pass The Employee Free Choice Act (also known as the "card check") which would end secret ballots in union elections. It may be the most important piece of legislation in a decade. Its passage would ease union organizing and help to grow union membership which has dwindled to about 10 percent of the work force.

Forget about the fake differences between the two political parties. There aren't any. The only hope for deep structural change is to strengthen the unions and give workers a place at the policy table. That's the only peaceful way to dismantle this parasitic financial regime and bring about a more equitable distribution of wealth.

full article
http://www.informationclearinghouse.info/article21416.htm

[UpInArms]

28. dollar watch

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

Last trade 85.748 Change -0.053 (-0.07%)

Forex Traders Sell US Dollars as Stock Markets Rack up Gains (Euro Open)

http://www.dailyfx.com/story/bio1/Forex_Traders_Sell_US_Dollars_1228894809091.html

The US Dollar lost ground to the Euro and the British Pound in overnight trading as Asian stock markets registered substantive gains, pointing to improved risk appetite. US index futures are up well over 1% ahead of the opening bell in Europe, suggesting capital will continue to flow out of safe haven assets and pressure the greenback lower.

Key Overnight Developments

• UK Economy Shrinking at Fastest Rate in 18 Years, Says NIESR
• Japanese Data Continues to Disappoint, Signal Deepening Recession
• Australian Consumer Confidence Surges on RBA Rate Cuts
• Euro, British Pound Push Higher Against US Dollar

Critical Levels



The Euro recovered bullish momentum in overnight trading, adding close to 100 pips against the US dollar throughout the session. Traders appear poised to re-test the intraday high at 1.30. The British Pound followed suit, rushing past the 1.48 mark. The latest technical outlook points to near-term gains for EURUSD and GBPUSD before the longer-term down trends are resumed.

...more...

Euro Runs Into Resistance As Growth Outlook Declines, Will It Remain Range Bound ?

http://www.dailyfx.com/story/topheadline/Euro_Runs_Into_Resistance_As_1228906933890.html

The Euro was also trading heavy after running into technical resistance at 1.3000, the psychological level has proved formidable for over a month. The single currency continues to remain range bound as a slumping economy and a declining interest rate outlook has prevented it from generating significant bullish momentum. Indeed, French industrial production fell by 2.7% which was more than five times the minus 0.5% that was forecasted. Activity in Italy wasn’t much better declining 1.2% adding to expectations that the 0.5% decline in 3Q growth will continue. The ECB has lowered its expectations for inflation to fall below their 2% target which was reinforces by a 3.3% drop in the German wholesale price index. The easing of price pressures has raised expectations of further easing from the central bank with markets still pricing in another 113 bps of cuts in the next twelve months. This may remain a weighing factor for the Euro keeping it in its current range, unless a significant bout of risk appetite pushes it above technical resistance.

The Pound gave back earlier gains as it remains relatively unchanged through overnight trading as risk appetite and the declining outlook for U.K. growth took turns driving price action. The NIESR GDP estimate crossed the wires showing that the British economy may have contracted by 1.0%, which may lead the BoE to consider further easing. The Sterling would reach as high as 1.4860 before it stalled as expectations are increasing that the central bank will lower their benchmark rate by another 50-100 bps at their next policy meeting, despite having slashed interest rates by 250 points in the past month. The 20-day SMA continues to remain as formidable resistance and until we see a break above this level potential remains to the downside.

Global sentiment is starting to improve which was evident by the increase of the Swiss ZEW survey to minus 76.2 from minus 88.5. This followed a similar increase in optimism by German investor. If risk appetite starts to increase and leads to the weakening of the Yen, we may se the BoJ use this as an opportunity to intervene. Governor Shirakawa warned today that the central bank is watching forex markets and has the ability to take action. The Japanese economy is in a deep recession as GDP declined 1.8% in the third quarter and the rising Yen has weighed on demand for Japanese goods. The export driven nation prefers a weaker currency and the central bank may look to accelerate any weakness in the Yen

A light economic calendar will leave dollar price action at the mercy of risk winds. The possibility that U.S. lawmakers will vote on the $15 billion bailout for Detroit’s big three could inspire risk appetite and weigh on the dollar. However, the prospect of aide for the troubled carmakers failed to lift markets yesterday as may feel that it is a mere band aide and the potential for one of them to fail will still exist. The wholesale inventories report will cross the wires today and is expected to show inventory levels drop by 0.2% in October after a 0.1% decline the month prior. Typically this would be a sign that demand is increasing and retailer purchases are growing. However, given the current environment it may be attributed to producers cutting back as a decline in demand is expected going forward. The indicator is not typically market moving but could provide some insight to the upcoming retail sales figures.

