STOCK MARKET WATCH, Wednesday March 19

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday March 19, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 308
DAYS SINCE DEMOCRACY DIED (12/12/00) 2614 DAYS
WHERE'S OSAMA BIN-LADEN? 2340 DAYS
DAYS SINCE ENRON COLLAPSE = 2631
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 March 18, 2008

Dow... 12,392.66 +420.41 (+3.51%)
Nasdaq... 2,268.26 +91.25 (+4.19%)
S&P 500... 1,330.74 +54.14 (+4.24%)
Gold future... 1,004.30 +1.70 (+0.17%)
30-Year Bond 4.33% +0.05 (+1.10%)
10-Yr Bond... 3.45% +0.14 (+4.13%)






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: Central Bankers At Work

And the "Dr. Heckyll and Mr. Jive" Syndrome
BY FRANK BARBERA, CMT

Well, another Fed meeting, another pair of huge rate cuts, and of course (how could we live with out it?), another Fed statement on the outlook of what’s ahead. As I heard the post ‘Fed Rate cut announcement’ unrelenting "talking heads" chatter, I am reminded of the 1983 parody song done by a band called “Men At Work” entitled “Dr. Heckyll and Mr. Jive.” To this end, I cannot help but think of Ben Bernanke as Dr. Heckyll, and John Claude Trichet as the new Mr. Jive. Bernanke “works late in the laboratory” trying to fix the collapsing credit bubble and find the magic monetary potion which will prevent the pile of derivative instruments from exploding in his face. On the other side of the Atlantic, Trichet is the infamous Mr. Jive, who at the moment, is ‘jiving’ or ‘deluding’ himself, deranged by the toxins of the magic potion into thinking that somehow a US recession and monetary collapse will somehow leave Europe unscathed. Truly, when you look at, it is almost as if these two have collectively downed the “Mad Man” potion, first conjured up by Robert Louis Stevenson in his 1886 book, “Dr. Jekyll and Mr. Hyde.”

Precisely where is the ECB Central Bank intervention and supporting rate cuts? Where is the Central Bank unified front? The world confronts the largest credit contraction in 60 years and all the Central Banks break ranks? Huh? Oh yes, I forgot, Europe is in the “fear of rising cyclical inflation” mode -- how dumb of me. But precisely how devastating will the forth coming exported US recession be? When it hits European shores, mark these words -- not since D-Day will those shores be so besieged. A credit collapse in Spain, a huge housing bear in the UK, a deep contraction in Italy and Greece now spreading to France, while Germany decides to stand idly by. What?!!

.....

In the end, the sad truth of the matter is that the Bernanke Fed remains hostage to Wall Street interests, and did not have the nerve to disappoint the stock market with ONLY a half point cut. What would the market have done? How would that have affected confidence if the S&P had plunged to new lows? Answer: if the Dollar had rallied and Oil had really plunged, perhaps the stock market would have come back, taking solace in lower Oil prices. But that would have taken a whole order of determination long missing from today’s US central bankers.

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

[burf]

10. I talked to a person in the

mortgage business last evening and he said the mortgage rates had gone up after the Fed cut. So much for helping out the struggling homeowners. But I guess that shouldn't be surprising.

[DemReadingDU]

24. not good for struggling savers

Why should people save for only 2% interest rate?

edit:
Maybe that's why rates keep getting reduced so we spend, spend, spend.

[54anickel]

36. They don't really want your savings in an account - that's a liability on their side of the books...

They want you to place your bet invest in the stocks of the banks, whether directly or through some fund or fund of funds - the murkier your ownership the better. The mutual in the term "mutual funds" can certainly mean different things to different people, depending on which side of the looking glass you're on. I remember reading somewhere that there are some 8,000 funds in the Investment Company Institute (ICI - now a lobbyist group) worth over 12 trillion frickin bucks. And how many major banks have we been reduced to since they passed interstate banking (the beginning of it all IMO) back in the 80's?

As Demeter states below, "And yet, driven by fear of shareholder bankruptcies, the move to put everyone into debt continues...."

Nearly everyone's a shareholder (anyone with any sort of retirement vehicle - it will be everyone if the Kleptos get SS privatization passed). As US tax-payers, we're all already into debt more or less. Those people retiring to the sunny beaches of Mexico may be onto something here....

[wordpix]

46. if that's true, they're betting on getting their $ from those who don't save in their banks

I wonder who that would be? China? Saudi A? UAE?

[Demeter]

26. We Have a Local Bank, University Bank

that's boasting that they NEVER got involved with any subprime foolishness, and therefore stand prepared to mortgage everyone in the co-op as it converts to condos.

Meanwhile, every time the rates are cut, the prepayment penalty on the blanket mortgage goes up. It's now estimated at $2.9 million, when the shareholders indicated that $1.5 million was as much as they were willing to pay as the cost of conversion.

And yet, driven by fear of shareholder bankruptcies, the move to put everyone into debt continues....

[ozymandius]

2. Today's Report

10:30 AM Crude Inventories 03/15
Briefing Forecast NA
Market Expects NA
Prior 6177

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

[UpInArms]

83. U.S. crude inventories up 200,000 barrels in latest week

19. U.S. gasoline inventories down 3.5 mln barrels last week
10:31 AM ET, Mar 19, 2008 - 3 hours ago

20. U.S. distillate stocks down 2.9 mln barrels in latest week
10:31 AM ET, Mar 19, 2008 - 3 hours ago

21. U.S. crude inventories up 200,000 barrels in latest week
10:30 AM ET, Mar 19, 2008 - 3 hours ago

[ozymandius]

3. Oil drops below $109 after steep rise

SINGAPORE - Oil prices dropped more than $1 a barrel Wednesday after jumping higher in the previous session on the expectation that another cut in U.S. Federal Reserve interest rates would further weaken a battered dollar.

The Fed said Tuesday it was lowering its key federal funds rate by three-quarters of a percentage point as it tries to stave off a severe economic crisis. Many investors expected a full point cut, but the Fed indicated it was concerned about higher inflation even as it was trying to shore up the economy.

"With (Tuesday's) 75-basis-point reduction in key short-term interest rates, the Fed continues its eight month trend of loosening credit which will, in turn, continue the downtrend in the value of the dollar," wrote Platts Chief Economist Larry G. Chorn in a research note.

In the past several months, rate cuts have fed oil price rallies as investors have bought crude futures to hedge against inflation and the declining dollar. Also, oil futures are priced in dollars, which makes them cheaper for foreign investors as the greenback falls.

The rate reduction by the Fed "could result in oil prices rising to the $112 to $115 (a barrel) range over the course of the next weeks, assuming the other (Group of 10 industrial nations') central banks hold their rates constant," Chorn wrote.

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

[Ghost Dog]

77. Russian agencies search BP Moscow office-sources

MOSCOW, March 19 (Reuters) - Russian law enforcement agencies were on Wednesday searching the Moscow office of oil major BP (BP.L: Quote, Profile, Research), industry sources told Reuters.

Earlier in Wednesday similar searches took place at the headquarters of BP's Russian venture TNK-BP TNBPI.RTS as part of a long-running criminal investigation.

/. http://www.reuters.com/article/marketsNews/idINL1927657420080319?rpc=611

Hmm. Lots of Russia-related stuff on some so-called 'conspiracy' sites, I notice these days...

[ozymandius]

86. Oil Falls on Weak Demand Report

Oil Prices Fall After Government Reports Demand for Oil, Gasoline Appears to Be Weakening

NEW YORK (AP) -- Oil prices pulled back sharply Wednesday after the government released data suggesting that the high price of oil and gasoline are depressing demand for petroleum products.

The demand numbers in the Energy Information Administration's weekly inventory report overshadowed data showing that supplies of oil grew less than expected last week, while gasoline and heating oil supplies fell.

http://biz.yahoo.com/ap/080319/oil_prices.html

[ozymandius]

4. Visa IPO charges ahead, raising $17.9B

SAN FRANCISCO - The credit crisis that has been haunting the stock market for months wasn't enough to scare investors away from the IPO of the world's largest credit card processor.

Overcoming the jitters that have battered many of the lenders that issue its cards, Visa Inc. sold 406 million shares at $44 apiece late Tuesday to raise nearly $18 billion and complete the most lucrative initial public offering in U.S. history.

The price topped the range of $37 to $42 per share that Visa set three weeks ago, reflecting high demand to own a piece of a company that's promising earnings growth of 20 percent despite a credit crunch that's choking the U.S. economy.

.....
Investment bankers could still exercise an option to buy another 40.6 million Visa shares during the next 30 days. If that happens, Visa's IPO will end up raising $19.7 billion before expenses.

http://news.yahoo.com/s/ap/20080319/ap_on_bi_ge/visa_ipo

[ozymandius]

5. Stock rally may not have legs

LONDON (CNNMoney.com) -- U.S. stock futures declined early Wednesday, a day after a deep Federal Reserve rate cut helped fuel a dramatic rally on Wall Street.

At 4:56 a.m. ET, Nasdaq and S&P futures were lower, suggesting a weak open for stocks.

Stocks surged Tuesday after the Fed cut short-term interest rates by three-quarters of a percentage point. The Dow spiked 420 points, or about 3.5%.

But jitters about the credit crisis and mortgage mess, which have pummeled stocks recently, may keep investors on edge.

Oil prices fell ahead of the U.S. government's weekly report on fuel supplies. Light, sweet crude for April delivery dropped 78 cents to $108.64 a barrel in early electronic trading. The inventory report is due at 10:30 a.m. ET.

http://money.cnn.com/2008/03/19/markets/stockswatch/

---

Morgan Stanley earnings will be reported today.

[Ghost Dog]

17. Dollar Falls on Speculation Housing Slump to Swell Bank Losses

March 19 (Bloomberg) -- The dollar fell against the euro, losing most of yesterday's gains, on speculation the worst U.S. housing slump in a quarter of a century will swell credit-market losses.

The currency weakened against the Japanese yen and the Swiss franc after Bank of America Corp. predicted the Federal Reserve will lower its benchmark by another 75 basis points this year following a reduction to 2.25 percent yesterday. Reports this week on U.S. mortgage demand and manufacturing will probably show the economy is slowing.

``The worst is not over,'' said Tetsuhisa Hayashi, chief currency manager of foreign-exchange trading in Tokyo at Bank of Tokyo-Mitsubishi UFJ Ltd., a unit of Japan's largest publicly traded lender. ``Japanese investors think now is a good opportunity to sell the dollar, taking advantage of its big rally yesterday.''

The U.S. currency fell to $1.5717 per euro at 7:22 a.m. in London from $1.5625 yesterday, when it rose 0.7 percent, the most since Feb. 7. The dollar declined to 98.96 yen from 99.85 yesterday, when it surged by 2.6 percent, the biggest gain since January 1999. The yen traded at 155.53 per euro compared with 155.95 yesterday. The dollar may fall to 92 yen and $1.60 a euro in one month, Hayashi said.

The dollar declined to 0.9947 Swiss franc from 1.0024. The Swiss franc is favored in times of crisis and climbed almost 3 percent in a day after the Sept. 11, 2001, terrorist attacks. It has gained 14 percent this year. The U.S. currency fell 0.4 percent to 93.09 U.S. cents per Australian dollar and slumped 0.6 percent against the New Zealand dollar to 81.17 cents.

...

Futures on the Chicago Board of Trade indicate a 50 percent chance the central bank will cut its rate by another half point by its June meeting. The odds of a quarter-point cut in April were 38 percent. Global banks are reeling from $195 billion in losses on their debt holdings following the collapse of the subprime mortgage market, according to Bloomberg data.

Bank of America, the second-largest U.S. bank, cut its forecast for the U.S. currency to 96 yen by June 30 from 98 yen previously, because of the slowing economy. The Fed will cut the target for the overnight lending rate between banks to 1.5 percent this year, while the Bank of Japan is unlikely to lower rates, said Tomoko Fujii, head of economics and strategy for Japan in Tokyo, confirming the report issued today.
...

Joseph Stiglitz, a Nobel-prize winning economist, said the U.S. economy is facing the worst financial crisis in almost 80 years and interest-rate cuts will do little to cure the problem.

...

``More and more Americans are going to walk away from their mortgages, and that's going to undermine the foundations of these banking institutions,'' Stiglitz, a professor at Columbia University, told Radio New Zealand today from Auckland.

Morgan Stanley, the second-biggest U.S. securities firm by market value, will report a 57 percent drop in first quarter earnings today due to a decline in fees for advisory work and underwriting, according to a Bloomberg survey.

Morgan Stanley will likely join Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. in reassuring investors it has ample cash reserves. Morgan Stanley reported the first loss in its history last quarter.

