STOCK MARKET WATCH, Thursday, August 11, 2011

[Pale Blue Dot]

Source: du

STOCK MARKET WATCH, Thursday, August 11, 2011

AT THE CLOSING BELL ON August 10, 2011

Dow 10,719.94 -519.83 (-4.85%)
Nasdaq 2,381.05 -101.47 (-4.26%)
S&P 500 1,120.76 -51.77 (-4.62%)
10-Yr Bond... 2.21 +0.10 (+4.54%)
30-Year Bond 3.59 +0.08 (+2.16%)

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Market Conditions During Trading Hours

Euro, Yen, Loonie, Silver and Gold

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

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

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

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

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

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

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

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

Read more: du

[Pale Blue Dot]

1. Today's Reports

Aug 11 08:30 Initial Claims 08/06 410K 409K 400K
Aug 11 08:30 Continuing Claims 7/30 3700K 3700K 3730K
Aug 11 08:30 Trade Balance Jun -$48.0B -$48.0B -$50.2B

Read more: http://www.briefing.com/investor/calendars/economic/2011/08/08-12/#ixzz1UiXA3Qu3

[Roland99]

56. U.S. June trade gap widens unexpectedly (up 4.4% in June to $53.1 billion from $50.8 billion in May)

U.S. June trade gap widens unexpectedly
Largest deficit since the financial crisis hit in Oct. 2008
http://www.marketwatch.com/story/us-june-trade-gap-widens-unexpectedly-2011-08-11-847240?link=MW_home_latest_news

[Roland99]

58. Continuing claims decline 60,000 to 3.69 million; Four-week claims average drops 3,250 to 405,000

Continuing claims decline 60,000 to 3.69 million
Four-week claims average drops 3,250 to 405,000
Weekly U.S. jobless claims fall 7,000 to 395,000

[Pale Blue Dot]

2. Oil above $84 amid signs of improving US demand

SINGAPORE – Oil prices rose above $84 a barrel Thursday in Asia amid signs global crude demand may be stronger in the second half than previously expected.

Benchmark oil for September delivery was up $1.49 cents to $84.38 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Crude rose $3.59, or 4.5 percent, to settle at $82.89 on Wednesday.

In London, Brent crude was up 47 cents to $107.15 per barrel on the ICE Futures exchange.

Traders are trying to gauge the impact plunging equity and commodities prices could have on economic growth and demand for crude. Oil investors usually look to stock markets as a barometer of overall investor sentiment, but crude rallied Wednesday despite a 4.6 percent fall in the Dow Jones industrial average.

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

[xchrom]

42. Asian appetite to support oil demand

http://www.marketwatch.com/story/asian-appetite-to-support-oil-demand-2011-08-11?dist=beforebell

SYDNEY (MarketWatch) — Oil prices have been thumped as concerns about global growth keep investors sidelined, but analysts say the fundamentals in Asia remain strong enough to reinvigorate energy demand.

Demand has weakened in light of the struggling world economy. This week, the International Energy Agency (IEA) cut its global outlook for 2011.

The IEA now estimates for 2011 global oil demand will be 60,000 barrels a day less than previously projected, with the agency citing the impact of high crude prices and slowing economic growth.

Global oil demand is expected to average 89.5 million barrels a day in 2011, rising to 91.1 million barrels a day in 2012.

[Loge23]

43. Hilarious, if it weren't so tragic.

These yahoo oil briefs are about the most ridiculous statements on the net!
Oil just plunged 20% in a week! Now the "signs" are pointing to "stronger...demand"??!

Traders are trying to gauge how much freakin' money they can siphon off of this commodity and absolutely nothing more than that!

[Tansy_Gold]

52. As with the stock markets --

Healthy economies -- even sick ones -- do not fluctuate this much this quickly.

Everything put out by the "experts" -- present company excepted -- is lies intended to scam the vulnerable.



Wankers




TG

[Pale Blue Dot]

3. U.S. Stock-Index Futures Gain as Cisco, News Corp. Earnings Top Estimates

U.S. equity-index futures gained, signaling the Standard & Poor’s 500 Index may rebound from near an 11-month low, after companies from Cisco Systems Inc. (CSCO) to News Corp. reported better-than-estimated earnings.

Cisco, the world’s largest maker of networking equipment, jumped 10 percent in early New York trading after exceeding analysts’ profit estimates. News Corp., owner of Fox TV, climbed in Sydney after also raising its dividend 27 percent. Active Network Inc. rose 1.6 percent after forecasting higher sales. Apple Inc. (AAPL) advanced 1 percent after surpassing Exxon Mobil Corp. to seize the title of world’s most valuable company.

Contracts on the S&P 500 expiring in September advanced 0.9 percent to 1,133.4 as of 11:27 a.m. in London, indicating the equity benchmark may rebound from yesterday’s 4.4 percent slump. Futures pared an earlier gain of as much as 2.2 percent. Dow Jones Industrial Average futures climbed 72 points, or 0.7 percent, to 10,797.

“Earnings look very good,” Brian Jacobsen, chief portfolio strategist at San Francisco-based Wells Fargo Funds Management, which manages $228 billion, said in a Bloomberg Television interview. “The vast majority of them are beating estimates, but the market has been so volatile.”

http://www.bloomberg.com/news/2011-08-11/u-s-stock-futures-rise-as-increased-earnings-temper-europe-crisis-concern.html

[Pale Blue Dot]

15. At 7:45, futres suddenly dropped 100 pts and are now in the red.

Did something happen in Europe?

[Demeter]

22. Yes, the WHOLE Economy Will Ride on the Back of Cisco

:sarcasm:

[Roland99]

55. ** U.S. stock futures down sharply after claims **

http://www.marketwatch.com/story/us-stock-futures-down-sharply-after-claims-2011-08-11-841470?link=MW_home_latest_news


DJIA INDEX 10,601.00 -124.00
S&P 500 1,105.80 -17.70
NASDAQ 100 2,065.25 -19.75

[xchrom]

4. good morning all

:donut:

[xchrom]

5. europe: Italy's Tremonti: strong fiscal measures needed

http://hosted.ap.org/dynamic/stories/E/EU_ITALY_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-11-07-10-46

ROME (AP) -- Italian Finance Minister Giulio Tremonti told lawmakers Thursday that tough and speedy measures are needed over the next two years to balance the budget in 2013.

Tremonti laid out possible measures, including liberalizing local services, raising the retirement age for women in the private sector, cutting public sector salaries, and relegating nonreligious holidays to Sundays to increase productivity.

Tremonti said the financial situation had deteriorated significantly since Parliament in mid-July passed euro70 billion ($99 billion) in austerity cuts aimed at balancing the budget by 2014 - a date that had been set by the European Union.

"Since then there have been new, successive, intertwined facts that modified the course of our activity, which brings us here," Tremonti said.

[xchrom]

6. UK Treasury chief seeks to calm slow growth fears

http://hosted.ap.org/dynamic/stories/E/EU_BRITAIN_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-11-06-30-21

LONDON (AP) -- Britain's Treasury chief George Osborne planned Thursday to defend his tough austerity plan after the Bank of England downgraded growth forecasts and warned of economic difficulties ahead.

Osborne was scheduled to address legislators at an emergency session of the House of called in response to rioting across England that saw four nights of widespread looting, arson and violence, which some blamed on tough budget cuts.

After returning from vacation in California, Osborne was expected to assure lawmakers that Britain is prepared to deal with any new crisis in the European banking sector.

In an op-ed article published in the Daily Telegraph on Monday, Osborne defended his plan to cut 81 billion (US$130 billion) from government spending through 2015, which will see public sector jobs lost and welfare programs slashed.

