STOCK MARKET WATCH, Friday February 29

[ozymandius]

Source: du

STOCK MARKET WATCH, Friday February 29, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 327
DAYS SINCE DEMOCRACY DIED (12/12/00) 2595 DAYS
WHERE'S OSAMA BIN-LADEN? 2321 DAYS
DAYS SINCE ENRON COLLAPSE = 2612
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

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

AT THE CLOSING BELL ON February 28, 2008

Dow... 12,582.18 -112.10 (-0.88%)
Nasdaq... 2,331.57 -22.21 (-0.94%)
S&P 500... 1,367.68 -12.34 (-0.89%)
Gold future... 967.50 +6.50 (+0.67%)
30-Year Bond 4.56% -0.10 (-2.06%)
10-Yr Bond... 3.72% -0.14 (-3.51%)






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: The US Dollar is Sinking Into the "Stagflation" Trap

BY GARY DORSCH

For the Bernanke Fed, the devil of hyper-inflation is preferable to the specter of a bear market for the Dow Jones Industrials and weaker home prices. Exercising the “Bernanke Put” means the Fed will slash the federal funds rate further below the US inflation rate next month. But that’s a frightening prospect for foreign holders of $2.3 trillion of US Treasury debt, who must contend with negative interest rates, which in turn, could severely weaken their US dollar denominated investments.

It was shocking to hear Federal Reserve officials insist this week that inflation in the United States is under control, before telegraphing another tidal wave of liquidity injections into the US banking system. “It is important to recognize that downside risks to growth remain,” said Fed Chief Ben Bernanke before the House of Representatives. “The Fed will act in a timely manner as needed, to support growth and to provide adequate insurance against downside risks,” signaling a rate cut at its next meeting on March 18th.

The Fed has entangled the US economy into the “Stagflation” trap. On the one hand, slumping home prices and a softer jobs market could increase foreclosures on many sub-prime home borrowers, and blow huge craters in the balance sheets of banks and brokers worldwide. US consumers will have less home equity to convert into cash, which could lead to a big pullback in spending. With consumers struggling with high energy costs and a softening jobs market, the drying up of home equity could usher in a recession.
.....

Stephen Roach, chief economist for Morgan Stanley Asia, commented on Jan 24th, “Policy-makers are reaching back to the same play book that created this mess in the first place. They’re saying we are there to clean up after bubbles burst first rather than to prevent them. It’s a dangerous, reckless and irresponsible way to run the world’s largest economy. We have a market-friendly Fed injecting a lot of liquidity in the system which will set us up for another bubble economy. Excessive monetary accommodation just takes us from bubble to bubble to bubble.”

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

[bain_sidhe]

104. Oh, great. Food is the next "bubble"

Well, and other commodities. But food is the one nobody can "abstain" from... for long. From the article:

The Fed’s aggressive rate cutting campaign is pushing investors into commodities as a hedge against higher inflation and a weaker US dollar, which in turn is driving up food and energy prices for US consumers already bruised by sliding home prices. As the Fed drops interest rates to stop a slide in the housing and stock markets, it’s simultaneously blowing an enormous bubble in the commodities markets.

Yeah! WTG, Bernanke.

[Ghost Dog]

110. Maybe they're hoping revolution will break out

in China before it does in the USA? :-(

[ozymandius]

2. Today's Reports

8:30 AM Personal Income Jan
Briefing Forecast 0.4%
Market Expects 0.2%
Prior 0.5%

8:30 AM Personal Spending Jan
Briefing Forecast 0.3%
Market Expects 0.2%
Prior 0.2%

8:30 AM Core PCE Inflation Jan
Briefing Forecast 0.2%
Market Expects 0.3%
Prior 0.2%

8:30 AM Core PCE Prices Jan
Briefing Forecast NA
Market Expects 0.2%
Prior 0.2%

9:45 AM Chicago PMI Feb
Briefing Forecast 49.5
Market Expects 49.5
Prior 51.5

10:00 AM Mich Sentiment-Rev. Feb
Briefing Forecast 70.0
Market Expects 70.0
Prior 69.6

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

[Roland99]

19. PCE Core Price Index +0.4% (Jan) vs. +0.3% (Dec)... Jan Pers. Inc. +0.3% ... Pers. Spending +0.4%

[UpInArms]

38. Consumer spending flat in January Inflation eats away almost all income gains

http://www.marketwatch.com/news/story/consumer-spending-flat-january/story.aspx?guid=%7BDB15D4F4%2D306D%2D442B%2DB744%2D863C9051B59B%7D

WASHINGTON (MarketWatch) -- U.S. real consumer spending was unchanged in January for the third time in the past four months as the economic slump deepened.
Inflation jumped in January, eating away almost all the increase in personal incomes, the Commerce Department reported Friday.

"It is a weak picture of the consumer," said Robert Brusca, chief economist for FAO Economics. "Income growth, the raw material for spending, is fading."

Nominal spending rose 0.4%, above the 0.2% expected by economists surveyed by MarketWatch, but the 0.4% increase in the inflation rate left real consumer spending flat, giving the first quarter a weak beginning. Read the full report.

Nominal incomes grew 0.3% in January, boosted by several one-time factors. Excluding such items as stock options, bonus payments and cost-of-living increases, incomes rose 0.2%, the government said.

Economists expected incomes to rise 0.2%. See Economic Calendar.

With spending rising faster than incomes, the personal savings rate dropped to a negative 0.1% of disposable incomes, the third consecutive month of negative savings.

...more...

[UpInArms]

20. 8:30 reports: U.S. Jan. real consumer spending flat

01. U.S. Jan. nominal consumer spending up 0.4% vs 0.2% expected
8:30 AM ET, Feb 29, 2008 - 2 minutes ago

02. U.S. Jan. nominal incomes up 0.3%, vs. 0.2% expected
8:30 AM ET, Feb 29, 2008 - 2 minutes ago

03. U.S. core inflation remains at 2.2% over past year
8:30 AM ET, Feb 29, 2008 - 2 minutes ago

04. U.S. Jan. core PCE prices up 0.3% as expected
8:30 AM ET, Feb 29, 2008 - 2 minutes ago

05. U.,S. Jan. real disposable incomes up 0.1%
8:30 AM ET, Feb 29, 2008 - 2 minutes ago

06. U.S. Jan. real consumer spending flat
8:30 AM ET, Feb 29, 2008 - 2 minutes ago

[UpInArms]

21. NYC economy contracts in Feb for 2nd straight month

http://www.reuters.com/article/bondsNews/idUSN2915224820080229

NEW YORK, Feb 29 (Reuters) - Business activity in New York
City contracted for a second straight month in February amid
tighter credit conditions and slim hope of near-term
improvement, according to an industry report released on
Friday.

The National Association of Purchasing Management-New
York's index of local business activity fell to 427.7 in
February, down from 431.0 in January.

The report's seasonally adjusted measure on current
business conditions eased to 43.4 in February from 47.9 in
January.

"New York City business conditions in early 2008 appear to
have entered a second leg of the slowdown that first unfolded
in the spring and summer of 2007," NAPM said in a release. It
added that the pace of contraction increased in February.

...more...

[UpInArms]

49. U.S. Feb. UMich consumer sentiment 70.8 vs 78.4 Jan.: report

01. U.S. Feb. UMich consumer sentiment 70.8 vs 78.4 Jan.: report
9:58 AM ET, Feb 29, 2008 - 5 minutes ago

[Roland99]

63. British, Italian economic sentiment on the wane; Germany is an exception

http://www.marketwatch.com/news/story/sentiment-dropping-europe-economies-not/story.aspx?guid=%7B839E57B7%2DC944%2D4C12%2D919E%2D2223A6BE52A1%7D

[Roland99]

74. (U.S.) Consumer Sentiment Drops to 16-Year Low in February

http://www.cnbc.com/id/23407668

[UpInArms]

50. US Midwest business activity plunges in February @ 44.5 (Feb) vs 51.5 (Jan)

http://www.reuters.com/article/bondsNews/idUSN2919232420080229

NEW YORK, Feb 29 (Reuters) - U.S. Midwest business activity contracted sharply in February in a report showing even the areas of the country least affected by the boom-bust housing cycle are feeling ripples from the crisis.

The National Association of Purchasing Managers-Chicago said on Friday its index of regional business conditions tumbled to 44.5, its lowest since December 2001, from 51.5 in January. That was well below forecasts centering around 49.7.

The data bolstered economists' view that the economy is heading for a recession, since manufacturing had been one of the few holdouts in an otherwise grim economic picture.

Consumer spending has been retreating steadily, leading to a near-stagnation of the economy in the fourth quarter. The anemic activity is expected to linger, with Federal Reserve Chairman Ben Bernanke himself noting this week that the risks to softer growth were tilted to the downside.

Some experts believe that a rapid deterioration in the data suggests the recession is already here.

...more...

[ozymandius]

3. Oil surpasses $103 for first time

SINGAPORE - Oil prices surpassed $103 a barrel for the first time Friday as persistent weakness in the U.S. dollar and the prospect of lower interest rates attracted fresh money to the oil market.

Prices were supported by comments Thursday from Federal Reserve Chairman Ben Bernanke, who said the American economy is not immediately threatened with stagflation, a combination of economic weakness and rising inflation.
.....

Light, sweet crude for April delivery jumped to a new trading record of $103.05 a barrel in Asian electronic trading on the New York Mercantile Exchange before slipping back to $102.79 a barrel, up 20 cents, midafternoon in Singapore.

On Thursday, the contract jumped $2.95 to settle at a record $102.59 a barrel.

Shum warned that a price bubble was emerging in the crude futures market as investors ignored market fundamentals that have shown continuous increases in U.S. crude supply while several recent forecasters have lowered oil demand growth predictions for this year due to the slowing economy.

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

[ozymandius]

4. Partnership will bid for U.S. oil refineries

Petroplus Holdings, Europe's largest refiner, said Wednesday that it had entered into a $2-billion deal with private equity firms Blackstone Group and First Reserve to buy crude oil refineries in the United States.

Each partner has committed $667 million to form an investment company to be led by Petroplus Chairman Thomas D. O'Malley.

Petroplus is interested in acquiring Valero Energy Corp.'s 275,000-barrel-per-day refinery on the Dutch Caribbean island of Aruba, according to a source within the industry. The Swiss company also is interested in Valero's Memphis, Tenn., and Paulsboro, N.J., refineries, another industry source said.

Although the Aruba refinery is not in the U.S., Valero considers it to be part of its Gulf Coast system because it supplies intermediate feedstock to refineries in Texas and Louisiana. The Aruba plant was expected to sell for in the neighborhood of $4.1 billion.

San Antonio-based Valero, the largest U.S. refiner, has expressed interest in selling its Memphis and Krotz Spring, La., refineries.

http://www.latimes.com/business/la-fi-petro28feb28,1,655287.story

[ozymandius]

5. $4 gasoline? It's news to Bush

When asked about the possibility of the price going that high, president says, 'That's interesting, I hadn't heard that.' He also says a tax hike on oil companies would drive the price up further.