``Should their earnings fall short of analysts' estimates, this may again trigger stock market declines and the yen appreciation,'' Tohru Sasaki and Junya Tanase, currency strategists in Tokyo at JPMorgan Chase & Co., the third-largest U.S. bank, wrote in a research note today.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=aqlver8rOz8g&refer=asia

[ozymandius]

6. European stocks falter on bank stress

LONDON (Reuters) - European stocks stumbled as a sell-off in British bank shares wiped out early gains inspired by the U.S. Fed's 3/4 point interest rate cut, with liquidity concerns still hanging heavy over markets.

The stock market losses spilled into currencies as the dollar and sterling weakened broadly on renewed concerns about the global financial system as the credit squeeze that started in August last year continues.

Safe-haven European government bonds jumped more than a third of a point on talk of more stress in the banking sector.

British mortgage lender HBOS fell as much 17 percent before recovering some losses, while Societe Generale lost nearly 7 percent after BNP Paribas said it would not bid for the French bank.

Royal Bank of Scotland lost 3.2 percent and Barclays fell 2.1 percent.

http://www.reuters.com/article/newsOne/idUST23126420080319

[Ghost Dog]

14. European stocks widen losses as telecoms tumble

Wed Mar 19, 2008 11:28am GMT
PARIS, March 19 (Reuters) - European shares widened their losses around midday on Wednesday as telecom stocks took a hit following Deutsche Telekom's (DTEGn.DE: Quote, Profile, Research) gloomy outlook.

At 1118 GMT, the FTSEurofirst 300 index of top European shares was down 1.4 percent at 1,224.38 points. Deutsche Telekom was down 9.8 percent, while Telecom Italia (TLIT.MI: Quote, Profile, Research) down 9.1 percent. Traders said the market feared a capital increase at the heavily indebted Italian telecoms group.

Telecom Italia officials were not immediately available for comment.

Techs sank in the wake of Sony Ericsson's profit warning. Ericsson (ERICb.ST: Quote, Profile, Research) was down 11.2 percent and rival Nokia (NOK1V.HE: Quote, Profile, Research) down 5.5 percent.

/. http://uk.reuters.com/article/eurMktRpt/idUKL1912407720080319

^ATX ATX 3,580.51 7:43AM ET Down 19.89 (0.55%)
^BFX BEL-20 3,649.91 7:58AM ET Down 9.84 (0.27%)
^FCHI CAC 40 4,552.02 7:58AM ET Down 30.57 (0.67%)
^GDAXI DAX 6,374.16 7:43AM ET Down 19.23 (0.30%)
^AEX AEX General 426.15 7:58AM ET Down 1.33 (0.31%)
^OSEAX OSE All Share 460.99 7:43AM ET Down 2.29 (0.49%)
^MIBTEL MIBTel 23,550.00 7:58AM ET Down 380.00 (1.59%)
^IXX ISE National-100 89.19 Mar 18 0.00 (0.00%) Closed
^SMSI Madrid General 1,406.75 7:55AM ET Down 4.80 (0.34%)
^OMXSPI Stockholm General 297.23 7:57AM ET Down 4.33 (1.44%)
^SSMI Swiss Market 7,015.36 7:58AM ET Up 1.49 (0.02%)
^FTSE FTSE 100 5,579.70 7:43AM ET Down 26.10 (0.47%)

[ozymandius]

7. Japan lawmakers leave central bank leaderless

TOKYO (Reuters) - The Japanese central bank will be run by a temporary leader in the midst of a credit crisis, after parliament rejected on Wednesday the government's latest nominee to replace the current governor when he retires in a few hours.

Opposition parties in control of parliament's upper house vetoed a second former top finance ministry bureaucrat put forward for the job, leaving Governor Toshihiko Fukui with a final task of appointing a temporary governor before he leaves the job at midnight (1500 GMT).

The vacancy -- the first at the Bank of Japan since 1923 -- leaves the world's No.2 economy without a permanent central bank head amid global market turmoil and as major central banks take coordinated action to curb the credit crisis.

http://www.reuters.com/article/ousiv/idUST26644620080319

[Ghost Dog]

11. Japan stocks up over 2 pct, financial worries weigh

TOKYO, March 19 (Reuters) - Japanese stocks rose more than 2 percent on Wednesday, with exporters such as Toyota Motor Corp (7203.T: Quote, Profile, Research) getting a boost from a somewhat weaker yen, though lingering worries about the health of the global financial system kept a lid on further gains.

Beaten-down financial shares, including Japan's top bank Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research), rose after a hefty rate cut by the U.S. Federal Reserve and on news that Goldman Sachs (GS.N: Quote, Profile, Research) and Lehman Brothers (LEH.N: Quote, Profile, Research) topped their earnings forecasts, though their quarterly profits fell by more than half.

"Although U.S. stocks rose, the external environment hasn't calmed down. Financial fears still persist," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management Co Ltd. "Goldman and Lehman's earnings were positive just in that they don't need rescue measures for bankruptcy."

...

The benchmark Nikkei average .N225 ended up 2.5 percent or 296.28 points at 12,260.44, after rising as much as 3.4 percent. The broader TOPIX index was up 2.8 percent or 32.67 points at 1,196.30.

/... http://www.reuters.com/article/marketsNews/idCAT29008220080319?rpc=44

[Ghost Dog]

12. Asian Stocks Advance Most in Month on Fed Rate Cut, Earnings

March 19 (Bloomberg) -- Asian stocks rose the most in a month after the Federal Reserve cut interest rates and China Mobile Ltd. reported higher-than-expected earnings, easing concern that a U.S. recession will derail profit growth.

National Australia Bank Ltd. climbed after Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. reported earnings that beat analyst estimates. Canon Inc., which gets a third of its sales from the Americas, surged in Tokyo after the dollar strengthened the most in nine years against the yen yesterday. Sun Hung Kai Properties Ltd. gained in Hong Kong after the city lowered borrowing costs.

``The better-than-expected bank earnings give some relief that the worst may be over,'' said Hiroshi Yoh, who oversees $1 billion at Tokio Marine Asset Management International in Singapore. ``The lower interest rate gives those who have parked their money in money-market funds more incentive to take some risk and buy equities.''

The MSCI Asia Pacific Index jumped 2.6 percent to 136.32 as of 4:13 p.m. in Tokyo, poised for its biggest advance since Feb. 14. About six stocks rose for each that declined. The index is still down 14 percent this year on concern the U.S. will fall into a recession amid mounting losses tied to the country's subprime mortgage industry.

Japan's Nikkei 225 Stock Average climbed 2.5 percent to 12,260.44 and Australia's S&P/ASX 200 Index rose 4 percent, the region's biggest increase. Benchmarks in all other Asian markets gained except Sri Lanka and Vietnam.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=aUL1WR91Lqo0&refer=asia

[Ghost Dog]

13. Yuan Rises to Highest Since Peg Ended as China Fights Inflation

March 19 (Bloomberg) -- The yuan climbed to the highest since China ended a dollar peg in 2005 as the central bank stepped up efforts to curb inflation at an 11-year high.

China has allowed a 3.4 percent gain in the currency this year, almost half the advance for the whole of 2007, as it seeks to cut the cost of imported goods and slow export growth. The People's Bank of China yesterday ordered banks to set aside more reserves for the second time this year as it aims to slow expansion in money supply.

``China's decision to raise the banks' reserve requirement ratio reflects the challenges it faces in fighting inflation,'' said Philip Wee, a currency strategist at DBS Group Holdings Ltd. in Singapore. ``We continue to see a faster pace of yuan appreciation this year.''

The yuan rose 0.2 percent to 7.0642 versus the dollar as of 3:55 p.m. in Shanghai, the biggest gain this month, according to the China Foreign Exchange Trade System. It earlier reached 7.0631, the strongest since the dollar peg was scrapped in July 2005. Wee revised his year-end forecast for the yuan last week to 6.5 per dollar, from 6.7.

Premier Wen Jiabao pledged this month to narrow China's record trade surplus that has flooded the economy with cash, swelled currency reserves to $1.5 trillion and fuelled tensions with the U.S. and Europe, its largest trading partners. Exports grew at their slowest pace in almost six years last month.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=a3Ke6AcB_M2E&refer=asia

[Ghost Dog]

18. China Stocks Have Best Day in 6 Weeks; Vanke, Developers Gain

March 19 (Bloomberg) -- China's stocks rose, giving the benchmark index its biggest increase in six weeks, as some investors bet a five-day sell-off had made shares cheap relative to earnings prospects.

Property developers including China Vanke Co. led gains as the yuan strengthened, increasing optimism demand for assets priced in the local currency will increase. Banks advanced after profit from China Merchants Bank Co. more than doubled last year.

The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, gained 124.91, or 3.3 percent, to 3,888.86 at the close. It rose the most since Feb. 4, snapping a five-day, 15 percent loss. The benchmark tumbled 5.1 percent yesterday to its lowest since July 16 after Premier Wen Jiabao said the government will take ``forceful'' measures to battle inflation at an 11-year high.

``The decline seemed to have been overdone as the market is still fundamentally sound, with solid earnings results,'' said Wei Wei, an analyst at West China Securities Co. in Shanghai. ``Things aren't as bad as expected.''

The drop left the CSI 300 Index valued at 30.5 times reported earnings, the lowest in about a year, according to data compiled by Bloomberg.

...

China has been allowing a faster appreciation in the yuan to prevent the inflow of speculative money, which has flooded its banking system with cash to push up inflation.

``China needs the yuan to appreciate faster,'' said Yan Ji, an investment manager at HSBC Jintrust Fund Management Co. in Shanghai, which manages the equivalent of about $517 million. ``That will definitely make yuan-priced assets more attractive.''

/... http://www.bloomberg.com/apps/news?pid=20601089&sid=aCrz6aWt2UGk&refer=china

[ozymandius]

8. Good morning all.

:donut: :donut: :donut:

I'll check back when there's time between classes.

:hi:

[DemReadingDU]

9. Healthcare fraud trial in Columbus, Ohio

edit: deleted 1 article, dupe

3/18/08 Poulsen bribery trial: Jurors hear offer from recording

With her former employer staring at her in a Columbus courtroom, the government's star witness in an earlier fraud trial recounted how she was approached to change testimony against her ex-boss for a $1 million dollar payoff.

Sherry Gibson, former executive vice president of compliance at National Century Financial Enterprises Inc., took the stand Tuesday afternoon in the federal witness tampering trial of her former boss, Lance Poulsen. The Justice Department has alleged Poulsen tried to bribe Gibson to forget testimony she was asked to give against him in a securities fraud trial stemming from the collapse of National Century.

Poulsen, 64, of Port Charlotte, Fla., was a co-founder and the former chief executive of National Century, a Dublin company that provided financing to health-care providers by buying their accounts receivable at a discount and packaging them as asset-backed bonds for sale to investors.

After she completed her sentence in 2007, Gibson said she was contacted last June by Karl Demmler, a longtime friend of hers and Poulsen's. Demmler, Gibson told the jury, wanted her to know Poulsen knew she was out of prison and wanted "to make her whole."

Gibson said she construed the offer as a bribe, so she contacted her attorney and the government, which asked her to cooperate in an investigation. After refusing, Gibson relented and agreed to wear a hidden microphone to record meetings with Demmler. Jury members Tuesday heard excerpts from one of those meetings.

During a get-together last June 29 at an east Columbus Don Pablo's restaurant, Demmler told Gibson that Poulsen would make her whole if she would forget during her testimony about any fraud that took place at National Century.

Later in the conversation, Demmler said that if Poulsen paid Gibson $1 million, Demmler could set her up with an offshore account for a 10 percent fee.

"Money laundering is my business on private contracts," he said. "It's nobody's business but mine."

When Gibson raised concerns she would violate her plea agreement with the government by lying, Demmler told her that wouldn't be necessary.

"Don't remember," Demmler said. "You don't have to lie. You're not lying. He's not asking you to lie."

Demmler also suggested Gibson watch "The Godfather," a reference to scene in "The Godfather Part II" where a witness forgets testimony he was expected to give.

more...
http://www.bizjournals.com/columbus/stories/2008/03/17/daily18.html


link to previous articles...
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3231887&mesg_id=3231929

[Ghost Dog]

15. NYC to probe if Bear Stearns deceived investors

NEW YORK (Reuters) - New York City's comptroller, who helps oversee the city's pension funds, on Tuesday said he will investigate whether the failure of Bear Stearns & Co was due to miscalculation or deception, which could trigger a lawsuit to recover losses.

The drop in Bear Stearns' share price has resulted in a loss for the city's public pension funds of about $10 million, City Comptroller William Thompson told Reuters in a phone interview.

"I think a lot of people are going to be taking a look. ... Was there some deception in there or was this just a miscalculation?" Thompson, a Democrat, said when asked about a possible lawsuit against Bear Stearns.