[xchrom]

8. French bank seeks probe into stock selloff

http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-11-07-14-11

PARIS (AP) -- French bank stocks remained under pressure Thursday as volatile and nervous traders ignored officials' repeated attempts to assuage fears over their financial health.

A rebound from Wednesday's battering, when rumors about Societe Generale's financial health, gripped markets, proved short-lived and France's bank stocks were back under renewed selling pressure, in another sign that investors remain worried over their exposure to the debt of countries like Greece and Italy, and Europe's ability to deal with its debt crisis.

Analysts were left grasping to identify a single trigger for the sudden reversal.

"There's nothing behind it, its a market of malintentioned speculators trading on pure rumors," said Marc Touati, an economist at French trading firm Assya Compagnie Financiere.

[xchrom]

30. French fears Pummelled

http://www.economist.com/blogs/freeexchange/2011/08/french-fears

NICOLAS SARKOZY, France’s president, rushed back from his holiday on August 10th to defend the country from financial attack. In a day of rumour, panic and denials, shares in Société Générale, the country’s third-biggest bank, fell by almost a fifth before recovering some ground and closing down 15%.

The immediate cause for worry was a question-mark over whether France will keep its triple-A rating after Standard & Poor’s cut America’s on August 5th. France’s debt stood at 82% of GDP last year, from 64% in 2007. This is one of the highest of any AAA-rated country. That, investors fear, means it could be the next target for a downgrade, especially if already anaemic economic growth falters further. The extra yield required by investors to hold French debt instead of German Bunds jumped to almost triple the average level of 2010 while the cost of insuring against a default by France reached new highs during the week.

After an emergency meeting of ministers, Mr Sarkozy pledged to fulfil recent promises on debt reduction, regardless of whether economic growth slows. More reassuringly, Moody’s, S&P and Fitch, the three major credit-rating agencies, all said France’s rating was stable.

As Société Générale’s shares tumbled, the cost of insuring its debt against default soared by 55 basis points, suggesting it will face a significant increase in borrowing costs. Shares of other French banks were also hit. Those in BNP Paribas, the euro zone’s biggest bank, fell by 9.5%; Crédit Agricole’s fell by 12%.

[xchrom]

78. German nuclear shutdown forces E.ON to cut 11,000 staff

http://www.guardian.co.uk/business/2011/aug/10/german-nuclear-shutdown-forces-eon-to-axe-11000-jobs

The financial effects of the Fukushima nuclear power crisis continued on Wednesday as Germany's E.ON announced that plans by its government to shut the country's reactors in response to the Japanese disaster would result in up to 11,000 job losses.

As fears mounted that the nuclear shutdown would significantly increase Germany's industrial operating costs – weakening its competitiveness in an already fragile global economy – E.ON announced a swing into the red, a dividend cut, the redundancies and profits warnings for the next three years.

Germany's biggest utility, which on Friday announced an average 15% price rise for its five million domestic UK gas and electricity customers, took a €1.9bn (£1.7bn) charge relating to plant closures and a new tax on spent nuclear fuel rods, pushing the group to its first quarterly loss in 10 years – a second-quarter deficit of €1.49bn.

E.ON was reporting a day after German rival RWE reported its own swing into deficit, reporting that €900m of decommissioning and tax costs dragged it to a €229m loss. This week's utility results are adding to concerns about the cost of closing all 17 of Germany's nuclear reactors by 2022 and making up the shortfall by doubling renewable energy output.

[xchrom]

79. European stock markets rally as fears of France downgrade abate

http://www.guardian.co.uk/business/2011/aug/11/debt-crisis-stock-markets-rise


Stock markets rallied on Thursday morning as fears of a French debt downgrade abated, and the Italian finance minister prepared to present an austerity budget.

The FTSE 100 index in London climbed more than 100 points to 5108 in early trading, a gain of 2% that wiped out much of Wednesday's losses. Markets are eagerly awaiting a new austerity plan for Italy, which will be presented by Giulio Tremonti in Rome at 11am local time (10am BST) despite some opposition from unions.

George Osborne is due to to speak in London at about 1pm at a special sitting of parliament called after the recent rioting in the capital and across England. He is expected to defend his austerity measures, at a time when Europe's debt crisis is deepening and Labour politicians have latched on to the Bank of England's warning that the outlook is worsening.

France's CAC and Germany's Dax both rebounded 2.4% in early trading, while Italy's MIB was up 1.3%, Spain's Ibex added 1% and Portugal's PSI rose 1.8%.

[xchrom]

80. Osborne: our deficit reduction plan is vindicated by global events

http://www.guardian.co.uk/business/2011/aug/11/deficit-george-osborne-emergency-commons

The chancellor used his emergency statement to parliament to say that recent events in the global economy had "vindicated" the government's deficit reduction programme, putting in a bullish performance after the Bank of England downgraded its UK growth forecasts for the fifth time this year.

George Osborne made the second of two emergency government statements, speaking after nine days of economic upheaval and one day after Bank of England governor Sir Mervyn King warned of more economic "turbulence" ahead, saying "headwinds were becoming stronger by the day".

In his statement, Osborne acknowledged this squall of bad economic news, saying the FTSE had fared badly in the past month. "The huge overhang of debt means the recovery will be longer and harder than we had hoped," he said.

"This is the most dangerous time for the global economy since 2008, and we should be clear about that."

[xchrom]

7. asia: ADB: Asia to pause inflation fighting policy

http://hosted.ap.org/dynamic/stories/A/AS_ASIA_ECONOMY_ADB?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-11-06-04-35

SINGAPORE (AP) -- Asian central bankers will likely pause measures to contain high inflation until global market turmoil subsides, the chief economist at the Asian Development Bank said.

A plunge in equity and commodities prices during the last week and growing concern the U.S. could fall back into recession will probably convince policymakers to halt interest rate hikes and currency appreciation, at least temporarily, the ADB's Changyong Rhee said Thursday in an interview with The Associated Press.

"They will probably stop tightening for the next few weeks and months," Rhee said. "Once the market stabilizes, they will have to think about inflation again."

Asian economies, excluding Japan, grew more in the first half than the ADB had forecast, but prices rose faster than expected as well, Rhee said. For the past year, Asian governments have sought to dampen quickening inflation with higher interest rates, stronger currencies and slower spending growth.

[xchrom]

9. Asian stocks fall after US tumble; Europe gains

http://hosted.ap.org/dynamic/stories/W/WORLD_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-11-06-20-56

BANGKOK (AP) -- Asian stock markets continued their slump Thursday but European shares clawed back ground as traders awaited data that they hoped would show a brighter employment picture in the U.S.

Oil prices hovered below $83 a barrel, while the dollar slipped against the yen and the euro.

Britain's FTSE 100 rose 1.9 percent to 5,104 in early trade while Germany's DAX was 2.3 percent higher at 5,745. The CAC-40 in Paris rose 2.4 percent to 3,077.

Wall Street, pummeled after Standard and Poor's ratings agency stripped the U.S. of its sterling AAA credit rating last week, appeared set to gain. Dow futures rose 1.1 percent to 10,842 while S&P 500 futures were up 1.2 percent up 1,137.20.

[xchrom]

11. Asian markets close day of mixed trading

http://latimesblogs.latimes.com/money_co/2011/08/trading-was-mixed-in-asian-markets-thursday-as-investors-remained-jittery-over-the-european-debt-crisis-and-faltering-globa.html

Trading was mixed in Asian markets Thursday as investors remained jittery over the European debt crisis and faltering global economy.

Japan's Nikkei 225 stock average fell 0.6% to 8,981.84 on a day of wild swings for the yen. Hong Kong's Hang Seng index declined 1% to 19,595.14, Taiwan's Taiex lost 0.2% to 7,719.09 and Australia's S&P/ASX 200 index ended down 0.5% to 4,140.8.