...more...

[UpInArms]

30. In U.S. downturn, Rhode Island worse-off than most

http://www.reuters.com/article/bondsNews/idUSN0851028720081210

PAWTUCKET, Rhode Island, Dec 10 (Reuters) - The city of Pawtucket in Rhode Island offers a vivid glimpse into the depth of America's worsening recession -- and a warning of the dangers of rising unemployment.

About 50 miles (80 km) south of Boston, Pawtucket was a pioneer in America's industrial revolution. Now more than 11 percent of its workforce is jobless, the worst anywhere in a state that rivals economically battered Michigan for the highest unemployment rate in the country.

Main Street is pockmarked by empty storefronts. In just 100 yards (metres), six shops have "for lease" signs in their windows and a 32,000-square-foot (2,973-square-metre) retail and office complex stands empty.

"I don't have much business left," said Sait Sado, 56, who repairs and alters clothing at Sado's Tailor Shop. "I've worked this area for 26 years. I've never seen it like this."

One business that's busy on Main Street is a pawn shop.

"Business has been very good," said David Katz, a clerk at Pawtucket Pawn Brokers. "You can see for yourself," he said, pointing to shelves packed with televisions, stereos and music equipment. "We have been picking up for the past six or seven months. We're also getting a lot of gold and jewelry."

When President-elect Barack Obama puts his economic rescue plan together this month, he is expected to channel significant aid to state and local governments. Rhode Island illustrates the scale of the problem as many states consider dramatic cuts to local services to balance budgets.

Strained by a loss of tax revenue as unemployment worsens and real-estate values plummet, the state of 1 million people faces its biggest budget shortfall in 17 years, spending $1 million a day more than it collects and forecasting a $357-million budget deficit for the fiscal year to June 30.

...more...

[UpInArms]

31. Economists chop U.S. GDP forecast-Blue Chip survey - to be down -1.1% in 2009

http://www.reuters.com/article/bondsNews/idUSN0928576020081210

WASHINGTON, Dec 10 (Reuters) - The recession-mired U.S. economy is likely to shrink 1.1 percent next year as job losses mount, according to a survey released on Wednesday that showed forecasters chopping their estimates of U.S. output.

A month ago the consensus of economists polled by the Blue Chip Economic Indicators newsletter was for a contraction in U.S. gross domestic production of just 0.4 percent in 2009.

Since then, however, a slew of data has shown U.S. exports falling at the fastest pace in seven years, declines in both consumer spending and business investment and a continued drag from the slumping housing sector.

While the results of the latest poll taken on Dec. 3 and 4 were gloomy, they might have been even more pessimistic if economists were able to take into account a report on Friday that showed the economy shed 533,000 jobs in November, the steepest since December 1974. That brought job losses for the year to almost 2 million.

The newsletter said this hefty job loss has "no doubt prompted many of our panelists to make even further reductions in the their forecasts of GDP ... over the next few quarters."

The jobless rate, which hit a 15-year high of 6.7 percent last month, will likely continue to rise to average 7.8 percent for 2009, Blue Chip said.

...more...

"Ah'm gonna pick up whar' ma daddie lef' off" GWB - campaign 2000

[UpInArms]

33. Office Depot to close 112 underperforming retail stores

01. Office Depot to close six of its 33 distribution facilities
8:45 AM ET, Dec 10, 2008

02. Office Depot to take $270 mln-$300 mln in charges
8:43 AM ET, Dec 10, 2008

03. Office Depot to close 112 underperforming retail stores
8:41 AM ET, Dec 10, 2008

04. Office Depot cuts new store openings for 2009 down to 20
8:41 AM ET, Dec 10, 2008

[UpInArms]

35. Office Depot to close 112 stores, 6 distribution facilities

http://www.marketwatch.com/news/story/Office-Depot-close-112-stores/story.aspx?guid=%7B1ED34992%2DD5A7%2D4F8F%2DAFB0%2DAD2AEA9326D8%7D

NEW YORK (MarketWatch) -- Office Depot Inc. (ODP: 2.43, -0.12, -4.7%) said Wednesday that over the next three months it will close 112 underperforming North American stores and another 14 stores as their leases expire in 2009. New store openings for 2009 now have been reduced to approximately 20, down from the previous estimate of 40 stores. Office Depot also plans to close six of its 33 distribution facilities in North America. The company anticipates taking charges in the fourth quarter 2008 and in 2009 for these actions totaling in a range from $270 million to $300 million.

