STOCK MARKET WATCH, Monday January 28

[ozymandius]

Source: du

STOCK MARKET WATCH, Monday January 28, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 357 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2565 DAYS
WHERE'S OSAMA BIN-LADEN? 2289 DAYS
DAYS SINCE ENRON COLLAPSE = 2250
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

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

AT THE CLOSING BELL ON January 25, 2008

Dow... 12,207.17 -171.44 (-1.38%)
Nasdaq... 2,326.20 -34.72 (-1.47%)
S&P 500... 1,330.61 -21.46 (-1.59%)
Gold future... 910.70 +4.90 (+0.54%)
30-Year Bond 4.28% -0.07 (-1.63%)
10-Yr Bond... 3.58% -0.06 (-1.54%)






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 BY TIM W. WOOD

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

As I have watched many of the mainstream financial shows over the last week or so it is obvious that confusion reigns at even the highest levels in regard to the state of the financial markets. Yet, the answer is very clear and I have been warning about this for some time. We are now seeing the unwinding of the second longest 4-year cycle in stock market history. This cycle was stretched because of the relentless actions by the powers that be to prevent the market from the natural correction process. As a result, the 4-year cycle that began in 2002 became extremely over extended and artificially inflated. I have said all along that cycles can contract and expand, fluctuating just like the cyclical changing of the seasons. But, just because fall may not give way to winter until late in the year does not mean that it won’t be a cold and brutal winter once the season finally changes. As for the stock market, the cycle cannot be manipulated to the point that it no longer exists. Winter has just set in and we are now beginning to see the fallout from this overly manipulated and extremely extended cycle.
.....

Just amazing! He manages not to parrot Robert Rhea in this column.

[ozymandius]

2. Today's Report

10:00 AM New Home Sales Dec
Briefing Forecast 635K
Market Expects 645K
Prior 647K

http://biz.yahoo.com/c/ec/200805.html

[Robbien]

43. December new home sales fall 4.7 pct to 604,000

Sales of new homes in the US fell faster than expected in December, for the second straight month, leaving home sales down in 2007 more than 40 pct from the year before, a calendar-year decline not seen in 25 years.

The Commerce Department reported today that last month's new home sales were down 4.7 pct to a seasonally adjusted annual rate of 604,000 units, the lowest sales rate since 559,000 in February of 1995.

Forecasters had expected only a minor drop to about 645,000 units.

On a calendar-year basis, the number of new homes sold in the US in 2007 was 40.7 pct lower than in 2006, the largest decline since September 1981.

In the year to end-December 2007, the median home price was 246,900 usd, 0.2 pct higher than the median home price in the year ending December 2006.

However, the median home price for the month of December alone dropped to 219,200 usd, a whopping 10.9 pct decline from the median home price in November. The December median price is the lowest since September 2004.

http://www.thomsonfxhub.com/fxhub/forex-news-detail.jsf?newsId=10653&title=US%20December%20new%20home%20sales%20fall%204.7%20pct%20to%20604,000%20unit%20annual%20rate

Of course CNBC pundits quickly changed the subject

[hatrack]

49. Analysts were surprised by the extent of the decline . . . .

Ever wonder why they're continually being "surprised"?

:eyes:

[Roland99]

51. Because they wear their ass for a hat.

[UpInArms]

60. U.S. 2007 new-home sales fall record 26.4% (and line items)

03. U.S. 2007 median new-home sales price up 0.2%
10:00 AM ET, Jan 28, 2008 - 1 hour ago

04. U.S. Dec. median new-home sales price down record 10.9%
10:00 AM ET, Jan 28, 2008 - 1 hour ago

05. U.S. Dec. new-home inventory 9.6-months, 26-year high
10:00 AM ET, Jan 28, 2008 - 1 hour ago

06. U.S. 2007 new-home sales fall to 774,000, 11-year low
10:00 AM ET, Jan 28, 2008 - 1 hour ago

07. U.S. Dec. new-home sales below 645,000 pace expected
10:00 AM ET, Jan 28, 2008 - 1 hour ago

08. U.S. Dec. new-home sales fall 4.7% to 604,000 pace
10:00 AM ET, Jan 28, 2008 - 1 hour ago

09. U.S. 2007 new-home sales fall record 26.4%
10:00 AM ET, Jan 28, 2008 - 1 hour ago

[ozymandius]

3. Oil below $90 as stock markets fall

SINGAPORE - Oil prices dropped as Wall Street's fall at the end of last week and a decline in Asian markets Monday prompted traders to sell crude futures contracts.

"The movements in the equity markets reflect the sentiment on the U.S. economy and how other economies in the world may be affected ... if it slides into a deep recession," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "In the near term, oil prices will continue to react to the gyrations of the global stock markets."

In Hong Kong, the blue chip Hang Seng Index fell as much as 6.1 percent during its session, and Japan's benchmark stock index dropped nearly 4 percent on the Tokyo Stock Exchange.

The declines came as traders took their cues from Wall Street where the Dow Jones industrials fell 1.4 percent on Friday.
.....

Shum said oil futures were supported by expectations that the Organization of Petroleum Exporting Countries will not increase its production levels when it meets Friday in Vienna, Austria.

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

[ozymandius]

4. Asian markets drop, tracking Wall Street

HONG KONG - Global market turmoil continued into a second week as Asian markets tumbled Monday in the wake of Wall Street's sell-off Friday amid persistent worries about a possible U.S. — and worldwide — economic slowdown.

China's benchmark index plummeted 7.2 percent to its lowest point in six months on concerns that a recession in the U.S. would mean less demand for Chinese-made products. Hong Kong's market sank 4.3 percent while India's Sensex dropped 3.5 percent in afternoon trading.

U.S. stock index futures also were down, suggesting that Wall Street was poised to drop again when markets open.

Investors around the world have been jittery for weeks about a U.S. slump, which would likely weaken demand for exports and drag on global growth. There is also concern about a worldwide credit crunch triggered by rising defaults in risky U.S. mortgages, which has led to mountains of bad assets at major American and European banks.

http://news.yahoo.com/s/ap/20080128/ap_on_bi_ge/world_markets

[Ghost Dog]

46. Asian Stocks Fall on Recession Concerns

Jan. 28 (Bloomberg) -- Asian stocks fell, with the region's benchmark set for its biggest monthly decline since September 2001, on concern the world's two largest economies are slowing.

...

``The two scenarios confronting investors are either that Japan and the U.S. only briefly slip into recession or that it will be long-lasting,'' said Masayuki Kubota, who helps oversee the equivalent of $1.7 billion in assets at Daiwa SB Investments Ltd. in Tokyo.

The MSCI Asia Pacific Index lost 3.3 percent to 141.18 as of 3:33 p.m. in Tokyo, snapping a three-day, 10 percent rally. The benchmark has fallen 11 percent so far this year and volatility today jumped to 63, the highest since October 1998, according to Bloomberg data. About 16 stocks retreated for each that rose.

The CSI 300 Index slumped 6.8 percent in China, the least favored market by the region's funds, according to Citigroup Inc. Japan's Nikkei 225 Stock Average lost 4 percent to 13,087.91. Hong Kong's Hang Seng Index plunged 6 percent. Benchmarks in other markets open for trading retreated. Australia is closed for a holiday.

Mitsubishi UFJ, Japan's largest publicly traded bank, slid 5.3 percent to 985 yen. Sumitomo Mitsui Financial Group Inc., the second-biggest, dropped 5.3 percent to 799,000 yen.

...

Japan's economy probably entered a recession amid ``a slump in domestic demand,'' Tetsufumi Yamakawa, Goldman Sachs' chief Japan economist, said in a report today. Factory production will fall from a fourth-quarter peak, while consumer spending and the construction industry are both slowing, the economist said.

...

Kookmin Bank, South Korea's largest, fell 4.3 percent to 59,700 won. HSBC Holdings Plc, Europe's No. 1 bank by market value, slipped 3.7 percent to HK$116.10 in Hong Kong.

...

Nippon Steel Corp. dropped 7.7 percent to 639 yen after the world's second-biggest steelmaker said net income for the three months ended Dec. 31 fell 13 percent from a year earlier as costs for shipping, iron ore and other materials rose.

JFE Holdings Inc., Japan's second-biggest steelmaker, lost 7.1 percent to 5,120 yen, while Sumitomo Metal Industries Ltd., the No. 3, slipped 4.4 percent to 506 yen.

Datang Power, China's largest power producer by market value, plunged 8.6 percent to 17.65 yuan, poised for its lowest close since Dec. 25. China Yangtze Power Co., the operator of the world's largest hydropower project, lost 4.5 percent to 17.15 yuan, while GD Power Development Co., northeastern China's largest electricity producer, dropped 6.3 percent to 14.50 yuan.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=aiZX9nGI.sU4&refer=asia

[Ghost Dog]

47. Recession Risk Grows as U.S. `Damage' Spreads

Jan. 28 (Bloomberg) -- The U.S. economy may already be in recession; other countries might not be far behind.

Japan, Britain, Spain and Singapore, which together represent about 12 percent of the world economy, are vulnerable as fallout from the U.S. worsens their economic weakness. Even emerging markets, including China, are likely to suffer as exports to the U.S. wane.

The result: Global growth may decelerate close to the 3 percent pace economists deem a worldwide recession, from a 4.7 percent rate in 2007. ``Some form'' of global recession ``is inevitable at some point,'' former Federal Reserve Chairman Alan Greenspan said in a speech in Vancouver last week.

...

``The odds are shifting toward a more significant global monetary easing,'' says Richard Berner, co-head of global economics for Morgan Stanley in New York.

Jim O'Neill, chief economist at Goldman Sachs Group in London, says growth in the first half of 2008 may be the ``weakest since 2002 and maybe even 2001,'' during the last global downturn. ``The economy is slowing everywhere,'' he says.

...

It's ``highly likely'' Japan is already in a recession or will enter one this quarter, Tetsufumi Yamakawa, chief Japan economist at Goldman in Tokyo, wrote in a report published today.

A worldwide recession doesn't require a global contraction in output, which rarely happens; economists at the International Monetary Fund say it would take a slowdown in global growth to 3 percent or less. By that measure, three periods since 1985 qualify: 1990-1993, 1998 and 2001-2002.

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

PetroChina 40% Loss Proves BRIC Premium Nonsense as S&P Tumbles
Jan. 28 (Bloomberg) -- The biggest slide in emerging-market stock valuations in a year and a half is proving that a slowdown in the U.S. economy still matters to Brazil, Russia, India and China.

Shares in the MSCI Emerging Markets Index dropped 9.4 percent relative to profit this month as the prospect of a U.S. recession pushed two-thirds of the world's equity indexes into so-called bear markets. The last monthly decline as steep was in May 2006, according to data compiled by Bloomberg. Even the price-earnings ratio for the Standard & Poor's 500 Index, the benchmark for U.S. stocks, didn't fall as much.