WASHINGTON -- The prospect of sharply higher fuel prices, including $4-a-gallon gasoline, may not have made it into Oval Office briefing books, perhaps explaining why President Bush was surprised Thursday when a reporter mentioned what energy analysts are saying could happen soon in many parts of the country.

"Wait, what did you just say? You're predicting $4-a-gallon gasoline?" Bush responded to a reporter who said some analysts expect prices to soon climb that high. "That's interesting. I hadn't heard that. . . . I know it's high now."
.....

But even before the recent surge in oil prices, analysts were predicting that the average price of a gallon of gasoline could reach $3.75 nationwide in the near term and top $4 in states such as California and Hawaii.

Bush's acknowledged unfamiliarity with the recent cost of gasoline produced some fumes at the pump.

At a Shell service station in the Bay Area city of San Mateo, the price of a gallon of regular had already reached $4.29, well above the state average of $3.42, as measured by the AAA auto club.

http://www.latimes.com/business/la-na-gas29feb29,1,3707854.story?ctrack=1&cset=true

[poppysgal]

26. Never, Neverland

:scared: Just who is doing the math in Washington? Maybe no one explained to him the connection between crude oil prices per barrel and gasoline per gallon. He probably hasn't connected milk to the cow or eggs to hens yet either.

[UpInArms]

28. good morning, poppysgal!

isn't that just too un-f***ing believable????

What planet did this POS get dropped from and when can we jettison him out of here?

:hi:

[burf]

41. Good morning all

On the bright side, in 327 days Crawford Texas will get their village idiot back.

[UpInArms]

43. good morning to you, burf!

327 very looooonnnngggg days

but, I'm glad that there are not another 4 years of this crap (that's my bright side talking)

[poppysgal]

101. Happy Leap Day

:hi: Here's hoping that the next "Leap Year" finds us putting the "bush" years behind us.

[Ghost Dog]

54. Worry not. El Señor Boosh has a "strong dollar policy",

so he assures us.

[Karenina]

147. I hear Neverland is in foreclosure.

O8)

[Roland99]

10. It's down to $101.98 at the moment and wholesale gas is down to $2.4852.

[ozymandius]

6. Insurer AIG posts $5.3B loss in 4Q

NEW YORK - American International Group Inc., the largest insurer in the U.S., lost more than $5 billion in the fourth quarter as bad credit ate into its investments, the company said Thursday.

AIG has been thrust to the forefront of the credit crisis gripping financial markets by contracts known as credit default swaps.

These swaps pledge to cover missed payments on $579 billion in debt. AIG's swap portfolio lost $11.12 billion in value during the fourth quarter because decaying credit quality means the insured debt is less likely to be repaid.

AIG also lost more than $3 billion in its investment portfolio because of "significant, rapid declines" in the value of mortgage debt.
.....

AIG claims the losses on the portfolio swaps are only on paper because the debt the swaps protect is still stellar — just the market value of the contracts has fallen. As long as the insured debt does not go into default, the losses on the swaps will reverse over time, the company said.

http://news.yahoo.com/s/ap/20080229/ap_on_bi_ge/earns_aig

So it appears that "hope" is their business plan.

[UpInArms]

34. AIG shares fall after firm loses $5.3 bln

http://www.marketwatch.com/news/story/aig-shares-fall-after-firm/story.aspx?guid=%7B86090D0D%2DCC68%2D441F%2DBFEF%2D619E7505BA99%7D

SAN FRANCISCO (MarketWatch) -- Shares of American International Group fell in preopen trading Friday, weighing on the broader market after the company reported the biggest loss in its almost 90-year history including an $11 billion writedown of troubled mortgage securities.

The net loss of $5.29 billion, or $2.08 a share, vs. net income of $3.44 billion, or $1.31 a share, a year earlier, the company said. The adjusted net loss for the fourth quarter of 2007 was $3.20 billion, or $1.25 a share.

AIG (AIG) was expected to make 60 cents a share, according to the
average estimate of 17 analysts polled by FactSet. The estimates varied widely though, ranging from a loss of $1.20 a share to a profit of $1.68 a share.
AIG shares fell 4.3% to $48 in preopen trading Friday.

"The fourth quarter results bore the brunt of the deteriorating residential mortgage environment, and highlighted the potential for additional quarters of challenging results," Banc of America Securities' analysts said in a research note Friday morning.

The fourth-quarter result included a pre-tax charge of $11.12 billion from a net unrealized market valuation loss related to the super senior credit default swap portfolio of the company's AIG Financial Products Corp. (AIGFP) derivatives unit.

"The magnitude of the negative marks at AIGFP and its lack of capital may prompt rating agencies to take a harder look. The company's decision to suspend share repurchases in the near term highlights the lack of excess capital at AIG," the Banc of America analysts concluded.

...more...

It looks more like - wish in one hand and .....

[Ghost Dog]

61. (UK) Financial Services Authority turns to insurers as it looks for the next crisis

The Financial Services Authority has turned the spotlight on the insurance industry as it tries to seek out the next problem waiting to explode in the financial industry following the sub-prime mortgage crisis.

The City regulator has written to insurance companies asking for details of their illiquid assets and credit derivatives as it tries to uncover where the risks lie in the financial system.

Insurers are being asked for details of their exposure to credit derivatives - complex financial instruments that have been at the heart of the current financial turmoil. They are also being told to outline how they are valuing these assets at a time when financial markets have frozen up, making it difficult to be confident about their precise value.

/... http://www.guardian.co.uk/money/2008/feb/29/insurance.creditcrunch

[ozymandius]

7. Is it just my eyes - or is that Nasdaq chart headed straight down? (nt)

[poppysgal]

102. Dire Straights?

Are we there yet Pa, are we there yet?:bounce:

[ozymandius]

8. Random Observation

Over the past few weeks, I have been observing the price of imported cheese at three local markets. Since we in the Ozymandius household love cheese - this is not such an odd thing. The thing I've noticed is the accelerated rise in the cost of these imports from England, France and Italy.

To me - this really hammers our dollar predicament home. Cheese is a weekly food expense. It is also a startling gauge that measures how the U.S. dollar is getting beaten like a rented mule.

So how's the price of similar imports in your neck of the woods?

:hi:

[Dr.Phool]

16. A closer observation.

I just sold my 50% interest in a pizza shop. Our 2 biggest expenses, imported cheese and imported tomatoes are going through the roof.

[dweller]

35. flour too is going up

so there is the top 3.

dp

[AnneD]

44. Morning Marketeers....

:donut: and lurkers. Our household diet is slowly beginning to resemble that of a Third world country-whole grains and vegetables seasoned with meat. We eat less and less meat these days. We get out veggies at the coop so it is reasonable. That keeps me out of the supermarket. I did go by the cheese section yesterday and had a cow---or wished I did. I find myself using more and more of the milk I get here at the school. It is fast becoming a great perk.

I haven't done the math but silver has gone up more than I thought and gold is heading through the roof. I wish I could say I was pleased with my return on investment, but I realize that the precious metals really only do keep up with inflation. That is how I have been gaging true inflation.

Bernanke and the FEDS have been busted. They have nothing left in their bag of tricks. I think it is time for Congress to get involved and I don't mean have another hearing on it. We are fast coming to a tipping point. At this rate, Obama with have to initiate his own 100 days plan. The economy will peter out before Bush leaves office.

Happy hunting and watch out for the bears.

[UpInArms]

27. my better half tells me this morning that the UpInArms household

must forego one of its favorite treats - kalamata olives - the price went from $4.95 a bottle to $6.95 this past week.

So sad.

I shall miss them :(

[DemReadingDU]

47. Consumers cut back on small pleasures

2/26/08

Jason Jepson works for a chi-chi yacht dealer in Newport Beach, Calif., but he's so worried about the economy he stopped buying $1.79 PowerBars at his gym.

Richmond, Va., legal secretary Angela Harris is passing up her beloved $3.46 Iced Mocha Latte at Starbucks.

Such small luxuries seemed almost necessities in happier economic times. But no more for lots of folks, including those and other USA TODAY readers who described how they've changed their habits.

The murky financial outlook and recession fears are factors. Another driver: fear of being out of step with a cultural mind-set that increasingly says less is more. If your best friend and next-door neighbors are cutting back on little luxuries, shouldn't you be, too?

"For years, we had the opposite. It was all about keeping up with the Joneses. Now, the Joneses are starting to cut back," says Ellie Kay, author of 12 personal finance books.

more...
http://www.usatoday.com/money/economy/2008-02-26-consumers-cut-small-luxuries_N.htm?loc=interstitialskip

[Warpy]

86. You don't have a Wild Oats or Whole Paycheck in the area?

They have olive bars along with the cheese and salad on one side of the store. It can be more economical to get a few of your favorite treat in bulk rather than pay for the jar. You can then cut them into little pieces and mix them into something cheap to enjoy them in a dip or spread.

My extravagance when I was living on practically nothing was bulk maple syrup. I just couldn't get used to the imitation, not even when I made it out of brown sugar and maple extract in my own kitchen.

I understand about the olives. Sniff.

[DemReadingDU]

92. When I buy foods in bulk

My spouse thinks he gets a larger serving!

We love cheese, but a large bulk wheel of cheese really doesn't last any longer at our house. It is just a bigger serving that day!


:P

[Roland99]

52. The bellweather I use is more basic: 12-packs of soft drinks

It's getting hard finding a 12-pack of Coca-Cola or Pepsi products under $4, even when they're on sale.

[kickysnana]

58. On the peanut butter front the shelves are almost bare...

I went to Cub foods last Friday evening, just the specialty types and the "what third world country made this?" generics. Different bigger Cub foods Sunday evening, same. Walmart Tuesday evening same.

Our two big local food retailers, Rainbow and Cub are both heavily advertising house brand "generics". I got a large container of powdered coffee creamer (for an elderly family member). Coffee mate same size was $4.89, Rainbow brand was $4.49 and WTWCMT? generic was $2.49.

[DemReadingDU]

72. What's up with peanut butter?

I always buy the kind you need to stir...just contains peanuts (and maybe a touch of salt). I usually buy the Kroger brand or the Krema brand. But they're both getting harder to find, and the price has gone up about 0.50. Smuckers always has been lots more expensive.

:(

[Roland99]

78. Cheap source of protein and costs relatively little per serving.

I guess.

[DemReadingDU]

80. Depends on the serving size

My spouse thinks the jar of peanut butter, is the serving!

I have to hide the jar, and ration it out.


:P

[Roland99]

82. lol!

[Warpy]

88. Our groceries here in central NM sell bulk pintos and rice

and I notice those are going faster, too. People are going for a much cheaper diet these days.

We're all going to be sounding like the infamous campfire scene in "Blazing Saddles" by the time this is over, if we're lucky.

Fortunately, I like rice and beans. I've had to live on them for enough years.

[AnneD]

94. One word...

Beno.

This method also works....