Advancing were China's Shanghai Composite Index, which gained 1.3% to 2,581.51, and South Korea's Kospi, which rose 0.6% to 1,817.44, the second day of gains after the country's Financial Services Commission banned short selling.

The regulating agency's chairman said on a radio program Thursday that South Korea would fare better than it did in the 2008 financial crisis if another global recession were to arise, Reuters reported.

[xchrom]

17. Cattle giant files for bankruptcy

http://search.japantimes.co.jp/cgi-bin/nb20110811a1.html

UTSUNOMIYA, Tochigi Pref. — Agura Bokujo, a cattle farm business with operations nationwide, has filed for bankruptcy protection, blaming the crisis at the leaking Fukushima No. 1 nuclear power plant, which it says prompted a rise in canceled contracts after radioactive elements were detected in beef, a company executive said Wednesday.

The Tokyo District Court ordered the protection of the Tochigi Prefecture-based firm's assets Tuesday under the civil rehabilitation law. It had ¥61.99 billion in debts as of the end of March.

Agura Bokujo, established in 1979, runs some 370 farms, mostly through franchising, where a combined 145,000 cattle are raised. It solicits investments in cattle breeding and buys calves from cattle owners.

The executive blamed Tokyo Electric Power Co. for falling beef prices after radioactive cesium was found in beef cattle raised on farms near the Fukushima nuclear plant, which was gutted by the March 11 twin disasters.

[xchrom]

19. Economists worry over outlook

http://search.japantimes.co.jp/cgi-bin/nb20110811a3.html

Economists voiced concerns Tuesday about the nation's economic outlook amid global stock plunges and the yen's appreciation following Standard & Poor's downgrading of U.S. debt from its AAA credit rating.

Naoki Tsuchiyama, market economist at Mizuho Securities Co., said Japanese stocks, as measured by the Nikkei stock average, will remain in the 8,500-10,000 range through September, while the current economic situation in the United States and Europe will continue for some time.

If the yen stays at the 77 level against the dollar, manufacturers will accelerate the shift of their operations to other countries, adding fuel to the nation's industrial hollowing-out and slowing its economic growth, Tsuchiyama said.

On Tuesday, the Nikkei average finished trading at 8,944.48, the lowest closing since March 15, while the yen strengthened to the lower 77 range against the dollar in Tokyo trading.

[xchrom]

21. Wholesale prices up 10th month in a row

http://search.japantimes.co.jp/cgi-bin/nb20110811a6.html

Wholesale prices rose 2.9 percent in July from a year earlier for the 10th straight monthly increase, reflecting rises in crude oil and other commodity prices, the Bank of Japan said Wednesday.

The index of corporate goods prices stood at 105.7 against the 2005 base of 100, the central bank said in a preliminary report.

The BOJ also upwardly revised June's growth to 2.6 from 2.5 percent.

Prices for petroleum and coal products gained 18.5 percent. Those for nonferrous metals expanded 13.1 percent, with chemical products up 5.0 percent.

[xchrom]

25. When a pyramid is not an olive

http://www.atimes.com/atimes/China/MH12Ad02.html

HONG KONG - The Chinese Academy of Social Sciences (CASS) is China's top research center in social sciences and humanities funded by taxpayers' money. Directly under the State Council, China's cabinet, the status of CASS is even higher than a ministry in the administrative hierarchy. As such, it functions as a top think-tank to the central government and many of its studies are used as references by leaders in setting policies.

This, however, is no guarantee that all research done by CASS is sound and accurate. This is probably because in general social sciences are still not exact disciplines and often different results


could be derived on the same topic. But in China's circumstances, CASS researchers may at times also want to cater to the wishes of policymakers.

To cope with the negative impact on the Chinese economy of the global financial crisis that started in the United States in 2008, the government set a policy to speed up economic restructuring by boosting domestic consumption to reduce the country's reliance on export and re-export industries.

But to boost domestic consumption, people's incomes must first be increased. For this purpose, Beijing announced earlier this year a goal to double urban residents' incomes in five years, though it stopped short of saying how this could be attained. For Beijing, boosting people's incomes also has important political significance, as a growing middle class could help ensure social stability.

[xchrom]

10. Bank chiefs seek to reassure investors

http://www.latimes.com/business/la-fi-us-markets-20110811,0,6310880.story

Reporting from New York and Los Angeles—
Wall Street retreated back into panic mode amid growing worries about the economy, prompting leaders of major U.S. banks to take the rare step of assuring jittery investors that a repeat of the 2008 financial crisis was not about to happen.

The chief executives of the nation's three biggest banks — JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. — are fighting speculation that they are in trouble and leading the nation back into recession.

Banking stocks have recently slumped to levels not seen since Wall Street's meltdown three years ago, when the industry received a massive government bailout to avert collapse. They also led the market's huge dive Wednesday, when the Dow Jones industrial average plunged 520 points.

During the stock market's rout, a leading index of bank stocks dropped 7.1% — far outpacing the Dow's 4.6% slide. Over the last month, banks performed worse than any other sector in the broad Standard & Poor's 500 index, dropping 22%.

[Demeter]

28. That leaves GS and Morgan Stanley Unaccounted for

[xchrom]

38. morgan stanley is comin to our rescue!11 nt

[xchrom]

12. Umami Burger to open flagship location at the Grove

http://latimesblogs.latimes.com/money_co/2011/08/umami-burger-to-open-flagship-location-at-the-grove.html

Umami Burger, the rapidly growing Los Angeles burger chain, will open its biggest location yet at the Grove shopping center this fall. Umami

The 3,000-square-foot flagship location will be the brand's ninth restaurant and will feature house-ground meat, locally sourced produce, house-made ingredients and chef-inspired burgers. The indoor-outdoor location at the Grove will seat 175 and will be built with a sustainable green design including recycled building materials and solar panels.

The news was part of a wider announcement that Umami Restaurant Group has partnered with hospitality and lifestyle company SBE and investment firm Nimes Capital to grow the burger chain nationwide.

[Warpy]

82. Good luck to them and the Red Sox

Unless they price their hamburgers into the stratosphere in order to keep the riffraff out, meaning the place will never be full, it sounds like a recipe to go under in record time.

The only places succeeding around here are at the top and at the bottom. The mid priced restaurants are going out of business faster than I've ever seen anything disappear.

Then again, this is a far cry from LA, where people go to see and be seen.

[xchrom]

13. Morgan Stanley analysts outline plan for housing

http://latimesblogs.latimes.com/money_co/2011/08/morgan-stanley-analysts-outline-plan-for-us-housing-market.html

America’s real estate market could be on an “unsustainable path,” faced with an oversupply of homes inaccessible to either renters or buyers. That’s what three Morgan Stanley analysts argue in a recent paper that outlines steps that can be taken to fix the sputtering housing market.

Mortgage credit remains tight, making home buying difficult. At the same time rents are rising quickly, pricing folks out of the market just as tens of thousands of borrowers are losing their homes to foreclosure every month.

The result of these twin occurrences could be “an oversupply of homes with nobody to purchase them,” a situation that is already starting to emerge, according to the research paper by the Morgan Stanley analysts, Oliver Chang, Vishwanath Tirupattur and James Egan. The three experts argue that tackling the backlog of so-called distressed properties is crucial.

A cornerstone of their plan is helping investors who would rent out those properties. They argue that in exchange for various incentives and access to the huge glut of foreclosed homes on the balance sheets of major financial institutions, investors must agree to upgrade those homes and offer flexible terms to renters, including lease-to-own programs. They also argue that tax incentives could be used to subsidize rents for lower-income renters.