Companies such as PetroChina Co., the country's biggest oil producer, and Russia's OAO Lukoil show the threat of a global slump is shaking the confidence of investors who viewed developing countries as a haven from the U.S. PetroChina's 40 percent plummet since November erased almost $400 billion, more than the market value of Microsoft Corp., the No. 1 software maker. Russian stocks are headed for their biggest loss in 19 months after money managers bought an unprecedented amount in 2007.

``The only way they could decouple would be for them to be on another planet,'' said David Dreman, who oversees $20 billion as chief investment officer at Jersey City, New Jersey-based Dreman Value Management LLC. ``We are the biggest buyer of their products and biggest user of their services, so if our economy slows down their growth rate has to slow down. There's no other plausible way.''

...

The MSCI index rose to an all-time high in October on expectations economic growth in the so-called BRIC countries, which accounted for half the world's expansion last year, would shield stocks even if the U.S. stumbled.

Last year's surge pushed the valuation for MSCI above the S&P 500 for the first time since the Internet bubble burst in March 2000. Investors were willing to risk capital on profit growth in developing markets as their governments boosted currency reserves and cut debt.

Now, the price-earnings ratio is 15.8, down from 17.44 at the end of last year and an all-time high of 90.6 in February 1999, Bloomberg data show. Investors pulled a record $10.7 billion from emerging-market stock funds last week, according to data compiled by Cambridge, Massachusetts-based research firm EPFR Global.

...

``Emerging markets are not immune from a slowdown,'' said Krosby, who helps manage $330 billion in Hartford, Connecticut and told clients to reduce holdings in developing countries in the second quarter of 2007 because of signs the U.S. economy was slowing. ``Even if the market comes back and we get a nice bounce back up, I'd still take money off the table.''

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=a.6TPSc27uec&refer=asia

[Ghost Dog]

54. We must not ignore the wild gyrations of Asia's traders

Bill Emmott (former editor of the Economist)
Friday January 25, 2008
The Guardian

... Why should that be, if Asia is just going to boom on regardless? The answer is, in part, that stock market traders are wild, emotional creatures, and we risk going mad if we try to understand their every move. But another part of the answer is that the sanguine consensus is likely to be only half right. The half that is wrong offers good reasons for concern about Asia.

The half of the consensus view that looks right is the half that says that China, India and the surrounding countries are no longer dependent on exports to the US, and neither are they dependent on foreign capital. Exports to America account for about 8% of China's gross domestic product and only 2% of India's, so while a big drop in those exports would have some effect, it is not going to be crippling. Moreover, it has already been happening: exports to the US from China have been declining for several months now, but overall growth keeps barrelling on.

The reason is that capital is abundant, and it is being spent on new buildings, roads, stadiums, bridges, airports - you name it. In economic crises of old, the developing countries got hit twice over: by the loss of their export markets in the west, and by the withdrawal of capital by panicky international bankers and investors. In the past decade, the tables have been turned: China, other Asian economies (though not India) and the Arab oil producers have been the providers of capital to the west, not the receivers of it.

One of the most extraordinary statistics about the Chinese economy is that capital investment accounts for 45% of GDP - the equivalent for the US and western Europe is 15% to 20%. That investment is being financed by China's own savings. So sub-prime losses in America, bank fraud in France and panic in London are irrelevant to developers in Beijing or Shanghai.

As long as those developers keep on investing in new roads and buildings, the Chinese economy will keep on growing. Perhaps declining exports to America and Europe could reduce China's growth rate from 11.4% to, say, 9%. But that is still pretty good, and would still mean that China offers a strong market for its Asian neighbours.

...

Where the consensus is likely to be wrong, however, is in its implicit assumption that these Asian economies are not going to be facing problems of their own - problems that do have some link to the difficulties facing America and Europe. Chief among those problems is inflation.

Rising prices for food, energy and other commodities, partly caused by strong Asian demand, lie behind the high interest rates and inflation worries that were spooking the Bank of England, the European Central Bank and, until its big interest cut this week, the US Federal Reserve. They are also a big worry for India and, even more so, China.

In recent years China has followed a policy of keeping its currency cheap against the dollar in order to help exports. To do that, its central bank has had to focus its monetary policy on the currency and not domestic inflation, building up vast foreign exchange reserves (today, at $1.4 trillion, the world's largest) and allowing credit inside China to be ultra-cheap. Hence all that investment in buildings and, by speculators, in Chinese share markets. But hence, too, rising inflation.

...

China faces the same sort of pressures now: currency revaluation, inflation, environmental damage. It now needs to move its economy sharply upmarket. As Japan showed during the 1970s, it can be done. But it won't be easy. Which is why those stock market traders in Asia were right to turn a bit wild and emotional this week.

/... http://www.guardian.co.uk/comment/story/0,,2246528,00.html

[Ghost Dog]

48. European shares extend slide after US data

Mon Jan 28, 2008 10:10am EST
LONDON, Jan 28 (Reuters) - European shares shed over 2 percent, falling to their lowest point of the day on Monday after U.S. new home sales data exacerbated fears about the extent of the economic slowdown.

Banks were the worst peforming sector in Europe, where the fallout from the trading fraud at France's Societe Generale (SOGN.PA: Quote, Profile, Research) plagued financial stocks.

HSBC (HSBA.L: Quote, Profile, Research) fell by more than 3 percent, while SocGen shares lost 5.7 percent and Banco Santander (SAN.MC: Quote, Profile, Research) lost 2.9 percent.

By 1507 GMT the FTSEurofirst 300 index of top European shares was down 2.2 percent at 1,300.31 points, having fallen by as much as 2.3 percent after the U.S. government said sales of new homes fell 4.7 percent in December to their lowest rate in nearly 13 years, missing forecasts.

London's FTSE 100 index .FTSE lost 2.7 percent, while Frankfurt's DAX .GDAXI fell 1.6 percent and Paris' CAC 40 .FCHI fell 2.1 percent.

/. http://www.reuters.com/article/marketsNews/idCAL2825273520080128?rpc=611

[Ghost Dog]

73. Recession fear, SocGen dent European shares (close)

Mon Jan 28, 2008 12:30pm EST
LONDON, Jan 28 (Reuters) - European shares fell on Monday as fresh worries over the global economy hit commodity stocks and the fallout at fraud-hit French bank Societe Generale (SOGN.PA: Quote, Profile, Research) weighed on financials.

...

The FTSEurofirst 300 index of top European shares fell 1 percent to 1,317.15, points, bringing losses for January to 12.6 percent, well on track for the worst month in more than five years.

"Basically the story has been the same for quite a while now, since the beginning of the year, of weak economic figures and low visibility from companies," said Philippe Gijsels, senior equity strategist at Fortis Bank in Brussels.

"This means that the scenario we've put forward ... remains in place, where we turn more negative on the markets, he said, adding: "It is clear that the U.S. economy will go into at least a mild recession."

European banks have lost about 14 percent so far this year, making them one of the worst performers as mounting losses from the U.S. subprime lending crisis and now the fraud at SocGen batter the sector.

...

Britain's FTSE 100 .FTSE was down 1.4 percent, Germany's DAX .GDAXI was flat and France's CAC .FCHI was down 0.6 percent.

/... http://www.reuters.com/article/marketsNews/idCAL2847724320080128?rpc=611

[Ghost Dog]

74. FTSE down on U.S. concerns as commods, banks drag

Mon Jan 28, 2008 12:21pm EST
LONDON, Jan 28 (Reuters) - The FTSE 100 .FTSE index of Britain's leading shares reversed some of its earlier losses on Monday, but still ended down 1.4 percent, led by banking and commodity stocks on concerns about the U.S. economy.

The blue-chip index ended 80.1 points lower at 5,788.9 after earlier in the session falling to 5,705.1.

Britain's largest share index is down over 10 percent so far this month, on track for its biggest monthly percentage loss since September 2002.

...

"It really does seem as if the U.S. economy is on course for a dramatic slowdown ... (But) this week's FOMC should arguably now see another rate cut," said CMC's Yates.

"Some may have thought that the worst of the volatility was now behind us after last week's turbulence, but such assumptions are increasingly looking as if they may be rather optimistic."

/... http://www.reuters.com/article/marketsNews/idCAL2832219820080128?rpc=611

[ozymandius]

5. Investors seek best strategies to short credit

LONDON (Reuters) - Many investors in derivatives are now hunting the best way to go short on credit based on the expectation that corporate defaults will rise this year.

"This year the story will be about default risk and recovery risk more than volatility," said Albert Gallo, managing director for credit derivatives strategy at Bear Stearns. "This is what investors told us in a (December) survey," with 88 percent saying they were concerned about defaults in 2008.

Speculative-grade defaults globally are forecast to reach 3.8 percent, according to the median estimate in a Reuters poll, up from a historically low 1.2 percent in 2007. At the bearish end, Royal Bank of Scotland forecast 10 percent.

"What is the best way to short credit over the next three to six months? This is a question we have been asked repeatedly in recent days," Lehman Brothers analysts wrote in a recent note.

http://news.yahoo.com/s/nm/20080128/bs_nm/credit_strategy_shorting_dc

[ozymandius]

6. Countrywide's Mozilo forgoing $37.5M

LOS ANGELES - Countrywide Financial Corp. CEO Angelo Mozilo, under fire over the size of his potential payout from the proposed sale of his troubled mortgage company, says he is forfeiting some $37.5 million in severance pay, fees and perks he was scheduled to receive upon his retirement.

Mozilo, however, will still retain retirement benefits and deferred compensation that he has already earned, Countrywide said in a statement being released Monday.

In addition to $36.4 million cash severance payments, Mozilo also walked away from $400,000 per year he was to be paid under an agreement to serve as a consultant to the company following his retirement, and perks including the use of a private airplane, the company said.
.....

Under his employment agreement, Mozilo was entitled to a severance cash payment equal to three times his annual salary of $1.9 million, and three times his incentive cash bonus for the year preceding a change in the company's ownership or the average of two years' bonuses.

.....

Now, he'll leave with a pension plan and supplemental executive retirement plan that totaled $23.8 million as of December 2006, according to the most recent proxy statement the company filed with the Securities and Exchange Commission.

http://news.yahoo.com/s/ap/20080128/ap_on_bi_ge/countrywide_financial_ceo

[Tansy_Gold]

11. Reminds me of an old joke

"Hey, Sam, can I borrow ten bucks?"

"Hell, no, Joe. You ain't paid me back the last ten bucks I owed you."

"Okay, then how 'bout you lend me twenty bucks but only give me ten. That way you'll owe me ten and I'll owe you ten and we'll be even!"

Mozilo is made to look oh so fucking responsible and generous even, because he's giving back some of what he looted from the workers and the borrowers.