Massachusetts on Monday had said it was reviewing whether to sue Bear Stearns to recover money it lost as a result of the plunge in the investment bank's stock.

Bear Stearns' market value fell after the bank on Sunday agreed to be bought by JPMorgan Chase (JPM.N) at a price of $2 a share. On Friday Bear Stearns' stock had closed at $30.85. The shares on Tuesday closed up 22.9 percent at $5.91, suggesting some were closing out short positions or believe the firm could fetch a higher price.

New York City's pension fund has a long history of suing companies it believes defrauded investors. The $110 billion fund Thompson helps run is currently the lead plaintiff in a class-action suit against top U.S. mortgage lender Countrywide Financial Corp (CFC.N).

/... http://news.yahoo.com/s/nm/20080318/bs_nm/newyorkcity_comptroller_dc;_ylt=Ak8Z0WJJypa.8Jg7WHGLACm573QA

[wordpix]

47. and we the taxpayers just bailed out the deceivers and miscalculators

[Demeter]

74. We Always Do

It's the GOP way.

[donkeyotay]

93. "a loss for the city's public pension funds of about $10 million"

I hope some forensic accountants take a look. One thing that puzzles me is that the derivatives markets had allegedly been frozen up for some time. Yet, all of a sudden, almost overnight, Bear goes from being hunky dory to bailout, and the Fed transfers its assets to JPM instead of assets being disposed by bankruptcy court. This is supposedly because Bear's ties to other financial players threatened the free world as we know it. It's odd. Very odd. I was astounded to learn yesterday that all these banks own the same derivative platform called Markit Group. So, in a sense, it was just a consolidation? All I know is that tee vee had the mantra that it wasn't a bailout because the shareholders got screwed. Of course they did, along with the pension funds and the mutual funds and the unsuspecting public in general. Those who benefited remain hard to name. But I don't like having Paulson from Goldman Sachs deciding that Markit Group deserves publicly traded assets ahead of all others.

[Ghost Dog]

103. Paulson's expression:

[donkeyotay]

112. Clearly they have something to hide. LOL. If I were a trooper, I'd search the trunk. nt

[Ghost Dog]

16. Over 100,000 Eco-Farms in Cuba

Havana, Mar 18 (Prensa Latina) Cuba has more than 100,000 ecological farms to produce food without harming human beings or the environment, said an official of this sector on Tuesday.

National Small Farmers Association (ANAP) official Deborah la O Calana told Prensa Latina that the current goal is to increase and reinforce that initiative in the grass-roots organizations of that institution.

Calana recalled that the project began in 1997 to counteract the use and abuse of agro-chemicals, which cause cardiovascular and respiratory diseases.

Pro ecology Cuban farmers produced and used more than 100,000 tons of worm humus across the country last year.

Central Villa Clara province and eastern Holguin province are the top provinces in the agroecology sector, whose experiences will be presented at a national workshop scheduled for May.

In Cuba, the From Farmer to Farmer Movement is in charge of promoting organic agriculture.

/. http://www.plenglish.com/article.asp?ID=%7BCEED92A9-2F58-4621-B08E-9BC08F6CE42F%7D)&language=EN

[burf]

22. I can hear the

wing nut talking heads already. "This just goes to prove the organic/sustainable agriculture proponents are commies!" So this may be a preview of today's wingnutia talking point. After all, we can't talk about any of Bushies economic successes such as the collapsing dollar and $3.14 gas. They have to concentrate on the REALLY important stuff!

Good day all!

[Ghost Dog]

27. I wish I could find time to attend the workshop!

BTW, here's a great-looking piece of US-designed and perhaps -manufactured eco-tech. I'm going to order one direct (I see no local distributors yet)... Hmm... :thinks: : http://www.naturemill.com/index.html

[Demeter]

29. Ineresting! Thanks for the link!

[burf]

33. About the worms

I was reading on a farm site about something called a worm wigwam. It is used to compost kitchen waste and then the casings and such are used either as a compost or in a compost tea. We are thinking of putting a brewer type thingie together and using the tea for fertilizer. I now must investigate further. I hope doing this doesn't make me a commie. I don't want to appear before the McCain committee on Unamerican Activities!

[Mojorabbit]

51. I have the round

worm condo on this page. http://www.happydranch.com/wormbins.html
It lives with it's worm inhabitants on my porch.

[formercia]

30. The Cubans had no choice

lack of hard currency prevented the import of agricultural chemicals. Now people are going to Cuba to learn from them.
One of the key goals of agribusiness was to re-educate farmers from using sustainable agriculture. Billions were poured into universities to sway the teaching agenda to the 'new' way of farming. Programs that encouraged sustainable agriculture were defunded or eliminated. Eventually, it was planned that there would be few who remembered how it was before the age of industrial agriculture.

In the 19th. Century, almost all agriculture was 'organic'. You either learned to properly use sustainable agriculture or your land soon became worthless for farming.

[wordpix]

48. another BushCo initiative: invade Cuba to get their food as our soils no longer produce

after decades of abuse.

Why can't the good ol' USA do what Cuba's done?

[burf]

89. Three reasons I can think of

Monsanto
Cargill
Archer Daniels Midland

Just think of all the money they would lose.

[Birthmark]

19. Anyone else think yesterday's rise...

...of 420 was appropriate? :)

Link for those not familiar with the meaning behind "420": http://www.snopes.com/language/stories/420.asp

[Ghost Dog]

32. Hahaha

:-)

[wordpix]

54. I'm thinking it was the pump before the dump

:eyes:

[AnneD]

88. Morning Marketeers......

:donut: I take a day off to sleep in and catch a little R&R and all hell breaks loose, tsk tsk :wagfinger: I'm serious now. Check out the historical stock market and look at the graph from 1928-1940. The depression was not overnight and we wont be either. It was a slow death spiral.

It's like throwing a rock into a pond. You have an area of immediate impact that is severe and then you have ripple waves that goes out well past the point of impact. The sub prime was the shock and we are starting to experience the ripples-complete with the whip saw effect.

This action by the FED is as useful in the long run as bailing water from the Titanic with a bucket. The problem isn't the water but the gash in the bow of the ship. Over time, our leaders have weakened the bulkheads by deregulation and the water will do what water does-find the weak spot and gravitate to those areas. The FED action buys time but very little. When the consumers find out that they cannot refi at the lower rates, when the interest rates on their credit cards go up further-then, like the victims on the Titanic-they will realize that there are not enough life boats and the only help they have is that little life preserver as they slip into the cold water of the Atlantic. And for those in the first class section...it might be the time to remind them that not all the wealthy from first class got out alive from the Titanic.

Happy hunting and watch out for the bears-Winter's ending and Spring is here. They are out in full force and hungry.

[UpInArms]

20. dollar watch

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

Last trade 71.652 Change -0.279 (-0.39%)

Dollar Rallies, But be Wary of an Intermeeting Rate Cut

http://www.dailyfx.com/story/bio1/Dollar_Rallies__But_be_Wary_1205878413995.html

The Federal Reserve cut interest rates by 75bp, turning the US dollar into the second lowest yielding currency in the developed world. For currency traders the rally in the US dollar was expected because the Fed under delivered while the 400 point rise in equities suggests that stock traders are simply relieved that they got a big rate cut. In the FOMC statement, the Federal Reserve was downbeat about growth but they reminded everyone that inflation is not off their radar. Producer prices indicate that even though headline inflation growth is slowing, prices on a core level are rising. We have not seen the last of rate cuts, but the FOMC statement did contain a tinge of hawkishness as two members of the FOMC voted in favor of a smaller move. However we believe that the Federal Reserve is giving themselves the flexibility to cut between meetings if needed. Over the past month, they have made historic moves by opening up the discount window to banks and accepting investment grade debt securities as collateral. They know that the market needs time to absorb the recent moves and want to save some ammo for later if another bank sees the same fate as Bear Stearns. This is not to say that a 75bp cut is not a big move. It is only the second time in the past decade that interest rates had been eased this aggressively. Meanwhile the futures curve is still pricing in a strong probability that interest rates will fall to 1.75 percent in June. With the fear of counterparty risk potentially triggering liquidity problems for other banks on Wall Street, the Federal Reserve is still on high alert. Despite the slightly hawkish statement, they will not be able to sit back and relax just because they have stepped up monetary easing. Creativity is vital if the central bank wants the US to avoid turning into Japan. In the 1990s, Japan fell into 10 years of stagnation after a similar banking crisis. Furthermore if traders considered the Swiss Franc a carry trade currency, then the US dollar has officially become one as well. The dollar could rebound further, but we still expect weakness to resume over the next few weeks because the band-aids are just not big enough.

...more...

US Fed: 75bp Cut Shows That Economy, Financial Markets Remain Core Focus but Inflation Concerns are Building

http://www.dailyfx.com/story/topheadline/US_Fed__75bp_Cut_Shows_1205870080457.html

After announcing multiple new lending facilities over the past few weeks in an attempt to avert a credit crunch, the Federal Reserve turned their attention to the economy. With the downside risks to growth mounting significantly – suggesting the US economy is in or nearing a recession – it is not surprising to see that the Fed cut rates on Tuesday. What was surprising was that they opted to reduce the fed funds rate by 75bps, rather than the 100bp cut futures were pricing in yesterday. Indeed, the US dollar initially strengthened on the announcement while the US stock markets pulled back, especially as two FOMC members – Fisher and Plosser – voted in favor of “less aggressive action.” Going forward, it appears that the Federal Reserve will continue to try to target liquidity issues with new and existing lending facilities, while attempting to balance the slowing US economy with rising energy and food prices via the fed funds rate.

Federal Open Market Committee Statement

“Recent information indicates that the outlook for economic activity has weakened further. Growth in consumer spending has slowed and labor markets have softened. Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters.

Inflation has been elevated, and some indicators of inflation expectations have risen. The Committee expects inflation to moderate in coming quarters, reflecting a projected leveling-out of energy and other commodity prices and an easing of pressures on resource utilization. Still, uncertainty about the inflation outlook has increased. It will be necessary to continue to monitor inflation developments carefully.

Today’s policy action, combined with those taken earlier, including measures to foster market liquidity, should help to promote moderate growth over time and to mitigate the risks to economic activity. However, downside risks to growth remain. The Committee will act in a timely manner as needed to promote sustainable economic growth and price stability.” – March 18, 2008

Henry Paulson, US Treasury Secretary
“What's important is we know we're in a sharp (decline), and there's no doubt that the American people know that the economy has turned down sharply.” – March 18, 2008

“The objective here is to get the balance right -- regulation needs to catch up with innovation and help restore investor confidence but not go so far as to create new problems, make our markets less efficient or cut off credit to those who need it.” – March 14, 2008

...more...

[Ghost Dog]

31. Euro= USD 1.570, GBP 0.786, CHF 1.566 and JPY 156.1 at this time

[54anickel]

50. So are they just printing like crazy now or what? Foreigners have backed way off from

the treasury auctions so where's the money for these "new and existing lending facilities" coming from?

We imported productivity gains by exporting manufacturing jobs (Greenspin likes to spout it was ALL technology driven - sure if based on the principle that technology improved communications to be able to export those factories - not the image he tries to paint).

That newly acquired cheap labor kept inflation down, especially the dreaded "wage-push" inflation fallacy, so we suddenly had this Greenspin "wealth creation" mantra, which was simply a government sanctioned counterfitting ring, no inflationary fee associated with the printing press since that was being exported in exchange for the imported productivity.

So, when do we meet China on their way up the side-by-side escalators of life?

[Ghost Dog]

65. Euro= USD 1.563, GBP 0.788, CHF 1.563 and JPY 154.7 at this time

[Ghost Dog]

125. Euro= USD 1.560, CHF 1.561 JPY 154.7 and GBP 0.788 at this time

[Ghost Dog]

21. Euro-Zone Posts Record Trade Deficit In January

LONDON (Dow Jones)--The euro zone posted a record foreign trade deficit in January, as concerns grow that the strength of the euro is making it harder for European exporters to compete, data from the European Union's Eurostat statistics agency showed Wednesday.

The 15 countries that share the euro posted a trade deficit of EUR10.7 billion in January, the largest since the creation of the euro in 1999, it said. That compared with a deficit of EUR7.3 billion in January last year and a revised deficit of EUR4.1 billion in December.

The market was expecting a deficit of just EUR1.25 billion in January, according to a Dow Jones Newswires survey of economists last week.

...

The trade data showed that although euro-zone exports were 11% higher on the year in January at EUR124.5 billion, imports increased 13% on the year to EUR135.2 billion. Meanwhile, trade within the euro zone grew 6% on the year to EUR128.1 billion.