[xchrom]

16. U.S. looks outside the box to stem housing glut

http://www.latimes.com/business/la-fi-foreclosure-rents-20110811,0,3978261.story

Reporting from Washington and Los Angeles—

With the real estate market continuing to drag down the economy, federal officials are seeking ideas from investors and others about ways to rent some of the nearly 250,000 foreclosed homes owned by government-controlled entities such as Fannie Mae.

The decision to solicit public comment came as the pace of foreclosures nationwide declined again last month, according to RealtyTrac Inc. in Irvine. The 4% drop in foreclosure filings from June, and 35% from a year earlier, was the 10th straight monthly decline.

Mortgage modification efforts and delays in processing foreclosure paperwork have eased the foreclosure problem somewhat, but the number of people losing their homes is expected to remain high for months, the firm said Wednesday.

A severe oversupply of homes on the market — many of them foreclosures — is pushing prices down. The Obama administration has been struggling to solve the problem largely through programs designed to prevent foreclosures.

[AnneD]

14. Morning Marketeers...

:donut: and lurkers.

First rec again :woohoo:

I went to my school yesterday and met with the principal. She seems nice enough. I actually get a lunch and she or the secretary relieve me-I am still in shock. In 24 years of Nursing I have never gotten a designated lunch time. It has always been take it when you can. This is a very good thing.

The clinic, however, is another thing. It looks and feels like a re education camp. There is too much cute and fluffy. It is ok in an elementary school, but not in a middle school. As Paul said "When I was a child, I spoke as a child, I understood as a child, I thought as a child: but when I became a man, I put away childish things." First Corinthians 13:11. I have some educating to do and a whole lot of stickers to remove from the furniture and walls. But it is good.

What is not good is the drought. Houston , subtropical Houston , will be going on water restrictions soon. The fact that we are just now doing this speaks volumes for the water conservation that folks HAVE done voluntarily so far. We had 1 smattering of rain in July and I can't say how many triple didgit days we have had not to mention all the days of 97 or higher. We do need rain. This is enough to make an atheist pray.

And speaking of pray, I would not want to be short in pm.

Happy hunting and watch out for the bears.

[xchrom]

18. ...

:hi:

[AnneD]

34. You have single handily ...

Caused me to look at dump trucks in a whole new light....Thanks

[xchrom]

39. i hope that's a good thing? nt

[AnneD]

44. You know that it is a common practice....

For trash men to attach unwanted children's toys to the bumpers of their dump trucks to keep them out of the dump.

Bet you will never look at the garbage man the same way again.

[xchrom]

64. huh? i did not know that. nt

[DemReadingDU]

73. I have heard that

or take broken things and repair them for themselves, or other family/friends.


Could be be junk to one person, a treasure for another

[Demeter]

41. All that Glitters Is Not Gold?

[Demeter]

26. Sending you thoughts of rain

We have now had enough to bring the grass back, if only in patches. There have been fe melons on the market, and very high prices, no doubt because of the drought. Our local sweet corn is rather stunted, too.

I saw two fawns, still spotted, running across campus yesterday, and a 3 point buck on the property, scarfing fallen apples.

[Demeter]

20. Now That Cartoon is the Simple Truth

I despair of ever hearing anything truthful out of the "economists" and "experts" on NPR. There have been discussions about gold and about the global collapse, and they haven't even been factual. Everyone is so AMAZED and PERPLEXED by events and cannot explain a thing.

[tclambert]

86. I liked the investing in denial part.

Now there's a growth industry.

[xchrom]

23. 2008 is here again

http://www.atimes.com/atimes/Global_Economy/MH12Dj01.html

NEW YORK - No one can blame investors for feeling like 2008 is back. After all, there has been a return to acute market volatility, financial and industrial stocks have been beaten up, and the VIX, a popular index of volatility, was up 7.93 points today, reaching 42.99. The Dow is down a little over 7% for the year. With the exceptions of gold and silver, commodities have also undergone a brutal re-pricing. Additionally, the panic mode has sent gold to all time highs, bolstered the Swiss franc and made the US


investment grade corporate bond market a relative safe harbor especially in the plain vanilla industrial names. What do we take from this market upheaval?

1. Credit, equity and commodity markets are pricing in a recession. US economic data has been signaling that the "soft patch" may be something more significant - a stall that could well turn into a recession. This explains the re-pricing in those sectors associated with economic growth - mining, materials, oil & gas, retail (clothing), and infrastructure. Financials, the villain at the heart of the drama in 2008, are also under pressure in both spreads and stock prices. (This was also pushed by a degree of contagion from French banks and concern over their exposure to peripheral European economies.) The Bank of America 5-year credit-default swap ended the day at 300/310 basis points and its stock was at $6.77 (down from a high in the year of $14.89 on February 14).

2. While the Standard & Poor's downgrade of the United States sovereign debt to AA+ was the spark that appears to have lit the market explosion, it is not the core reason. The core reason is that the US and other advanced economies are in the middle of a multi-year process of deleveraging. This is impacting the public sector and households. The S&P downgrade only underscored that the US political establishment did a very poor job in dealing with a problem that was well-identified and had considerable time before the August 2 deadline.

[Mojorabbit]

24. Exclusive: One bank in Asia cuts, others review credit

Exclusive: One bank in Asia cuts, others review credit

SINGAPORE | Thu Aug 11, 2011 7:54am EDT

SINGAPORE Aug 11 (Reuters) - One bank in Asia has cut credit lines to major French lenders while five other banks in Asia are reviewing trades and counterparty risk as worries about the exposure of French banks to peripheral euro zone debt mounts, banking sources told Reuters on Thursday.

Rumors on Wednesday that France was to lose its AAA rating, later denied by ratings agencies, helped trigger the biggest widening in the European credit default swap index since the credit crunch in 2008.
http://www.reuters.com/article/2011/08/11/us-crisis-asia-exposure-idUSTRE77A1Q620110811

[banned from Kos]

29. Amazing - 2008 in the US is going worldwide now

http://www.bloomberg.com/news/2011-08-10/three-month-dollar-libor-increases-to-highest-level-since-april.html

LIBOR is still in the sane range though (compared to 2008).

[xchrom]

33. wow. nt

[xchrom]

27. The question is: Is America headed for a double-dip recession?

http://www.economist.com/economics/by-invitation/questions/america-headed-double-dip-recession

America's recession was deeper than many initially realised, its recovery has been shallower, and its future looks uncertain. Real per capita GDP in the US is the same now as it was in 2005. And real GDP growth in 2011 may be less than 2%. What has gone wrong with America's economy, how likely is a double-dip recession to occur within the next year, and what should America's leaders be doing?
Guest contributions:
6



Household indebtedness is holding back recovery
Viral Acharya wrote on Aug 5th 2011, 14:48 GMT

AS I have argued a few times at this roundtable, first and foremost the crisis in the United States was a crisis due to household finance gone awry: an excessive push for housing through government policy and government-sponsored enterprises (Fannie and Freddie); a failed deregulation with private sector building, excess leveraged bets on housing, an unprecedented borrowing by households, and construction by real estate firms.

Since it all unfolded, the responses have primarily focused on recapitalising the financial sector, employing Fannie and Freddie as "bad banks" to keep propping up the bad asset (housing) prices, and an expansionary monetary policy to keep borrowing rates low. While some of all of this was necessary, it is not sufficient. This is because these policies DID NOT address the fundamental root of the crisis, the household indebtedness.