My sister's best friend just got laid off by Countrywide after ten years with them. She got no fat severance package, no country club membership, no bonus, no stock options. A single mother with two small children, she's been in the mortgage business all her working life and she might just as well be a high school drop out looking for her first job, because mortgage lending experience is of no use to her in job hunting in the Chicago area in January. She's been able to find part-time work as a food product demonstrator, but many of her assignments are on week-ends, and that makes child care a real issue. Fortunately, she was wise enough to sock away some savings, will have COBRA insurance for herself, and her ex-husband has to provide health insurance for the kids plus some child support -- unless he loses HIS job. . . . . .

Mr. Mozilo, of course, doesn't give a rat's ass about that.

Tansy Gold, bitter as usual

[Yael]

19. This is the kind of story that sets my blood boiling

[Tansy_Gold]

29. Which one? Which story, that is.

Mozilo's retirement package or my sister's friend's lay-off? Or both?

It all makes my blood boil. And I wonder/worry when enough people will reach the point where the whole thing begins to boil.

Tansy Gold

[Yael]

40. The layoff

Mozilo can pound sand for all I care. Karma is a dangerous thing to mess with.

[AnneD]

38. Morning Marketeers.....

:donut:and lurkers. We are dealing with the latest downturn in the economy. I went to my local feed store after church yesterday to get a few things.

The store gets lots of kitten left at their door and bless their heart (and their vet friends)the kittens are spayed and neutered and put up for adoption. They always have kittens in their store. I went in their yesterday and low and behold there was the largest grey cat I've ever seen-and he was vocalizing up a storm. And the strange thing is...I could understand everything he was saying. He was confused, frightened, and very unhappy to be in that cage. After springing him from the cage-we chatted for a while. I talked to the store folks and seems that this male was fixed, de clawed and left at the store in a kennel. He's about 4-7 years old from our best guess. The person that left him had to be in dire circumstances. You don't spend that kind of money and then just dump the animal. I didn't think twice and brought him home with me.

At first, hubby said that we would have to find a good home for him. This morning-after thinking it over he said that, either God or our cat that went missing, Atoz, sent him to us as a replacement. I told him that was the sweetest Valentine gift he could have given to me (and makes me think that I chose well when I married him). He's as big a softy as I am.

Well, after bringing home the new addition. I had to run to the closest store to get a litter pan, etc. The closest one was a Squal-Mart. It is located in a nice middle class neighborhood. Imagine my shock when I pulled into the mainly empty parking lot. There was hardly anyone there-it is always packed. Then I remembered driving by it on Saturday and not seeing much traffic. I looked at the nearby strip mall and it was the same store-even the grocery store parking lot was nearly empty. It was a shocker-and we have one of the better economies in the US. Folk, I know I'm preaching to the choir here-but we are in some serious difficulties here and a piddly little check won't help.

Happy hunting and watch out for the bears.

Edited to add-sorry ink- I layered my post incorrectly opps:blush: yeah Mozilo is a piece of work.

[Left Brain]

69. Anne, did your grey boy come with a name?

Congrats on your new family member!

[AnneD]

71. Not sure.....

They were calling him Timmy, but honestly, he looks like a Sampson to me. Biggest cat I've ever had.

Edited to add-I'm glad he was de clawed-he could make mince meat of my chihuahua mix and Westie-if they weren't such little wussies.

[Warpy]

77. Glad you're such a sucker. So am I

and cats who are rescued from cages tend to be incredibly grateful, although it'll take him 3 months or so to have that switch in his head trip and realize you're really his new pet apes (we don't own cats, you know, even if we are big enough to push them around).

Rescuing an adult cat has great perks even if it does take a little longer to establish a real bond. By the time they're through that first year, they've all managed to learn a few manners and that "NO!" means a swat nearby with a newspaper or a squirt of water so they'd better stop what they're doing and scram.

I hope you end up with as big a teddy bear as I did when I adopted a 4 year old Himalayan. I lost him last year at the ripe old age of 17.

[AnneD]

82. It was really heartbreaking to hear him crying....

you could tell he was so lost and confused...wondering what he had done wrong and were was his owner (pet ape:spray: )

The surprise was Hubby. He is not much of a pet person, or a cat person. He works nights so he ponder this all last night.

He just called me to let me know that he could not find the cat. He was worried that the cat ran away. I told him that the cat hide from me too. He has been exploring and hiding and when he does come out, he tries to get into things he shouldn't. But he is such a sweetheart-we are taking it a day at a time. He has gone through a lot of trauma-so we are cutting him slack.

I kennel the dogs, so we haven't really had a face to face yet (can't wait for that). I have never de clawed previous cats-so the dogs have a healthy respect for cats. Timmy is so big, he is almost as big as the Westie and outweighs her and can do some damage to the other dog should he get po'ed.

We just want our pets to know they are loved and safe...same as the kid...except we eventually get to kick her out.:rofl:

[citizen snips]

86. Good Afternoon Anne D.

Its like that around here too,nobody goes to Whole Foods anymore.

[AnneD]

95. It really was....

scary. I have not seen that since we went through our Houston Recession in 1987. We have been quite during the week, but weekend?. There was no big activity here either. Folks were just not out.

:hi: Mattman, love those 'snaps'.

[InkAddict]

39. What a swell guy...

He should keep it until next year and fund construction of many safe low-cost housing units for the Boomers who have been systematically SCREWED from their jobs and the older lower-income small-saver/investors and veterans, who have been relieved of their investment earnings, as well as the disabled who have found it all they could do to exist with their disability. Perhaps such a donation should be slapped on every mortgage written that is over the national median price of a single-family home. Along with a new plan for healthcare and college tuition assistance set-backs, now that would stimulate the economy.

[MilesColtrane]

41. Opting only for a Silver Parachute?

It's almost like he's Ghandi and Mother Teresa combined!

[InkAddict]

52. Airshow jumper in the sub-prime olympics

Well, when your reputation/credibility is falling out of a plane over the East River while wearing cement boots, an amount of that certain kind of lift is helpful, at least until your "friends" can take a dive for you. Bet he lives to jump again.

[Warpy]

78. It sounds to me like he's preparing for flight to avoid prosecution

and hopes that foregoing all the goodies will make him less attractive to pursue.

I'm sure he's got enough stashed away offshore to provide a cushy existence for the rest of his life hopping among countries that have no extradition treaties with the US.

[ozymandius]

7. Street slashes fourth-quarter earnings growth view

NEW YORK (Reuters) - Wall Street analysts slashed their projections for fourth-quarter earnings growth as companies reported weak results, according to a weekly survey by Reuters Estimates.

The survey showed analysts slashed their outlooks for financial results for S&P 500 companies, now expecting earnings growth to fall 17.6 percent in the fourth quarter, down from a decline of 10.9 percent expected in the week-prior survey.

The financial sector is expected to show the steepest decline in earnings, with growth plunging 91 percent from the year-ago period. The embattled financial sector is followed by the basic materials sector where earnings growth is expected to decline 10 percent.

http://news.yahoo.com/s/nm/20080127/bs_nm/wallstreet_outlook_dc

[ozymandius]

8. Stocks set to slide

LONDON (CNNMoney.com) -- U.S. stocks were poised for a rough start Monday as investors eyed a drop in overseas markets and braced for the upcoming Federal Reserve policy meeting.

At 4:25 a.m. ET, Nasdaq and S&P futures were lower, indicating a negative start for Wall Street.
.....

Investors worldwide have their focus on the Federal Reserve, which kicks off a two-day policy meeting Tuesday. Markets are expecting the central bank to lower rates again after making an emergency cut last week.

http://money.cnn.com/2008/01/28/markets/stockswatch/index.htm?postversion=2008012804

[ozymandius]

9. U.S. futures and overseas numbers

06:18 ET
S&P futures vs fair value: -8.1. Nasdaq futures vs fair value: -19.3.

FTSE...5761.40...-107.60...-1.8%. DAX...6709.27...-107.47...-1.6%.

Nikkei...13087.91...-541.25...-4.0%. Hang Seng...24053.61...-1068.76...-4.3%.

[kineneb]

79. today's musical offering: "Ring of Fire"

It just seemed the right song for the day. Substitute "greed" for "love"...

Artist: Cash Johnny
Song: Ring of Fire
Album: 16 Biggest Hits

Love Is A Burning Thing
And It Makes A Fiery Ring
Bound By Wild Desire
I Fell Into A Ring Of Fire

CHORUS:
I Fell Into A Burning Ring Of Fire
I Went Down, Down, Down
And The Flames Went Higher

And It Burns, Burns, Burns
The Ring Of Fire
The Ring Of Fire

I Fell Into A Burning Ring Of Fire
I Went Down, Down, Down
And The Flames Went Higher

And It Burns, Burns, Burns
The Ring Of Fire
The Ring Of Fire

The Taste Of Love Is Sweet
When Hearts Like Ours Meet
I Fell For You Like A Child
Oh, But The Fire Went Wild

CHORUS
I Fell Into A Burning Ring Of Fire
I Went Down, Down, Down
And The Flames Went Higher

And It Burns, Burns, Burns
The Ring Of Fire
The Ring Of Fire

I Fell Into A Burning Ring Of Fire
I Went Down, Down, Down
And The Flames Went Higher

And It Burns, Burns, Burns
The Ring Of Fire
The Ring Of Fire

And It Burns, Burns, Burns

The Ring Of Fire

The Ring Of Fire

[ozymandius]

10. State of Union: Economy is key

NEW YORK (CNNMoney.com) -- The state of the slowing economy and how to energize it - now and beyond - will be a focal point of President Bush's State of the Union address on Monday.

Indeed, he pledged during Saturday's Presidential radio address to tout the bipartisan stimulus plan during next week's speech; "...I believe that with swift action, we can give our economy the boost it needs to continue expanding and creating new jobs for our citizens." He also reiterated his hope that the plan will be enacted swiftly.
.....

This year, before discussing the war in Iraq, Bush is expected to promote and call for swift passage of the $150 billion economic stimulus package brokered between House leaders and Treasury Secretary Henry Paulson.

The stimulus deal may face some resistance in the Senate. Some Democratic senators are unhappy that their House colleagues gave up on the party's push to extend unemployment benefits in addition to offering consumer rebates and business tax breaks.
.....

The president will also use the stimulus package as a launching-off point to call once again on lawmakers to permanently extend the tax cuts he engineered in 2001 and 2003 that will otherwise expire in three years. White House Press Secretary Dana Perino said Bush will factor an extension into his 2009 proposed budget, which will be released Feb. 4.

http://money.cnn.com/2008/01/25/news/economy/preview_sotu/index.htm

[radfringe]

12. the only thing bush wants - regarding the economy

is that it is able to tread water long enough for him to run back to texas on 1/20/09...

anyone else recall one of his campaign promises back in 2000, the one about not leaving a job undone, not leaving messes for the next president?