Over 2007 as a whole, the euro zone's trade balance posted a EUR23.0 billion surplus following a EUR14.4 billion deficit in the previous 12-month period. That followed a 8% rise on the year in exports to EUR1.49 trillion and a 5% increase in imports to EUR1.47 trillion.

However, European Commissioner for Economic and Monetary Affairs Joaquin Almunia said earlier this month that he was concerned about the impact of the strengthening euro on the euro-zone economy.

Last week he was reported in Austrian newspaper Der Standard as saying that although the euro zone had "a record trade balance surplus and balanced current account," the euro's strength and the prospect of weakening global economic growth could change the situation rapidly.

The data also showed that although the euro zone's trade surplus with the U.K. grew last year, its surplus with the U.S. shrank, and its trade deficit with China widened to a record EUR109.6 billion, Eurostat said.

European Union officials have said the weakness of China's yuan currency, which is held in a narrow range against the dollar, gives the rapidly growing Asian economic giant an unfair trading advantage.

The data showed the E.U.'s trade deficit widened to EUR30.7 billion in January from EUR26.0 billion in the corresponding month last year and EUR17.6 billion in December. Although E.U. exports grew 10% on the year in January to EUR99.9 billion, imports increased 11% to EUR130.5 billion.

/... http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=42d9aa31-de22-486c-ac8d-07c4d61fe70d

[Ghost Dog]

25. Putin calls for rouble vigilance as dollar plummets

MOSCOW, March 17 (Reuters) - Russian President Vladimir Putin urged his government and Central Bank on Monday to keep a close eye on rouble appreciation as the dollar continues to plummet against world currencies.

"I'm asking you, in cooperation with the Central Bank and the Economy Ministry, to closely watch the strengthening of the rouble," Putin told a cabinet meeting, addressing Finance Minister Alexei Kudrin in particular.

"We all see what is going on in the Eurozone, how the euro's appreciation is affecting the European economy. This deserves very serious attention," Putin said in remarks broadcast on Russian television stations.

The value of the rouble against the dollar in day-ahead trading was up 14 kopecks to 23.51 roubles on Monday, while the value of the rouble against the euro fell to 37.12 roubles per euro from 36.91 roubles at the previous session.

/.. http://www.guardian.co.uk/feedarticle?id=7391155

[Demeter]

23. Let's Assume, Against All Indications, That Bernanke Knows What He's Doing

What is his goal? Is it to protect the dollar? Demonstrably NO.

To protect the government? Not even close.

To protect the banks? He may think he's doing them a big favor, but time may prove otherwise.

But oh those big market swings of fleeting duration--what a high those highs must generate!

I think it's past time to leave the USA behind and seek out a land of Not-Stupids, or at least, not-Crooks.

[formercia]

37. Bernanke's petard

He has lit the fuse. We shall see if he is hoist by it.

http://dspace.mit.edu/handle/1721.1/29839

[Demeter]

42. I Didn't Know He Was a Beaver. That Explains a Lot.

[Ghost Dog]

108. Very much a Beaver.

"If an agent invests, and new information reveals that he should not have, then he cannot undo his mistake; his loss accrues over the life of the investment. If an agent fails to invest, when he should have, he can still make up most of the loss by investing in the next period. Willingness to invest in a given period depends not only upon risk-discounted returns but on the rate of arrival of new information. When there is a high "information potential" (usually, when the environment is in a state of flux or uncertainty), a wait-and-see approach is most profitable and investment is low. When certainty about the economy is high, and there does not seem to be much to be learned by waiting, investors are relatively more willing. The timing of investment is seen to be an important part of the decision problem".

- Long-term Commitments, Dynamic Optimization, and the Business Cycle by Ben Shalom Bernanke; submitted to the Department of Economics, MIT, on May 14, 1979, in partial fulfilment of the requirements for the degree of Doctor of Philosophy

[Warpy]

49. He'd better figure out a way to staple Stupid's lips together

Stupid speaks, the market dives.

Yeah, I know today is profit taking day, but it was in positive territory until Stupid opened his piehole.

[Demeter]

28. Fannie and Freddie have won capital relief (relief from the Capital Rules, that is!)

http://news.yahoo.com/s/nm/20080319/bs_nm/fanniemae_freddiemac_regulator_dc_4




NEW YORK (Reuters) - The regulator for Fannie Mae (FNM.N) and Freddie Mac (FRE.N) will on Wednesday announce that the two U.S. mortgage finance companies have won relief from stringent capital rules and so can pump about $200 billion into a shaky mortgage market, sources familiar with the plan said on Tuesday.

The Office of Federal Housing Enterprise Oversight will hold a joint press conference with Fannie Mae CEO Daniel Mudd and Freddie Mac CEO Richard Syron at the regulator's Washington offices to announce the deal at 9 a.m. EST.

Under the agreed-to plan, the two companies will be permitted to use some of their capital reserves to soak up mortgage assets while pledging to raise equity capital -- probably in the form of preferred stock -- in the near future.

A source familiar with the deal said the companies would be granted on the order of $200 billion in new mortgage-buying power, which amounts to a one-third reduction in their excess capital.

Shares of the two government-sponsored companies soared on Tuesday on expectations they were near a deal with OFHEO that would allow them to expand their support of the mortgage market.

At the close in New York, Fannie Mae's stock rose 27.06 percent to $28.22, marking the biggest one-day percentage gain in at least a quarter-century. Freddie Mac shares climbed 26.19 percent, the best percentage boost since 1988, to $26.02.

The deal would roll back OFHEO demands that the nation's two largest sources of mortgage finance hold 30 percent more capital than typically required. That constraint was put in place several years ago after accounting scandals shook both companies.

Increased investment by Fannie Mae and Freddie Mac is expected to bolster confidence in a secondary mortgage market shaken by a wave of failing home loans. Cratering prices and a sell-off of mortgage-related assets this year have worsened the credit crunch, which may be tipping the U.S. economy into recession.

But the companies, which hold charters from the government to support homeownership, are themselves struggling with losses due to falling home prices and record home foreclosures.

Both recently boosted forecasts for their credit losses into 2009 after reporting combined net losses of $6.1 billion for the fourth quarter of 2007.

The companies' political allies in Washington have called for OFHEO to loosen the reins on the two government-sponsored enterprises. On Tuesday, Sen. Charles Schumer, a New York Democrat, wrote a letter to OFHEO Director Lockhart requesting the companies be given meaningful capital relief.

[UpInArms]

34. Americans in sour mood over economy: Reuters poll

http://news.yahoo.com/s/nm/20080319/bs_nm/usa_poll_dc

WASHINGTON (Reuters) - Americans are in a sour mood over the sagging U.S. economy, worried about their jobs and overwhelmingly of the opinion the country is on the wrong track, according to a Reuters/Zogby poll released on Wednesday.

The Reuters/Zogby Index, which measures the mood of the country, fell sharply to 87.7, down from 99.3 in February, putting it at the lowest level since the index was first measured last July.

President George W. Bush's approval rating fell to 32 percent, down from 34 percent last month, while positive ratings for the U.S. Congress were at 15.5 percent, slightly below an anemic 17 percent last month.

Concerns about jobs, personal finances, safety from attack and the direction of the country were on the increase after easing slightly last month, proof that Americans were in foul spirits.

Only 19 percent of Americans believe the country is headed in the right direction. And only 40 percent felt very secure about their jobs, down from 50 percent last month.

Pollster John Zogby said it was the first time all 10 of the measures used in the poll to take the temperature of the country were down. "The index is not simply down, it's down dramatically," he said. "It's the largest move we've seen since we inaugurated this."

...more...

[Theres-a]

44. Sour?

Somebody get that guy a thesaurus.Sour doesn't even begin to describe our mood.

edit for spelling

[UpInArms]

35. Carlyle Capital says fund insolvent

http://news.yahoo.com/s/nm/20080319/bs_nm/carlylecapital_dc

AMSTERDAM (Reuters) - Investment company Carlyle Capital Corp (CARC.AS) said on Wednesday that its liquidators have determined the fund to be insolvent and that investors were not likely to get any proceeds after its operations wind up.

Amsterdam-listed Carlyle, which late on Tuesday asked for trade in its shares to be suspended, said in a statement that it had "extremely limited cash assets."

Carlyle Capital Corp (CCC), a separate legal and business entity from U.S. private equity firm Carlyle Group, declared itself effectively out of business 10 days ago, after its counterparties called in their loans and seized its Residential Mortgage-Backed Assets (RMBS).

Carlyle Capital had defaulted on $16.6 billion of debt.

The fund is 15 percent-owned by Carlyle Group executives and is based on the British offshore centre of Guernsey.

...more...

[Demeter]

45. My Sister the MBA Told Me That This Is the Only Public Part of Carlyle

which told her that they were dumping a lemon on the unsuspecting rubes. As it proved to be.

[Viva_La_Revolution]

80. Was only 18 months old or so...

My theory is that they formed it specifically to transfer all those really bad loans to, getting them off their own books before they were worthless.

[Robbien]

67. Carlyle Group is griping about Japan being stingy with buyout fund lending

TOKYO, March 19 (Reuters) - Japanese banks are still willing to lend to buyout funds but the money on offer is decreasing due to the global credit crunch, a managing director of the Japan unit of U.S. private equity group Carlyle said.

"In America, financial institutions have for the most part stopped financing for buyouts. A buyout overseas is pretty much impossible," Tamotsu Adachi, who is also co-representative for Japan, said in a presentation on Wednesday.

"In comparison, Japanese banks have not been as affected and you can still procure a certain level of debt. But the amounts are coming down and we are approaching the limit."

Japanese financial institutions have so far avoided the massive losses taken by European and U.S. rivals on investments tied to the U.S. subprime mortgage market, but they have not escaped unscathed and have become more cautious in lending.

Adachi said it would be difficult to get big deals done.

"I think it is highly unlikely that a big buyout will succeed in Japan this year or into the next year," he said.

http://www.reuters.com/article/bondsNews/idUST18478720080319

Vultures will just have to tighten their belts for a little while.

[citizen snips]

38. Adobe Profit Up 52 Pct, Beats Wall St.

SAN JOSE, Calif. (AP) -- Demand for design tools like Photoshop, Illustrator and Dreamweaver and for its Acrobat publishing tool pushed Adobe Systems Inc.'s profit up 52 percent in the first quarter, but the software maker still forecast just 13 percent revenue growth for the year.

Compared with the San Jose-based company's 37 percent hike in first-quarter revenue, that forecast tells Global Crown Capital analyst Martin Pyykkonen that troubles in the broader economy might be causing Adobe to be a little cautious, at least with its guidance.

"They are a conservative company normally and somewhat more so tone-wise right now, which is just basic prudence, nothing that I think they are signaling," Pyykkonen said.

At the same time, he said the forecast did seem conservative.

"When you just did 37 in the quarter and you are guiding for 13 for the year, that's one of the things people do get a little frustrated on with Adobe. You know, come on, get real. If you are going to do 13 percent this year, you are basically saying the year is going to fall apart," Pyykkonen said.

more...
http://biz.yahoo.com/ap/080319/earns_adobe.html

[citizen snips]

39. Visa IPO Charges Ahead, Raising $17.9B

SAN FRANCISCO (AP) -- The credit crisis that has been haunting the stock market for months wasn't enough to scare investors away from the IPO of the world's largest credit card processor.

Overcoming the jitters that have battered many of the lenders that issue its cards, Visa Inc. sold 406 million shares at $44 apiece late Tuesday to raise nearly $18 billion and complete the most lucrative initial public offering in U.S. history.

At the open of trade Wednesday, shares soared nearly 48 percent, or $21, to $65.

Shares sold well out of the range of $37 to $42 per share that Visa set three weeks ago, reflecting high demand to own a piece of a company that's promising earnings growth of 20 percent despite a credit crunch that's choking the U.S. economy.

more...
http://biz.yahoo.com/ap/080319/visa_ipo.html

[Ghost Dog]

40. Anyone asking why Congress has no control over the Federal Reserve . . . ????

DU brainstorms: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3030936

:hurts:

[Zynx]

61. I'm actually very glad they don't. Congress doesn't know its ass from a hole in the ground

most of the time when it comes to monetary policy. The whole idea was to make them independent of political pressure.

[specimenfred1984]

102. Shorts made 10% in 1 day shorting Lehman today

I didn't short them but it sure kicks the crap out of any CD rates lately, and that's just in 1 day. If there were no short sellers, there'd be no markets.

[defendandprotect]

105. The "economy" is a farce --- intended to benefit the few over the many . . .

Anyone who even gives a moment's thought to Capitalism will understand that ---

it's a "ridiculous King-of-the-Hill-System" intended to move assets from the many to the few.