[specimenfred1984]

56. I hope Staples is next, they're corrupt as hell

"Price-fixing price-gouging Depot" should be their real name. I bought a $5 pack of computer paper the other day, it rang up $7 and the cashier and manager had no explanation for the mishap, it was all just so confusing, LOL.

[Zynx]

67. I worked at OfficeMax for three years.

What that sort of thing generally is that some bozo put up the wrong price sign or that the price did change and wasn't properly updated. Sometimes it is a slightly different product, but looks the same and it got restocked improperly. Regardless, you are legally entitled to the price on the shelf.

[UpInArms]

36. World Bank says historic commodity price boom has ended

http://www.marketwatch.com/news/story/World-Bank-says-historic-commodity/story.aspx?guid=%7BDDB0CEC6%2D1162%2D495D%2DA47D%2D5E7224449699%7D

NEW YORK (MarketWatch) -- The recent sharp declines in oil and food prices have marked the end of the 2003-2008 commodity price boom - the most historic of the past century, the World Bank said Tuesday in a new report called "Global Economic Prospects 2009." The boom was driven by strong global economic growth and has come to an end with the abrupt slowdown in the global economy precipitated by the financial crisis, the World Bank said. "We find that speculation about looming shortages of food and energy are not well-founded, and that the world won't run out of key commodities given the right policies," said Andrew Burns, lead author of the report. Oil prices are likely to average about $75 a barrel next year and, for the next five years, real food prices worldwide are expected to remain about 25% higher than they were in the 1990s, according to the report.

Isn't Wolfie and his girlfriend still parked at the World Bank?

[UpInArms]

37. Death of commodities greatly exaggerated

http://www.reuters.com/article/ousiv/idUSTRE4B92Z320081210?sp=true

LONDON (Reuters) - To some the six-year bull run in commodities is definitely over, but depressed markets and deep cuts in output may yet set the stage for another bubble.

When that will be is uncertain given the crisis engulfing financial markets, but many investors take the view a significant recovery could be at least two years away.

Before then, many producers of grains, oil and industrial metals will have cut output or gone out of business because the prices they can charge for their products have fallen too far.

"Bubbles have happened in the past and they will happen again," said Ian Morley, a director at fund manager Quantum.

"It's not just hot money, but actually mass self-delusion by people in the market, including the so-called experts."

The battering commodity markets have taken can be seen in the Reuters-Jeffries CRB index .CRB, a global commodities benchmark, which this month fell below 210 points, to its lowest level since 2002. It leapt to a record above 473 points in July.

...more...

[Zynx]

68. If a bubble in the same asset class reinflated so shortly after the last one that would be

unprecedented. Commodities are down for the count. Most bullish analysts didn't see a bubble a year ago or even six months ago.

[UpInArms]

38. Neiman Marcus quarterly profit lower, sales suffer

http://www.reuters.com/article/marketsNews/idUSN0844576720081210

* Q1 operating earnings $81.6 mln vs yr-ago $189.7 mln

* Q1 sales down to $986 mln from yr-ago $1.13 bln

(Adds details on Neiman Marcus ownership, stores)

NEW YORK, Dec 10 (Reuters) - Upscale department store Neiman Marcus posted a sharply lower quarterly profit on Wednesday as its affluent shoppers, facing a deep economic downturn, scaled back their spending.

The results from Neiman, which also reported a 14.5 percent decline in quarterly same-store sales, came as a worrying reminder that shoppers across the board were keeping their wallets tightly shut in the face of mounting job losses, tighter credit and the housing slump.

Other high-end retailers such as Tiffany & Co (TIF.N: Quote, Profile, Research, Stock Buzz) and Saks Inc (SKS.N: Quote, Profile, Research, Stock Buzz) have also faced consumer cutbacks, stoking fresh worries about the holiday shopping season, which could be the worst since the early 1990s.