[ozymandius]

13. All I remember about Campaign 2000 is a string of broken promises. n/t

[radfringe]

16. wish I could find it

not on the DU, but on another discussion group back in 2000, I had posted my predictions of what would happen if bush became predictions...

can't find it now.. but 3 out of the 4 have come true

1. economy would tank
2. bush would invade Iraq
3. the country would unite AGAINST him

#4 hasn't happened YET... 4. Canada closes borders to prevent flood of Americans seeking to immigrate, Canada's illegal alien problem is not Mexico or other latin america country, but Americans sneaking over the border

[Pluvious]

104. Like this one...

"I didn't -- I swear I didn't -- get into politics to feather my nest or feather my friends' nests."
-George W. Bush in the Houston Chronicle

[fasttense]

17. Now, now that is not totally true.

He's going to get the Democratic Congress to give him and his buds immunity for all the laws they have broken before he slithers off to hide in Texas. Just like Pinochet, he's got to have that immunity, retroactive if you please.
;-)

[UpInArms]

25. Too Funny Headline: Bush speech will seek to calm American nerves

http://www.reuters.com/article/bondsNews/idUSN2844503320080128

WASHINGTON, Jan 28 (Reuters) - President George W. Bush will use his final State of the Union address on Monday to try to reassure nervous Americans about his economic rescue efforts and chart a course to stay relevant in his last year in power.

But politically weakened by the unpopular war in Iraq and increasingly eclipsed by the race to choose his successor, Bush will be more intent on recycling some of his old ideas than offering any bold new proposals.

His annual speech to the U.S. Congress, broadcast live nationwide, could still be his last best chance to use the presidential teleprompter to set the tone for his waning months in the White House and to try to salvage his frayed legacy.

But sandwiched between Saturday's Democratic presidential primary in South Carolina and Tuesday's Republican contest in Florida, Bush will face the challenge of making himself heard above the growing din of the 2008 campaign.

At the top of the agenda for his seventh State of the Union address will be selling Americans on a $150 billion stimulus package he and others hope will stave off recession in an economy suffering from high oil prices and a housing slump.

...more...

oh goodie! the used car salesman that I would never buy a bicycle from is going to be selling Americans on a $150 billion stimulus package!

[fasttense]

14. Ozy I love your latest cartoon.

It's funny because it's so true. :)

[ozymandius]

18. You can thank radfringe for that.

BTW - I forgot to post a link to the site.

http://www.comicssherpa.com/site/feature?uc_comic=cscwc

[ozymandius]

15. Pre-State of the Union Poll

With great reluctance and fear of over-stimulating the lizard part of your brains, here are the key findings of a recent Harris Interactive Poll:

• Four out of five Americans (81%) think that the current state of the country is fair or poor while just 19 percent think it is excellent or good.

• Just under half (46%) of Americans say they may watching the State of the Union address while just one-quarter (25%) say they will be, and three in ten (29%) say they will not be watching.

• Four in five Americans (81%) say that plans to strengthen the economy are going poorly while just 16 percent say it is going well.

http://bigpicture.typepad.com/comments/2008/01/pre-state-of-th.html

[TalkingDog]

26. Statistical flukes

Let's see, the top 15% is doing pretty good. Lots of money, lots of perks. No worries, mate.

And around the same number thinks things are going okay. Hell, better than okay. Hmmm....There's something....something.....I can't quite put my finger on it.

*shrugs* I dunno, I guess maybe it's just one of those freaky coincidences.



My Favorite Master Artist: Karen Parker GhostWoman Studios

[UpInArms]

20. dollar watch

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

Last trade 75.757 Change -0.177 (-0.23%)

Dollar - Will the Fed Cut Again?

http://www.dailyfx.com/story/topheadline/Dollar___Will_the_Fed_1201506798491.html

Bewildering. That’s about the only way to describe the price action in currencies this week as EURUSD first plunged to 1.4360 only to rise in a near vertical fashion to 1.4770 by early European trade on Friday. For the week the dollar gave back 100 points, but the placid end result hid the heart stopping price action in between. What happened? Global equity markets cratered over the MLK holiday. Thus, confronted with a very real possibility of -1000 Dow day, the Fed decided to do something extraordinary – an inter-meeting 75bp cut. The amplitude of easing was stunning. Only once in the past 25 years has the Fed cut by as much as 75bp and that was during the 1980’s when interest rates were at double digit levels.

In the near term the move assuaged the markets as equities stabilized and Dow put in a 600 point recovery on Wednesday. The turnaround in equities was a dose of confidence for the currency markets and carry trades zoomed to the upside. EURJPY rose four big figures in one day taking the EURUSD along for a ride. But, like a junkie looking for the next high, the markets want more and next week all eyes will be on the FOMC meeting as equities seek further easing.

At the height of the panic last Tuesday, futures were pricing in another 50bp cut on January 30. Since then, cooler heads have prevailed and expectations have been ratcheted down to 25bp. We believe the consensus view is correct and the Fed will cut 25bp at most preferring to save its ammunition for another day. Nevertheless, if the Fed lowers 25bp that will mean the US rates have declined by 100bp in just one month – a factor that should weigh on the greenback over the long run. On the positive side however, is an expected jump in NFP numbers. If that data surprises to the upside, some of the doom and gloom talk may ease providing the greenback with a lift as recessionary fears recede for the time being.



...more...

US Dollar: FOMC and Non-Farm Payrolls Call for a Busy Week

http://www.dailyfx.com/story/bio1/US_Dollar__FOMC_and_Non_Farm_1201302934591.html

With an emergency 75bp rate cut from the Federal Reserve and Societe Generale losing $7 billion in a trading fraud, volatility has ripped through the financial markets this past week. For those traders who are hoping for the tides to calm in the coming week, they will have to continue hoping because the economic calendar is filled with market moving data. The Federal Reserve has their official monetary policy meeting on Wednesday while non-farm payrolls are due for release on Friday. According to Bloomberg, analysts are calling for only a 25bp rate cut but the futures market is pricing in a greater chance of a 50bp cut. Regardless of who is right, one thing is assured and that is volatility. In addition to the actual rate cut, the Fed’s guidance will also have a meaningful impact on the currency market. An article in today’s Wall Street Journal criticizes Bernanke for being too sensitive to stock market fluctuations. If that is the case, then today’s 171 point slide in the Dow is not going to make him happy. Should equities give back more gains, the Fed may deliver a larger move on the fear that 75bp was not enough. We can’t envision the FOMC statement being hawkish because we expect interest rates to fall to as low as 2.50 percent this year. Friday’s non-farm payrolls report will confirm or deny whether the Federal Reserve has made the right decision. After the weakest rise in job growth since August 2003 analysts expect the labor markets to improve in the month of January. Although it may be difficult to believe that companies are still be hiring in the current market environment, jobless claims suggest that at least they are not firing. In addition to the FOMC and NFP, we are expecting durable goods, personal income, personal spending, Chicago PMI, the University of Michigan Consumer Confidence survey, manufacturing ISM and construction spending. The manufacturing sector is already in a recession and we expect it to remain that way, therefore the PMI and ISM numbers should not be dollar positive.

Life Won’t be Easy for Carry Traders

We have stressed all week that even though carry trades are rallying, traders need to be careful because the current environment is not conducive for Japanese Yen crosses. Carry trades live and die by 3 things, volatility, risk appetite and the direction of monetary policy. Wednesday’s 600 point intraday swing in the Dow and today’s 171 point drop is volatility in action and if anything, traders have grown more risk averse with the Soc Gen incident. In addition, in times of US recession, one of the currency pairs that gets hit the hardest is EUR/JPY. We do not expect the rally in the Yen crosses to last, especially since these currency pairs were exceptionally weak on Friday. In the week ahead, there is a lot of Japanese economic data related to the labor market, consumer spending and manufacturing activity due for release. None of these are expected to be particularly market moving for the Yen given the barrage of US data, but in general, they should reflect the overall vulnerability of the Japanese economy.

...more...

[Ghost Dog]

56. Euro= USD 1.477, GBP 0,744 and CHF 1.612 at this time

[Ghost Dog]

75. Euro= USD 1.480, GBP 0,745 and CHF 1.612 at this time

[Roland99]

99. Geez...sliding faster than Ricky Henderson.

[citizen snips]

109. Dollar Sinks Ahead of Fed Meeting

NEW YORK (AP) -- The dollar sank against the other major currencies Monday as traders continued to speculate about an interest-rate cut at the Federal Reserve meeting starting Tuesday.

The euro was worth 1.4777 in late New York trading, up from $1.4673 Friday. The British pound rose to $1.9840 from $1.9813, and the dollar fell to 106.83 Japanese yen from 106.79 yen.

Traders were looking for hints ahead of the Fed meeting as to whether it may cut American rates further, and by how much.

The Fed last week sought to restore calm with a surprise three-quarter-point cut in interest rates to 3.5 percent. Many expect a further cut of 50 basis points at the Fed's regular meeting this week.

more...
http://biz.yahoo.com/ap/080128/dollar.html?.v=2

[UpInArms]

21. OT: Study shows why it takes so long for some people to pick a candidate for president

When Neither A Nor B Looks Good

A study in The Journal of Consumer Research finds that people have more trouble choosing between bad alternatives than good ones. In one experiment, college students were asked to choose between a car with a poor warranty and one without air-conditioning. They took 26 percent longer to choose than students who were asked to pick between a car with good financing and one with a powerful engine.

Conversely, subjects who were asked to reject a car had an easier time selecting between the flawed cars than those who were choosing between two good cars.

Partha Krishnamurthy, an associate professor of marketing at the University of Houston and one of the study’s authors, drew a parallel to voters in a nasty political race. “People have a difficult time making a choice when they are faced with negative information,” he said, meaning that injecting negativity into a campaign can reduce the turnout of the uncommitted voter.

[kineneb]

80. picking between the lesser of two weasels... n/t

[UpInArms]

22. Now this ought to work!: Hedge Fund’s Letter Explains Intentions Regarding The (New York) Time...

http://www.nytimes.com/2008/01/28/business/media/28paper.html?ex=1359176400&en=9609d5dd50251e78&ei=5088&partner=rssnyt&emc=rss

One of two hedge funds seeking to name directors at The New York Times Company sought on Sunday to clarify its intentions for the newspaper publisher, saying it wanted the company to sell some assets and focus on digital publishing.

The head of the fund, Firebrand Partners, whose role in the nomination of new directors had not been disclosed previously, wrote in a letter to the Times Company’s chairman, Arthur Sulzberger Jr., and its chief executive, Janet L. Robinson, that it also would not seek to change the company’s ownership structure.

“The New York Times is a great institution controlled by the Sulzberger family, and we have no illusion about, or desire to change, that fact,” Scott Galloway, Firebrand’s chief executive, wrote in the letter.