As is clear, household borrowing relative to housing values remains at elevated levels. Households are in saving mode right now rather than spending mode. Banks remain reluctant to write down principal on mortgages as they would take a capital hit, but regulatory bargaining power over them to take such a hit is now lost (such power existed at the time of TARP but was not exercised). So yes, corporations are profitable due to flexible labour markets in the US and their overall global competitiveness; banks have capital now to lend at low interest rates; but unfortunately aggregate demand is not high.
Read more »




***more contributors @ link

[Demeter]

31. The Question Is: Are All Economists Blind?

[AnneD]

35. Well they sure are...

Deaf and the gov ones are dumb too.

That is the only cause for the perpetual shock they speak of.

[xchrom]

36. indeed. nt

[bread_and_roses]

37. ROFL - too true - and K&R (n/t)

[Tansy_Gold]

46. The question is, will they stop using euphemisms and just state the obvious?

"Household indebtedness" really means "people can't pay their bills because they have no jobs and no income."

Yes, folks, we're right back to square one. No matter how you cut this pan of brownies, the core issue is jobs.

And that's the one issue NONE of the current government policies are effectively addressing.

Speaking of which, my short vacation is over today and I have to go back to my piddly little job. But it pays the bills, so I guess I'm better off than many.


Have a good one, folks.



TG

[Demeter]

48. You Had a Vacation?

Like mine are, no doubt, without pay and in hopes that nothing hits the fan in my absence...

[Tansy_Gold]

59. Of course without pay.

I'm classified as an "independent sub-contractor" so I have no "benefits" at all. No vacation, no matched FICA contributions, no unemployment insurance, no worker's comp, etc.

I also have no expenses for work-related wardrobe, no commuting whatsoever, and I never have to deal in person (and only rarely on the phone) with actual human beings.

I took two weeks off to have time for my daughter and grandson's visit, with a few days before and after for clean-up and recuperation. Now it's back to the grind. But hey, it pays for the dog food and the vet bills.



TG

[AnneD]

57. And speaking of.....

Euphemisms, the new one on my hate list is food insecurity. Call it what it is starvation or hunger. Some things should not be gussied up.

[Tansy_Gold]

60. Ditto n/t

[MadinMo]

63. And food deserts (not desserts). WTF?

nt

[Mojorabbit]

32. BofA in talks to sell big China bank stake-sources

BofA may shed half of $17 billion CCB investment

* Talks have occurred with Kuwait, Qatar funds

* Bank declines comment on existence of talks

By Denny Thomas and Dinesh Nair

HONG KONG/DUBAI, Aug 10 (Reuters) - Bank of America Corp (BAC.N) has held exploratory talks with the principal investment funds of Kuwait and Qatar about selling part of its stake in China Construction Bank (0939.HK), sources with direct knowledge of the talks told Reuters.

Bank of America, which owns about 10 percent of CCB's (601939.SS) Hong Kong-listed shares and is scurrying to raise capital for its mortgage-scarred balance sheet, will be contractually free to sell the bank shares after Aug. 29. They are valued at about $17 billion.

The bank, the largest in the United States by assets, is likely to sell half its stake to shore up its Tier 1 capital. Analysts believe Bank of America needs about $50 billion to meet new capital requirements.

http://www.reuters.com/article/2011/08/11/bankofamerica-china-idUSN1E7791U820110811

[Po_d Mainiac]

50. $17bil ain't gonna be enough to

cover the MBS putbacks.

Or the inevitable write-offs of second mortgages sitting on the books gathering dust.

The death spiral continues!

[Demeter]

54. It's a Nice Gesture of Sincere Intent, Though

Might gain them another go at the public trough.

[Demeter]

40. The Economic Illiterates Step Up the Attack on Social Security and Medicare by Dean Baker

http://www.truth-out.org/economic-illiterates-step-attack-social-security-and-medicare/1312813525

Standard & Poor's (S&P) downgrade of US debt should be seen as the joke it is. The rating agency, which gave investment grade ratings to hundreds of billions of dollars of subprime mortgage-backed securities, made an accounting error of $2 trillion in doing its assessment of the US financial situation. However, when this error was called to S&P's attention, it still went ahead with the downgrade. Just like the war in Iraq, the policy was decided in advance of the evidence.

The nonsense with the S&P downgrade is yet another distraction - after four months of haggling over the debt ceiling idiocy - from the real problem facing the country: a downturn that has left 25 million people unemployed, underemployed or out of the labor force altogether. Tens of millions of people are seeing their career hopes and family lives wrecked by the prospect of long-term unemployment...The incredible part of this story is that the people who are responsible are all doing just fine, and most of them are still making policy. Furthermore, they are using their own incompetence as a weapon to argue that we have to take even more money from the poor and middle class, this time in the form of Social Security, Medicare and Medicaid benefits.

The basic story is that the economy needs demand. The housing bubble generated more than $1.4 trillion in annual demand through the construction and consumption that it spurred. Now that this demand is gone, there is nothing to replace it. President Obama's stimulus was replaced by some of the lost demand, but it was nowhere near large enough. We tried to fill a $1.4 trillion hole in annual demand with around $300 billion in annual stimulus in 2009 and 2010. In 2011, most of this boost has been exhausted and the economy is coming to a near standstill. If we had serious people in Washington, they would be talking about jobs programs, about rebuilding the infrastructure, about work sharing, and any other measure that could get people back to work quickly. However, instead of talking about ways to re-employ people, the fixation in Washington is reducing the deficit.

This concern with the deficit is absurd on its face (if the markets were panicked about the deficit, the US government would not be able to issue long-term debt at less than 3.0 percent interest), but it has the backing of powerful forces. Wall Street investment banker Peter Peterson is doing a full-court press, paying any budget analyst he can find to say how terrible the deficit problem is. The Washington Post and National Public Radio are also doing the full court press, abandoning any pretext of objectivity as they highlight all the deficit news all the time - using a healthy dose of Peterson funded experts to make the case.

The real goal of this hysteria is the dismantling, or at least scaling back, of the core social programs that working people depend upon: Social Security, Medicare and Medicaid. It is important to realize that this is not a traditional left-right battle. Polls consistently show that people across the political spectrum overwhelmingly support these programs and do not want to see them cut. Even the vast majority of Tea Party Republicans support these programs...Rather than being a left-right split, this is a top-bottom split. There is a bipartisan consensus among the elites that these programs should be cut. The guiding philosophy of this drive is that public money that goes to programs for middle income and poor people is money that could be in the pockets of the wealthy. For this reason, Social Security, Medicare and Medicaid are an offense to their sensibilities. They are programs that help ordinary working people, not the rich, therefore these programs conflict directly with their philosophy of government. The remarkable part of this story is that elites are effectively using their incompetence in managing the economy as the core of their argument for cutting these social programs. After all, no one was talking about cutting these programs until the deficit exploded, and the reason the deficit exploded was that the collapse of the housing bubble wrecked the economy. If these elites had a clue about the economy, they never would have allowed the bubble to grow to such dangerous levels. The economy would not have collapsed, the deficit would be manageable and no one would be discussing cuts to Social Security and the other programs.

In other lines of work, incompetence on the job gets you fired. In policymaking in Washington, incompetence means more responsibility and power.

[xchrom]

45. Apple is first S&P 500 company with no dividend

http://blogs.marketwatch.com/thetell/2011/08/10/apple-is-first-sp-500-company-with-no-dividend/

Add yet one more to superlative to Apple, Inc. AAPL, which as of Wednesday’s close became the largest U.S. company by market cap after a 13% rally in its shares this year pushed its market capitalization to $337 billion. That topped former leader Exxon Mobil Corp. XOM, whose shares have tumbled 7% year-to-date, and as of Wednesday had a market cap of $331 billion. Read more on Apple’s taking top stop for market cap.

But there’s more. Apple is the first S&P 500 SPX leader that doesn’t pay its shareholders a dividend, according to S&P Indices. It’s also been stingy on share buybacks, reporting its last one in 2006. Exxon, on the other hand, “is the poster child for share buybacks,” notes S&P’s Howard Silverblatt. If one added back all the shares Exxon purchased over the past five years, at Exxon’s current price it would still be bigger than Apple, he estimates. — Laura Mandaro


...that's the whole article

[Demeter]

47. Unequal Uses for the Bill of Rights

http://www.truth-out.org/unequal-protection-unequal-uses-bill-rights/1312898624

Of the cases in this court in which the Fourteenth Amendment was applied during its first fifty years after its adoption, less than one half of one percent invoked it in protection of the Negro race, and more than fifty percent asked that its benefits be extended to corporations.

- Justice Hugo Black, 1938


-------------------------------------------------

The constitutional rights of free speech, privacy, and protection from overzealous prosecution all were the results of the Founders’ of the United States having lost these rights to a multinational corporation and the government that supported its right to so-called free trade. They and the Fourteenth Amendment that was part of the post–Civil War legislation necessary to free slaves in the United States were all put in place specifically to benefit and protect humans.

The core concept of American democracy, as established in the writings of the Founders, is that all institutions, from churches that claim to be created by gods to businesses created by the wealthy or ambitious to the very government itself—all institutions—are authorized by the people to exist and are answerable to the people for their existence. And, as the Declaration of Independence notes, when an institution’s behavior “becomes destructive of these ends, it is the Right of the People to alter or to abolish it...as to them shall seem most likely to effect their Safety and Happiness.”

MUCH MORE AT LINK

[Demeter]

49. Capitulation, Not Compromise, Led to a Debt Deal by: Paul Krugman

http://www.truth-out.org/capitulation-not-compromise-led-debt-deal/1312908382

What would I have done?

That’s the question President Obama’s kinda-sorta defenders keep asking; it’s supposed to be a conversation-stopper.

But the answer is clear: I would have made a statement declaring that giving in to this kind of blackmail would constitute a violation of my oath of office, and that my lawyers, on careful reflection, have determined that there are several legal options that allow me to ignore this extortionate demand.

Now, the Obama people say that this wasn’t actually an option.

Well, I hate to say this, but I don’t believe them.

[Tansy_Gold]

61. "Well, I hate to say this (actually I don't hate saying it at all), but

they're full of horseshit up to their eyeballs."




Tansy Gold, who is really tired of euphemisms and insincere politeness

[Demeter]

51. Dogbert Explains It All

[xchrom]

65. +1

[MadinMo]

68. +2

Dogbert is such a scoundrel.

[tclambert]

87. When he wags his little tail, evil is afoot.

[Mojorabbit]

53. Europe Considers Ban on Short Selling

By STEPHEN CASTLE AND LOUISE STORY
Published: August 11, 2011
BRUSSELS — A European market regulator is considering recommending a temporary ban on negative bets against stocks across the continent, in an effort to stop the tailspin in the markets, according to two people with knowledge of government discussions.

The European Securities and Markets Authority, a body that coordinates the European Union’s market policies, has been requesting information from member states about such bets against stocks, known as short-sales.

In such deals, a trader sells borrowed shares in hopes that they will decline in value before he has to buy them back to close out his loan. The difference in price is his profit. Critics say short selling encourages speculation and pushes stock prices down, sometimes feeding on itself in a panicked market, while advocates say it keeps the market honest and maintains liquidity.


http://www.nytimes.com/2011/08/12/business/global/europe-considers-ban-on-short-selling.html?_r=1

[Maeve]

70. I have my suspicions that short-sales are behind much of this

The volatility is too much like that old gif of radfringe's--lemmings rushing from one side to the other "Buy!! Sell!!" The calm bears profit, the panicking lemmings lose. Here's hoping the folk running our retirement funds are calm bears....

Y'all try to relax--I've always said that if you follow the markets, buy Tums.

[plumbob]

81. Good. Now outlaw them permanently. They are a casino game,

unrelated to the market's supposed function of raising capital.

[Mojorabbit]

62. US Pay TV Industry Faces Record Number of Cancellations

Cut the Cable: US Pay TV Industry Faces Record Number of Cancellations
11 August 2011
American consumers are cancelling or forgoing their cable and satellite TV subscriptions in record numbers, as fears continue to mount over the nation’s economic situation.
In a study conducted by the Associated Press, eight of the nine largest subscription-TV providers in the US lost 195,700 subscribers during the April-to-June quarter of 2011.

According to Sanford Bernstein analyst Craig Moffett, the total subscription losses for the entire subscription-TV industry, including the untallied cable companies, is likely to be around 380,000 subscribers. Putting it into perspective, that would mean that nearly one in every 300 US households cancelled their subscriptions during a 3-month period. Ian Olgeirson at SNL Kagan places the number even higher, estimating it to be around 425,000 to 450,000 cancellations.

The US subscription-TV industry first showed a small net loss of subscribers a year ago. However, the number has risen exponentially this year with a weakened economic climate. According to AP, the chief cause for the rise in cancellations this year “appears to be persistently high unemployment and a housing market that has many people living with their parents, reducing the need for a separate cable bill.”

http://www.economywatch.com/in-the-news/cut-the-cable-us-pay-tv-industry-faces-record-number-of-cancellations.11-08.htm/

[Hugin]

66. Then there's those like me... Who don't see the need to pay for an ad stream.

Which is all Pay TV has become.

[Po_d Mainiac]

69. The major categories of commercials

DDW (Dick don't work)..Viagra etc.

YAF (You are fucked)..The IRS is after your ass, and after you hire us, they'll own it

YLLS (You look like shit)..The only weigh to lose weight is with pills, an exercise machine, to eat our food, or surgery

WWYM (We want your money)..Dumb insurance ads

[xchrom]

67. U.S. trade gap for June widens unexpectedly

http://www.marketwatch.com/story/us-june-trade-gap-widens-unexpectedly-2011-08-11-847240

WASHINGTON (MarketWatch) — The U.S. trade deficit widened unexpectedly in June, reaching its highest level in almost three years as the nation’s exports were held in check by the global slowdown, according to government data Thursday.

The gap between imports and exports expanded 4.4% to $53.1 billion from $50.8 billion in May, the Commerce Department said.

The biggest factor behind the June deficit was a 2.3% decrease in exports, the largest monthly decline since December 2008.

Analysts surveyed by MarketWatch had expected the deficit to narrow to $48.2 billion. The deficit had jumped a revised 16.5%to $50.8 billion in May. Read MarketWatch economic calendar.




***unexpectedly***

[xchrom]

71. David Prosser: The Bank and the Fed united in hesitancy

http://www.independent.co.uk/news/business/comment/david-prosser-the-bank-and-the-fed-united-in-hesitancy-2335558.html

Outlook We may be running out of policy levers. That is the underlying message from the pronouncements of central banks either side of the Atlantic over the past 36 hours, even if the US Federal Reserve's promise of low interest rates to come for the next two years enabled stock markets the world over to break the cycle of sell-offs yesterday.

Look beyond that promise, however – and really it was a prediction of how sluggish the US economy was likely to be rather than a hard-and-fast commitment – and the Fed did not go as far as many had hoped. There is to be no immediate return to quantitative easing. Note also the split decision, with three members of the Federal Open Market Committee dissenting from the majority view.

It is a similar story in the UK. The Bank of England's latest Inflation Report is only the latest warning that official forecasts for growth this year are going to prove over-optimistic (and many people think the Bank has yet to cut its own predictions far enough). But like their US counterparts, members of the Bank's Monetary Policy Committee have so far chosen not to return to QE. Yesterday, Sir Mervyn King, the Bank's Governor, said another round of easing was possible but warned there were limits to the effectiveness of such a policy. And the MPC is split on the best course of action too.