Neiman's net profit was $12.9 million in the fiscal first quarter that ended Nov 1, compared to a profit of $78.6 million in the year-earlier quarter.

On an operating basis, the company posted a profit of $81.6 million, compared with $189.7 million, a year ago.

Sales fell to $986 million from $1.13 billion a year ago.

...a bit more...

:nopity:

[UpInArms]

40. 9:37 EST Yippee! Hurrah! We're Saved!

Dow 8,780.85 89.52 (1.03%)
Nasdaq 1,558.83 11.49 (0.74%)
S&P 500 898.73 10.06 (1.13%)
10-Yr Bond 2.739% 0.07

NYSE Volume 229,079,234.375
Nasdaq Volume 78,002,906.25

09:16 am : S&P futures vs fair value: +10.50. Nasdaq futures vs fair value: +13.30.

09:00 am : S&P futures vs fair value: +10.80. Nasdaq futures vs fair value: +14.00. A higher start is expected. Office Depot (ODP) plans to close 112 underperforming retail stores in North America over the next three months, which marks about 9% of its North America store base. The front month crude oil future contract is up 4.9% to $44.11 per barrel ahead of the government's weekly energy inventory report at 10:35 AM ET.

08:32 am : S&P futures vs fair value: +10.40. Nasdaq futures vs fair value: +13.80. Futures indicate a higher start to the trading day. The White House and Democrats have reportedly reached an agreement on a $15 billion financial aid package for automakers. Congress may vote on the matter as early as today. GMAC announced that it failed to meet the capital requirements to become a bank holding company. It is attempting to convert to a bank holding company to obtain greater access to funding. GMAC said if it is unable to successfully convert to a bank holding company it would have a material adverse effect on GMAC's business, results of operations and financial position. Shares of Electronic Arts (ERTS) are under pressure in premarket trading after the video game producer and publisher yesterday after the close cut its forecast below expectations due to disappointing holiday sales.

[JNelson6563]

42. The yield on the 10 yr these days is

quite a thing to marvel at IMO. I mean, really! How low can it go??

Julie

[ozymandius]

49. I wonder if anyone's thought to add new decimal places, Julie.

That's the only way that I see yield can be measured: carry that sucker out to the thousand-trillionth decimal percentage.

[JNelson6563]

57. That's a very good idea!

It may well come to that! I hope it's all good in your world dear. :toast:

Julie

[antigop]

44. Forget T-bills, here come F-bills (Fed to issue its own debt?)

http://financialweek.com/apps/pbcs.dll/article?AID=/20081210/REG/812109995/1036

The U.S. Federal Reserve is considering issuing its own debt for the first time, the Wall Street Journal said, citing people familiar with the matter.

Fed officials have approached Congress about the move, which could include issuing bills or some other form of debt and would provide the central bank with more flexibility to tackle the financial crisis, the paper said.

The Fed could not be immediately reached for comment.

The Fed can already print as much money as it wants, but issuing debt is largely the province of the Treasury Department.

The Fed stepped in with emergency credit for investment bank Bear Stearns in March and insurer American International Group in September, and threw open its direct loan window to Wall Street firms this year in a bid to stabilize financial markets amid a credit freeze.

But with the credit crisis showing no signs of abating, and the narrow scope for further interest rate cuts from the present levels of 1%, economists expect the Fed to look at new ways to boost the supply and circulation of money to avoid a deflationary slump.

[antigop]

45. WSJ: Fannie, Freddie Executives Knew of Risks

http://online.wsj.com/article/SB122883363239991387.html

Executives at Fannie Mae and Freddie Mac clashed over the adequacy of risk controls for several years as the two giant mortgage companies increased their purchases of dicey loans, according to emails released Tuesday at a congressional hearing.

The emails show that the two government-backed mortgage companies were aware they were taking on more risk as the housing bubble peaked. But the companies pressed ahead with efforts to regain market share they had lost to Wall Street investment banks. They did so by buying loans and securities that increased their exposure to subprime mortgages, for people with weak credit records, and Alt-A mortgages, which typically spare borrowers from having to document their income and assets.

Fannie "has one of the weakest control processes I ever witness (sic) in my career," Enrico Dallavecchia, then chief risk officer of the company, wrote in a July 2007 email to Michael Williams, chief operating officer. Mr. Dallavecchia, who joined Fannie Mae in 2006, previously had worked for J.P. Morgan Chase & Co. as a risk officer and at the University of Venice in Italy as a researcher.