<snip>

Firebrand is working with Harbinger Capital Partners, an Alabama hedge fund that on Friday declared its intent to name four new directors to the Times Company. Together, the two funds own a 4.9 percent stake, Mr. Galloway wrote in his letter.

...more...

[Roland99]

23. CNBC on-air Director: "Recession" isn't real. Only being caused by media hype

Talking about it is going to make it happen. His answer? Stop talking about it. As he told Pat Buchanan just now, "Help me sell the hope."


:banghead:

[Wednesdays]

28. Wonder if he'd say the same thing

to the people standing in the breadlines.

[TalkingDog]

31. Clap harder, children, harder!!!

Clap, real loud. That's it. That's how you save, Tinkerbell. Clap real loud, clap until your little hands bleed!






Oh, children.....you didn't clap nearly hard enough.....



My Favorite Master Artist: Karen Parker GhostWoman Studios

[Birthmark]

32. Okay, that's pretty heinous.

I love it. :)

[AnneD]

44. Deliciously......

wicked:evilgrin:

[Robbien]

37. JP Morgan CEO is drinking the same koolaid. Subprime problem will cure itself.

The worldwide subprime difficulties will cure itself, according to an optimistic prediction by Jamie Dimon, the chairman and chief executive of JP Morgan Chase.

Dimon made the remarks whilst addressing the World Economic Forum held at Davos.

Dimon also said that not only would the subprime problem eventually cure itself, but that it was already half done.

http://www.bankingtimes.co.uk/28012008-subprime-problem-may-be-halfway-resolved/

Dimon firmly on the Selling Hope bandwagon.

[UpInArms]

24. Rapid Changes Since 2001 Cloud Outlook for Viewers

http://www.nytimes.com/2008/01/28/business/media/28media.html?ex=1359176400&en=54b31087d63f7817&ei=5088&partner=rssnyt&emc=rss

A few months ago, media companies were facing declining readership, flat advertising and the prospect of a damaging writers’ strike.

Those were the days. Now, after widespread worries about the economy culminating in a worldwide sell-off last week, producers and distributors have another worry: trying to divine what a possible recession means for consumers and advertisers.

For television and film companies, a recession could compound the effects of the Writers Guild of America strike, which has stopped virtually all scripted television production. The strike has already driven cost cuts by some movie and television studios: last week, NBC Universal said it would try to save $50 million by paring back on its pilots for next season.

Further belt-tightening would probably make inexpensive series and sequels look more attractive than big-budget scripted spectacles in the theaters and reality shows more appealing for television. Good for fans of “Superbad” and “American Gladiators,” not so good for those who prefer “Atonement” or “Lost.”

Already, media investors are bracing themselves. Media company stocks are down roughly 25 to 30 percent in the last year, said Jessica Reif Cohen, the chief media analyst at Merrill Lynch.

<snip>

What choices consumers might make is less clear. One axiom that grew out of the Depression was that, in bad times, people go to the movies. Box office data from more recent downturns show conflicting signs on ticket sales: total box office grosses fell in the economic contractions of 1990 and 1991 but rose in the recession in the early 1980s. Ticket prices have soared since then, making the impact of a bear market hard to predict. “Still, relative to other venues like sports or concerts, movie theater tickets are much less expensive,” said Marla S. Backer, an industry analyst at Soleil Research.

...more...

[InkAddict]

57. Public library rents movies...

and loans good books, cozy fire...lots of

:popcorn: :donut: :beer: and :smoke:

[antigop]

27. The black box economy (posted in Economics forum)

http://www.boston.com/bostonglobe/ideas/articles/2008/01/27/the_black_box_economy/

Behind the recent bad news lurks a much deeper concern: The world economy is now being driven by a vast, secretive web of investments that might be out of anyone's control.

Last week the Federal Reserve announced the biggest cut in overnight lending rates in more than two decades. Congress, not to be outdone, is slapping together a massive deficit spending package aimed at giving the economy an emergency booster shot.

Despite the anxiety, nobody is stockpiling canned goods just yet. The prevailing assumption in today's economy is that recessions and bear markets come and go, and that things will work out in the end, much as they have since the Great Depression. That's because there's a collective confidence that the market is strong enough to correct itself, and that experts in charge of the financial system will understand how to mount a vigorous defense.

Should we be so confident this time? A handful of financial theorists and thinkers are now saying we shouldn't. The drumbeat of bad news over the past year, they say, is only a symptom of something new and unsettling - a deeper change in the financial system that may leave regulators, and even Congress, powerless when they try to wield their usual tools.

[Tansy_Gold]

35. Thank you! Excellent article

I posted the link as a reply to a GD thread on "Where's the $7 Trillion?"

[DemReadingDU]

30. CBS 60 Minutes: House Of Cards: The Mortgage Mess

1/27/08 "60 Minutes" Reports On How The Subprime Loan Crisis Is Shaking Markets Worldwide

Steve Kroft reports on how the U.S. sub-prime mortgage meltdown, in which risky loans drove a housing boom that went bust, is now roiling capital markets worldwide.

http://www.cbsnews.com/stories/2008/01/25/60minutes/main3752515.shtml


Interesting segment, and several videos at the link

[UpInArms]

33. Gold futures rise, boosted by dollar weakness

http://www.marketwatch.com/news/story/metals-stocks-gold-futures-rise/story.aspx?guid=%7B92FDFC97%2DC313%2D437C%2DB61C%2DEE1660EBAD8A%7D&dist=hplatest

NEW YORK (MarketWatch) -- Gold futures rose Monday, extending their gains from the previous session when the benchmark contract touched to a record high, as weakness in the dollar and equities boosted the precious metal.

Gold for February delivery stood at $918 an ounce, up $7.30, on the New York Mercantile Exchange.

Selling in equity markets overnight set the stage for renewed gains in gold as "investors seek to diversify their portfolios, factoring in some safe-haven type assets," said James Moore, analyst at TheBullionDesk.com.

On Friday, gold and platinum futures soared to records after severe power shortages forced major mining companies to shut down their operations in South Africa, the world's second-largest gold producer and the biggest platinum producer. Gold futures rallied as high as $924.30 an ounce and chalked up gains of $29 on the week.

On the foreign-exchange market, a fresh round of gains for the Japanese yen stemmed from steep falls in Asian equities. The yen rose against most major currencies as traders steered away from risky "carry" trades. See Currencies. See Asia Stocks.

The dollar, in turn, was broadly lower. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, lost 0.3% to 75.730.

...more...

[UpInArms]

34. 9:36 EST nobody's happy

Dow 12,176.93 30.24 (0.24%)
Nasdaq 2,319.30 6.90 (0.30%)
S&P 500 1,328.11 2.50 (0.19%)
10-Yr Bond 3.601% 0.017

NYSE Volume 123,443,703.125
Nasdaq Volume 70,144,195.312

08:30 am : S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: -4.5. S&P 500 futures are now pointing to a flat open as investors respond positively to this morning's earnings reports. McDonald’s (MCD) announced its dividends declared will now be paid on a quarterly basis. Nasdaq futures are pointing to a slightly lower open.

08:00 am : S&P futures vs fair value: -5.0. Nasdaq futures vs fair value: -10.0. Futures indicate a lower start for stock market after foreign markets fell sharply on concerns of U.S. economic slowdown. Japan closed down 4.0% and Hong Kong ended its session 4.4% lower. Earnings reports have lifted futures off their worst levels. Verizon (VZ) reported earnings in-line with expectations. Corning (GLW) topped earnings expectations by one cent and issued first quarter earnings guidance above the consensus estimate. McDonald’s (MCD) beat expectations by $0.02.

06:18 am : S&P futures vs fair value: -8.1. Nasdaq futures vs fair value: -19.3.

06:18 am : FTSE...5761.40...-107.60...-1.8%. DAX...6709.27...-107.47...-1.6%.

06:18 am : Nikkei...13087.91...-541.25...-4.0%. Hang

[Robbien]

36. Moody's CEO blames liars for subprime mess

Chief Executive Raymond McDaniel Jr. made a stunning admission at the World Economic Forum in Davos about the subprime mortgage crisis: "In hindsight, it is pretty clear that there was a failure in some key assumptions that were supporting our analytics and our models."

In other words, people lied to us because the 'information quality" the ratings agency got was lacking in "completeness and veracity," as Floyd Norris notes in the New York Times.

Come to think of it, this has a familiar ring to it. Back in 2002, Moody's and S&P whined to Congress about how they missed the implosion of Enron. Those meanies at Adelphia also bamboozled Moody's.

http://www.bloggingstocks.com/2008/01/28/moodys-ceo-blames-liars-for-subprime-mess/

Isn't Moody being paid to not listen to the liars and keep their eye on the fundamentals when handing out credit ratings?

[Tansy_Gold]

42. Pure projection

Mr. Chief Executive doth protest too much, methinks.

[Deny and Shred]

50. Credit ratings agencies are not regulators

To a large degree, they must rely on the financial info that firms provide. If those firms are secretive, or outright lying, a la ENE, there is only so far they can investigate. Their fault is putting ratings based on that info. Markets are accustomed to looking at the rating, not the footnote that ought to say "to the best of our knowledge."
Changing accounting rules, and obliterating the regulatory budgets are as much to blame, if not much more. ENE exposed many ways to game the system, and little has been done to correct it. If accounting principles and the SEC drop the ball, credit ratings agencies can't shoulder all the blame.

[Robbien]

55. The ratings agencies were fully aware of the unregulated industry

thus relying on the statements giving highest ratings to an iffy market is not justifiable.

Crediting Agencies are not the only culprits in this game, but they are definitely one of the major players.

[Changenow]

64. He's right,

it's the liar in the mirror.

[Ghost Dog]

66. Mortgage analysis firm to cooperate in NY probe

WASHINGTON (Reuters) - Mortgage loan analysis company Clayton Holdings Inc (CLAY.O), in an agreement with New York's attorney general, said on Saturday it would detail how Wall Street firms disregarded its warnings about the quality of home loans later sold to investors.

The company said in a statement it had "entered into a cooperation agreement" with the office of Attorney General Andrew Cuomo and would tell what it knows about how Wall Street sold mortgage investments despite warnings from Clayton the underlying home loans did not meet quality standards.

Clayton is the nation's largest due-diligence company hired by investment houses to make sure that blocks of loans conform to the seller's own standards. Investment houses may decide to accept or reject a due-diligence company's opinion on the quality of mortgage loans.

Several due-diligence firm executives have said they reported a slide in loan quality to their investment bank clients during the recent housing boom but that those mortgages were still bought up and passed on to investors.

"In some cases we felt that we were potted plants," Keith Johnson, president of Clayton Holdings, told Reuters in June.