The secret is to boil the beans before soaking them overnight. That's it - that's the secret to gas-less bean dishes. It works with all types of beans. Get a big pot of water to a rolling boil. Add a pound of beans and let the water/beans begin to boil again. Boil for 3 minutes. While their boiling you'll notice a white foam build up on the surface of the water and then mysteriously disappear. The ingredient in beans which causes the gas in humans is water soluble. This means it just disappears in water. It appears as a bubbly white foam (it is a gas) then just goes away. When this gas is released during the boiling process, there is no odor (not like you'd have if you decide to skip this step). Now after 3 minutes of boiling remove from the heat and transfer to a bowl or large Tupperware container and let them soak in the refrigerator for 6 - 8 hours. Make sure the beans are completely covered with water. They'll soak up some of the water and expand.

In the morning, if you soaked them overnight, drain out the water and put the beans in a clean pot on the stove. Add the water and boil the beans for about 1 1/2 hours. Do not add any ingredients until they've boiled for 1 1/2 hours. This is very important and beans are really sensitive. You'll hurt their feelings if you try to season them before they're done cooking, and they'll develop a thick skin (actually the skin gets really tough and the beans get hard). After the beans have boiled, lower the heat and add the ingredients. Let this mixture continue to cook, depending on the recipe it could be another couple of hours, stirring often in a covered pot.

http://pages.prodigy.net/wferber/Beans.html

Bon Appetite....:9

[Warpy]

95. Not at this altitude

They never get done at 6000 feet without the pressure cooker.

Beano doesn't work on me. I guess it's the combination of the beans with other fart foods like cabbage.

Gas is necessary to push everything through. It's a natural process and something like 80% is absorbed into the blood stream and blown off as C02. Eventually the intestinal flora adjust to those indigestible polysaccharides from beans and the gas problem resolves.

We will still recreate that campfire season until it happens.

[AnneD]

103. Oh yeah...I forgot you have a high altitude problems...

It too me 3 years to figure out how to make decent pasta. I missed eating beans-until I figured out the pressure cooker thing. I think you could do that method with a pressure cooker. You'd have to watch the cooker til you figure it out, but you could adapt that method. The county extension agents were very helpful. They sent me recipes and growing tips. We went from sea level to 9000ft. Yeah, it was an adjustment.

I think you take in enough gas (air) in the process of eating that you don't need anymore. :rofl:

[Warpy]

132. The polysaccharides don't all dissolve in the water

so we're all going to be jet propelled, no matter what.

Veg heads will tell you their bodies adjust, though.

[ozymandius]

9. Microsoft cuts Vista prices to urge upgrades

SEATTLE (Reuters) - Microsoft Corp (MSFT.O) said on Thursday it plans to cut prices of its Windows Vista operating system sold at retail outlets in a move aimed at pushing customers to switch to the newest version of Windows.

The world's largest software maker said it plans to lower retail prices for Vista in 70 countries later this year in tandem with the shipment of the first major update to Vista, known as Service Pack 1 (SP1).

Packaged versions of Windows Vista sold at stores and on the Web account for less than 10 percent of all licenses of the dominant Windows operating system that sits on more than 90 percent of the world's personal computers.
.....

In the United States, Microsoft will reduce prices for Windows Vista Ultimate, the company's top-end operating system, to $319 from $399 for the full version and cut the price for an "upgrade" version to $219 from $259 for consumers who already run Windows XP or another edition of Vista.

http://news.yahoo.com/s/nm/20080229/bs_nm/microsoft_vista_dc

Good luck with that. My friends in IT say that Vista is a bloated sack of dung.

[Systematic Chaos]

13. I absolutely refuse to touch it.

My next computer is going to be an iMac with Boot Camp and XP Pro. Best of both worlds that way. :)

[AnneD]

48. I made the switch last summer...

I'll never go back. I use the Parallel program (I think that is what it is called).

[kineneb]

91. ya' know it is bad when a grandma wants Vista off her computer

my Red Hatter friend (~80 years old, and not a geek) asked me to get rid of "Vista Home Basic"- it was slower than thick molasses. I loaded Kubutu Linux on her computer and I am no longer getting phone calls ("Help, I can't get it to___.")

[Roland99]

11. 6:41am - Futures down about 0.9%

[Roland99]

12. UBS states losses from credit market crisis could hit $600 billion

was a Breaking News ticker on Bloomberg TV.

[Systematic Chaos]

14. Ehm... okay I feel stupid now. What's UBS?

:dunce:

[Roland99]

15. A large financial firm. (and a clarification)

http://www.ubs.com/


That $600 billion loss is for the entire industry, not just them. :)

[antigop]

40. FYI--Former Senator Phil Gramm is a vice-chairman there

http://www.ubs.com/1/e/media_overview/media_americas/boards1/seniorleadership/vicechairmen.html


According to opensecrets.org,
http://www.opensecrets.org/news/banks/index.htm

To the surprise of many observers, Senate Banking Chairman Phil Gramm (R-Texas) made "modernization" of the banking industry a top priority of his committee.

[UpInArms]

42. husband of Wendy "Enron's FERC Mole" Gramm

Campaign Gifts, Lobbying Built Enron's Power In Washington

During the administration of the first President George Bush, a new party fundraiser named Kenneth L. Lay was invited to spend the night at the White House. The sleepover was an early coup for the chairman of Enron Corp. and a harbinger of things to come.

Over the following decade, Lay and Enron poured millions of dollars into U.S. politics, cultivating unequaled access and using the entree to lobby Congress, the White House and regulatory agencies for action that was critical to the energy company's spectacular growth.

Now, with Enron's sudden bankruptcy, public attention has turned not only to the financial practices that brought the company down, but to what its far-flung political operations say about the country's campaign finance system.

Some Democrats in Congress are spoiling for an opportunity to use Lay and Enron to embarrass the Republican Party, which received most of the company's largess over the years. They want to look into such things as Enron's relationship with Phil Gramm (R-Tex.), ranking minority member on the Senate Banking Committee and chairman of the committee at a time when his wife, Wendy L. Gramm, was serving on Enron's board. Last year, Gramm's committee approved legislation that included a key provision exempting parts of Enron's massive energy trading operation from federal oversight.

"I think the Enron story is going to turn out to be an enormous political story," said Rep. Henry A. Waxman (D-Calif.), ranking minority member on the House Energy and Commerce Committee.

The ties of Lay to the White House and GOP leaders, he added, were so multilayered that Republicans are likely to be reluctant to pursue them. But he made clear that he intends to do so and expects the Democratic-controlled Senate to follow suit.

...more...

[Demeter]

84. REmember Those Halcyon Days When All We Had To Worry Us Was ENRON?

Sigh. Nostalgia, it's a side trip.

[Karenina]

148. BWHAHAHAHAHAHAHAHAHAHA!!!

:spray::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl:

[Roland99]

53. "modernization"? IOW, less regulation and allowing them to enter other financial services?

[DemReadingDU]

29. Bloomberg: Financial Firms Face $600 Billion of Losses, UBS Says

Financial firms are likely to face at least $600 billion of losses as the crisis triggered by the collapse of subprime mortgages batters banks, brokers and insurers, UBS AG analysts said.

Banks and brokers stand to lose $350 billion, according to estimates from the global banking unit of UBS, the world's largest wealth manager. Financial institutions have so far disclosed more than $160 billion of writedowns and credit losses.

``We have to recognize the risk that the economy will suffer more damage than what consensus suggests,'' Geraud Charpin, head of European credit strategy at UBS in London, wrote in a report today. ``All the investment schemes that have been built on the basis of a strong and resilient economic backdrop have to be unwound/scaled down.''

American International Group Inc., the world's largest insurer, reported the biggest quarterly loss in its 89-year history yesterday after an $11.1 billion writedown on derivatives linked in part to subprime mortgages. London-based Peloton Partners LLP said yesterday it is being forced to liquidate a $1.8 billion hedge fund managing asset-backed debt because of tighter lending restrictions on Wall Street.

more...
http://www.bloomberg.com/apps/news?pid=20601087&sid=auI8qPM3t6uc&refer=home

[JNelson6563]

17. All Aboard! Next stop: Gold $1000 per oz!

Damn skippy! Gold's like a runaway train! :toast:

Julie

[UpInArms]

31. Gold futures poised to soon top $1,000 an ounce

http://www.marketwatch.com/news/story/gold-futures-1000-ounce-any/story.aspx?guid=%7BFB2BD9F4%2D27A7%2D4921%2D8293%2D14471EEE40BE%7D&dist=TNMostRead

NEW YORK (MarketWatch) -- With the U.S. dollar tumbling and inflation surging, gold continues to break record highs and might surpass the psychologically key $1,000 level before the end of March.

Gold futures for April delivery ended with strong gains Thursday, surging to a record high of $975 an ounce in after-hours trading, only $25 away from the $1,000 mark. The contract finished regular trading at $967.50 an ounce. See Metals Stocks.

Gold prices have surged some 16% in the past two months and 22% in the past three months.

Gold is generally viewed as a safe-haven investment and a hedge against inflation. The turbulence generated by the subprime and credit crises, the increasing likelihood of a U.S. recession, persistent dollar weakness, and rising inflation make owning gold a no-brainer for many analysts.

Prices are likely to hit $1,000 an ounce in a matter of days, maybe a month, they say.

...more...

[UpInArms]

36. Gold futures gain after hitting record high over $978

http://www.marketwatch.com/news/story/gold-futures-gain-after-hitting/story.aspx?guid=%7B04ED3050%2D220A%2D40C7%2D80E3%2D36D0B354D32A%7D&dist=hplatest

NEW YORK (MarketWatch) -- Gold futures edged higher Friday, having hit a record high of $978.50 an ounce overnight, continuing to draw support from weakness in the U.S. dollar and rising investment flows into commodities. Gold for April delivery gained $3 at $970.50 an ounce on the New York Mercantile Exchanger after earlier surging to a record of $978.50.

[JNelson6563]

109. It's a mad, mad, mad, mad world!

So glad I saw "fiscal insanity ahead" written on the proverbial wall as soon as little boots took the throne. ;-)

Julie

[UpInArms]

18. dollar watch

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



Last trade 73.832 Change +0.033 (+0.04%)

The Dollar's Decline Continues To Break Records, Next Fed Cut Looking Deeper And Deeper

http://www.dailyfx.com/story/bio1/The_Dollar_s_Decline_Continues_To_1204244601904.html

The dollar can’t seem to catch a break. The beleaguered currency marked yet another momentous drop against most of its liquid counterparts, chalking up its biggest three day selloff in four years. And, leading that charge was the EUR/USD, which marked a fresh record high for the third consecutive session. Feeding the insatiable desire to sell dollars was yet another round of scheduled and unscheduled disappointing fundamentals. Federal Reserve Chairman Ben Bernanke’s testimony before the House today more or less covered the same dour highlights from yesterday’s delivery to the Senate. The few notable differences between the two speeches came from the Q&A. In response to one particular question, the central banker suggested that it would be “fair” to suggest it is tougher for the Fed to respond now than it was during the last recession back in 2001. This may have been taken to mean by some that the economy is heading for another recession; but what Bernanke was actually referring to was the unwanted mix of quickly receding economic growth and the elevated level of front-line inflation. Addressing the dollar specifically, the Fed Chairman further said the policy group was monitoring its record breaking decline, yet he suggested he still believed foreign investors still had confidence in the world’s largest economy. While Bernanke continued to talk up the struggling greenback, the market was also absorbing disappointing readings from the fourth quarter GDP revisions and a round of second tier employment numbers. Annualized growth shirked forecasts for annualized expansion to accelerate slightly by holding at its five-year low 0.6 percent clip. Noteworthy shifts from the sector breakdown were downward revisions to personal consumption, business investment, commercial construction and government spending. In fact, the only positive change came from exports whose 0.9 percent contribution to GDP is barely keeping the US economy above water. Elsewhere on the docket, initial jobless claims in the week through February 23rd jumped well beyond the consensus to 373,000 – just off of the two year highs from last month. Pricing in this dour data, Fed Fund futures have moved from fully pricing in a 50 bp rate cut on March 18th to a 36 percent chance of 75 bps.