[Festivito]

46. Debt: 12/08/2008 10,653,930,363,287.90 (UP 659,030,188.00) (41% of LOW report-avg)

(It's been a month since the heavy borrowing, so the average is way down starting today. Hundreds of million is hardly anything all. Mostly a FICA change report. Good day all.)

= Held by the Public + Intragovernmental(FICA)
= 6,410,703,126,587.23 + 4,243,227,236,700.68
DOWN 759,942,653.72 + UP 1,418,972,841.72
(NOTE: Excel 2007 cannot handle ten-trillion plus to the penny. It zeroes the penny.)

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

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 20 reports in the last 30 to 31 days.
The average for the last 20 reports is 1,588,171,082.82.
The average for the last 30 days would be 1,058,780,721.88.
The average for the last 31 days would be 1,024,626,505.04.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 46 reports in 69 days of FY2009 averaging 13.68B$ per report, 9.12B$/day.

PROJECTION:
GWB** must relinquish the presidency in 43 days.
By that time the debt could be between 10.7 and 11.0T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
12/08/2008 10,653,930,363,287.90 GWB (UP 4,925,734,567,106.33 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 629,205,466,375.50 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
11/17/2008 -001,168,758,314.18 -- Mon
11/18/2008 +035,027,406,490.17 ------------**********
11/19/2008 -000,433,628,717.22 ---
11/20/2008 -000,189,695,810.14 ---
11/21/2008 -000,151,096,322.01 ---
11/24/2008 -000,086,920,504.20 ---- Mon
11/25/2008 +001,468,316,558.23 ------------*********
11/26/2008 +000,650,427,812.76 ------------********
11/28/2008 +000,783,239,406.89 ------------********
12/01/2008 +038,288,359,563.07 ------------********** Mon
12/02/2008 +000,199,375,927.74 ------------********
12/03/2008 -000,525,799,120.43 ---
12/04/2008 -022,902,653,130.86 -
12/05/2008 -000,187,074,568.06 ---
12/08/2008 -000,759,942,653.72 --- Mon

50,011,556,618.04 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $989,298,560,028.83 in last 81 days.
That's 989B$ in 81 days.
More than any year ever, except last year, and it's 97% of that highest year ever only in 81 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 81 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3635765&mesg_id=3636966

[Festivito]

78. Debt: 12/09/2008 10,656,119,227,403.00 (UP 2,188,864,115.10) (Mostly FICA)

(Mostly a FICA change again. Good day all.)

= Held by the Public + Intragovernmental(FICA)
= 6,410,734,685,101.64 + 4,245,384,542,301.41
UP 31,558,514.41 + UP 2,157,305,600.73
(NOTE: Excel 2007 cannot handle ten-trillion plus to the penny. It zeroes the penny.)

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

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 21 reports in the last 30 to 32 days.
The average for the last 21 reports is 1,616,775,512.92.
The average for the last 30 days would be 1,131,742,859.05.
The average for the last 32 days would be 1,061,008,930.36.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 47 reports in 70 days of FY2009 averaging 13.43B$ per report, 9.02B$/day.

PROJECTION:
GWB** must relinquish the presidency in 42 days.
By that time the debt could be between 10.7 and 11.0T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
12/09/2008 10,656,119,227,403.00 GWB (UP 4,927,923,431,221.43 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 631,394,330,490.60 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
11/18/2008 +035,027,406,490.17 ------------**********
11/19/2008 -000,433,628,717.22 ---
11/20/2008 -000,189,695,810.14 ---
11/21/2008 -000,151,096,322.01 ---
11/24/2008 -000,086,920,504.20 ---- Mon
11/25/2008 +001,468,316,558.23 ------------*********
11/26/2008 +000,650,427,812.76 ------------********
11/28/2008 +000,783,239,406.89 ------------********
12/01/2008 +038,288,359,563.07 ------------********** Mon
12/02/2008 +000,199,375,927.74 ------------********
12/03/2008 -000,525,799,120.43 ---
12/04/2008 -022,902,653,130.86 -
12/05/2008 -000,187,074,568.06 ---
12/08/2008 -000,759,942,653.72 --- Mon
12/09/2008 +000,031,558,514.41 ------------*******