[Mojorabbit]

72. Swiss franc dives against euro, dollar

Thu Aug 11, 2011 10:04am EDT

* Yen near record high, markets on alert for intervention

* Swiss franc dives as SNB eyes more steps to weaken it

* SNB's Jordan says bank could peg euro/franc temporarily (Updates prices, adds comment, details, changes byline, dateline, previous LONDON)

By Wanfeng Zhou

NEW YORK, Aug 11 (Reuters) - The dollar and euro soared more than 5 percent versus the Swiss franc on Thursday after the Swiss National Bank said it could ease monetary policy further and possibly peg the franc to the euro to rein in a soaring currency.

Vice Chairman Thomas Jordan was quoted by the local press as saying the SNB could make monetary policy more expansive without intervening in foreign exchange markets. His comments fueled speculation that Switzerland could be considering introducing negative interest rates.

http://www.reuters.com/article/2011/08/11/markets-forex-idUSN1E77A0H320110811

[xchrom]

74. south asia: Food inflation jumps to 9.90%

http://timesofindia.indiatimes.com/business/india-business/Food-inflation-jumps-to-990/articleshow/9563823.cms

NEW DELHI: Food inflation surged to a four-and-half month high of 9.90 per cent during the week ended July 30 on the back of costlier onions, fruits, vegetables and protein-based items.

Food inflation, as measured by Wholesale Price Index (WPI), stood at 8.04 per cent in the previous week. The rate of price rise in food items was recorded at 16.45 per cent in the last week of July, 2010.

As per data released by the government on Thursday, prices of onions went up by 36.62 per cent year-on-year, while fruits became 16.49 per cent more expensive.

During the week under review, vegetables overall became dearer by 14.61 per cent and prices of eggs, meat and fish were up by 13.44 per cent on an annual basis.

[xchrom]

75. Sensex closes 71 points down

http://timesofindia.indiatimes.com/business/india-business/Sensex-closes-71-points-down/articleshow/9566374.cms

MUMBAI: The BSE Sensex on Thursday fell 71 points as global banking giant Citigroup downgraded its earning forecast of 30-Sensex listed companies on account of high borrowing costs, and food prices peaked to over four-month high, fanning fears of RBI hiking rates next month.

After the Wednesday's rally, the fall in Bombay Stock Exchange's bellwether index, which closed at 17,059.40 in a volatile trade, was also led by nagging concerns over the resolution of the US and European debt problems.

ICICI Bank, which was among the 5 volume toppers in terms of shares exchanged during the day, contributed the most to the Sensex fall, declining over 2 per cent, followed by largest Indian telecom company Bharti Airtel closed 2.42 per cent lower.

Tata Power that was the third most influential in the Sensex fall, also suffered the maximum losses at 4.31 per cent.

[xchrom]

76. Exports jump 81.8% to USD 29.3bn in July

http://timesofindia.indiatimes.com/business/india-business/Exports-jump-818-to-USD-293bn-in-July/articleshow/9565194.cms

NEW DELHI: India's exports grew by an impressive 81.8 per cent to USD 29.3 billion in July, commerce secretary Rahul Khullar said on Thursday.

Imports, too, grew by 51.5 per cent to USD 40.4 billion, leaving a trade deficit of USD 11.1 billion.

"Exports have done well...but my sense is that it (high export growth) is not going to sustain. We will see slowdown by this month," Khullar told reporters here.

During April-July 2011, the shipments grew by 54 per cent to USD 108.3 billion. Imports grew by 40 per cent to USD 151 billion.

[xchrom]

77. $4 trillion has been wiped off world stocks in 2 weeks

http://economictimes.indiatimes.com/markets/global-markets/4-trillion-has-been-wiped-off-world-stocks-in-2-weeks/articleshow/9567555.cms

LONDON: Some $4 trillion has been wiped off the value of world stocks this month on concerns the euro zone debt crisis is spreading to Italy and Spain and hurting Europe's banking system, and the global economy is falling into recession.

The sum wiped off the MSCI All-Country World Index - about one seventh of its value - is almost equivalent to the size of combined economies of Italy, Spain, Portugal, Ireland and Greece.

The sell-off this week knocked nearly $1.6 trillion off the market capitalisation of the global benchmark after last week's $2.5 trillion loss.

The valuation of the benchmark is currently $24.84 trillion. The U.S. S&P 500 alone has lost more than $710 billion this week after losing $850 billion the previous week, while European shares measured by the MSCI Europe have lost almost $500 billion this week.

[Mojorabbit]

83. Bank of America, 20 Other Banks Cut by Goldman

NEW YORK (TheStreet) -- Bank of America(BAC_), Citigroup(C_) and 19 other banks received reduced price targets from Goldman Sachs analysts on Thursday.
More on BAC


Cramer: European Banks Revisit 2008Market Activity
JPMorgan Chase & Co| JPM Citigroup Inc| C UPBank of America Corporation| BAC UPGoldman's analysts cited "renewed concerns surrounding the global economic outlook" and the S&P downgrade of the U.S. triple-A rating. While the analysts do not expect "2008 all over again," they believe "an extended low rate, low growth environment" will take its toll on the sector.
On average they reduced 2012 and 2013 earnings per share estimates by 7% and 10%, respectively, while reducing price targets by an average of 13%.
Bank of America remained a "buy," in the view of Goldman's analysts, but saw its price target drop by 23% to $10 from $13. Goldman also lowered 2012 estimates by 17% while lowering 2013 estimates by 18%.
"The market remains concerned over its Basel III capital position...which has been a major contributor to its stock falling over 25% to $7 over the past two weeks," the analysts write.
http://www.thestreet.com/story/11218389/1/bank-of-america19-other-banks-cut-by-goldman.html?cm_ven=GOOGLEN

[Mojorabbit]

84. Poor Weather Pushes Prices Up for Corn and Soybeans

Poor Weather Pushes Prices Up for Corn and Soybeans
Prices for corn and soybeans jumped in commodities markets on Thursday after the Department of Agriculture said that the onslaught of bad weather, from heat and drought in some areas to heavy rains and flooding in others, would reduce yields for those critical crops.

Commodities experts said that would ultimately lead to higher prices to consumers for staples like vegetable oil, pasta and meat.

“The message, based on today’s report, is these higher costs should not be expected to abate any time soon,” said Bill G. Lapp, president of Advanced Economic Solutions, a commodity consulting firm that works with restaurant companies and food manufacturers. “It implies higher cost forthcoming and subsequent margin pressure, and at some point the need to increase prices at the retail level or on the menus.”

The report, based on a survey of farmers and visits to fields, predicted a national average corn yield of 153 bushels an acre, down from nearly 159 bushels in the government’s previous forecast. It also predicted a small drop in the number of acres of corn that would be harvested this fall.

http://www.nytimes.com/2011/08/12/business/corn-and-soybean-prices-rise-after-usda-report.html

[RUMMYisFROSTED]

85. Gorge and Purge.

:eyes:

[tclambert]

88. GM picks A123 Systems for battery pack contract

DETROIT (AP) -- General Motors Co. said Thursday that battery maker A123 Systems Inc. will produce batteries to be used in future electric vehicles being sold in select global markets.

The Detroit-based automaker said the battery packs will be built at A123 Systems' Livonia facility.

The announcement didn't specify the vehicles.

A123 Systems recently hired its 1,000th employee in Michigan, and the company says the new contract will play a role in making sure those employees have work. A123 Systems currently employs 775 people in Livonia, and expects that number to increase.


http://finance.yahoo.com/news/GM-picks-A123-Systems-for-apf-3630560574.html?x=0&.v=1
_____________________________

A123Systems (AONE) shares jumped about 45% today. Sadly, that's still not enough to get my shares to the breakeven point.