/.. http://news.yahoo.com/s/nm/20080127/bs_nm/usa_subprime_diligence_dc;_ylt=AtImMqHnYb1jkpC5yOoHyrC573QA

[Robbien]

76. Yup. All the participants in this were playing the game

and any word to the wise which did not fit into the furthering profits motif were disregarded as being not Team Players.

[Ghost Dog]

111. Yeah. Outsourcing your due dilligence service, and then ignoring the results

of their analysis. I mean, is there really to be no point at which the behaviour of these people is to be judged to have been, simply, outrageously CRIMINAL??? :smoke:

[InkAddict]

45. My apartment got a "general" appraisal and appliance check

today, supposedly for a property refi... Course, then again, maybe the clipboard holder was looking for something else? There are many units, all the same, and he did not look in attached garage. Hope lease won't go up much next time; it's steep enough.

[Roland99]

53. 10:50am- DJIA and S&P up 0.4% ... NASDAQ up 0.6%

Record fall in new home sales pushing up odds of another rate cut I guess.

[Wednesdays]

59. How many rate cuts until they start PAYING people to borrow?

:shrug:

[Robbien]

58. UK finance guru "everyone is being too gloomy about 2008"

Nigel Doughty, of Doughty Hanson, tells the paper: "I think everyone is being too gloomy about 2008. This year could be a lot better than many expect for both the US and the UK." Thanks goodness for that, eh? But Mr Doughty's not finished.

"I suspect 2009 is the year to be more worried about."

http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=8911&cat=44-0-0

Sadly, this guy may be right.

[AnneD]

61. Some question pressure in U.S. to keep consuming

Economists are fretting that consumer spending might fall for the first time since 1991, pushing the United States into a recession.

Global stock markets are in turmoil, and with reason: American consumers account for about one-fifth of the world economy. The Federal Reserve Board's sudden interest rate cut and the stimulus package being debated in Washington both are aimed at keeping cash flowing from Americans' pocketbooks.

How did consumption — the willingness to buy food, clothes, cars, electronics, appliances and homes — become Americans' defense against economic collapse?

more....

http://www.chron.com/disp/story.mpl/business/5486909.html

A nice little primer....

[Ghost Dog]

72. A nice historical summary, yes.

The writer gets it:

...

A nervous world

And because the money that Americans spend fuels so much economic activity elsewhere — 19 percent of global GDP, according to 2006 statistics — any belt-tightening in the U.S. makes the world nervous.

While Americans buy foreign-produced goods, other nations eat up Americans entertainment, one of the few industries with a positive trade balance. But television also spreads consumer desire, displaying high-end products regardless of whether the viewer can afford them, critics say.

"The quest for money deepens our alienation, which advertisers then connect to and assure us their products will make up the deficit and make us feel connected and popular and acceptable, and that requires more money," Korten said. "It becomes a self-reinforcing cycle."

Spend and work less?

He is among activists decrying consumption and encouraging Americans to spend and work less.

A similar argument appears in The Story of Stuff, an online video by Annie Leonard that bemoans the impact consumerism has had on the environment and developing countries, where manufacturers exploit both raw materials and labor.

Americans throw out 99 percent of their purchases within six months, according to the video. And while it seems cheaper to replace a broken electronic device than to repair it, the gadget's low price doesn't reflect its true cost in loss of natural resources, health damage to workers and the pileup of waste, the video says.

"In the past three decades alone, one-third of the planet's natural resources base has been consumed," Leonard says in the video...

Spend and work less is my lifestyle - even when I worked (as in gainful employment) I never spent much, preferring to save. While I like to travel (in Europe mostly), I prefer to do so 'close to the ground', avoiding any 'high-flying or 'falutin'' bull as far as possible.

The 'corporate system's' craving to arouse more and more consumerism not only in the so-called 'rich world' but increasingly everywhere - throughout the 'developing world' - by means of media propaganda is indeed stoking the fires of widespread raging desires that can NEVER BE SATISFIED for the majority: we simply do not have the resources on this planet - even if the economic system were to be designed to actually really satisfy as far as possible the desires of the many, rather than of the privileged few. Note that, in a sane world, desires need bear no relation to real needs. The genie of widespread unsatisfied desires (desired by increasingly mentally unstable young people in, for example, but far from limited to, the Muslim world) is like pressure building up inside a boiler, with no safety valve or other outlet, that must eventually - soon, now - explode. :rant:

[AnneD]

62. Better than FDIC insured banks

The whole point of Treasury Direct is the return of capital in a situation where the SHTF. It is the bank of last resort, and it is well above FDIC in terms of its security as a cash park, the 4-week bills are hard to beat. They roll over as you'd think every 4 weeks; if you put equal amounts into each week of a 4-week cycle you can "cash out" any time you'd like, and until then, just roll it over.

Think of it as the Bank of Sealey backed by 6,000 nuclear weapons, with a 4-week maximum hold to extract it.

For small amounts of money, the Bank of Sealey is fine, and you ought to keep physical cash handy.

Think of T-Direct as a cash park with a bit of interest, and 100% safety beyond the $100,000 FDIC limits - unless the Fed government folds, in which case not much matters except steel, bras and lead.

more....

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x33386

I thought this was interesting and was posted in the Economy forum. Any of you guys with banking experience care to weigh in? It was news to me. The post has other links.....

[AnneD]

63. Earned Income Credit is widely neglected

WASHINGTON — The IRS is making a big push this year to make sure certain taxpayers know they can take the earned income tax credit, a benefit for lower-income workers and working families that goes unclaimed by up to 25 percent of those who are eligible.

The credit is intended to offset a portion of Social Security and Medicare taxes, thus boosting take-home income in low-wage jobs and providing an incentive to work. It's a "refundable" credit, meaning that after it is figured against your tax liability, the IRS sends you any money you're due.

For 2007 tax returns, the maximum credit is worth up to $4,716 for people with two or more qualifying children, though it's also available to some taxpayers without children.

"For families eligible for the maximum it's almost a quarter of their income," said David Williams, IRS director of Electronic Tax Administration and Refundable Credits. "That is such a significant amount of money. It can mean so much for a family."

http://www.chron.com/disp/story.mpl/business/5487610.html

Well...could it be that folks don't use it because the IRS publicly cracked down hard and audited so many of those single mom that were using the deduction. I can think of no surer was to have the IRS audit you than claim EITC. They must need to squeeze more money from these poor folks, what with fines , interest and all. They are worse than credit cards when it comes to this.

[Danascot]

65. The housing plunge is over

Remember when they were trying to sell us that whopper all through 2007?

Here are a few articles from CNNMoney just from today:


Housing prices to free fall in 2008 - Merrill

http://money.cnn.com/2008/01/23/real_estate/merrill_forecast/index.htm?postversion=2008012317


Foreclosures spike - and will get much worse

http://money.cnn.com/2008/01/28/real_estate/foreclosure_risk_rises/index.htm?postversion=2008012811


New home sales: Biggest drop ever

http://money.cnn.com/2008/01/28/news/economy/newhomes/index.htm

[AnneD]

67. Rising prices and falling prices sting retirees

The temperature in Lea Wait's home has been falling along with stock prices.

Wait, 61, invested the early retirement buyout she took from AT&T in 1998. As stocks gyrated this winter and the heating bill at her Maine home climbed to $600 a month, she made new investments: Thermal underwear and a wood stove that burns BioBricks made of condensed sawdust and wood chips.

"You try to do some planning," she said. "Then the stock market goes down and oil goes up. Fingers crossed that it will be an early spring."

Rising food and fuel prices, falling interest rates and screeching declines in worldwide stock markets have Wait and thousands of other retirees paring spending to levels some haven't seen in decades, forgoing dinners out, cutting back on groceries and canceling plans to visit grandchildren.

more.....

http://www.chron.com/disp/story.mpl/business/5486676.html

How long before we see articles about little old ladies eating catfood. :eyes:

[AnneD]

68. Plan for the long run on finances, even if you're over 70

Can you be a long-term investor at age 71?

Emmett Brown Jr., the former CEO of Richland State Bank in Rayville, La., thinks so. He's 71 and he took the market's recent downturn as a buying opportunity, snapping up a hundred shares of Smith & Wesson Holding Corp. on Tuesday when the stock hit a new low.

The market's woes "may not be over tonight," he says, "but it will pass."

He and investing experts say retirees with enough money and proper planning can calmly ride out the market's worst days. With life expectancies reaching the late 80s for some groups, retirees have to think long-term, but they also need to hold more cash than young workers do.

more.....

http://www.chron.com/disp/story.mpl/business/5486679.html

I don't know a time frame for the stock, but the rest of the advice seems sound.

[TrogL]

70. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



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




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

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

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

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

2007-12-17 Monday, December 17 0.992851 USD
2007-12-18 Tuesday, December 18 0.989609 USD
2007-12-19 Wednesday, December 19 0.994431 USD
2007-12-20 Thursday, December 20 1.0017 USD
2007-12-21 Friday, December 21 1.00573 USD
2007-12-24 Monday, December 24 1.01307 USD
2007-12-25 Tuesday, December 25 1.01307 USD
2007-12-26 Wednesday, December 26 1.01688 USD
2007-12-27 Thursday, December 27 1.01958 USD
2007-12-28 Friday, December 28 1.02208 USD
2007-12-31 Monday, December 31 1.01204 USD
2008-01-01 Tuesday, January 1 1.01204 USD
2008-01-02 Wednesday, January 2 1.00786 USD
2008-01-03 Thursday, January 3 1.00959 USD
2008-01-04 Friday, January 4 1.0012 USD
2008-01-07 Monday, January 7 0.995025 USD
2008-01-08 Tuesday, January 8 1.0015 USD
2008-01-09 Wednesday, January 9 0.991768 USD
2008-01-10 Thursday, January 10 0.986291 USD
2008-01-11 Friday, January 11 0.980584 USD
2008-01-14 Monday, January 14 0.979432 USD
2008-01-15 Tuesday, January 15 0.983574 USD
2008-01-16 Wednesday, January 16 0.976753 USD
2008-01-17 Thursday, January 17 0.971817 USD
2008-01-18 Friday, January 18 0.97144 USD
2008-01-21 Monday, January 21 0.97144 USD
2008-01-22 Tuesday, January 22 0.9758 USD
2008-01-23 Wednesday, January 23 0.972573 USD
2008-01-24 Thursday, January 24 0.99295 USD
2008-01-25 Friday, January 25 0.995619 USD

Current values

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

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     0.9935 0.9967 0.9919 0.9957 +0.0012 +0.12% 
CD.H08 Mar 2008 0.9928 0.9965 0.9905 0.9950 +0.0015 +0.15% 
CD.M08 Jun 2008 0.9930 0.9930 0.9930 0.9930 +0.0011 +0.11% 
CD.U08 Sep 2008 0.9785 0.9785 0.9780 0.9896 +0.0023 +0.23% 
CD.Z08 Dec 2008 0.9750 0.9750 0.9750 0.9877 +0.0023 +0.23% 
CD.H09 Mar 2009 0.9810 0.9825        0.9867 +0.0023 +0.23% 
CD.M09 Jun 2009 0.9995 0.9995        0.9857 +0.0023 +0.23% 
 

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

Market              Open    High     Low    Last   Change     Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.H08 Mar 2008  0.8814  0.8814  0.8814  0.8814  -0.0018  -0.21%  
AUSTRALIAN $/US$ (NYBOT:AU)
AU.H08 Mar 2008           0.87495 0.87495 0.87495 +0.00020 +0.02% 
CANADIAN $/JAPANESE YEN (NYBOT:HY)
HY.H08 Mar 2008  101.830  101.830 101.830 105.900 +0.395   +0.35%  
EURO/AUSTRALIAN $ (NYBOT:RA)
RA.H08 Mar 2008  1.67550  1.67550 1.67550 1.67550 +0.00065 +0.04%  
EURO/BRITISH POUND (NYBOT:GB)
GB.H08 Mar 2008  0.74370  0.74425 0.74370 0.74420 +0.00210 +0.28%   
EURO/CANADIAN $ (NYBOT:EP)
EP.H08 Mar 2008 1.4812                    1.4812  +0.0058  +0.40%  
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.H08 Mar 2008   155.10  157.02  155.10  157.02  +0.67    +0.41%   
EURO/US$ (SMALL) (NYBOT:EO)
EO.H08 Mar 2008   1.4710  1.4759  1.4710  1.4770  +0.0116  +0.79%  

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

The March Canadian Dollar was slightly lower overnight as it consolidates some of last week's rally and is trading above the 20-day moving average crossing at 99.05. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Multiple closes above the 20-day moving average crossing at 99.05 would confirm that a short-term low has been posted. If March renews this month's decline, the 62% retracement level of the 2007 rally crossing at 94.88 is the next downside target. First resistance is last Thursday's high crossing at 99.75. Second resistance is December's high crossing at 102.59. First support is the 50% retracement level of the 2007 rally crossing at 97.84. Second support is last Tuesday's low crossing at 96.31.

Analysis

I'm calling for par sometime today.

Morning drive-in guy had nothing in particular to say other than instability down south.

[TrogL]

110. Update

Blather

The March Canadian Dollar closed higher on Monday as it extended last Friday's rally above the 20-day moving average crossing at .9906. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If March extends today's rally, gap resistance crossing at 99.82 is the next upside target. Closes below last Thursday's gap crossing at .9770 would confirm that a short-term top has been posted. First resistance is today's high crossing at 99.65. Second resistance is gap resistance crossing at 99.82. First support is last Thursday's gap crossing at 97.70 then last Tuesday's low crossing at 96.40.

Analysis

Nope, I was wrong, but apparently it was above par over the weekend.

[RUMMYisFROSTED]

81. Kittens and marigolds....

Aww....

[citizen snips]

83. Verizon 4Q Profit Up 3.9 Percent

NEW YORK (AP) -- Verizon Communications Inc., the nation's second largest telecommunications company, on Monday reported a 3.9 percent rise in fourth-quarter earnings on steady but moderate growth in its core operations.

The company reported seeing no real effect of a possible economic slowdown, beyond a marginal increase in nonpaying wireless subscribers.

There has been speculation on Wall Street that telecommunications companies, which have been branching out from their old business of providing utility phone services, would be more sensitive to a recession this time around. AT&T Inc. reported an increase in disconnections in the fourth quarter, but Verizon appears to be holding up better.

"We have not seen a change in our sales expectation through January,

more...
http://biz.yahoo.com/ap/080128/earns_verizon.html

[citizen snips]

84. Tyson Foods 1Q Profit Sinks

LITTLE ROCK, Ark. (AP) -- Tyson Foods Inc., the world's largest meat producer, reported Monday its first-quarter profit slid 40 percent, withdrew its earnings guidance for the year and said it will hike prices largely to offset rising costs of commodities used to feed cattle, chickens and pigs.

The company expects to face more than $500 million in additional grain costs for fiscal 2008, which CEO and President Dick Bond said is well above the $300 million increase it had expected in November.

"Because of these unanticipated and extraordinarily high corn and soybean meal costs, we have no choice but to raise prices substantially," Bond said.

"For the foreseeable future, consumers will pay more and more for food, especially protein, because grain represents a proportionally higher percentage of input costs compared to other foods," he said.

more...
http://biz.yahoo.com/ap/080128/earns_tyson.html

[citizen snips]

85. Sector Snap: Stock Exchanges Mostly Rise

NEW YORK (AP) -- Shares of stock exchange operators mostly rose in midday trading Monday, as CME Group Inc. said it is discussing an acquisition of Nymex Holdings Inc. for about $11 billion.

The proposed deal values shares of Nymex at $119.22 each. The two companies are in an exclusive 30-day negotiating period.

Nymex, which operates the New York Mercantile Exchange, rose $7.37, or 6.9 percent, to $114.53. The stock has traded between $88.26 and $148 during the past year.

The New York Mercantile Exchange specializes in trading of energy and metals contracts, and has already partnered with CME to list some contracts on CME's electronic exchange.

"This looks like a great deal for CME, in that the company would be acquiring one of the two major players in energy at a very reasonable price, given Nymex's product set, market share and clearinghouse," Banc of America Securities analyst Christopher Allen wrote in a research note.

more...
http://biz.yahoo.com/ap/080128/apfn_stock_exchanges_sector_snap.html

[citizen snips]

87. CME Group in Talks to Acquire Nymex

NEW YORK (AP) -- Word that financial-exchange operator CME Group Inc. is in discussions to acquire Nymex Holdings Inc. doesn't come as a surprise to many observers because their computers have been in talks for a while now.

CME Group, which is the result of last year's combination of the Chicago Mercantile Exchange and the Chicago Board of Trade, already provides an electronic-trading platform for Nymex products -- a relationship that could make any combination easier to carry out.

As electronic trading continues to take on a larger role for exchanges worldwide, technology has become an important arbiter of whether a merger will live up to its promise and result in a truly unified company or whether it will simply result in loosely related entities stitched together under one banner.

CME Group said Monday that it was in talks to buy Nymex for about $11 billion in cash and stock and that the companies are in a 30-day period of exclusive negotiations. CME Group is considering an offer of $36 per share plus 0.1323 share of its stock for each share of Nymex Holdings.

more...
http://biz.yahoo.com/ap/080128/cme_nymex.html?.v=1

[citizen snips]

88. Metals Prices at a Glance

NEW YORK (AP) -- The following are key metals settlement prices Monday, compared with late Friday, on the New York Mercantile Exchange:

February gold $927.10, up $16.40 an ounce

March silver $16.750, up 26 cents an ounce

March copper $3.1895, 55 cents a pound
http://biz.yahoo.com/ap/080128/metals_glance.html?.v=1

[citizen snips]

89. Sector Roundup: Fast Food, Solar Stocks

NEW YORK (AP) -- Shares of fast food companies dropped Monday after McDonald's Corp. reported lackluster December sales in the U.S., and Wendy's International Inc. said its strategic review would take longer than it previously thought.

NEW YORK (AP) -- Investors weighed broader economic concerns with the outlook for solar energy on Monday, picking stocks that analysts say have more favorable fundamentals.

NEW YORK (AP) -- Shares of stock exchange operators mostly rose in midday trading Monday, as CME Group Inc. said it is discussing an acquisition of Nymex Holdings Inc. for about $11 billion.

NEW YORK (AP) -- Allergan Inc. could kick off a positive round of quarterly earnings reports Wednesday, despite concerns that a weakening economy has weighed down sales of products including Botox and breast implants.

more...
http://biz.yahoo.com/ap/080128/sector_roundup_fast_food.html?.v=1

[citizen snips]

90. Sector Roundup: Coal, Oil Services

NEW YORK (AP) -- Shares of coal producers continued climbing Monday, as an analyst suggested that international supply problems caused by flooding and power outages would likely benefit U.S. producers.

NEW YORK (AP) -- Oil service shares mostly rose Monday along with the broader market as equity investors remained optimistic despite a pullback in crude prices.

NEW YORK (AP) -- Most major Web companies' stocks declined Monday, though shares of IAC/InterActiveCorp rose after the Barry Diller-led Internet conglomerate said it bought a minority stake in HealthCentral Network.

NEW YORK (AP) -- Shares of Verizon Communications Inc., along with several telecom stocks, edged lower Monday after the company posted fourth-quarter earnings in line with Wall Street's expectations, though revenue slightly missed forecasts.

more...
http://biz.yahoo.com/ap/080128/sector_roundup_coal_producers.html?.v=1

[citizen snips]

91. Regulators Push for Bond Insurance

SAN FRANCISCO (AP) -- Regulators are trying to attract new companies into the $2.3 trillion bond insurance business to make sure states and municipalities still have access to important financial guarantees they often use when borrowing money.

The National Association of Insurance Commissioners said on Monday that it's working with a new bond insurer started by Warren Buffett's Berkshire Hathaway Inc. to help it expand quickly and operate in multiple states. The new unit already has received a license from the New York Insurance Department.

Existing bond insurers including Ambac Financial Group Inc. and MBIA Inc. have been hit hard by guarantees they wrote on complex mortgage-related securities known as collateralized debt obligations. The companies rely on having AAA ratings, but those are now in peril. Fitch Ratings downgraded Ambac to AA recently.

Worries about the financial strength of existing bond insurers have triggered concerns about more bank write-downs and turmoil in the municipal bond market. Insurance regulators hope that new rivals, without such legacy issues, will help stabilize markets.

more...
http://biz.yahoo.com/ap/080128/regulators_bond_insurance.html?.v=1

[citizen snips]

92. Sector Snap: Semiconductors Up

NEW YORK (AP) -- Chip stocks rose Monday as at least one analyst saw massive growth potential for memory chip makers.

Cowen and Co. analyst Arnie Berman said in a note to investors that solid-state disk drives are likely to have a greater effect on global silicon supply and demand than any other innovation on the horizon. He said that this will significantly influence chip prices, capital spending and chip usage levels in the years to come.

Solid state disks, which do not have the spinning disk drives of conventional computers, are being used in new Dell and Apple notebook computers.

Berman said vast numbers of people are likely to think about solid state drives for the first time and be envious of those who already have them.

He said Applied Materials Inc. is among those most likely to benefit.

more...
http://biz.yahoo.com/ap/080128/semiconductors_sector_snap.html?.v=1

[citizen snips]

93. Treasurys Fall After Weak 2-Year Auction

NEW YORK (AP) -- Treasury prices fell Monday following an auction of 2-year notes that attracted an unusually low level of foreign buyers.