51,211,873,446.63 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $991,487,424,143.93 in last 82 days.
That's 991B$ in 82 days.
More than any year ever, except last year, and it's 97% of that highest year ever only in 82 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 82 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3639015&mesg_id=3639295

[specimenfred1984]

58. Wonkette "Nation Of Poor Stock-Pickers And Corrupt Dillweeds"

http://wonkette.com/404864/nation-of-poor-stock-pickers-and-corrupt-dillweeds

-----Maybe the super-cheap Detroit bailout will finally give Wall Street the shot in the arm it really needs! Or stocks could open slightly higher, then plunge precipitously, then slowly creep back up and bobble around the rest of the day, as is their wont.

Legg Mason’s Bill Miller stands as a sterling example of somebody who looks like a really really smart financial guy until he looks like the biggest dingus on the planet.

So far, it does not appear Barack Obama’s purity has been compromised by this Blagojevich ugliness. -----

[Ghost Dog]

59. European Union seeks deal on climate, economy boost

BRUSSELS, Dec 10 (Reuters) - Differences are narrowing in the European Union over how to tackle the economic slowdown and global warming but a final deal on both issues is proving elusive before a summit starting on Thursday.

The glittering prize at the two-day summit in Brussels would be an accord that allows the 27-nation bloc to offer Barack Obama a strong partnership on both issues when he becomes president next year. But agreements may be possible only on a minimal version of a proposed 200-billion euro ($259-billion) stimulus plan and on watered-down pledges on global warming that satisfy industry.

Despite resistance from around the EU to some parts of a scheme to cut European carbon emissions by 20 percent by 2020, EU Environment Commissioner Stavros Dimas said he was confident of a deal. "We are going to have an agreement," he told reporters at a conference led by the United Nations in the Polish city of Poznan intended to set the stage for global talks next year on a successor treaty to the Kyoto climate agreement from 2012. "I can assure you that the reductions targets, 20 percent by 2020 and the other targets that we have set in renewables, will be intact," he said of a goal for the EU to secure a fifth of its energy from sources such as wind and solar power.

Negotiators in Brussels have been working for weeks on individual parts of the climate package. They have agreed on rules relating to car emissions and this week reached agreement on the renewables target. But Poland and other eastern European nations say they need subsidies to help their heavily coal-dependent power stations deal with the emissions cuts, despite opposition by Germany and others including Britain. Germany fears its heavy industry could become less competitive on international markets if Berlin accepts the targets with no concessions.

"MADAME NON"

German Chancellor Angela Merkel has been nicknamed "Madame Non" by some European media for resisting calls by French President Nicolas Sarkozy for Berlin to inject more money into EU-wide stimulus efforts.

EU diplomats expect her to oppose calls for the Union to follow Britain and others in cutting value-added taxes (VAT) and to demand that member states adhere to EU budget deficit limits -- despite hints by the executive European Commission that it would look leniently on small and temporary deficit overhangs.

/... http://www.reuters.com/article/marketsNews/idINLA68102420081210?rpc=44&sp=true

[Ghost Dog]

61. ...

The EU package represents the most ambitious legislative effort on climate change anywhere which includes four laws that mandate cuts in greenhouse gases by one-fifth by 2020 compared with 1990 levels, reduce energy consumption in Europe by one-fifth by the same deadline and stipulate that 20% of Europe's energy mix comes from renewable sources.

Germany's chancellor Angela Merkel engineered the deal as EU president in March last year. Since then the EU has been bragging about leading the world in the race to keep global temperatures from rising by more than 2C.

It falls to Nicolas Sarkozy, the French president, to end his dynamic six months in the EU hot seat with a deal that could see the entire package turned into law before Christmas.

Sarkozy is staring failure in the face. But he is widely viewed as a consummate fixer who may pull it off. The disputes are fundamentally about costs, a disagreement that has become magnified in the current economic climate. While everyone agrees the headline target of 20% cuts in greenhouse gases by 2020 is sacrosanct, the disputes are about how to get there.

The heart of the scheme is the "cap-and-trade" or emissions trading system which is to supply around half of the cuts in greenhouse gases. The ceiling for industrial pollution levels is progressively lowered and industries and companies pay to pollute by buying permits in an auction system.

The pay-to-pollute principle is supposed to kick in from 2013, but is hugely contentious. Germany, in particular, is demanding that 30 industrial sectors be given their permits free of charge. The sectors are responsible for 90% of emissions in the scheme. If the Germans win the argument, the incentives for going greener will be minimised and revenue from the scheme will collapse.

"The Germans have set out an extreme negotiating position," said another diplomat. "They want absolute protection for all of their industry."

The mighty industrial lobbies in Germany are complaining that their global competitiveness will be wrecked if they need to pay for the pollution permits and are threatening to move out of Europe.

Merkel this week said that the summit "must not take decisions that would endanger jobs or investments in Germany. I will see to that."

/... http://www.guardian.co.uk/environment/2008/dec/10/road-to-copenhagen-climatechange2

[Ghost Dog]

60. Sustained speculative attack sends pound to record low against euro

The most sustained speculative attack on the pound since Britain was ejected from the Exchange Rate Mechanism in 1992 sent sterling to its lowest ever level against the European single currency today.

Fears that the UK will suffer a long and painful recession to match any of the three big downturns since the Second World War helped push sterling to €1.1391 - and prompted concerns that further heavy selling could result in the exchange rate falling to parity over the coming months.

Selling was prompted by a prediction from the National Institute for Economic and Social Research, an economic thinktank, that the UK economy will shrink by more than 1% in the fourth quarter of 2008. The longest decline in manufacturing since the industrial slump of the early 1980s, the retrenchment in consumer spending and the deep downturn in the housing market have made investors nervous of holding sterling.

Analysts at Commerzbank warned that the UK would suffer "the worst recession in the developed world", while Howard Archer, chief European and UK economist at IHS Global Insight, warned that the economy would shrink by 2% in 2009 - a much steeper decline than the 1% drop in output forecast by Alistair Darling in last month's pre-budget report.

/... http://www.guardian.co.uk/business/2008/dec/10/pound-euro-record-low
______
uh,

[truthisfreedom]

62. My god. Bloomberg can't publish articles fast enough to keep up with the rollercoaster market.

I just looked at bloomberg.com and saw an article that started with "Stocks rally on..." and noticed that the gains had already been lost completely. A moment later I refreshed it, and the top headline was "U.S. Stocks Fall, Erasing Rally, as Financial Shares Decline"...


Perhaps it's best if they wait for the end of the day before publishing anything.

[Dr.Phool]

64. It looks like the Repukes are preparing to torpedo the Detroit deal.

Breaking headline on MSRNC.com.

Can we just surrender the Civil War and let the South leave? I'll move back up north.

Edit. http://www.msnbc.msn.com/id/28108346/

[ozymandius]

71. Why commit political suicide to destroy the unions?

That's what's this obstinacy is about: Kill the labor unions. 2008 was an ass-whoopin'. 2010 and 2012 will make Republicans feel like the loser in a knife fight if they cause massive job losses from this stunt.

[Dr.Phool]

76. I don't think that it's suicide down here to kill unions.

That's why they have to rely on social issues to win elections.

[specimenfred1984]

72. Excellent point, notice that a lot of the people...

around DU that are pro-torture, anti-dem are from the South too. I guess DU needs their money more than their clearly anti-DU ideas.

[Dr.Phool]

75. I wouldn't know anymore.

I used to go into all the forums and get into a lot of discussions. But this place has really changed over the last year or so. This is about the only thread I participate in anymore.

All of the regulars here are intelligent, reasonable and fairly open-minded. But, it's gotten ugly out there lately.

[CatholicEdHead]

65. NPR to cut staff/programming

http://www.npr.org/templates/story/story.php?storyId=98095326

NPR.org, December 10, 2008 · NPR News announced Wednesday that it is canceling two daily radio programs — Day to Day and News and Notes — as part of a broader effort by the company to close a projected budget shortfall of $23 million for its current fiscal year. Overall, NPR will cut 7 percent of its work force and slash expenses further around the company.

"It's a very difficult time for us all, but NPR is not exempt, unfortunately, from the recession that has covered our country in the last several months," Dennis Haarsager, NPR's interim president and CEO, said at its corporate headquarters in Washington, D.C. "We simply must react to it in a responsible way — and that's what we've tried to do."

The two shows will go off the air on March 20, and the 34 journalists working for them will lose their jobs, including hosts Madeleine Brand and Farai Chideya. The shows are both based in Culver City, Calif., at NPR West, a major satellite operation.