Anyone who believes the FED myth is naive ---

See: Wm. Greider, "Secrets of the Temple" available at most libraries ---

[citizen snips]

41. Morgan Stanley 1Q Profit Tops Estimates

NEW YORK (AP) -- Morgan Stanley, one of the world's biggest investment banks, on Wednesday reported strong stock and bond trading pushed its first-quarter earnings above Wall Street projections.

Its shares rose 8 percent in morning trading.

The company reported a profit of $1.53 billion after preferred dividends, or $1.45 per share, down from $2.66 billion, or $2.17 per share, in the year-ago period. Revenue fell 17 percent to $8.3 billion from $10 billion a year earlier.

But the lower results easily topped analysts' expectations for a profit of $1.03 per share on $7.19 billion of revenue, according to Thomson Financial.

John Mack, Morgan Stanley's chairman and chief executive, said the investment house known for its trading prowess "effectively capitalized on market opportunities and aggressively managed our positions."

more...
http://biz.yahoo.com/ap/080319/earns_morgan_stanley.html

[citizen snips]

43. General Mills Profit Jumps on Sales Rise

MINNEAPOLIS (AP) -- General Mills Inc. said Wednesday its profit climbed 61 percent in the third quarter as strong demand and higher prices led to a big rise in sales.

For the quarter ended Feb. 24, profits rose to $430.1 million, or $1.23 per share, from $267.5 million, or 74 cents per share, in the year ago quarter.

The food maker earned 87 cents per share excluding an accounting gain for commodity hedging and a gain related to a ruling on a tax contingency. analysts expected earnings per share of 79 cents, according to Thomson Financial.

Sales grew 12 percent to $3.41 billion from $3.05 billion. Analysts predicted revenue of $3.24 billion.

more...
http://biz.yahoo.com/ap/080319/earns_general_mills.html

[wordpix]

52. Whistleblower exposes insider trading program at JP Morgan

http://wikileaks.org/wiki/Whistleblower_exposes_insider_trading_program_at_JP_Morgan


TRADING IN THREE EASY STEPS, BROUGHT TO YOU BY JP MORGAN AND THE SEC

KEVIN WILSON, MARIA CHRISTINA PADRO, JULIAN ASSANGE & staff
Monday March 17, 2008

A confidential memo obtained by Wikileaks shows that not only has the U.S. Securities and Exchange Commission created an insider trading loophole big enough to drive a truck through, but that Wall Street is taking full advantage of it, establishing 'how-to' programs and even client service divisions to help well-heeled clients circumvent insider trading regulations.

Most of us think of insider trading as illegal. It allows those with inside knowledge to tilt the playing field, with the small investors invariably losing to the privileged few. Unfortunately for the small investor, the big boys get to play by different rules, and it has all been made legal, thanks to the SEC.

In 2000 the SEC promulgated Rule 10b5-1. The new Rule was designed to address the confusion caused by a series of court decisions that had left investors uncertain about what constitutes insider trading. Rule 10b5-1 was designed to "clarify" what constitutes illegal insider trading.

But top Wall Street houses were not to be deterred from advantaging their big clients at the expense of their small ones. Wall Street firms like JP Morgan found loopholes in Rule 10b5-1 that allowed them to continue trading on inside information "legally." Indeed, JP Morgan has gone so far as to set up an entire 'selling program' within its Securities division to help their clients profit from the loophole.

Documents obtained earlier this month by Wikileaks from JP Morgan Private Bank, which subtitles itself as "World class solutions for wealthy individuals and families", show the firm has a dedicated '10b5-1 Selling program,' along with a 'dedicated 10b5-1 team' to help its clients take advantage of the loophole.

Here's how it works:

1. An insider client transfers all or a portion of their company stock into a JP Morgan Securities Inc. brokerage account.

2. The insider then develops, in conjunction with the 10b5-1 team, a 'phased, pre-planned sales program to be executed at either market or

specified prices'.

3. Depending on the information available to the insider (but not the public), the insider can decide whether to execute the sale or not.

By gaming the system this way, JP Morgan teaches insiders how to use their knowledge to create a rigged market, one in which it is the "house" that always wins, and the small investor that always loses.

According to a statistical research paper published by Stanford's Graduate School of Business in September last year, executive 10b5-1 trades beat gains relative to non 10b5-1 executive trades by more than 500%.

One can only guess at how many insiders profited under JP Morgan's "insider trading program," leaving small investors holding the bag.

[Robbien]

73. Hopefully that Whistleblower is well hidden.

The insider news doesn't surprise me since the market has been obviously reacting in an insider trading mode for several years now. I expect that this 10b5-1 insider trading news is also "leaked" to certain hedge fund traders.

But leaking this news is very risky. One of the very last companies I would want coming after me is JPMorgan. Scary dudes.

[Hugin]

87. *tsk*

It's gotten so bad all one has to do is watch the market charts to see it happening.

Nice to know for a fact it's happening, but, when is someone going to *do* something about it? :shrug:

[defendandprotect]

106. So much for our farce of a US economy . . . it's a game with rigged results ---

[citizen snips]

53. BNP Paribas Not Interested in SocGen

PARIS (AP) -- Shares in scandal-plagued Societe Generale SA dropped more than 6 percent Wednesday after rival French bank BNP Paribas SA said it is no longer interested in making a takeover bid.

Societe Generale has been the object of takeover speculation ever since the bank unveiled in January it had lost over $7 billion unwinding what it said were unauthorized positions held by trader Jerome Kerviel in one of history's biggest trading scandals.

The bank's shares, which have lost almost a third of their value this year, dropped 6.9 percent to 62.56 euros ($98.66). BNP Paribas' stock gained 5 percent to 60.99 euros ($96.19).

BNP Paribas, which had tried to take over SocGen nearly a decade ago, said in a statement that "the conditions that would have allowed it to realize a shareholder value-creating merger are not met" and it "has ceased to study the possibility of a tie-up with Societe Generale.

more...
http://biz.yahoo.com/ap/080319/france_bnp_societe_generale.html

[citizen snips]

55. Chrysler Prepared for Downturn

NEW YORK (AP) -- Chrysler LLC Chairman and CEO Bob Nardelli says the automaker is prepared for a downturn in U.S. sales this year with layoffs and cuts in manufacturing and inventory.

Nardelli says Chrysler does not assume the economy will recover in the second half of this year as many automakers have.

Chrysler reported earlier this month its overall sales were down 13.1 percent in January and February.

Nardelli says Chrysler has seen some success outside North America, where sales rose 10 percent in the first two months of this year.

more...
http://biz.yahoo.com/ap/080319/auto_show_chrysler.html?.v=1

[citizen snips]

56. Japan to Pay Billions to Cut Emissions

TOKYO (AP) -- Japanese households and businesses could end up paying more than $500 billion to cut greenhouse gas emissions by 11 percent over the next decade, the trade and industry ministry said Wednesday.

The report mapped out the changes that consumers and industry would have to make in order to cut emissions of carbon dioxide and other gases blamed for global warming below 2005 levels by 2020.

The forecast, by the Ministry of Economy, Trade and Industry, comes as Japan is struggling to meet obligations under the Kyoto global warming pact to cut greenhouse gas emissions by 6 percent under 1990 levels by 2012.

In negotiations that eventually are to lead to a treaty to succeed Kyoto when it expires in 2012, Japan has pushed for a global goal of cutting emissions by 50 percent by 2050, though it has not set a base year.

more...
http://biz.yahoo.com/ap/080319/japan_global_warming.html?.v=1

[citizen snips]

57. Subprime Delinquencies Continue to Rise

NEW YORK (AP) -- Delinquencies on subprime mortgages pooled into securities between 2005 and 2007 continue to rise, Standard & Poor's said in a report released Wednesday.

Mortgage-backed securities are pools of mortgages combined and sold to investors. Subprime mortgages are loans typically given to customers with poor credit history.

For securities rated by S&P in 2005, 35.6 percent of current outstanding balances were delinquent in February, a 4 percent increase from the previous month.

About 34.2 percent of securities rated in 2006 were delinquent in February, an 8 percent increase from January.

more...
http://biz.yahoo.com/ap/080319/s_p_mortgages.html?.v=1

[Ghost Dog]

58. Sooner Fed bail-outs than the 1930s revisited (Ambrose Evans-Pritchard)

Put a clothes peg on your nose. The moral stench of bail-outs for the über-rich will be sickening. None of us wants to pay a farthing to rescue the bankers and assorted debt pimps who got us into this financial mess, and in doing so exposed our societies to such harm.

Most would rather relish the delicious moments of Schadenfreude as the bailiff's gavel falls on their Gulfstream IVs.

Yet we must forbear. It was such sentiments that turned the 1930 recession into a slump. "Liquidationists" prevailed: they insisted with Puritan zeal - or malice - that speculators should be driven to the wall amid a cathartic purge of the Roaring Twenties.

...

Any smug assumption that this will remain a local American affair may soon be confounded. The IMF has abruptly changed its tune. "Obviously the financial market crisis is now more serious and more global than a week ago," it said on Monday.

Property booms will soon be deflating across the Anglo-Saxon world and the eurozone's Club Med belt. Japan is already on the brink of recession. Debt levels are higher now in most rich countries than they were in 1929. The levels of financial leverage are greater.

As the Bank for International Settlements wrote last year, we are more vulnerable to a 1930s dénouement than people realise - should the authorities botch the response.

Like some other free-market bears, I now find myself in an odd position. For years we castigated the central banks for inflating a reckless credit bubble by holding interest rates too low. Now we have flipped. We are on the other side, defending monetary stimulus, even defending the state takeover of Bear Stearns debt.

No doubt we will have to defend yet more egregious intervention by the state before this is over. We will become temporary socialists.

Too bad. The world is in deep trouble. Purist ideology has become a danger. The "liquidationists" must be countered, and defeated.

/... http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/19/do1902.xml

[Zynx]

60. The one people aren't looking out for is the deflation of the Asian property boom.

In China, Hong Kong, and Japan property values have risen sharply in recent years, far above fundamentals. That will come to an end.

[54anickel]

59. Cripes, did the IMF or someone just dump a truckload of gold?..n/t

[Zynx]

62. Why should they bother? It was probably hedge funds who have been artificially pumping commodities

in general. Gold and oil in particular. Stay away from the commodities markets. Your trading allies are hedge funds and momentum investors for the time being, but as soon as the winds change, watch out.

[Ghost Dog]

70. Dollar briefly turns higher vs euro as gold drops

Wed Mar 19, 2008 12:41pm EDT
NEW YORK, March 19 (Reuters) - The dollar briefly reversed losses against the euro on Wednesday in volatile trading, drawing support from losses in gold futures.

The euro was now at $1.5637, recovering from a dip to $1.5604 <EUR=> as gold declined.

Gold futures, on the other hand, fell as much as 6 percent to trade just above $940 per ounce, hurt by heavy liquidation of funds.

"There has been a large unwinding of commodities in gold especially as some market participants favour the Fed's action to date," said a London trader.

"Hedge funds have been unwinding good profit-making positions, including long euros," he added.

/. http://www.reuters.com/article/marketsNews/idINN1918682820080319?rpc=611

[AnneD]

95. They have been trying too......

IMF Gold Sales—Frequently Asked Questions
Last Updated: February 28, 2008
Strictly limited gold sales (403.3 metric tons) are being discussed by the membership of the IMF as part of a package of expenditure and income measures to put the Fund's finances on a sustainable basis. No Executive Board decision to sell gold has been taken.
1. How much gold does the IMF hold and how was it acquired?

2. What IMF gold can be restituted (returned) to its members?

3. Why does the IMF hold gold and what is IMF policy on gold sales?

4. Why is the IMF considering gold sales?

5. Has the IMF decided to sell gold?

6. What is the expected volume of gold sales?

7. When are the sales going to take place?

8. How will disruption of the gold market be avoided?

9. Where can more information about the IMF gold be obtained?









/www.imf.org/External/NP/EXR/faq/goldfaqs.htm

[54anickel]

111. I just remember Bush was pushing for it not too long ago.....

http://www.forbes.com/markets/feeds/afx/2008/03/07/afx4747406.html

WASHINGTON (Thomson Financial) - When the Bush administration said in February that it could support the sale of a large chunk of the International Monetary Fund's gold supplies, gold prices fell a bit as investors saw the possibility of increased supply.

But several experts said this week, effectively, don't hold your breath on IMF gold sales. There are many hurdles the IMF must clear before it gets to a position where it can start selling the proposed 12.9 mln ounces of gold on the market, not the least of which is a skeptical US Congress that will want to see several IMF reforms before it approves the sale.

The IMF needs to sell a portion of its gold reserves in order to create an endowment that would be used to fund future activities, and the need is becoming desperate. The IMF is anticipated to have a 400 mln usd budget deficit in the next few years, and is expected to cut as many as 400 employees in order to find 100 mln usd in savings.