[Demeter]

89. And Evidently Obama was there, exhorting the labor

and then off to NYC and a $35,000 a plate fundraiser.

Cognitive dissonance, anyone?

[tclambert]

91. He was at Johnson Controls, a different battery maker, over in Holland, MI.

So he rubbed shoulders with labor, then went to visit millionaires? I'm sure he took a shower in between. Wouldn't want the nobles to smell poverty on him.

[Demeter]

92. Red-neck, DeVos, Amway country

His kind of people.

[Hawkowl]

90. Belgium, France, Italy, Spain Overrule European Regulator, To Impose Standalone Short-Selling Bans

http://www.zerohedge.com/news/belgium-france-italy-spain-overrule-european-regulator-impose-standalone-short-selling-bans

"Stop the presses. Barely did we have time to report that European regulators failed to impose a coordinated short selling ban, that Bloomberg reports that the countries most impact by the market plunge are about to impose standalone short-selling bans. These are Belgium, Italy, Spain and France. In other words, it really is on and the 2008 Lehman PTSD flashbacks may now resume. Until we get a headline that says it isn't. The rescue of the Borsa Italian is now more schizophrenic than that of Greece. As a reminder, in the previous post the FT quoted Abraham Lioui, a professor at the Edhec business school in France, who said “It is the worst thing to do right now. This would signal to the market there may be something fundamentally bad that is happening." He is correct. Something is fundamentally very wrong and about to break."

I think the rumor yesterday about a French bank going under is probably fundamentally true. Somebody knows the shit is going to hit the fan. These past few weeks are eerily reminding me of 2008. I believe it's deja vue all over again. Except this time, the Fed is out of tools and the fiscal policy is fucked. 1937 anyone?

[Jon Ace]

93. Dow futures are off a bit, -50 points @ 11:18pm edt

And the roller coaster continues...

[Festivito]

94. Debt: 08/09/2011 14,591,991,499,526.02 (UP 4,263,894,082.58) (Tue, UP a little.)

(UNDER the new 2011 debt limit of 14.694-trillion dollars by 297.991-billion dollars. Good day.)
Cheboygan. Cheboygan!
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 9,915,945,812,737.81 + 4,676,045,686,788.21
UP 429,866,034.74 + UP 3,834,028,047.84

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 313-Million person America.
If every American, man, woman and child puts in $3.20 THAT'S 1B$, and $3,198.65 makes 1T$.
A family of three: Mom, Dad, Child: $9.60, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 12 seconds we net gain another American, so at the end of the workday of the report, there should be 312,632,192 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2010 04:37 -> 310,403,677
Currently, each of these Americans owe $46,674.63.
A family of three owes $140,023.89. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 23 reports in the last 30 to 32 days.
The average for the last 23 reports is 10,825,251,695.15.
The average for the last 30 days would be 8,299,359,632.95.
The average for the last 32 days would be 7,780,649,655.89.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 212 reports in 313 days of FY2011 averaging 4.86B$ per report, 3.29B$/day.
Above line should be okay

PROJECTION:
There are 530 days remaining in this Obama 1st term.
By that time the debt could be between 15.3 and 18.7T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
08/09/2011 14,591,991,499,526.02 BHO (UP 3,965,114,450,612.94 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
01-WJC +0,053,598,528,417.78 ------------* WJC 31% of FY, 40% of FY-Debt
01-GWB +0,079,686,673,895.42 ------------* GWB 69% of FY, 60% of FY-Debt
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
09GWB +0,602,152,152,000.60 ------------* * * * * * * * * * * * * * * GWB 31% of FY, 32% of FY-Debt
09-BHO +1,282,951,954,598.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO 69% of FY, 68% of FY-Debt
FY2010 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +1,030,368,468,634.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * BHO
Endof11 +1,201,547,894,733.29 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
07/20/2011 -000,246,591,087.61 ---
07/21/2011 -006,272,699,061.03 --
07/22/2011 +000,804,035,241.16 ------------********
07/25/2011 -000,991,970,057.94 --- Mon
07/26/2011 +000,075,256,672.36 ------------*******
07/27/2011 +000,470,569,863.89 ------------********
07/28/2011 +005,447,179,210.73 ------------*********
07/29/2011 +002,605,572,370.14 ------------*********
08/01/2011 +027,273,368,503.87 ------------********** Mon
08/02/2011 +124,683,694,907.85 ------------***********
08/03/2011 -000,098,125,325.28 ----
08/04/2011 -012,807,553,395.89 -
08/05/2011 +020,147,316,949.47 ------------**********
08/08/2011 +000,521,563,614.23 ------------******** Mon
08/09/2011 +000,429,866,034.74 ------------********

162,041,484,440.69 Total of 15 above reports.

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

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

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4953738&mesg_id=4953855

[Festivito]

95. Debt: 08/10/2011 14,581,957,381,309.78 (DOWN 10,034,118,216.24) (Wed, UP a little.)

(UNDER the new 2011 debt limit of 14.694-trillion dollars by 287.957-billion dollars. Good day.)
Freaking fly bombarding me constantly.
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 9,916,296,448,358.23 + 4,665,660,932,951.55
UP 350,635,620.42 + DOWN 10,384,753,836.66

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 313-Million person America.
If every American, man, woman and child puts in $3.20 THAT'S 1B$, and $3,198.57 makes 1T$.
A family of three: Mom, Dad, Child: $9.60, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 12 seconds we net gain another American, so at the end of the workday of the report, there should be 312,639,392 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2010 04:37 -> 310,403,677
Currently, each of these Americans owe $46,641.46.
A family of three owes $139,924.38. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 24 reports in the last 30 to 33 days.
The average for the last 24 reports is 9,956,111,282.17.
The average for the last 30 days would be 7,964,889,025.74.
The average for the last 33 days would be 7,240,808,205.22.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 213 reports in 314 days of FY2011 averaging 4.79B$ per report, 3.25B$/day.
Above line should be okay

PROJECTION:
There are 529 days remaining in this Obama 1st term.
By that time the debt could be between 15.3 and 18.4T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
08/10/2011 14,581,957,381,309.78 BHO (UP 3,955,080,332,396.70 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
01-WJC +0,053,598,528,417.78 ------------* WJC 31% of FY, 40% of FY-Debt
01-GWB +0,079,686,673,895.42 ------------* GWB 69% of FY, 60% of FY-Debt
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
09GWB +0,602,152,152,000.60 ------------* * * * * * * * * * * * * * * GWB 31% of FY, 32% of FY-Debt
09-BHO +1,282,951,954,598.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO 69% of FY, 68% of FY-Debt
FY2010 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +1,020,334,350,418.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * BHO
Endof11 +1,186,057,445,549.59 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
07/21/2011 -006,272,699,061.03 --
07/22/2011 +000,804,035,241.16 ------------********
07/25/2011 -000,991,970,057.94 --- Mon
07/26/2011 +000,075,256,672.36 ------------*******
07/27/2011 +000,470,569,863.89 ------------********
07/28/2011 +005,447,179,210.73 ------------*********
07/29/2011 +002,605,572,370.14 ------------*********
08/01/2011 +027,273,368,503.87 ------------********** Mon
08/02/2011 +124,683,694,907.85 ------------***********
08/03/2011 -000,098,125,325.28 ----
08/04/2011 -012,807,553,395.89 -
08/05/2011 +020,147,316,949.47 ------------**********
08/08/2011 +000,521,563,614.23 ------------******** Mon
08/09/2011 +000,429,866,034.74 ------------********
08/10/2011 +000,350,635,620.42 ------------********

162,638,711,148.72 Total of 15 above reports.

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

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

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4956762&mesg_id=4958074