Day to Day was designed as a midday complement to mainstays Morning Edition and All Things Considered, while News and Notes, a successor to The Tavis Smiley Show, was intended to draw more African-American listeners. Beyond the two shows, another 12 journalists will lose their jobs throughout NPR News.

Companywide, NPR is laying off 64 people and eliminating 21 other positions that are currently vacant. NPR News will still have more than 800 employees on staff, including about 300 journalists.

The shortfall was driven in large part by the erosion of corporate underwriting, Haarsager said. Earlier this year, budget planners counted on receiving $47 million from those corporate spots and online ads. Now, he said, the company projects that it will receive just $32 million in revenues for the current fiscal year.

Interest payments from an endowment created from the bequest of the late Joan Kroc, which have typically paid out about $10 million a year to NPR, were wiped out by the sharp downturn in the financial markets. However, NPR's board authorized the company to draw down $15 million from the company's operating reserves, most of which also came from the Kroc gift.

[ozymandius]

70. End of the day numbers and blah blah.

Dow 8,761.42 Up 70.09 (0.81%)
Nasdaq 1,565.48 Up 18.14 (1.17%)
S&P 500 899.24 Up 10.57 (1.19%)
10-Yr Bond 2.684% Up 0.015
NYSE Volume 5,968,704,500
Nasdaq Volume 2,000,020,250

4:15 pm : Stocks settled with solid gains on Wednesday following a volatile session as traders digested news that an agreement had been reached over a potential aid package for the struggling U.S. automakers.

The S&P 500 traded with a gain of as much as 2.2%, fell to a loss of 0.4% with about two hours left in the session and then a broad-based recovery effort helped the index settle with a gain of 1.2%.

The White House confirmed that it has reached an agreement with congressional Democrats on a $15 billion aid package for U.S. automakers. The White House called the aid either a bridge to viability or a bridge to bankruptcy.

The deal depends on the automakers having a plan in place that shows long-term viability by March 31. If the companies are unable to prove their long-term viability, the government will ask for its money back and the automakers will likely have to enter bankruptcy protection. It's been reported that General Motors (GM 4.58, -0.12) and Chrysler will be receiving the initial aid, as Ford (F 3.21, -0.02) is currently in a better financial position.

Some enthusiasm faded after several Republican lawmakers expressed opposition to the deal.

On a related note, GMAC, GM's 49% held finance arm, said that it failed to meet the capital requirements to become a bank holding company. It is attempting to convert to a bank holding company to obtain greater access to funding. GMAC said if it is unable to successfully convert to a bank holding company it would have a material adverse effect on GMAC's business, results of operations and financial position.

As a whole, news has leaned negative this session. Electronic Arts (ERTS 17.00, -2.35) said its fiscal year 2009 earnings and revenue will come short of its previous guidance, meaning its earnings and revenue will miss the consensus estimate. Eastman Kodak (EK 6.59, -0.61) withdrew its fiscal year 2008 guidance. Rio Tinto (RTP 93.83, +20.74) is cutting as much as 5,500 jobs or 12% of its workforce and 8,500 contract workers. Office Depot (ODP 2.66, +0.23) plans to close 112 underperforming retail stores in North America over the next three months, which marks about 9% of its North America store base.

Meanwhile, AIG (AIG 1.74, -0.19) may owe $10 billion to Wall Street firms due to speculative trades, according to The Wall Street Journal.

Like stocks, crude oil had a very volatile session, with some of the action fueled by the government's weekly energy report. The data showed a smaller-than-expected increase in crude stockpiles, while gasoline inventories rose by a larger-than-expected amount. Crude settled with a gain of 4.3% at $43.89 per barrel after trading with a gain as high as 9.8%. Commodities as a whole rose 4.1%.

In the end, eight of the ten sectors advanced. The materials (+2.7%) and energy (+4.7%) sectors provided leadership thanks to the strength in commodities.

The financial sector underperformed. American Express (AXP 21.55, -1.74) saw selling pressure after being initiated with a Sell at both Citigroup and Banc of America.DJ30 +70.09 NASDAQ +18.14 NQ100 +0.8% R2K +2.3% SP400 +2.7% SP500 +10.57 NASDAQ Adv/Vol/Dec 1770/1.97 bln/973 NYSE Adv/Vol/Dec 2117/1.31 bln/952