IMF finances are in disarray in large part because interest generated from loans have dried up as the IMF's lending activity has dropped.

Last week, the Bush administration said it could accept a proposal to fund future IMF activities through gold sales -- the sale of 12.9 mln ounces would generate an estimated 10 to 12 bln usd at current prices.

But there's a catch, and it's a big one: the US is tying its support for gold sales to IMF reform.

more...

[Ghost Dog]

116. It's about covering their 'administrative costs', basically, I gather;

and about following the BFEE line, I guess.

[wordpix]

63. question: why are alternative energy stock prices falling as oil price hits new highs?

Usually alternative energy stock prices rise as oil prices rise and people start to realize that alternative energy measures, like installing solar panels, is becoming very competitive with fossil fuels.

Since the price of oil has increased over the past year, however, a number of alternative energy stocks and index funds have gone down overall.

Any ideas as to why? :eyes:

[Zynx]

64. Their valuations are very high for the most part.

There was a disconnect between earnings and where those stocks were trading. Even based on what they will be earning 5 years from now they outstripped their valuations.

It's kind of like asking why troubled financials bounce when there is seemingly bad news. The reason is they are priced at practically bankruptcy levels and if there are signs that they will survive and even make a profit, their stocks go up. See Lehman yesterday. It all has to do with valuation.

[burf]

66. I saw this

and couldn't hardly believe it. From MSN moneycentral of all places.

WaMu: Skip customers; save the execs


As mortgage holders face foreclosure and shareholders take a bath, troubled Washington Mutual takes action -- to protect executive bonuses. It could be a trend, says MSN Money columnist Michael Brush.

Link: http://articles.moneycentral.msn.com/News/CorporateGreed.aspx

They go on to list other related articles such as:

Corporate America's latest posh perks
The most overpaid CEOs in America
Is a CEO worth 364 times the average Joe?
$21,000 an hour, at your expense
The 5 richest payoffs for fired CEOs
CEOs who take the millions and run
3 ways companies bury their debt

What the heck is going on? Somebody musta peed in their coffee pot.

[Ghost Dog]

75. Workers' council takes over MSN

Heh. No. not yet...

[Ghost Dog]

68. McCain voices concern over U.S. economy

SDEROT, Israel, March 19 (Reuters) - U.S. Republican presidential candidate John McCain voiced concern on Wednesday over the weakening U.S. economy.

"Americans are hurting. I'm very deeply concerned," McCain told Reuters while touring the Israeli town of Sderot, hit frequently by Palestinian rockets fired from the Hamas-controlled Gaza Strip.

Asked about the fire sale of U.S. investment bank Bear Stearns (BSC.N: Quote, Profile, Research), he said: "We've been kept up to date but not enough for me to make a formal comment."

/.. http://www.reuters.com/article/fundsFundsNews/idUSL1975610020080319?rpc=401&

[wordpix]

79. "we've been kept up to date but not enough for a formal comment." WTF, he's running for PRESIDENT &

doesn't know about Bear Stearns? I'm no expert, but I'd know enough to make a comment for cripes sake.
:eyes:

[Ghost Dog]

113. So who's "we", and "kept up to date" about what, exactly?

[wordpix]

130. up to date about Bear Stearns fire sale and "we" are, no doubt, McCain & his handlers

[hatrack]

82. Why don't you suck my "very concerned" left nut, Senator?

Obviously, if you have time to spread disinformation and bullshit about how Iran is supporting Al-Qaeda :wtf: you have time to spend on a little suckage.

How about it?

[citizen snips]

69. Sector Snap: Oil Refiners Rise on Report

NEW YORK (AP) -- Oil refiner shares regained some ground Wednesday as oil prices fell and a government report showed a decline in refined-product inventories.

The stock gains came despite the fact that the Energy Department report also showed lower demand for refined products over the last four weeks compared with the same period a year ago.

Light, sweet crude for April delivery fell $4.41 to $105.01 a barrel on the New York Mercantile Exchange, extending a decline that began before the Energy Department report was released.

In its weekly inventory report, the Energy Department's Energy Information Administration said gasoline inventories fell by 3.5 million barrels, when analysts had expected a small increase. Supplies of distillates, which include heating oil and diesel fuel, fell by 2.9 million barrels, more than double the expected amount.

more...
http://biz.yahoo.com/ap/080319/apfn_refining_stocks_sector_snap.html

[citizen snips]

71. Delphi Executives to Get More Bonuses

NEW YORK (AP) -- Delphi Corp. won court approval Wednesday to extend an executive bonus program that could pay as much as $39.1 million in all to hundreds of executives in the U.S.

The bonuses under the annual incentive plan for the first six months of 2008 are to be paid to 442 executives of GM's biggest auto parts supplier, including 21 members of Delphi's top-level strategy board. The performance-based bonuses, which could range from $21.2 million to $39.1 million, have a company earnings target of $871.1 million before interest, taxes, depreciation, amortization and restructuring costs. To get $39.1 million, profits would have to reach $1.3 billion.

If the company stays in Chapter 11 beyond Aug. 15 and it fails to meet its earnings target, the maximum payout for bonuses could be roughly $25.5 million.

The company's restructuring plan was created assuming a market value for Delphi of $12.8 billion, or $59.61 a share. The court approved the plan in January.

more...
http://biz.yahoo.com/ap/080319/delphi_bankruptcy.html?.v=1

[citizen snips]

72. Euro-Zone Exports to US Fall

BRUSSELS, Belgium (AP) -- Exports from the euro area to the United States fell 3 percent last year as the weak dollar made products such as German cars and French champagne more expensive for American shoppers, the European Union said Wednesday.

China also overtook Britain to became the biggest supplier to the 13 nations that used the currency in 2007, according to the EU statistical agency Eurostat, as the flow of Chinese goods to Europe swelled by nearly a fifth to 169.1 billion euros ($266.7 billion).

Euro nations, which include France and Germany, increased exports to most major trading partners last year -- apart from the U.S. and Japan.

Exports to the U.S. fell to 193.8 billion euros ($305.6 billion), taking second place to Britain as a purchaser of euro area goods. Exports to Japan -- which has also seen euro-zone products become more expensive -- fell 1 percent.

more...
http://biz.yahoo.com/ap/080319/eu_trade.html?.v=1

[Demeter]

76. You Know, a Comprehensive Crash Would Accomplish One Thing

People would stop trying to cover their naked asses and work towards recovery of the nation's economy.

It would be very refreshing. Probably save more people more pain, suffering and death, than a prolonged, wibble-wobble decline and trashing of everything still useful and functional left in the country.

And we wouldn't have to live in fear of another shoe or 12 dropping, either.

[ozone_man]

84. That would be nice.

To get it over with all at once.

Unfortunately, letting air out of a bubble seems to take several years. Maybe this time it will take considerably longer than 1929-1932. Since the run up took much longer, there is a much bigger bubble to let the air out of.

It looks like seven major drops and retracements over three years in this chart.

http://stockcharts.com/charts/historical/djia19201940.html

[Tansy_Gold]

126. Maybe, maybe not

Demeter wrote:
"People would stop trying to cover their naked asses and work towards recovery of the nation's economy."

I'm not sure they would. Some would, probably, but I have a feeling most of the upper 1% - 5% would quickly liquidate their hoards in a frantic attempt to continue to finance their lifestyle. They are not living in a reality-based reality now, so why should a major economic crash bring on a sudden rush of "WOW! I could've had a V-8!"

What I fear is that the continued propping up of an unsustainable economy is going to produce an ultimate and horrendous crash -- not a decline, not even a swift decline, but a monumental crash. I sometimes wonder -- sometimes seriously -- if some of them, Greenspan in particular, didn't absorb a little too much Ayn Rand, to the point that they're playing John Galt and deliberately bringing the global economy to a halt (or at least trying to).


Tansy Gold

[Demeter]

137. Liquidating Their Hoards Is Exactly What The Rich MUST Do

The best way would be through taxation directing the funds towards the commonwealth that all may benefit--even the miserly Rich. But if it takes ruination, so be it. The economy is suffering from this hoarding.

[Robbien]

78. FCC auction of government airwaves brings in $19.6 billion in bids

WASHINGTON—Bidding has closed on a record-setting government airwaves auction, with the total amount pledged reaching nearly $19.6 billion. But enthusiasm about the result was tempered by doubts concerning the future of a proposed emergency communications network.

. . .

The final price tag of $19.6 billion was considerably more than the estimated $10 billion to $13 billion the auction had been expected to generate.

"The prices were high, which was a success for the U.S. Treasury but potentially a burden to the commercial wireless industry, which will now have to pay $19.6 billion in the first half of the year," said Rebecca Arbogast, an analyst at Stifel Nicolaus.

The end of the auction means that, within a short period of time, the FCC will reveal who the winners of the valuable radio-spectrum licenses are and where in the country they acquired airwaves. An FCC spokeswoman said she had no information as to when this information would be released.

The proceeding was conducted on a blind-bidding basis.

http://www.chicagotribune.com/business/chi-wed-fcc-auction-mar19,0,5360345.story?track=rss

Aw, everyone so concerned about the burden being placed on the wireless industry to have to pay actual money for ownership of our public airwaves. Perhaps we should just hand over the airwaves for free.

[hatrack]

81. Why, that's almost six weeks' worth of Afghan/Iraq expenditures

Super!

:puke:

[ozymandius]

85. 2:27 update

Dow 12,234.97 Down 157.69 (1.27%)
Nasdaq 2,242.93 Down 25.33 (1.12%)
S&P 500 1,314.60 Down 16.14 (1.21%)
10-Yr Bond 3.365% Down 0.086
NYSE Volume 3,706,504,500
Nasdaq Volume 1,515,200,500

2:00 pm : The major indices continue to slide as selling pressure picks up. Only consumer staples (+0.1%) and healthcare (+0.1%) remain in the green. There has been some relative weakness in the financial sector, which is now down 0.7%.

Meanwhile, Treasuries have extended their gains. The 10-year note is up 28 ticks, sending its yield down to 3.38%.DJ30 -152.97 NASDAQ -26.66 SP500 -15.88 NASDAQ Dec/Adv/Vol 1697/1127/1.38 bln NYSE Dec/Adv/Vol 1816/1295/1.14 bln

1:30 pm : The major indices fall to their worst levels as the financial sector (-0.2%) reverses into negative territory. Poor showings from Merrill Lynch (MER 43.41, -3.22), Lehman Brothers (LEH 43.74, -2.75) and Goldman Sachs (GS 171.15, -4.44) are weighing on the sector.

Tech (-1.2%) is a laggard due to weakness in Cisco (CSCO 25.00, -0.58), Qualcomm (QCOM 38.61, -1.52) and Intel (INTC 21.35, -0.40).DJ30 -104.29 NASDAQ -18.78 SP500 -10.74 NASDAQ Dec/Adv/Vol 1565/1245/1.26 bln NYSE Dec/Adv/Vol 1633/1462/1.04 bln

[Wednesdays]

90. Will the fairies come out in the last hour, on cue?

:shrug:

[wordpix]

91. here they are: Dow -122 at 3:10 and improving

[DemReadingDU]

100. 5 minutes to go, dow is down -261

[Hugin]

101. ~15:57 EDT: Great intro for today's Market Mood Maker Melody, "Afternoon Delight".

One of my favorites... Although, it would appear the fairies aren't fans. :/

Index Last Change % change
• DJIA 12121.97 -270.69 -2.18%
• NASDAQ 2216.69 -51.57 -2.27%
• S&P 500 1301.32 -29.42 -2.21%

Better luck to those fairies, tomorrow. When the tune will be "Tomorrow" from the musical Annie.

See you then.

[Demeter]

107. Tomorrow From Annie--Set in the Depression, Again

You have something you're trying to tell us, Prag?

[Hugin]

110. Me? No... It's just a coincidence.

Imagine that... :scratchinghead:

[Ghost Dog]

92. Volatile FTSE down as commodities drag; banks weigh

LONDON, March 19 (Reuters) - The FTSE 100 index .FTSE of Britain's leading shares ended down 1.1 percent on Wednesday as fresh concerns over the health of the UK banking sector weighed on financial stocks and miners also fell.

The Bank of England said on Wednesday it had not met any British bank or scheduled to meet any to discuss potential problems, in a rare response to market speculation that a bank could face trouble -- which sent some banks down sharply in early trade.

HBOS (HBOS.L: Quote, Profile, Research) closed down 7.1 percent, having tumbled as much as 17 percent to a record low earlier. Royal Bank of Scotland (RBS.L: Quote, Profile, Research) fell about 2.9 percent and Alliance & Leicester (ALLL.L: Quote, Profile, Research) shed 2.7 percent.

The blue-chip index was 60.2 points lower at 5,545.6 having touched a high of 5,653.6 earlier in the day during an extremely choppy session.