...more...

Yen Falls Below 105, Will the BoJ Intervene?

http://www.dailyfx.com/story/bio2/Yen_Falls_Below_105__Will_1204284876713.html

Rising for the first time in four months in January, German retails sales rallied the Euro over 50 points pushing it to a new all time high at 1.5238. A strong labor market and retailer discounts inspired shoppers and fueled expectations that consumer spending will rise in the second half of the year as inflation wanes. Eurozone headline CPI reported its highest reading in almost a decade at 3.2%, as food and energy prices continue to rise, but the core reading printed lower than expected at 1.7- its lowest reading in a year.

The dollar fell below 105 against the Yen-its lowest level in three years- on Fed Chairman Bernanke’s warning of U.S. bank failures. Risk aversion flowed through markets as traders had visions of the Savings and Loans crisis, leading to carry trades unwinding and equities selling off, as the Dow declined over 100 and the Nikkei fell 322 points. Will this lead to intervention from the BoJ? This is a possibility as Boris Schlossberg wrote in “105 Dollar Yen-Is That The Threshold Of Pain For The BoJ?”

Mounting recession fears on dour U.S data and Bernanke’s testimony has sent the dollar lower against most major currencies. As the ECB’s hawkish stance strengthens and Fed rate cut possibilities increase- traders are pricing in an 86% possibilty of a 1% cut by April-the Euro may continue to make fresh all time highs. The only currency that hasn’t made record gains against the dollar is the Pound. The U.K economy has been in lock step with the U.S. and with Nationwide reporting housing prices declining for the fourth month by 2.7%, we may see more rate cuts forthcoming from the BoE.

The U.S. consumer which has propped up the economy is showing signs of weakening as consumer spending and income data is expected to show today. If consumer spending disappoints-as it is expected to stagnate- it may confirm that we are in a recession and sink the dollar further. Any sign that the U.S consumer is holding up may be enough for the markets to grab onto and lead to a correction. Also, comments from Hank Paulson stating that he favors a strong dollar may give the greenback a boost.

...more...

(edited to clean up post and to say - the Kitco dollar chart is live and the ino.com has a 30 minute delay)

[Ghost Dog]

65. Euro= USD 1.520, GBP 0.765, CHF 1.587 and JPY 157.9 at this time

(Good to see the USDIndex chart incorporated above! :thumbsup:
+ I don't remember when I last saw CHF this strong vs. Euro, if ever).

[Ghost Dog]

113. Euro= USD 1.519, GBP 0.764, CHF 1.585 and JPY 158.5 at this time

[Ghost Dog]

116. Dollar Falls to 3-Year Low Versus Yen as Fed Cites Trade Boost

Feb. 29 (Bloomberg) -- The dollar fell to the lowest level in three years versus the yen and touched the weakest ever against the euro on signs the Federal Reserve sees the currency's decline as helping the U.S. economy.

The U.S. currency dropped below 104 yen, to its cheapest level since March 2005, after Fed Chairman Ben S. Bernanke said the depreciating currency helps cut the trade deficit. The slide deepened as a report showed Chicago-area business shrank this month, fueling bets on a bigger Fed interest-rate cut in March.

``It's broad dollar weakness because of concerns about the U.S. economy, U.S. yields, expectations of rate cuts and financial markets,'' said Tom Fitzpatrick, global head of currency strategy at Citigroup Inc. in New York. ``They don't care about the weak dollar. I absolutely believe the market is disappointed'' by Bernanke's comment.

The dollar fell as low as 103.83 yen, then settled at 103.98 yen at 2:53 p.m. in New York, from 105.37 late yesterday and 107.17 a week ago. Today's drop was its biggest in six weeks. It touched $1.5239 per euro, the weakest since the euro's inception in 1999. It then recovered to trade at $1.5187, from $1.5193 yesterday. The dollar will weaken to $1.55 in coming weeks, Fitzpatrick said.

The U.S. currency lost 2.2 percent against the euro this month, the most since September. The euro is 30 percent above its debut level of about $1.17 in 1999, and is up 84 percent from an all-time low of 82.30 U.S. cents in 2000.

/... http://www.bloomberg.com/apps/news?pid=20601083&sid=ahqvu1edB2Aw&refer=currency

[Ghost Dog]

129. Speculators raise bets against U.S. dollar - CFTC

NEW YORK, Feb 29 (Reuters) - Currency speculators increased
their bets against the U.S. dollar for a second week, weekly
data from the Commodity Futures Trading Commission showed on
Friday.

The value of the net short U.S. dollar position rose to
$17.51 billion in the week to Feb. 26 from $12.09 billion the
prior week.

The aggregate U.S. dollar position is derived from the net
positions of International Monetary Market speculators in yen,
euro, British pound, Swiss franc, Canadian and Australian
dollars.

Speculators raised their net long euro positions to 31,778
contracts from 14,730 the previous week. This week's euro longs
were the highest since Jan. 15.

/data... http://www.reuters.com/article/marketsNews/idCAN29MM20080229?rpc=44

[UpInArms]

22. (Vallejo) California city has deal to stave off bankruptcy

http://www.reuters.com/article/bondsNews/idUSN2862827920080229?sp=true

VALLEJO, California (Reuters) - Officials in Vallejo, California hammered out a financial agreement late on Thursday with police and fire-fighters that may allow the cash-strapped former Navy town to avoid becoming the first sizeable city in the state to file for bankruptcy.

"A tentative agreement has been reached," Mayor Osby Davis said during an emergency meeting of the Vallejo City Council.

Details would be made public on Friday, Davis added.

The deal came amid calls by some city officials for Vallejo to declare bankruptcy as it is on track to run out of cash next month, the result of rising pay and pension packages for emergency personnel over several years running up against declining tax collections.

Marc Levinson, an Orrick, Herrington and Sutcliffe lawyer advising Vallejo, said before Thursday's council meeting that the city's financial problems are not like those that triggered other California municipal bankruptcies.

The legendary 1994 bankruptcy of Orange County, California was followed by bad investments. A costly legal struggle tipped Desert Hot Springs, California to file for its lesser known bankruptcy in 2001.

"I can't tell you of a case where the city just says 'We just can't pay,'" Levinson said.

...more...

[DemReadingDU]

25. Vacant Homes in U.S. Climb to Most Since 1970s With Ghost Towns

2/29/08

Almost 200,000 newly constructed single-family homes are sitting empty in the U.S., the most since Commerce Department statistics began in 1973. Partially completed developments reduce revenue for cities and towns and hurt businesses, said Nicolas Retsinas, the director of Harvard University's Joint Center for Housing Studies. Rising foreclosures and falling property values may cut tax revenue by more than $6.6 billion for 10 states, including New York, California and Florida, the U.S. Conference of Mayors said in a November report.

In January 1973, the number of finished new homes for sale was 97,000, when the U.S. population was about 212 million, according to the U.S. Census Bureau. In December 2007, 197,000 completed homes were on the market and in January 2008 there were 195,000. The current population is 303.5 million.

Home prices may fall at least 8 percent nationwide and by as much as 26 percent from the third quarter of 2007 before hitting bottom, according to a Feb. 13 report from New York- based Deutsche Bank AG analyst Karen Weaver, the firm's global head of securitization research.

more...
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=au67GKPyS_Dg

[DemReadingDU]

33. Facing Default, Some Walk Out on New Homes

2/29/08

“There certainly appears to be more willingness on the part of borrowers to walk away from mortgages,” said John Mechem, spokesman for the Mortgage Bankers Association, who noted that in the past, many would try to save their homes.

In recent months top executives from Bank of America, JPMorgan Chase and Wachovia have all described a new willingness by borrowers to walk away from mortgages.

Carrie Newhouse, a real estate agent who also works as a loss mitigation consultant for mortgage lenders in Minneapolis-St. Paul, said she saw many homeowners who looked at foreclosure as a first option, preferable to dealing with their lender. “I’ve had people say to me, ‘My house isn’t worth what I owe, why should I continue to make payments on it?’ ” Mrs. Newhouse said.

“You bought an adjustable rate mortgage and you’re mad the bank is adjusting the rate,” she said. “And sometimes the bank people who call these consumers aren’t really nice. Not that the bank has the responsibility to be your friend, but a lot are just so uncooperative.”

more...
http://www.nytimes.com/2008/02/29/us/29walks.html?

[DemReadingDU]

23. Ex-Goldman stars liquidate Peloton funds

2/29/08
The credit crunch has forced Peloton Partners, a $3bn (£1.5bn) hedge fund run by former Goldman Sachs star traders, to liquidate its two investment funds, leaving its founders millions of pounds out of pocket.

It is understood founders Ron Beller and Geoff Grant decided to sell off the assets of Peloton ABS (asset-backed securities) and the Peloton Multi-Strategy Fund about 10 days ago when it became apparent that they could no longer meet margin calls from investment banks.

Peloton's ABS fund was one of last year's best performers, netting returns of 87pc after betting against the riskiest types of sub-prime debt, but it began to face difficulties after the market for even highly-rated asset-backed securities froze last year. The Multi-Strategy Fund had a 40pc stake in the ABS fund and could not continue to trade once it was closed.

By yesterday, the fund had sold off all the assets at a substantial discount to face value. London-based GLG Partners and US fund Citadel are thought to have been offered some of the paper. While the banks that lent money will get it all back, it is thought there will be almost no money for investors.

Yesterday the fund wrote to its investors to tell them it was suspending all redemptions.

more...
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/29/cnpeloton129.xml


edit for CNN article

2/29/08 Mortgage mess socks ex-Goldman Sachs stars
A smart bet on the collapse of the subprime housing market comes back to bite Geoff Grant and Ron Beller.

Not long ago, Goldman Sachs alums Geoff Grant and Ron Beller looked like superstars. A prescient bet on the collapse of the subprime mortgage bond market generated last year a whopping 87 percent return on their hedge fund, Peloton Partners.