An afternoon auction of $24 billion in new 2-year notes produced a low number of indirect bids, those made on behalf of buyers and that usually includes foreign central banks. The poor showing reinforces concerns that central banks are diversifying their reserves away from Treasurys as they seek assets in currencies that yield more than the dollar.

However, the auction also attracted a solid level of demand from domestic buyers, garnering a 2.33 ratio of bids accepted to bids rendered. The strong domestic demand is not surprising, given numerous recent Treasury rallies.

The benchmark 10-year Treasury note fell 4/32 to 105 14/32 with a yield of 3.58 percent, up from 3.56 percent in late trade Friday. Prices and yields trade in opposite directions.

more...
http://biz.yahoo.com/ap/080128/bonds.html?.v=5

[citizen snips]

94. Hershey's Candy Bars Going Up in Price

HARRISBURG, Pa. (AP) -- Hershey, the nation's largest candymaker, said it is raising the wholesale price of its chocolate bars for the second time in a year as energy and commodity costs spiral higher.

The Hershey Co. defended the move, saying it is more exposed to the rising cost of milk and cocoa than its competitors, which include Mars and Nestle.

"While we have no way of knowing what others are thinking, or what their cost situation is, we do know that within the category our products include far more pure milk chocolate and solid chocolate than our competitors," Hershey spokesman Kirk Saville said.

The price increase, effective immediately, boosts wholesale prices by 13 percent on standard chocolate bars, king-size bars, 6-packs and vending lines, or about one-third of its domestic candy line.

more...
http://biz.yahoo.com/ap/080128/hershey_price_increase.html?.v=3

[AnneD]

97. And if you look closely....

I bet the reduced the amount of oz.s you get too.

[citizen snips]

101. Starbucks is testing $1.00 Coffee

nobody wants to buy their coffee becasue they keep raising the price. Candy bars and coffee are becoming luxury items.

[Roland99]

102. McDonald's 4Q Profit Climbs

McDonald's 4Q Profit Climbs
http://ap.google.com/article/ALeqM5hic4rEsfPP1Sfs9Mpl7EIfdFRy_QD8UEUIE80

As more consumers cut back spending, McDonald's — with its lower prices and expanded menu — has seen sales at stores open at least a year grow. This quarter was no exception and the Oak Brook-based chain said global same-store sales jumped 6.7 percent.

But in the U.S., December comparable sales were flat as consumers tightened their wallets and winter storms pounded most of the country, and shares at the open of trading fell 5.6 percent, or $3.05, to $51.05.

Still, CEO Jim Skinner said the company remained confident in its domestic business, a core driver for the company.

"Our strategic initiatives, anchored by McDonald's three-tiered menu of premium, core and dollar menu options, position us well to grow sales and build customer loyalty in 2008 and beyond," Skinner said in a statement.

[Yael]

100. I imagine that trucking them up from Mexico is getting expensive

[AnneD]

103. Serves them right ...

for closing the US factories. Won't find me putting those in my mouth:P

[Yael]

112. It did a real number on the economy here in Central PA.

Bastards.

[citizen snips]

96. New Home Sales Fall by Record Amount

WASHINGTON (AP) -- New home sales plunged in 2007 by the largest amount on record while home prices tumbled sharply in December. Analysts forecast more trouble in 2008 as housing tries to emerge from its worst slump in more than two decades.

The Commerce Department reported Monday that sales of new homes dropped by 26.4 percent last year to 774,000. That marked the biggest decline on record, surpassing the old mark of a 23.1 percent plunge in 1980.

The government reported that the median price of a new home barely budged last year, edging up a slight 0.2 percent to $246,900, the poorest showing since prices fell by 2.4 percent during the 1991 housing downturn.

And the slump in sales and prices appeared to be worsening at year's end. December sales fell by 4.7 percent, a bigger-than-expected drop, while the median price of a home fell by 10.4 percent last month, when compared to December 2006, the biggest 12-month decline in 37 years.

more...
http://biz.yahoo.com/ap/080128/economy.html?.v=18

[Roland99]

98. At the close - Rate Cuts! Get yer Rate Cuts!

Dow 12,383.89 +176.72
Nasdaq 2,349.91 +23.71
S&P 500 1,353.97 +23.36
10 YR 3.59% 0.00
Oil $90.99 $0.28
Gold $927.10 $16.40

[ozymandius]

114. Sorry to dupe your numerical data. The closing blather is at post #113.

[Roland99]

116. No worries!

I do find it amazing how often American markets buck the downward results from overseas (which, for their part, were down due to dire American economic news!)

[citizen snips]

105. American Express Profit Falls in 4Q

NEW YORK (AP) -- American Express Co. said Monday its profit slumped nearly 10 percent in the fourth quarter after it set aside more money to prepare for cardholder defaults.

The credit-card issuer posted net income of $831 million, or 71 cents a share, down 9.9 percent from $922 million, or 75 cents a share, in the previous year's fourth quarter.

Total revenue rose 10 percent to $6.42 billion from $5.84 billion in the prior fourth quarter. Excluding interest expense, revenue came to $7.36 billion, up from $6.68 billion a year ago.

The results were largely in line with the market's expectations. The company had previously estimated that fourth-quarter earnings would fall 70 cents to 72 cents a share, and analysts surveyed by Thomson Financial had predicted earnings of 71 cents a share on revenue of $7.85 billion.

more...
http://biz.yahoo.com/ap/080128/earns_american_express.html

[citizen snips]

106. Nasdaq 100 Leaders & Laggards: LVLT YHOO

NEW YORK (AP) -- Shares of Level 3 Communications Inc., Sirius Satellite Radio Inc., and Wynn Resorts Ltd. advanced Monday, helping to push the Nasdaq 100 index to a higher finish.

The index, which includes 100 of the largest nonfinancial securities listed on the Nasdaq Stock Market, gained 15.91 points to 1,805.08. The broader Nasdaq composite added 23.71 points to 2,349.91.

Level 3, which provides wholesale high-speed and dial-up Internet services, rose 24 cents, or 8 percent, to $3.24, reversing a decline from Friday.

Sirius Satellite Radio rose 19 cents, or 6.6 percent, to $3.08. In a client note, Wedbush Morgan Securities analyst William Kidd, who has a "Buy" rating on the stock, said the company's 2008 outlook should be "encouraging."

more...
http://biz.yahoo.com/ap/080128/nasdaq_100_laggards.html?.v=1

[citizen snips]

107. Sector Glance: Telecom

NEW YORK (AP) -- Shares of most telecommunications companies, including the beleaguered Sprint Nextel Corp., ended Monday higher along with the broader market, as hopes of an interest rate cut gave some confidence to jittery investors.

Sprint's shares climbed more than 6 percent, though the company did not make any major announcements. The stock is still down roughly 24 percent since the start of the year.

Earlier this month, Sprint said it lost far more subscribers than Wall Street had expected in the fourth quarter, and announced plans to cut 4,000 jobs. Last week, the company said three of its top executives, including Chief Financial Officer Paul Saleh, were leaving.

"Given the recent operating challenges, we do not view the changes as surprising," wrote Robert W. Baird analyst William Power in a client note Friday. "The opportunity for a new group of executives to take a fresh look at the company should be positive, though it also creates some additional uncertainty over the next couple of quarters."

more...
http://biz.yahoo.com/ap/080128/telecom_sector_glance.html?.v=1

[citizen snips]

108. DJIA Leaders & Laggards: JPM MCD

NEW YORK (AP) -- Banking stocks rose on Monday and helped send the Dow Jones industrial average to a higher close, as investors speculated that the Federal Reserve will lower rates this week.

The blue chip index picked up 176.72 points, or 1.5 percent, to 12,383.89, rebounding from Friday's drop.

JPMorgan Chase & Co. stock gained $1.93, or 4.4 percent, to $45.57.

Shares of American Express Co. advanced $1.96, or 4.3 percent, to $47.40, as investors anticipated the release of quarterly results after the market close.

more...
http://biz.yahoo.com/ap/080128/djia_laggards.html?.v=1

[ozymandius]

113. The End. Looks like I missed a Down-the-Rabbithole day.

Dow 12,383.89 Up 176.72 (1.45%)
Nasdaq 2,349.91 Up 23.71 (1.02%)
S&P 500 1,353.97 Up 23.36 (1.76%)
10-Yr Bond 3.586% Up 0.002
NYSE Volume 4,100,929,750
Nasdaq Volume 2,111,534,500

4:10 pm : On Monday, the major indices closed with significant gains, at their best levels of the session. The advance was broad-based with nine of the ten sectors posting a gain in excess of 1%. Financials showed significant strength, leading a late-day surge.

It was shaping up to be another negative day on Wall Street. Asian markets closed sharply lower on fear of a U.S. economic slowdown, and an economic reading on new home sales disappointed. The stock market managed to rebound into positive territory, though, as traders upped their bets for a rate cut and embraced several better than expected earnings reports.

On the economic front, December new home sales came in at a seasonally adjusted annual rate of 604,000 which is 4.7% less than last month's reading and is 40.7% less than last year's number. Economists expected sales to come in at 647,000.

The median sales price of a new house in December was $219,200. This equates to a 10.9% price drop year-over-year, the largest decline in nearly four decades. At the current sales rate, there is a 9.6 month supply of new homes. In 2007, there were an estimated 774,000 new homes sold, down 26.4% from 2006.

The number of new home sales is very low, and the large supply of inventory should keep pressure on prices for some time. Homebuilders (+6.4%) shrugged off the negative report. The group is up 36.5% in the last five sessions.

Stocks fell to their session lows shortly after the release, but then recovered into positive territory as traders increased their bets on the size of a fed funds rate cut on Jan. 30.

Fed funds futures currently indicate an 88% chance of a 50 basis point rate cut, with a 25 basis point cut fully priced in. Prior to today's action, futures suggested a smaller 70% chance of a 50 basis point cut.

Of the 22 companies that reported earnings this morning, 12 beat expectations, three met, and seven missed. Some of the notable companies that topped estimates include Corning (GLW 23.10, +0.73), Halliburton (HAL 33.55, +0.46), McDonald's (MCD 51.07, -3.03) and Sysco (SYY 28.33, +0.72). McDonald's traded lower though, as traders were disappointed with its flat December U.S. same-store sales. Verizon (VZ 38.11, +0.35) met expectations.

All ten sectors advanced. The financial sector (+3.3%) posted the largest gains, as it stands to benefit from a lower fed funds rate. Beaten down telecoms (+2.6%) came in second. Tech (+0.4%) underperformed on a relative basis due to lack of leadership within the sector.DJ30 +176.72 NASDAQ +23.71 NQ100 +0.9% R2K +2.0% SP400 +2.3% SP500 +23.36 NASDAQ Dec/Adv/Vol 1052/1929/1.90 bln NYSE Dec/Adv/Vol 749/2421/1.35 bln

[RUMMYisFROSTED]

115. Pre-Piehole Pump.