"We are experiencing an unusually high amount of rumours winging around the stock market," said Martin Slaney, head of derivatives at GFT Global Markets. "UK banks are the latest victim of the over-active rumour mill."

"Much of this is probably unfounded supposition and speculation, but with panic still gripping the markets, investors seem to be attaching more credence to the scaremongers than would be the case in more stable times."

/... http://uk.reuters.com/article/londonMktRpt/idUKL1919477420080319

[Ghost Dog]

94. Tech, telecom stocks send European shares down

FRANKFURT, March 19 (Reuters) - Technology and telecom stocks dragged down European shares on Wednesday as a profit warning by Sony Ericsson and Deutsche Telekom's (DTEGn.DE: Quote, Profile, Research) outlook disappointed markets, while mining stocks fell.

The pan-European FTSEurofirst 300 index closed 0.9 percent lower at 1,230.28 points after a rocky session, hitting its intraday high at 1,255.77 and its low at 1,222.33.

The DJ Stoxx index of European telecoms shares fell 3.3 percent with Deutsche Telekom slipping 6.9 percent as an update by Europe's largest telecoms group for its fixed-line unit was perceived by the market as a profit warning.

...

Britain's financial authorities also made a rare public move to calm jittery markets, saying they were not aware of problems at any UK bank and would investigate share price moves sparked by unfounded rumours.

HBOS (HBOS.L: Quote, Profile, Research), Britain's biggest mortgage lender, tumbled as much as 17 percent and closed down 7.1 percent. Royal Bank of Scotland (RBS.L: Quote, Profile, Research) fell about 2.9 percent and Alliance & Leicester (ALLL.L: Quote, Profile, Research) shed 2.7 percent.

"This has dampened the mood. It shows how nervous the markets are. It also shows that negative news can distract the market from following performances in the United States or Asia," said Gerhard Schwarz, head of global equity strategy at UniCredit.

Recent supporting measures should be seen as a limitation of damage rather than a solution to the underlying problem, he added. UniCredit now expects a slowdown in U.S. economic growth at least in the first quarter of 2008 and potentially expects further to come this year.

"We are not talking about a U.S. mid cycle downturn anymore, we are talking about a recession," Schwarz said.

...

Meanwhile, car stocks bucked the trend and the DJ Stoxx European autos index was up 1.4 percent, with BMW (BMWG.DE: Quote, Profile, Research) as a stand-out gainer.

The world's largest premium carmaker added to the previous session's gains, impressing markets with an upbeat 2008 outlook. "In contrast to our concerns, BMW gave a reasonable 2008 outlook and reported solid 2007 results that make the stock a real bargain at current price levels," UniCredit's Georg Stuerzer wrote in a note to clients. Goldman Sachs also raised its price target for BMW to 49 euros from 43 euros.

Strongest positive gainer in the FTSEurofirst 300 index was BNP Paribas (BNPP.PA: Quote, Profile, Research), gaining 4.7 percent, while shares of rival Societe Generale (SOGN.PA: Quote, Profile, Research) drop 7.1 percent after BNP says it won't bid for SocGen, which has been seen as a potential target after suffering a massive trading scandal.

/... http://uk.reuters.com/article/eurMktRpt/idUKL1977791920080319?pageNumber=3&virtualBrandChannel=0

[Ghost Dog]

96. U.K. Regulators Investigate `False Rumors' on Stocks

March 19 (Bloomberg) -- U.K. regulators are investigating whether traders have been trying to manipulate financial company stocks by spreading ``false rumors.''

``We will not tolerate market participants taking advantage of the current market conditions to commit abuse by spreading false rumors and dealing on the back of them,'' Sally Dewar, the Financial Services Authority's managing director for wholesale and institutional markets, said in a statement today. She cited rumors ``over the last few days, sometimes accompanied by short- selling.''

U.S. regulators are investigating whether traders illegally sought to depress Bear Stearns Cos. shares last week by spreading false information, two people familiar with the inquiry said yesterday. The Bank of England denied speculation today that Governor Mervyn King canceled a trip to Asia due to turmoil in financial markets.

Edinburgh-based HBOS Plc, Britain's biggest mortgage lender, said it had ``ready access'' to funding after falling to its lowest-ever price in London trading. The bank's stock fell as much as 17 percent earlier today, prompting a market announcement which helped its shares recover. HBOS declined 7.1 percent to 446.25 pence in London.

``It's quite amazing that you can see a major FTSE stock lose 17 percent on the back of nothing,'' said Alan Beaney, head of investments at Principal Investment Management in Sevenoaks, England, which holds HBOS stock. The investigation ``might scare a few people but I don't think they'll be able to prove anything or make it stick.''

`Warning Shot'

``This is a warning shot by the FSA,'' said Carlos Conceicao, a regulatory lawyer at Clifford Chance, who was formerly the FSA's enforcement director. ``They've said recently that they would be focusing on rumor-spreading. But it's very difficult to investigate rumors in a market that operates on rumors.''

The FSA would ``absolutely not'' comment on the particular rumors being investigated, said spokesman Joseph Eyre. The maximum sentence for originating false rumors is seven years.

Under the Financial Services and Markets Act of 2001, it is a criminal offense to profit directly from a false rumor, said Teresa La Thangue, FSA spokeswoman.

/... http://www.bloomberg.com/apps/news?pid=20601085&sid=auSRh1RIA.QA&refer=europe

[4dsc]

98. Talking head said watch the POUND...

Something's happening behind the scene's that had one talking head on CNBC looking at the British pound.. Didn't sound good for the pound but he couldn't elaborate..

[Ghost Dog]

124. Dovish BoE Minutes and Weaker Emploment Numbers Drive GBP Lower

The British pound tanked against all of the major currencies today.

The Bank of England minutes were dovish with only 7 out of the 9 members voting to keep interest rates unchanged; the two other members voted in favor of a rate cut. What was most interesting about the minutes was the sentence that alluded to the fact that the only reason why they did not cut interest rates was because they feared that cutting interest rates back to back would send a message to the markets that the MPC was focusing on the “downside risks to demand at the expense of inflation.” This indicates that rates will continue to come down, possibly as soon as the next monetary policy meeting. UK employment numbers were also weaker than expected with the improvement in jobless claims falling short of expectations. Tomorrow we have UK retail sales due for release. A drop in BRC retail sales and the disappointment in the labor market suggest that spending could be weak.

/. http://www.dailyfx.com/story/currency/gbp_fundamentals/Dovish_BoE_Minutes_and_Wyeaker_1205962689406.html?engine=rss&keyword=article

[Ghost Dog]

99. Endeavour Capital Falls About 28% on Japanese Bond

March 19 (Bloomberg) -- Endeavour Capital LLP, the London- based hedge-fund firm founded by former Salomon Smith Barney Inc. traders, has fallen about 28 percent this month because of ``extreme volatility and vast moves'' in Japanese bonds, according to two investors.

The $2.88 billion Endeavour Fund sold ``substantially all'' of its Japanese government debt this week, Chief Executive Officer Paul Matthews said today in an interview. He declined to comment on the March decline.

Endeavour seeks to profit from discrepancies in the prices of various fixed-income securities and currencies, a strategy known as relative-value trading. The fund lost money as the spread, or difference, between yields on Japanese 7- and 20-year bonds widened to 1.44 percentage points on March 17, the most in almost nine years. Investors bought shorter-term debt as the benchmark Nikkei 225 stock index fell 13 percent in March.

``You've had a confluence of events that has led to extreme volatility and vast moves'' in Japanese government debt, said Matthews, 47, a former head of global fixed-income arbitrage at Salomon Smith Barney. ``The relative moves we've seen in Japan are not in the realm of anything we've ever seen for Japanese government bonds.''

Endeavour was set up eight years ago with $250 million by Matthews, and Paolo Kind, 54, who was previously the head of research and risk management for global fixed-income arbitrage at Salomon Smith Barney, now part of New York-based Citigroup Inc.

They told investors the fund may borrow as much as $20 for each $1 in capital to boost returns and may experience wide swings in value, according to marketing documents obtained by Bloomberg News. The documents said managers would seek to limit risk so no one position would result in a loss of more than 20 percent.

``It's been a painful experience and we will have some disappointed investors,'' said Matthews. ``We need to prepare for withdrawals in coming months and run lower risks and balances.''

...

Hedge funds are private, largely unregulated pools of capital whose managers can buy or sell any assets, bet on falling as well as rising asset prices and participate substantially in profits from money invested.

At least 10 hedge-fund managers including Sailfish Capital Partners LLC in Stamford, Connecticut, and London-based Peloton Partners LLP have been forced to liquidate or sell assets as banks and securities firms tighten lending following the collapse of the U.S. subprime-mortgage market.

``We're experiencing a massive de-leveraging event,'' said Gina Sanchez, who manages about $4.2 billion for the California Endowment in Los Angeles. ``We're really going to find out who has actually been hedging and who has got too much leverage on. There's going to be more blowups.''

``As long as we have the support of our banks this is survivable,'' said Matthews.

/... http://www.bloomberg.com/apps/news?pid=20601085&sid=awn9QytrU9Lc&refer=europe

[AnneD]

97. Pool's Open....

Seems like we are getting closer by the week now. Guess the date the DJIA rolls back to the level it was when the chimp took office-10,578.24. You can revise your dates up until Labour Day (the working man's holiday)or the DJIA hits 11000 (got to have a cut off). Anyone can join, just give a date and your reasoning for that date.

the other one.....1/30
DemReadingDU.....2/29
Ther-s a.....3/15
Warpy...3/20
Demeter.....3/24
Talking Dog.....3/28 at 2 pmish
Dr. Phool.....4/1
dweller.....4/8
FinnFan.....4/10
Karenina.....4/15
ProgressiveRealist.....4/17
Mattsh.....4/22
GhostDog.....4/28
Maeve.....5/1
MilesColtrain.....5/2
Happyslug.....5/9
Yael.....5/13
distant earlywarning.....5/13
AzDemDist6.....5/15
SpecimenFred.....6/15
InkAddict.....7/3
UIA.....7/15
Roland99.....7/28
Abelenkpe.....8/2
Kineneb.....8/8
Nadinebrezezinski.....9/1
Prag.....9/5
MoJo Rabbit.....9/5
MuleBoy(aka hiz honna da mayor).....9/11
Nickster.....9/12
Birthmark....10/10
AnneD....10/24
Neshanic.....10/24
MsLeopard.....10/31
Wordpix.....11/3
Ship wrack.....11/5


Remember-you can change the dates as we learn more. If your date isn't on the list, e-mail me and I'll add it the next time I post. I post about one a week-more often the closer we get to the number. The winner get the praise and admiration of those on the Stockwatch Thread. There is still time to place your bets.....No animals were hurt in the construction of this pool (except for pushing Sampson of the computer keys). And please-no Reggie bars in the pool please.

Thanks for all the guesses-it's looking like a horse race now.....

[Demeter]

122. Gee, I Don't Know If the Dow Can Drop 1500 in 2 Days

Of course, if you add up all the declines in the past 2 weeks without the artificial pumping it would be down what, 3000?

So, change me to Tax Day: April 15th, please!

[AnneD]

135. Will do....

you can change your answer as facts come in. I thought we would hit before Oct there for a while, and we still may at the rate Chopper Ben is going.

[formercia]

104. Mc Mansion King has no clothes.

http://news.bbc.co.uk/2/hi/business/7305708.stm

Mortgage firm needs to raise $1bn

Thornburg Mortgage has said it is trying to raise almost $1bn (£500m) in extra capital to avert a possible bankruptcy filing.

The lender, which specializes in big home loans, also plans to offer its lenders a 27% stake in the company.

The measures will significantly dilute the stakes of existing shareholders and the company's shares fell 47%.

Thornburg said that without the new capital it may be forced to seek bankruptcy protection.

--snip--

[ozymandius]

115. This is unsettling.

There's probably some really interesting backstory here. Thornburg's clients are not your typical sub-prime homebuyers. This might get into the realm of Alt-A. Otherwise the typical Thornburg client is a prime borrower.

[Robbien]

120. Thornburg is in trouble because of creditor margin calls

Creditors are Bear Sterns, Citigroup, RBS, UBS and Credit Suisse.

Creditors agreed to stop the margin calls in return for receiving a quarter ownership of Thornburg (at a penny a share).

There is also a list of other conditions Thornburg must honor. If it meets the conditions, margin calls will be held off for one year.

Predator becoming prey.

On Edit: Thornburg has been under attack by hedge funders shorting the company. Thornburg's value dropped by 90% IIRC.

By coincidence, all Thornburg's creditors have large hedge fund companies.


Makes one go hmmm.