The twosome aren't looking so smart now. They've been forced to liquidate their largest portfolio, the $1.8 billion ABS fund, after gambling big on a mortgage bond rebound that didn't materialized. The Peloton fund's collapse came after a series of recent trades dropped sharply in value, leading to margin calls from creditors that the ABS fund was unable to meet.

more...
http://money.cnn.com/2008/02/29/news/international/boyd_peloton.fortune/index.htm?postversion=2008022908

[Robbien]

70. If the portfolio earned 87% last year

wouldn't they have to liquidate for less than about 60 cents on the dollar before actually losing their original investment?

A 87% return and no one thought something was fishy?

[UpInArms]

24. US RATE FUTURES-Chances of aggressive cut in March jump (now it's 75 bps!)

http://www.reuters.com/article/bondsNews/idUSNYH00065020080229

NEW YORK, Feb 29 (Reuters) - The chance of an aggressive 75 basis points cut in the Federal Reserve's benchmark interest rate shot up to 62 percent on Friday, as U.S. equity futures pointed to a lower open and Treasury prices surged.

U.S. fed funds futures FEDWATCH had reflected only about a 30 percent implied chance on Thursday.

[DemReadingDU]

32. Yikes, the interest rate will be almost 0

I have a CD coming due. I might as well cash it in, and store the cash in my freezer

:(

[UpInArms]

30. Grains join ranks of high-stakes futures gambles

http://www.marketwatch.com/news/story/grains-join-ranks-high-stakes-gambles/story.aspx?guid=%7BDC1262EA%2D1995%2D4D7F%2DB5EB%2D16EF30E10518%7D

SAN FRANCISCO (MarketWatch) -- The fast and furious run in wheat prices resulted in a nearly $142 million trading loss Thursday, casting unwanted attention on the latest commodity bid up by investors seeking quick gains outside equities.

Futures and options brokerage MF Global (MF) said Thursday that it would
take a $141.5 million bad-debt provision after one of its Memphis brokers, identified as Evan Dooley, substantially exceeded his authorized trading limit Wednesday morning. He was trading wheat futures in Chicago. Shares in MF Global dropped as much as 23%. See full story.

Commodities traders said actions by the brokerage to cover Dooley's large short position appeared to cause a violent jump in wheat prices in Chicago Wednesday. The May futures contract traded on the CME Group (CME) commodities exchange rallied more than $2 to $13.39 a bushel that morning. On Thursday, May futures settled at $11.65 a bushel.

"It's a high-stakes game and it's certainly evidence of the heightened risk and volatility we've been seeing," said Austin Damiani, a floor broker in Minneapolis with Frontier Futures, Inc. Damiani said Minneapolis trade reacted to the Chicago activity Wednesday.

The brokerage's loss follows a volatile week for wheat prices. They hit an all-time high of $25 a bushel on the Minneapolis Grain Exchange Monday and are trading over four times their levels two years ago. In Chicago, the front-month futures have more than doubled in the past year.

...more...

[burf]

51. I was talking to some guys in the

ag business yesterday and they came up with a real kicker. Seems the large grain elevators that have a lot of wheat stored are walking on egg shells lately. If the price drops they may be out in the cold. If they could sell before the price falls but have no rail cars to transport the grain, they will get paid whatever it is worth when it finally gets shipped. In other words they would be relying on the railroad. Not very comforting when your financial future depends on someone with a reputation such as the railroad.

[UpInArms]

37. pre-opening blather

09:00 am : S&P futures vs fair value: -13.2. Nasdaq futures vs fair value: -26.0. Futures contine to point to a negative start, but have climbed off their worst levels. UBS said financial companies are likely to have at least $600 billion in write-downs, according to Bloomberg.com. This is far more than the current total of write-downs, which stands at more than $160 billion.

08:35 am : S&P futures vs fair value: -15.4. Nasdaq futures vs fair value: -30.0. Futures don't get much of boost after better than expected income and spending numbers. January personal income increased by 0.3% month over month (consensus +0.2%), spending increased by 0.4% (consensus +0.2%) and core PCE rose by 0.3% (consensus +0.3%). December's spending reading was revised higher to 0.3% from 0.2%.

07:55 am : S&P futures vs fair value: -17.4. Nasdaq futures vs fair value: -29.5. Futures suggest the stock market is going to extend yesterday’s losses. Cautious comments from Dell (DELL) and a $5.3 billion fourth quarter loss from AIG (AIG) is fuelling the selling pressure. A CNBC commentator said the bailout of bond insurer Ambac (ABK) has hit a fairly significant snag over the amount of capital the consortium of banks are willing to put up, which is also weighing on sentiment. The commentator said this does not mean the situation is dead. The January personal income and spending report is set for release at 8:30 ET.

06:19 am : S&P futures vs fair value: -14.6. Nasdaq futures vs fair value: -27.0.

[UpInArms]

39. triple-digits down at the open

Dow 12,453.39 128.79 (1.02%)
Nasdaq 2,308.90 22.67 (0.97%)
S&P 500 1,357.37 10.31 (0.75%)
10-Yr Bond 3.615% 0.10

NYSE Volume 40,434,976.562
Nasdaq Volume 35,244,277.344

[UpInArms]

45. 9:48 EST blood flowing freely - Dow now off 186 points

Dow 12,395.51 186.67 (1.48%)
Nasdaq 2,301.05 30.52 (1.31%)
S&P 500 1,346.27 21.41 (1.57%)
10-Yr Bond 3.596% 0.119

NYSE Volume 278,261,000
Nasdaq Volume 154,765,281.25

[Roland99]

57. 10:25am - Now down more than 200 points

Dow 12,375.81 -206.37
Nasdaq 2,290.76 -40.81
S&P 500 1,344.98 -22.70
Oil $102.00 $-0.59
10 YR 3.57% -0.15
Gold $973.00 $5.50

[Roland99]

46. Ambac Bailout Hits Snag, Though Talks Continue

Ambac Bailout Hits Snag, Though Talks Continue
http://www.cnbc.com/id/23405541

he bailout of troubled bond insurer Ambac has hit a significant snag, after rating agencies

demanded more capital from the consortium of banks involved in the bailout effort, CNBC has learned.

People close to the deal are confident that it will still happen, because the banks and the rating agencies are aware that, if it collapse, there will be a huge decline in the stock market.

The snag was hit Wednesday, when raters said they wanted to see more capital injected in the bond insurer if it is to get a triple-A rating, after the consortium of banks had agreed to come up with $2.5 billion in capital.

[Roland99]

55. The Fiscal Bailout and why it will be used as a short-term "Look! See? Economy is fine!"

A thought I've had since I first found out the checks would be sent out in the May timeframe was mentioned by someone on CNBC today, surprisingly.

The tax refund checks will be in full force in March/April which will put some money in consumer pockets, a seasonal occurrence that will have a noticeable presence in the economy. On the heels of that, the fiscal bailout checks arrive and then, hey, lookee there. A trend appears! 2-4 months of solid personal spending growth. Everything must be A-Ok now!!!


It'll happen.


The Bush admin will jump all over it as a sign the economy is recovering and the stock markets will rejoice. In the meantime, as *we* all know, the foundation will continue to rot away.

[UpInArms]

56. will it be enough to offset the constant $3-$4 gallon gas?

the continued spike in food prices?

not disagreeing, just questioning?

:hi:

[Roland99]

60. Oh, they'll say it is. Even though most of that spending will be going toward essentials.

Like those $4+ 12-packs of sodas and imported cheeses ;) and, of course, likely $4+/gal gas.

[UpInArms]

62. agreed - it is apparent that they are attempting their tricks with smoke and mirrors

and hopefully the people in this country have had the wool peeled back far enough for them to see the truth of the matter.

[UpInArms]

59. 10:25 EST Dow now down 200+

Dow 12,369.13 213.05 (1.69%)
Nasdaq 2,290.40 41.17 (1.77%)
S&P 500 1,344.30 23.38 (1.71%)
10-Yr Bond 3.575% 0.14

NYSE Volume 691,234,000
Nasdaq Volume 461,824,500

10:00 am : Stocks extend their losses after a poor survey on manufacturing in the Chicago region.

The February Chicago PMI came in at 44.5, lower than the consensus estimate that stood at 49.5. It reflects a contraction in manufacturing in the Chicago region because the reading is below 50. It is the lowest number since December 2001.

Meanwhile, the revised February University of Michigan confidence survey was revised slightly higher to 70.8 from 69.6.DJ30 -156.20 NASDAQ -18.29 SP500 -24.73 NASDAQ Dec/Adv/Vol 1793/629/629 mln NYSE Dec/Adv/Vol 2367/412/160 mln

09:45 am : Stocks extend yesterday's losses. A record loss at AIG (AIG), cautious outlook from Dell (DELL) and reports that the Ambac (ABK) bailout has hit a "snag" are weighing on sentiment.

On the bright side, January personal income and spending were slightly better than expected. PCE core, an inflation measure, came in-line with expectations. When adjusted for inflation, income was flat and spending was up a slight 0.1% month-over-month.DJ30 -139.78 NASDAQ -17.94 SP500 -16.16

[MilesColtrane]

64. Suggested song of the day, for your consideration.

All around the mulberry bush
The monkey chased the weasel;
The monkey thought 'twas all in good sport
Pop! goes the weasel.

A penny for a spool of thread,
A penny for a needle—
That's the way the money goes,
Pop! goes the weasel.

Half a pound of tuppenny rice,
Half a pound of treacle.
That’s the way the money goes,
Pop! goes the weasel.

Up and down the city road,
In and out the Eagle,
That’s the way the money goes,
Pop! goes the weasel.

For you may try to sew and sew,
But you'll never make anything regal,
That’s the way the money goes,
Pop! goes the weasel.

Every time when I come home
The monkey's on the table,
Cracking nuts and eating spice
Pop! goes the weasel.

Every time when I come home
The monkey's on the table,
Take a stick and knock it off
Pop! goes the weasel.

[Demeter]

67. "Nearer My God To Thee" Would Be More Fitting

This is NOT a typical Friday slump. And I don't think you can blame it on Leap Year, either.

Maybe Kunstler was right about March being the cruelest month after all, and people are rushing to get out before.

[Warpy]

89. Nobody is getting completely out. Nobody's buying, though.

and "Nearer my God to Thee" would be singularly appropriate.

The market has been way overdue for a correction for a very long time. The correction will be much deeper now because the fools tried to stall it off by sacrificing the larger economy.

I hate Republic economic dogma. It always brings us to the same damned place.

[kineneb]

93. lyrics- here ya' go, hum along

a common hymn for funerals... somehow appropriate for the times

Nearer My God to Thee

Words:
Verses 1-5, Sar­ah F. Adams, in Hymns and Anthems, by William Johnson Fox, 1841;
verse 6, Ed­ward H. Bick­er­steth, Jr.
Music: Beth­a­ny (Ma­son), Low­ell Ma­son, 1856


Nearer, my God, to Thee, nearer to Thee!
E’en though it be a cross that raiseth me,
Still all my song shall be, nearer, my God, to Thee.

Refrain
Nearer, my God, to Thee,
Nearer to Thee!

Though like the wanderer, the sun gone down,
Darkness be over me, my rest a stone.
Yet in my dreams I’d be nearer, my God to Thee.

Refrain

There let the way appear, steps unto Heav’n;
All that Thou sendest me, in mercy given;
Angels to beckon me nearer, my God, to Thee.

Refrain

Then, with my waking thoughts bright with Thy praise,
Out of my stony griefs Bethel I’ll raise;
So by my woes to be nearer, my God, to Thee.

Refrain

Or, if on joyful wing cleaving the sky,
Sun, moon, and stars forgot, upward I’ll fly,
Still all my song shall be, nearer, my God, to Thee.

Refrain

There in my Father’s home, safe and at rest,
There in my Savior’s love, perfectly blest;
Age after age to be, nearer my God to Thee.
Refrain

[Ghost Dog]

66. Japan Stocks Fall as Yen Nears 3-Year High, U.S. Economy Slows

Feb. 29 (Bloomberg) -- Japanese stocks fell the most in a week after the yen strengthened to a near three-year high and the U.S. economy grew slower than expected last quarter.

Denso Corp., which provides auto parts to Toyota Motor Corp., fell the most in six months, while Nintendo Co., which sells more than twice as many Wii game machines in the Americas as in Japan, slumped for a third day.

The yen traded at 104 against the dollar for the first time since May 2005 after slower growth in the U.S. boosted speculation the Federal Reserve will slash rates, prompting investors to sell their dollar assets. Crude oil climbed to a record, increasing costs for companies and consumers.

The Nikkei 225 Stock Average declined 322.49, or 2.3 percent, to 13,603.02 at the close. The broader Topix index fell 28.82, or 2.1 percent, to 1,324.28. The index gained 0.2 percent this week and is down 10 percent on the year.

``Many companies made earnings forecasts on the assumption the yen wouldn't strengthen beyond 105,'' said Seiichiro Iwamoto, who helps oversee the equivalent of $26 billion at Mizuho Asset Management Co. ``The yen broke that level, fueling concern it will strengthen even further.''

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=aPBavgJ9lpW0&refer=japan

[Ghost Dog]

68. Japan's Inflation Rate Matches Fastest in Nine Years

Feb. 29 (Bloomberg) -- Japan's consumer prices rose for a fourth month in January, matching the fastest pace in more than nine years, as companies passed on higher costs of oil, wheat and soybeans.

Core consumer prices climbed 0.8 percent from a year earlier, the same rate as December, the statistics bureau said today in Tokyo. The median estimate of 46 economists surveyed by Bloomberg News was for a 0.9 percent increase.

The successor to Bank of Japan Governor Toshihiko Fukui, who steps down next month, will have to juggle slower economic growth and faster inflation when setting interest rates. The economy is in a soft patch that may be ``somewhat prolonged,'' central bank policy maker Atsushi Mizuno said yesterday.

``The next central bank governor will have a tough task,'' said Eisuke Sakakibara, a former top currency official at the Finance Ministry and now a professor of Waseda University in Tokyo. ``It's getting more and more difficult to manage policy in Japan, which is experiencing rising prices and an economic slowdown -- the worst combination.''

Separate reports showed the unemployment rate stayed at 3.8 percent and the ratio of jobs to applicants remained at a two- year low.

The yield on Japan's 10-year bond fell 4 basis points to 1.375 percent at 12:37 p.m. in Tokyo. The yen traded at 104.69 per dollar from 105.33 before the reports were released.

Production Cuts

Inflation is quickening just as manufacturers cut production amid concern a deepening U.S. slump will weaken exports. Factory output slid at the fastest pace in a year in January, a report showed yesterday.

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=aA4fobQQIqWQ&refer=japan

[Ghost Dog]

69. Asian Stocks Fall on U.S. Slowdown, Trimming February Gains

Feb. 29 (Bloomberg) -- Asian stocks declined for a second day, led by financial companies and automakers, on heightened concern the U.S. is headed for a recession and as the dollar neared a three-year low against the yen.

Honda Motor Co. fell in Tokyo by the most in three weeks, while Samsung Electronics Co. slipped in Seoul after U.S. economic growth slowed more than expected last quarter and Federal Reserve Chairman Ben S. Bernanke said some smaller U.S. banks may fail. Mizuho Financial Group Inc. and Commonwealth Bank of Australia slumped on concern credit-market losses will widen.

``You've got a slowdown in economic growth and then there's the credit storm,'' Justin Urquhart Stewart, who manages about $4 billion including Asian assets as director of 7 Investment Management said today in Singapore. ``We're going to see a lot more pain before we get any gains.''

The MSCI Asia Pacific Index declined 1.3 percent to 147.36 as of 3:23 p.m. in Tokyo. The benchmark has advanced 2.7 percent this month, after slumping 16 percent in the previous three months on concerns that a U.S. housing slump was dragging the world's largest economy into a recession. Most Asian markets, except Pakistan and Sri Lanka, have dropped this year.

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

[Ghost Dog]

71. Europe shares fall as US data fans recession fear

Fri Feb 29, 2008 3:26pm GMT
LONDON, Feb 29 (Reuters) - European shares extended their losses on Friday as stocks on Wall Street slid sharply after a measure of consumer sentiment and data for U.S. Midwest business activity reinforced fears over a U.S. recession.

By 1523 GMT the FTSEurofirst 300 index (.FTEU3: Quote, Profile, Research) of top European shares was down 1.5 percent at 1,313.67 points, bringing this month's losses to 1.2 percent.

In Europe, banks were the largest negative weight on the index, with HSBC (HSBA.L: Quote, Profile, Research), UBS (UBSN.VX: Quote, Profile, Research) and Royal Bank of Scotland (RBS.L: Quote, Profile, Research) down between 2.2 and 5 percent.

/.. http://uk.reuters.com/article/eurMktRpt/idUKL2958637320080229

[Ghost Dog]

73. UK consumer confidence hits 13-year low

Britons' confidence in the economy has sunk to the lowest level since the early 1990s in the wake of the Northern Rock crisis and further gloom surrounding the housing market.

The most closely watched barometer of consumer confidence has fallen to a 13-year low amid numerous warnings that the UK may slide into a recession this year. Market research group GfK NOP said its confidence barometer dropped four points to minus 17 - the lowest since December 1994.

/... http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/02/29/cnukecon129.xml

[Ghost Dog]

76. UK economy 'at 15-year low'

FORMER Royal Bank of Scotland chief economist Jeremy Peat claims the UK economy is now at "a more worrying stage than at any time for the last 15 years".

But while he said there was a chance that Scotland could escape the worst of any downturn, companies needed to "stress test business assumptions for what might happen on the downside".

Addressing delegates at the Royal Institute of Chartered Surveyors' commercial property conference, which was backed by Edinburgh-based document imaging specialist Capital Solutions, Mr Peat warned of the growing prospects of "stagflation" – stagnant growth coupled with rising inflation.

"The thing economists hate above all things is stagflation because it leaves fiscal authorities with almost no tools to work with," said Mr Peat.

/. http://business.scotsman.com/economics/UK-economy-39at-15year-low39.3830626.jp

[Ghost Dog]

75. Eurozone unemployment remains record low in Jan.

BRUSSELS, Feb. 29 (Xinhua) -- The eurozone unemployment remained at a record low level of 7.1 percent in January, the European Union (EU)'s statistics bureau Eurostat said Friday.

The figure, the same with the previous month, has been the lowest since the indicator was introduced in 1993 and much lower than 7.7 percent registered one year ago, according to revised figures from Eurostat.

"Over the last year, 24 member states recorded a fall in their unemployment rate but three countries registered an increase," Eurostat reported.

Among the previous 13 member states, the Netherlands had the lowest unemployment at 2.9 percent. Jobless rate in Germany, the largest economy in the eurozone, dropped further to 7.6 percent, down from 7.8 percent in December last year, while France's unemployment declined to 7.8 percent from 7.9 percent in the previous month, Eurostat said.

In the 27-nation EU, unemployment also remained stable at 6.8 percent in January. It was 7.5 percent in January 2007, Eurostat added.

The Eurostat estimated that there were 16.1 million unemployed people in the EU in January, among whom 10.9 million were in the eurozone.

In contrast, the jobless rate in the United States was 4.9 percent in January while that of Japan stood at 3.8 percent.

/. http://news.xinhuanet.com/english/2008-02/29/content_7694941.htm

[Ghost Dog]

79. Economic reality bites Spain ahead of election

... De la Duena, a skilled worker, found a new job last week but was shocked by what he saw as he visited construction sites.

"They have built so much and created this workforce that is now literally out on the street," said de la Duena, sitting in a bar near futuristic palaces built during Valencia's shift from inward-looking city to European business and tourism hub.

The construction boom had seen average household debt in Spain rise to 130 percent of annual income as house prices tripled in 10 years.

Now the global credit crunch has helped put an end to the years of expansion. House prices are now falling and some private sector economists think economic growth, while buoyed by rising public spending, could fall as low as 2.0 percent this year from 3.8 percent in 2007.

Across Spain, unemployment is rising faster than anywhere else in Europe. Consumer confidence is at its lowest level since Spain's last housing crisis, in the early 1990s, according to Eurostat and Bank of Spain data.

How Spain got into this state has become one of the hottest issues in the 2008 election campaign.

/continues... http://news.yahoo.com/s/nm/20080229/lf_nm/spain_election_economy_dc_1

[Ghost Dog]

99. European Stocks Drop, Capping Fourth Straight Monthly Decline

Feb. 29 (Bloomberg) -- European stocks fell, sending the Dow Jones Stoxx 600 Index to its fourth straight monthly decline, on mounting concern the U.S. economy is slipping into a recession and financial companies will report more writedowns.

Barclays Plc and Allianz SE led banks and insurers lower as UBS AG said financial firms face $600 billion in credit losses. STMicroelectronics NV, the region's biggest producer of semiconductors, and chip designer ARM Holdings Plc retreated after Dell Inc. reported a surprise drop in profit. Discount airline Ryanair Holdings Plc slid to the lowest since 2005 after oil rose to a record high.

The Stoxx 600 decreased 1.4 percent to 318.95. The gauge is down 1 percent this month, capping its longest monthly losing streak since March 2003, on concern losses related to subprime mortgages and slowing economic growth will hurt earnings.

``Recession fears are weighing on equity markets,'' said Juergen Lukasser, who helps manage the equivalent of about $20 billion as head of equities at Constantia Privatbank AG in Vienna. ``We haven't left the credit crunch behind us. It's unclear what we are going to see in further writedowns.''

The Stoxx 600 has lost 13 percent so far this year as analysts scale back earnings estimates. Companies in the index will probably boost profit only 4.5 percent this year, down from 11 percent predicted at the end of 2007, Bloomberg data show.

National Markets

National benchmarks fell in all 18 markets in western Europe. Germany's DAX decreased 1.7 percent, and the U.K.'s FTSE 100 slipped 1.4 percent. France's CAC 40 lost 1.5 percent. The Stoxx 50 slipped 1.6 percent. The Euro Stoxx 50, a measure for the euro region, retreated 1.6 percent.

/... http://www.bloomberg.com/apps/news?pid=20601085&sid=a24cqZmz5tIQ&refer=europe

[Pale Blue Dot]

77. At the beginning of the week, I was wondering why stocks were rising. Now I think I know.

The news seemed relentlessly bad Monday, Tuesdya, and Wednesday, even if there were no huge shocks. I couldn't think of any reason why the stock market would rise over those three days. Now I think I know, but you have to beleive in the PPT to believe me.

It seems likely to me that the powers that be knew that reports released yesterday and today would be uniformly awful. By propping up the stock market early in the week, it allows them to say that the markets dropped only slightly for the week. When the weekend commentators report the news, it will look like the stock market has not panicked yet.

This is my two cents, and I'll be happy to share my tinfoil hat with anyone.

[Robbien]

81. Well, there is that

but there are also the hedgers who have been heavily playing in the market this week. This is a gamblers market where the wise money has been sitting it out on the sidelines.

[Roland99]

83. This is still going to be the 4th down month in a row.

Only happened 15 times since the Great Depression.

[Robbien]

87. Just out on WSJ: Banks May Need to Shrink by $2 Trillion on Subprime Losses

Mortgage losses, compounded by contemporary risk management and accounting practices could prompt banks and other lenders to shrink their lending and other assets by a staggering $2 trillion, a new study concludes.

The resulting withdrawal of credit could knock one to 1.5 percentage points off economic growth, significantly compounding the impact of collapsing home construction and softer consumer spending due to lower home wealth, the study, presented at a joint academic-Wall Street forum in New York Friday.

The study is one of the most exhaustive efforts to date to pinpoint the scale and location of mortgage losses and how those losses will affect economic growth.

In the initial stages of the crisis, some optimists noted that early estimates of subprime losses of $50 billion to $100 billion were about the same as one bad day in the stock market.

But the latest study argues that the losses will be far larger, at about $400 billion, and cause far more economic damage than if the same losses had occurred in stocks or corporate bonds. That’s because about half the losses will be borne by banks and other highly leveraged institutions. Such institutions hold equity and other capital of just 4% to 10% of total assets. For each dollar of loss not made up for with new capital, they will have to shrink their balance sheets by $10 to $25, by reducing lending or selling securities. That’s not just to keep their capital ratio steady, but because current risk management practices usually causes banks to raise those ratios when markets turn volatile.

“The interaction of marking assets to their market prices and the risk management practices of levered financial institutions” amplifies the impact of the initial losses

http://blogs.wsj.com/economics/2008/02/29/banks-may-need-to-shrink-by-2-trillion-on-subprime-losses/?mod=googlenews_wsj

If the cheerleading squad loses the WSJ (even in their blogs), no wonder the CNBC cheerleaders are holding their heads in the hands today.

[Ghost Dog]

114. Happy Friday: News About Economy Just Gets Worse (CNBC)

http://www.cnbc.com/id/23408309

[Karenina]

150. Drip, drip, drip...

Wake me up when we get to times 10. :boring:

[natrat]

96. who knows what effects the mkt-but not many traders want to hold over the weekend i would think

[RUMMYisFROSTED]

85. Tub time.

[MilesColtrane]

90. May as well go out in style.

Mr Suicide Bathtub Plug
SKU al38373-012
Pushing the envelope with everyday objects, this universal bathtub plug designed by Massimo Giacon in 2000, features a "dead" Mr. Suicided that floats to the surface when you take a bath. Made in Italy.

• 1 3/4x1 1/2"|4x4,4 cm

• Plastic
• gr.72.00 / lb.0.16
• In stock
• usually ships in 24 hours

http://www.forzieri.com/usa/product_view.asp?l=usa&c=usa&pf_id=al38373%2D012&dept_id=72&id_valore1=&id_valore2=66&id_valore3=&id_valore4=&id_valore5

[RUMMYisFROSTED]

115. I use a lead paint covered Mr. Suicide.

Time for an upgrade, probably.

[Systematic Chaos]

97. I'm facing a dilemma with today's S&P 500 chart.

Do I want to use it to play some Chopin, or comb my hair?

:think:

[DemReadingDU]

100. LOL

I looked at the chart at the top of the page, it looks like piano keys to me!


:rofl:

[Dr.Phool]

106. Says it's down 1233 points so far!

It only started today at 1273!

Voodoo economics!

[AnneD]

105. The eternal dilema...

does it suck.....or blow. It's always a toss up.

[Ghost Dog]

98. Billions of dollars of sales slam muni bonds

NEW YORK (Reuters) - Tender option bond programs on Friday were selling "multiple billions" of dollars of U.S. municipal bonds, a money manager said, which is accelerating a market slide that experts call the worst in decades.

Prices have dropped for the past 12 days, partly due to the problems borrowers and investors are having with short-term municipal markets.

Two of these markets, auction rate and variable demand note obligations, have frozen because investors fear some bond insurers that backed this debt are no longer credit-worthy as a result of their bad bets on subprime mortgage investments.

These dislocations have hurt tender option bond trusts, which buy long-term muni bonds and finance them by selling floating notes. But now they are losing money -- or are about to -- because their borrowing costs have skyrocketed.

At the same time, the value of their long-term municipal bonds has plunged.

"Tender option bond selling is in the multiple billions," said Gary Pollack, a managing director at Deutsche Bank Private Wealth Management. Tender option bond programs are created by both hedge funds and dealers, and they typically are highly leveraged, which intensifies their influence on the market.

/.. http://news.yahoo.com/s/nm/20080229/bs_nm/municipals_tobs_dc;_ylt=AoO8UEaDDZi.NaRhkc9odei573QA

[Robbien]

107. Something big and bad this way comes

and every slight move in this market is magnified by hedge leveraging. Scary article.

[Robbien]

120. Muni hedge funds hit by margin calls, Pimco says

AN FRANCISCO (MarketWatch) -- Hedge funds that trade municipal bonds have been hit by margin calls in recent days and some are having to sell positions to meet those obligations, according to a leading investor in the market.

Problems with bond insurers and other disruptions from the global credit crunch have pushed yields on muni bonds close to, or above, those of comparable Treasury bonds. That's hurt hedge funds that try to make money from the difference, or spread, between those yields. Muni bonds usually yield less than Treasurys, partly because they are tax-exempt.

The disruptions have encouraged banks and brokers that lend money to muni hedge funds to pullback and impose more margin calls. (Margin calls happen when securities bought with borrowed money lose value. If they drop too far, brokers require that more cash be deposited in an investor's account to support the position. Otherwise they must sell some of the assets.)
"The market is in further disarray the last two days as a number of muni hedge funds are being forced to liquidate to meet margin calls," Mark McCray, head of muni bonds at Pimco, said.

"The widening of munis versus Treasurys has been a negative and broker dealers have upped their margin requirements for hedge funds," he explained. "As such these funds are trying to liquidate into this illiquidity."

. . .

"I don't have any comment, but you can imagine that I'm very busy right now," Robert Bigelow, an executive at Blue River, said on Friday.

http://www.marketwatch.com/news/story/muni-hedge-funds-liquidating-meet/story.aspx?guid=%7BE3204BAD-18AC-4F0A-9764-E390A32715FC%7D&dist=hplatest

"very busy right now" --- no shit Sherlock

[Robbien]

108. MBIA Writing `Very Little' New Business

MBIA Inc. is writing ``very little'' new bond insurance business as borrowers balk at buying a guarantee from a money-losing company without stable AAA credit ratings.

MBIA, whose ratings were under scrutiny by Moody's Investors Service and Standard & Poor's for more than three months, said losses on mortgage-backed securities will probably increase this year and expand beyond subprime mortgages.

http://www.bloomberg.com/apps/news?pid=20601103&sid=a1wLm9gDsUfw&refer=us

Which means any further write offs will be written off against almost no new revenue. But hey, it is still triple A!

[UpInArms]

111. 3:08 down almost 300 points - will the faeries keep it above the PIL of 12,300?

Dow 12,296.76 285.42 (2.27%)
Nasdaq 2,278.25 53.32 (2.29%)
S&P 500 1,334.50 33.18 (2.43%)
10-Yr Bond 3.543% 0.172

NYSE Volume 2,815,115,750
Nasdaq Volume 1,730,951,875

3:00 pm : The stock market has come off its session low, but still remains 2.3% lower. Financial stocks are the session's worst performers, down 3.2%.

AIG (AIG 46.76, -3.39) is the financial sector's worst performer. Shares of the financial and insurance company are trading lower in response to the company's larger than expected write-downs.

Crude prices pulled off record highs to settle $0.95 lower on the NYMEX. Crude closed at $101.64 per barrel.DJ30 -273.86 NASDAQ -49.83 SP500 -31.65 NASDAQ Dec/Adv/Vol 2240/645/1.69 bln NYSE Dec/Adv/Vol 2682/413/1.04 bln

2:30 pm : 96% of the members in the S&P 500 are trading in negative territory. The market continues to tread along its session lows as selling interest remains strong.

Financials (-3.3%), energy (-3.1%), and telecom (-3.2%) are the worst performing sectors.

According to Reuters, the U.S. municipal bond market has weakened as hedge funds liquidate positions.DJ30 -287.54 NASDAQ -52.81 SP500 -32.41 NASDAQ Dec/Adv/Vol 2248/628/1.53 bln NYSE Dec/Adv/Vol 2646/426/932 mln

[AnneD]

134. I call the real floor

at around 12200. They were just pumping it up and playing the margins-getting all the suckers they could before the weekend.

[Ghost Dog]

112. Canada's international trade records first deficit in nine years

OTTAWA - Canada's trade record with the rest of the world fell into negative territory for the first time in nine years at the end of 2007, signalling that a long run of muscular trade surpluses is over.

The combination of the high Canadian dollar, low consumer demand in the United States, low domestic prices for foreign goods and a flood of cross-border bargain hunters chopped the current account by $1.8 billion, compared with the third quarter, for a net deficit of $513 million.

"I think we're seeing a shift in the trade balance that's going to be with us for a few years," BMO deputy chief economist Douglas Porter said Friday. "And for one of the few times in decades, we may see an overall merchandise deficit. We're more than halfway there from the peak levels."

For the full year, Canada's current account - the broadest measure of international trade - still registered a $14.2-billion surplus, down from $23.6 billion in 2006.

But many economists are predicting 2008 will only see red ink, with the deficit reaching as high as $20 billion.

The new sign of growing economic weakness will likely cause new Bank of Canada governor Mark Carney to make his move on interest rates a dramatic one Tuesday and slash the overnight rate by half a percentage point to 3.5 per cent, said CIBC economist Krishen Rangasamy.

The news also curbed the recent runup by the Canadian dollar as it slipped almost half a cent to 101.96 cents US by midday.

...

In addition, foreign firms continue to grab Canadian assets, particularly in the desirable resource sector. Direct inflows surged to $47 billion in the fourth quarter, making last year's total inflows of $115.4 billion even larger than during the tech bubble of 2000.

/... http://money.canoe.ca/News/Economy/2008/02/29/4884559-cp.html

[Ghost Dog]

123. Toronto stocks tumble on resources, economic woes

Fri Feb 29, 2008 3:24pm EST
TORONTO, Feb 29 (Reuters) - The Toronto Stock Exchange's main index extended a sharp fall on Friday afternoon as resource shares weakened and worries of a recession in the United States resurfaced.

Materials and energy shares led the way down, shedding 2.3 percent and 2.1 percent respectively. Energy shares fell as oil prices stepped back from an earlier high above $103 a barrel amid easing geopolitical tensions.
...

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 282.60 points, or 2.04 percent, at 13,591.29 with all 10 of its main groups negative.

/... http://www.reuters.com/article/marketsNews/idCAN2922749320080229?rpc=44

[Ghost Dog]

124. Mexico stocks, peso hit by U.S. recession fears

Fri Feb 29, 2008 3:03pm EST
MEXICO CITY, Feb 29 (Reuters) - Mexico's peso fell sharply on Friday and stocks also tumbled, hurt by renewed worries about a recession in the United States, the country's main trade partner.

The IPC index .MXX slipped 2.73 percent to 29,308 points.

The peso MEX01 <MXN=> weakened 0.45 percent to 10.7160 per dollar, surrendering some of its hefty gains from Thursday when it hit a 23-month high.

A litany of news pointed to a sharp downturn in the U.S. economy.

/... http://www.reuters.com/article/marketsNews/idLTAN2922183820080229?rpc=44

[Ghost Dog]

125. Chile stocks fall on US recession fears, earnings

Fri Feb 29, 2008 3:36pm EST
SANTIAGO, Feb 29 (Reuters) - Chilean stocks fell with global markets on Friday, as weak U.S. data fueled recession worries and local corporate earnings reports disappointed.

The all-market IGPA index .IGPA retreated 1.68 percent to 13,212.04 points, while the blue-chip IPSA index .IPSA fell 2.15 percent to 2,841.04 points, preliminary closing figures showed.

/. http://www.reuters.com/article/marketsNews/idLTAN2921888520080229?rpc=44

[Ghost Dog]

127. Argentine stocks, bonds sink on U.S. economy fears

Fri Feb 29, 2008 3:53pm EST
BUENOS AIRES, Feb 29 (Reuters) - Argentine stocks fell on Friday, ending a run of nine straight days of gains, after Wall Street stocks slumped on fresh fears of a U.S. recession.

The benchmark MerVal index ended down 1.67 percent to 2,162.20 points. During the nine-session rally, the index had clocked an accumulated rise of 7.85 percent.

Nevertheless, the MerVal gained 7.72 percent in February leaving it up for the year to date, with a gain of 0.49 percent.

"Wall Street pushes other markets (down) due to the negative economic indicators (in the United States)," said Diego Zavaleta, a trader at Besfamille brokerage.

...

In Buenos Aires, the session's losers were led by Brazil's state-run energy firm Petrobras (APBR.BA: Quote, Profile, Research), with a 6.33 percent drop to 188.75 pesos per share, and the energy distributor Metrogas (MET.BA: Quote, Profile, Research), falling 3.08 percent to 1.26 pesos per share.

/... http://www.reuters.com/article/marketsNews/idARN2957177020080229?rpc=44

[Ghost Dog]

128. Brazil's Bovespa index tumbles 3 pct on US slump

Fri Feb 29, 2008 4:01pm EST
SAO PAULO, Feb 29 (Reuters) - Brazil's benchmark stock index tumbled 3 percent late on Friday as a slump in equity markets in the United States increased risk aversion to riskier emerging market securities.

The Bovespa .BVSP index of the Sao Paulo stock exchange fell to 63,585.64 points from Thursday's close of 65,555, after falling as low as 63,513.83.

/.. http://www.reuters.com/article/marketsNews/idLTAN2934742320080229?rpc=44

[Roland99]

117. 3:40pm - Dow down just *over* 300 just a sec ago)

Dow 12,281.45 -300.73
Nasdaq 2,274.29 -57.28
S&P 500 1,331.26 -36.42
Oil $101.84 $-0.75
10 YR 3.53% -0.18
Gold $975.00 $7.50

[RUMMYisFROSTED]

118. "Where did I leave my razor blade sharpener?"

[MilesColtrane]

119. Down 350 now.

At what point would trading be halted if this continues?

[RUMMYisFROSTED]

121. Any minute now.

PostBlivetBloviation.

:scared:

[Roland99]

122. some last min. saving went in place. But, appears the deal to pump Ambac is off the table?

[Maeve]

126. Usually when we meet with our financial advisor, it's right after the Dow hits a high

Ain't gonna happen this time.
:hangover:

Y'all have the best weekend you can manage!

[Ghost Dog]

131. Slainte, Maeve.

[Maeve]

142. the trouble is "tainte"

Irish language lesson of the day: "slainte" (SLAN-cha) is "health"

"Tainte" (TAWN-cha) is "wealth"

May you experience both! :toast:

[AnneD]

137. Maeve...

right back at ya babe. Get plenty of rest. Monday is sure to be a good bronc ride.

[MilesColtrane]

130. This just in:The Fed Puts brakes on markets to stop losses...

...refers to it's action as a "weekend".

[JNelson6563]

133. Looks like what they bailed outta stocks

got poured right into Treasuries, metals and the like. 14 basis point drop in the 10 yr. yield is substantial.

Julie

[AnneD]

136. The real level of the market...

is around 12,200. I'd put my money on that and let it ride.

[DemReadingDU]

138. The S&P is lower today than when Bush took office

S&P
2/29/08: 1,330.63
1/22/01: 1,342.90

But I missed the Dow being lower than when Bush took office

[AnneD]

139. I'll post the Turn Back the Hands of Time Pool on Monday

I pst it more often when it gets into the low 12000's

[ret5hd]

140. So your opinion is that the market has about bottomed?

Just making sure i understand you correctly.

[Karenina]

149. Bottomed?

BOTTOMED??? :rofl::rofl::rofl: Nobody be nearly through shaking out that scheiß papier nach oben!

[Roland99]

135. Oh, you all are gonna LOVE this one. The reason homes are going into foreclosure (according to FAUX)

They just had a segment discussing people paying down/off credit cards before their mortgages (with no evidence provided of this...just some guy's word).

And the reasoning they applied to this apparent behavior is that people are expecting "government handouts" in the form of the tax rebate and gov't intervention to lower rates and/or stop foreclosures.

That's right. All those millions of homeowners (incl. the million dollar home owners CNBC discussed today) are just a bunch of welfare-seeking leeches.

Way to be "fair and balanced".

[Joanne98]

141. that might be partially true. people fear the CC's raising there interest rates.

so they pay them first out of FEAR......

[NewYorkerfromMass]

144. This is true

mainly because the credit card/bankruptcy reforms have made it harder to walk away from your credit card debt than your mortgage.
Seriously. And seriously fucked up too.

[Demeter]

143. And So Ends a Really Ugly Week

We had two snow storms on top of it all. Tues and Today.

Everybody keep warm and dry and don't stint on the chocolate!

[UpInArms]

145. bringing the numbers, blather and a broom

Dow 12,266.39 315.79 (2.51%)
Nasdaq 2,271.48 60.09 (2.58%)
S&P 500 1,330.63 37.05 (2.71%)
10-Yr Bond 3.534% 0.181

NYSE Volume 4,354,759,000
Nasdaq Volume 2,516,590,000

February ended on a down note after steep losses in Friday's trading. Each of the major indices finished more than 2% lower, dragged down by underwhelming economic data and corporate headlines.

Stocks opened trading lower today despite slightly better than expected Personal Consumption Expenditure data. January PCE indicated personal spending increased 0.4% and income increased 0.3% from December, which is better than the 0.2% rise economists expected for both figures. Core PCE, a measure of inflation, increased 0.3%. That was in-line with estimates.

However, the Chicago Purchasing Managers Index posted a reading of 44.5 for February, which was short of the 49.5 consensus estimate. A reading below 50 indicates contraction in manufacturing activity throughout the Chicago region.

Weak news from AIG (AIG 46.86, -3.29) weighed heavily on the broader market. AIG announced a net loss of $5.3 billion for its fourth quarter after yesterday's close. The company disclosed that the loss was triggered by larger write-downs than Wall Street was anticipating. Total write-downs for the quarter hit $14.3 billion, including $11 billion in credit swaps.

According to Bloomberg.com, UBS believes collective write-downs for financial firms could total at least $600 billion. An economist from Goldman Sachs pegged total write-downs at $400 billion. Current write-downs total $181 billion, according to Bloomberg.com.

Financial stocks saw additional pressure as municipal bonds are being liquidated by hedge funds as managers are being forced to meet margin calls. The move comes as a strike against liquidity conditions.

Bond insurer Ambac (ABK 11.14, -0.66) was sent lower when news surfaced that a potential bailout plan would not be coming as soon as believed. CNBC reported that the plan has stalled over the amount of capital that would be pledged by a consortium of banks.

While the broader market remained strongly negative -- 97% of the members within the S&P 500 finished the day in negative territory -- Gap (GPS 20.17, +0.72) provided a glimmer of green. The company announced after yesterday's close earnings results and an earnings outlook that were on par with analysts' estimates.

The financial sector (-4.0%) led the remaining major economic sectors to finish the day in negative territory. All ten sectors finished with losses in excess of 1.0%. Eight of the ten were down more than 2.0%.

In a flight to quality, the benchmark 10-year Treasury note finished the day 39 ticks higher to, in turn, yield 3.53%.

For the month, the S&P 500 finished down 3.5%, while the Dow finished 3.0% lower and the Nasdaq finished 5.0% lower.

Commodities fared far better as gold and oil hit record highs, up 5.2% and 11.0% for the month, respectively. The CRB Commodity Index finished February 11.7% higher.DJ30 -315.79 NASDAQ -60.09 NQ100 -2.7% R2K -2.8% SP400 -3.0% SP500 -37.05 NASDAQ Dec/Adv/Vol 2313/628/2.41 bln NYSE Dec/Adv/Vol 2707/431/1.76 bln

[ozymandius]

146. Berkshire profit drops 18 percent in 4Q (Yikes! Venerable old Berkshire!)

OMAHA, Neb. - Berkshire Hathaway Inc. says its fourth-quarter profit fell almost 18 percent as its companies linked to construction were hurt by nationwide housing woes.

Berkshire CEO Warren Buffett also released his annual letter to shareholders Friday.

Berkshire reported earning $2.95 billion, or $1,904 per share, in the quarter. That's down from $3.58 billion, or $2,323 per share, in the year earlier period.

On average, the four analysts surveyed by Thomson Financial have been expecting fourth-quarter earnings per share of $1,606 and annual earnings per share of $6,321.

For the full year, Berkshire said it earned $13.2 billion, or $8,548 per share, in 2007. That's up 20 percent from $11.02 billion, or $7,144 per share, in 2006.
.....

Buffett said Berkshire's insurance group, which includes GEICO, reinsurance giant General Re and several other firms, had an excellent year, partly because of good management and partly because of luck. But Buffett predicts that will change in 2008.

http://news.yahoo.com/s/ap/20080229/ap_on_bi_ge/earns_berkshire_hathaway