[ozymandius]

109. CH-CHING! Traders took their money out of the Wall Street ATM

Dow 12,099.66 Down 293.00 (2.36%)
Nasdaq 2,209.96 Down 58.30 (2.57%)
S&P 500 1,298.42 Down 32.32 (2.43%)
10-Yr Bond 3.3620% Down 0.0890
NYSE Volume 5,398,959,000
Nasdaq Volume 2,317,756,750

4:20 pm : Participants looking for a follow-through move to Tuesday's huge advance were sorely disappointed by the end of Wednesday's trading.

The move didn't happen - or at least it didn't happen much beyond an early uptick that was driven by Morgan Stanley's (MS 43.45, +0.59) better than expected earnings report and word from The Office of Federal Housing Enterprise Oversight that it was relaxing its excess capital restrictions on Fannie Mae (FNM 30.71, +2.49) and Freddie Mac (FRE 29.90, +3.88) to foster increased liquidity in the U.S. mortgage market.

The opening gains quickly evaporated following a broad-based sell-off in the commodity arena that hit gold hard. The yellow metal plunged $69.00, or 6.5%, to $939 per ounce. Oil was another notable loser, falling 4.5% to $104.48 per barrel, after a government report showed a build in stockpiles. Altogether the CRB Index declined 4.1%.

Heavy selling of the commodities evoked fears that it was more than simple profit taking after some big gains. Rather, the drop in prices, combined with a rush of buying interest in the Treasury market that was concentrated on the 3-month Treasury bill, engendered a sense of angst that it might be some forced selling by hedge funds looking to de-leverage or needing to meet margin calls; hence, the flight-to-quality into Treasuries.

Strength in the dollar amid the weakness in stocks and commodities supported the de-leveraging notion. In any event, it was remarkable that the yield on the 3-month Treasury bill dropped 27 basis points to 0.61%, marking its lowest yield in nearly 50 years.

A Bloomberg.com report that Merrill Lynch (MER 41.45, -5.18) is suing XL Capital Assurance over default protection on $3 billion of collateralized debt obligations added to the angst that led to a negative finish for all ten economic sectors. In fact, the major indices closed at their worst levels of the session.

The basic materials sector, which dropped 6.3%, led the list of losers, followed by energy, down 5.4%, and technology, down 2.8%. As one might expect, the defensive-oriented health care and consumer staples sectors fared the best on a relative basis with declines of 0.5% and 0.6%, respectively.DJ30 -293.00 NASDAQ -58.30 NQ100 -2.6% R2K -2.6% SP400 -2.5% SP500 -32.32 NASDAQ Dec/Adv/Vol 2072/867/2.30 bln NYSE Dec/Adv/Vol 2149/1020/1.97 bln

[dweller]

134. ugh, didn't wait for Friday, or else

Friday will be one really fugly day.

that's my theory, and i'm sticking to it.
dp

[Zynx]

114. Make no mistake, the sell off in gold today is just the beginning there.

The run up in gold has been a financial bubble like any other. Its fall will be just the same.

[formercia]

117. Soon followed by many margin calls.

Oh, well.

But I sold my Gold to cover my margin call........

[Zynx]

129. You weren't the only one. The gold pushers are scam artists of the highest order.

Gold is not a stable investment, at least not in the same way people claim.

[kickysnana]

119. This is being gamed/manipulated but the $ will not recover therefore gold will.

This is the beginning of the chaos and those who are playing the markets will run gold up and take it back down a few times but in the long run those with dollars, cash in the stock market, or low interest "safe investments" or especially those with dollars in exotic investments will lose. Those who bought gold yesterday will live to see the value come back. Those who did the other will continue to lose.

Key words: Long term value, diversification,

Foreign investors veto Fed rescue
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/17/ccview117.xml

[Ghost Dog]

121. Oh yes (Ambrose Evans-Pritchard again):

...Asian, Mid East and European investors stood aside at last week's auction of 10-year US Treasury notes. "It was a disaster," said Ray Attrill from 4castweb. "We may be close to the point where the uglier consequences of benign neglect towards the currency are revealed."

The share of foreign buyers ("indirect bidders") plummeted to 5.8pc, from an average 25pc over the last eight weeks. On the Richter Scale of unfolding dramas, this matches the death of Bear Stearns.

Rightly or wrongly, a view has taken hold that Washington is cynically debasing the coinage, hoping to export its day of reckoning through beggar-thy-neighbour policies.

It is not my view. I believe the forces of debt deflation now engulfing America - and soon half the world - are so powerful that nobody will be worrying about inflation a year hence.

Yes, the Fed caused this mess by setting the price of credit too low for too long, feeding the cancer of debt dependency. But we are in the eye of the storm now. This is not a time for priggery.

...

Is this the moment when America finally discovers the meaning of the Faustian pact it signed so blithely with Asian creditors?

As the Wall Street Journal wrote this weekend, the entire country is facing a "margin call". The US has come to depend on $800bn inflows of cheap foreign capital each year to cover shopping bills. They may have to pay a much stiffer rent.

As of June 2007, foreigners owned $6,007bn of long-term US debt. (Equal to 66pc of the entire US federal debt). The biggest holdings by country are, in billions: Japan (901), China (870), UK (475), Luxembourg (424), Cayman Islands (422), Belgium (369), Ireland (176), Germany (155), Switzerland (140), Bermuda (133), Netherlands (123), Korea (118), Russia (109), Taiwan (107), Canada (106), Brazil (103). Who is jumping ship?

The Chinese have quickened the pace of yuan appreciation to choke off 8.7pc inflation, slowing US bond purchases. Petrodollar funds, working through UK off-shore accounts, are clearly dumping dollars amid rumours that Gulf states - overheating wildly - are about to break their dollar pegs. But mostly likely, the twin crash in the dollar and US agency debt reflects a broad exodus by global wealth managers, afraid that America is spinning out of control. Sauve qui peut.

...

It is unsettling to watch the world's reserve currency disintegrate. Commodities from gold to oil and wheat are taking on the role of safe-haven "currencies". The monetary order is becoming unhinged.

I doubt the dollar can fall much further. What is it to fall against? The spreading credit contagion will cause large parts of the globe to downgrade in hot pursuit - starting with Europe.

Few noticed last week that the Italian treasury auction was also a flop. The bids collapsed. For the first time since the launch of EMU, Italy failed to sell a full batch of state bonds.

The euro blasted higher anyway, driven by hot money flows. The funds are beguiled by Germany's "Exportwunder", for now. It cannot last. The demented level of $1.57 will not be tolerated by French, Italian and Spanish politicians. The Latin property bubbles are deflating fast.

The race to the bottom must soon begin. Half the world will be slashing rates this year to stave off credit contraction. The dollar will have a lot of company. Small comfort.

[Zynx]

127. Gold long term is not as stable an investment as people claim.

Look at the period of 1981-2002. That's enough for me. Long term stocks will kick the piss out of gold. The maninpulators are those pushing commodities up. The 60% rally in one measure of commodities is not founded on fundamentals. It will not last.

[wordpix]

131. gold mining is incredibly environmentally destructive. they're no longer doing it with a pan beside

a river

[Ghost Dog]

123. "Things turned really ugly, really fast in the commodities complex today"

..."Things turned really ugly, really fast in the commodities complex today," Jon Nadler, analyst with Kitco Bullion Dealers in Montreal, said in a note. "Once the dollar started eaking out small gains this morning and crude oil started losing serious ground, the sell-off in precious metals gathered steam and left a wide swath of damage in its wake."

Gold for April delivery plunged $59 to settle at $945.30 Wednesday on the New York Mercantile Exchange. The 5.9 percent decline was the largest one-day loss since June 2006. Gold soared to an all-time high of $1,033.90 Monday, following the Fed-approved bailout of Bear Stearns by JPMorgan Chase & Co.

"It's certainly a correction," said James Steel, precious metals analyst with HSBC in New York. "The rate cut was less than expected and there seems to be some relaxation in credit risk concerns today, so that's hurting gold."

Prior to the rate cut, gold had gained almost 20 percent this year, driven by U.S. recession fears, record high crude oil prices and a tumbling dollar. Some gold watchers in recent days even began whispering about $2,000 gold, a level approaching the metal's inflation-adjusted high of 1980. But it's too early to tell whether the metal's decline signals a protracted correction or not, analysts say.

"We'll have to see where it bottoms out, but you can't by any means believe the whole credit market issue has been resolved, and a resurfacing of worries there would buoy gold," Steel said.

Other precious metals also traded sharply lower Wednesday. Silver for May delivery lost $1.525 to settle at $18.445 an ounce on the Nymex, while May copper dropped 11.30 cents to settle at $3.6335 a pound.

/... http://www.forbes.com/feeds/ap/2008/03/19/ap4795558.html

[Zynx]

128. Gold is substantially overvalued. It has been a momentum play just like any of the bubbles we

have seen in the past several years. It will play out the same way in the end.

[ozone_man]

132. It sure is a bubble.

And the dollar seems to be on the rebound.

[Ghost Dog]

118. Despite Fed cuts and other US steps to stop economic slide, bad news not over

The Associated Press
Published: March 19, 2008

WASHINGTON: Any present optimism may be premature.

The sagging economy could keep slumping, despite one-day stock market rallies, aggressive intervention by the Federal Reserve and efforts by Congress and the White House to put more money in consumers' pockets.

Economic fundamentals are dreary and there is only so much the government can do to make things better before making things worse.

Even those applauding the recent moves by the Fed and the administration say the economy has taken hits from which it will be hard to recover.

"This is a serious combination of events, the housing slump and the credit crunch, at the same time," said Alice Rivlin, founding director of the Congressional Budget Office and former vice chairman of the Fed.

...

The economy is replacing Iraq as the main worry of election-year voters. This shift has put the administration in crisis management mode and led to increasing calls to action by the presidential contenders.

...

But there are risks.

Too much government intervention, some economists suggest, may prolong the day of reckoning when housing and credit markets hit bottom, while adding hundreds of billions to the national debt, now edging closer to $10 trillion.

The more the Fed reduces rates, the more it stokes inflationary pressures with cheap money and drives down the value of the dollar.

Lower rates help on shorter term debt, including adjustable home mortgages, home-equity lines of credit, auto loans and some credit cards. But they have provided little relief on longer-term loans sought by first-time home buyers and people refinancing mortgages. Also, they cut into the earnings of retirees and others who depend on fixed income.

Economist Robert Reich, labor secretary in the Clinton administration, likens the recent Fed steps to pumping helium into a balloon about to burst.

Across the spectrum, there is little cause for joy.

Investors remain jittery. After the Fed's rate cut on Tuesday, stocks surged, with the Dow industrials rising over 420 points. On Wednesday, most of those gains were erased, reflecting continuing nervousness about the economy and the world's financial system.

Stocks are down roughly 10 percent to 15 percent from their 2007 peak, typical of a recession-driven correction.

Polls show most people in the United States believe the country is already in a recession, a view backed by many economists.

Consumers are cutting back spending; employers shed 63,000 jobs in February. On Monday, the Fed reported that U.S. factories were running at their slowest pace since October 2005.

Both retail sales and industrial production fell last month. Oil prices recently hit an all-time high of $110 a barrel before easing back to about $104 a barrel Wednesday

Even those applauding moves by the Fed and the administration say the steps are helpful and ward off panic, but that the bad news is not over.

"A very severe correction is under way. House prices are plunging, stock prices are down measurably from their peak, there's a lot of financial pain everywhere," said Mark Zandi, chief economist at Moody's Economy.com. "I think all the policymakers are trying to do is ensure that everything doesn't come to a complete halt."

As Bush said this week, "One thing is for certain, we're in challenging times."

When does the government reach the limit on what it can do to arrest this slide? "We don't know what the limit is," said economist Rivlin. "That isn't a question with an answer."

/... http://www.iht.com/articles/ap/2008/03/19/america/Battered-Economy.php

[Radio_Lady]

133. If I read any more, I'm going to get into the BLUEST FUNK EVER...

We just signed papers on a 30-year mortgage at just a little over 6 percent which will reduce our monthly mortgage payments a bit. Husband is worried about cash flow and other wonders of the financial world.

I don't expect to live for thirty more years, but that's only a small problem for my heirs, I guess.

We'll never pay off that mortgage and I wonder how many people do.

Cordially,

Radio Lady

[roamer65]

136. The current dollar rally is a "sucker" rally.

The bad news and the Fed's dollar creation is by no means over yet.

[wordpix]

138. "When does the government reach the limit on what it can do to arrest this slide? "

How about when the gov runs out of money big time? Whoops, we already have a $9.2 trillion debt thanks to BushCo mismanagement and wars. :puke:

The real q is: When does the gov reach the limit of borrowing from our good friends the Mideast oil sheiks, China the human rights abusers and Japan the whale killers?

:shrug: :cry: