STOCK MARKET WATCH, Wednesday April 30

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday April 30, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 266
DAYS SINCE DEMOCRACY DIED (12/12/00) 2656 DAYS
WHERE'S OSAMA BIN-LADEN? 2381 DAYS
DAYS SINCE ENRON COLLAPSE = 2672
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 April 29, 2008

Dow... 12,831.94 -39.81 (-0.31%)
Nasdaq... 2,426.10 +1.70 (+0.07%)
S&P 500... 1,390.94 -5.43 (-0.39%)
Gold future... 876.80 -18.70 (-2.13%)
30-Year Bond 4.56% -0.01 (-0.13%)
10-Yr Bond... 3.83% -0.01 (-0.26%)






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: Eternal Constants and the Eye of the Storm

BY FRANK BARBERA, CMT

Over the last 12 months, we have tried on occasion to highlight various stock market sectors which may be overlooked and unloved at key moments in time. Our approach is always a combination of fundamental analysis and technical analysis, using fundamental analysis to decide where good values can be found, and technical analysis to decide when to make such purchases. In recent weeks, we featured a segment on emerging small micro cap healthcare stocks which have moved, by and large, steadily higher ever since, and in October of last year, we invested some time in highlighting the action of Junior Oil and Gas Companies. These companies, in many cases, have now become THE market leaders surging well ahead of the price performance seen in large cap energy and even Oil Service. We featured that update back in our FSO Commentary entitled, “Halloween Scariness in the Financial Sector” and we stated,

“It’s that “Back to the 70’s Show” all over again, courtesy of Uncle Ben. In this vein, we note that during today’s stock market sell off, some of the Energy names were hit especially hard with money rotating “out of energy” and into “technology.” Bad move from our viewpoint, as Technology has already started showing major cracks in the CAPEX damn. And have a good look at those PEG Ratio’s why don’t you; nothing really cheap in the Tech Sector. In fact, Tech Sector investing and recession simply don’t mix, but Energy, especially in the world of Putin, Chavez and Ahmadinejad, Energy Stocks, well, are in many cases, still plenty cheap and thus ripe for potentially bigger gains ahead. As a final note to those willing to do some hunting, we throw out the following bone relative to the Energy Sector. Consider the Energy Majors which have moved to new highs and which have largely enjoyed a huge advance. As in many areas of the Natural Resource world, most of these larger companies need to continue to grow reserves, and to that end, in today’s world growth through acquisition, even with nice takeover premiums is still far cheaper than originating homegrown organic growth. As a result, we perceive an industry trend that will continue on the path to greater consolidation wherein smaller and mid-sized companies probably sport the best EPS leverage around. In the chart below, we show our basket of secondary Oil Stocks (about 30 names) visa vie the large cap dominated XOI. You can see that on the very bottom clip, Small Cap Energy is down in the basement and appears to be trying to turn the corner. Bargain Hunter’s – let loose your best truffle sniffing hogs, as there is much fertile ground in this corner of the world -- a corner far, far removed from all that weeping and gnashing of teeth taking place in the dark recessed ugliness of the financial space.”

.....

As it happens, we still like the Mid-Cap E&P segment for the long haul. However, with the stocks as far advanced as they are at the present time, we would not be surprised to start seeing some “backing and filling” price action, the kind of thing that suggests a consolidation for a period of time. Within the stock market, sector rotation is one of the few eternal constants with money managers given the job of figuring out, perhaps where the rotation will go next. To this end, as noted last week, we still do not see the kind of very overbought technical conditions which would herald an end to the bear market counter-trend rally now underway. Yes, it may end up that the rally may be of low quality, and may run into a decaying orbit at any time. The S&P could even dip down toward the 1300 level over a period of a few weeks and in the larger scheme of things, nothing would change. Overall, the market is in a trading range, a non-trending mode, and it does not appear as though we will face the prospect of new lows in the S&P until sometime after July/August. Thus, a relative period of stability should prevail allowing the stock market to stay afloat into the summer months, with July and/or August often recording important peaks.

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

[ozymandius]

2. Big ol' Bucket o' Reports

08:15 ADP Employment Apr
Briefing.com NA
Consensus -60K
Prior 8K

08:30 GDP-Adv. Q1
Briefing.com 0.7%
Consensus 0.5%
Prior 0.6%

08:30 Chain Deflator-Adv. Q1
Briefing.com 3.0%
Consensus 3.0%
Prior 2.4%

08:30 Employment Cost Index Q1
Briefing.com 0.8%
Consensus 0.8%
Prior 0.8%

09:45 Chicago PMI Apr
Briefing.com 49.0
Consensus 47.5
Prior 48.2

10:30 Crude Inventories 04/26
Briefing.com NA
Consensus NA
Prior 2421K

14:15 FOMC Policy Statement

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

[Demeter]

15. Fasten Seat Belts---It's Sure to Be a Rocky Ride

If there was good news, it would have leaked already.

[UpInArms]

17. the A(lways) D(ipshit) P(uke) report

is wrong again

07. Private-sector jobs up 10,000 in April, ADP says
8:16 AM ET, Apr 30, 2008

[UpInArms]

19. ugly 8:30 reports in:

01. U.S. employment costs up 3.3% over past year
8:30 AM ET, Apr 30, 2008

02. U.S. Q1 benefit costs rise 0.6%
8:30 AM ET, Apr 30, 2008

03. U.S. Q1 wage, salary costs rise 0.8%
8:30 AM ET, Apr 30, 2008

04. U.S. Q1 employment costs rise 0.7% vs. 0.8% expected
8:30 AM ET, Apr 30, 2008

05. U.S. Q1 growth due to inventories, consumers, exports
8:30 AM ET, Apr 30, 2008

06. U.S. Q1 residential investment down 26.7%, worst in 26 years
8:30 AM ET, Apr 30, 2008

07. U.S. Q1 business investment falls 2.5%, weakest in 4 years
8:30 AM ET, Apr 30, 2008

08. U.S. Q1 consumer spending up 1.0%, weakest in 7 years
8:30 AM ET, Apr 30, 2008

09. U.S. Q1 core inflation rises 2.2%; up 2.0% in past year
8:30 AM ET, Apr 30, 2008

10. U.S. Q1 final domestic sales fall 0.4%, 1st drop in 17 years
8:30 AM ET, Apr 30, 2008

16. U.S. Q1 GDP rises 0.6% vs. 0.2% expected
8:30 AM ET, Apr 30, 2008

[UpInArms]

29. U.S. April Chicago PMI 48.3% vs. 48.2% March

01. U.S. April Chicago PMI 48.3% vs. 48.2% March: reports
9:53 AM ET, Apr 30, 2008

[UpInArms]

32. Chicago business activity weakens again in April

http://www.marketwatch.com/news/story/chicago-business-activity-weakens-again/story.aspx?guid=%7BEA9158BB%2DA4A9%2D460E%2DB072%2D6E2D71380A40%7D&dist=hplatest

WASHINGTON (MarketWatch) -- Business activity in the Chicago region weakened further in April, according to the monthly Chicago purchasing managers report released Wednesday. The index rose marginally to 48.3% from 48.2%, with any reading under 50% indicating that more firms were contracting than expanding. Companies reported paying higher prices, and most said they weren't hiring. Orders were still growing. The new orders index fell to 53% from 53.9%, and the employment index fell to 35.3% from 44.6%. The prices-paid index dipped to 82.9% from 83.9%. Economists expect the national Institute for Supply Management index to fall to 48% from 48.6% when it is reported Thursday.

[UpInArms]

44. Crude Inventories

10. U.S. distillate stocks up1.1 mln barrels in latest week
10:32 AM ET, Apr 30, 2008

16. Crude reverses gains as inventories up more than expected
10:32 AM ET, Apr 30, 2008

17. U.S. crude inventories up 3.8 mln barrels in latest week
10:31 AM ET, Apr 30, 2008

18. U.S. gasoline inventories down 1.5 mln barrels last week
10:31 AM ET, Apr 30, 2008

[Ghost Dog]

54. Fed lowers U.S. rates, hints cuts may be at end

WASHINGTON, April 30 (Reuters) - The Federal Reserve lowered a key U.S. interest rate by a modest quarter percentage point on Wednesday and hinted the move could be the last in a series dating to mid-September.

However, it kept its options open and financial markets saw some chance more rate cuts could be in store.

In announcing its decision, the U.S. central bank pointed to the "substantial" reductions it has already put in place and noted that energy and other commodity prices were on the rise. It also dropped a reference contained in its last interest-rate announcement that "downside risks to growth remain."

"The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time and to mitigate risks to economic activity," the central bank said.

While the Fed said uncertainty on the outlook for prices remained high, it also said it still believed inflation would moderate over time, which some analysts saw as suggesting the possibility rates could move lower. Two Fed officials dissented from the decision to cut rates, preferring no change.

Prices for U.S. stocks and government bonds rose, while the dollar fell. <--- not for long!

"This statement strongly implies that the Fed will be on pause for some time," said Joseph Brusuelas, U.S. chief economist at IDEAglobal in New York. "The risks to the upside vis-a-vis inflation are serious enough to be on hold until the lagged impact of past Fed monetary policy and the fiscal stimulus on its way take hold."

/... http://www.reuters.com/article/marketsNews/idINN3047998620080430?rpc=44&sp=true

[ozymandius]

3. Oil steady above $115 a barrel after steep fall

SINGAPORE - Oil prices steadied Wednesday after tumbling more than $3 a barrel in the previous session on a strengthening U.S. dollar and data showing a dramatic drop in American fuel demand.

Trading was cautious in Asia as market participants awaited the U.S. Federal Reserve's decision on interest rates later Wednesday.

......

Light, sweet crude for June delivery rose 20 cents to $115.83 a barrel on the New York Mercantile Exchange by midafternoon in Singapore. The contract fell $3.12 to settle at $115.63 a barrel Tuesday after the release of a monthly report from the U.S. Energy Department.

.....

U.S. crude oil inventories were expected to have risen 1.6 million barrels last week, with crude imports continuing to grow as refiners ramp up production, the Platts survey said.

Analysts projected a decline of 800,000 barrels in gasoline stocks and a 150,000-barrel build in stocks of distillates, which include heating oil and diesel, the survey showed. Refinery utilization was expected to edge up 0.3 percentage points to 85.9 percent.

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

[ozymandius]

4. Oil slips as Nigerian union agrees to return to work

LONDON (Reuters) - Oil fell to $115 a barrel on Wednesday as a Nigerian oil union agreed to return to work, raising hopes that production shut down in the OPEC oil exporter will come back on line.

The striking workers who have shut down virtually all Exxon Mobil's (XOM.N) production in Nigeria have agreed to go back to work while talks with the company continue, an Exxon spokesman said on Wednesday

.....

The strike in Nigeria started last week and shut nearly all the U.S. oil company's 800,000 barrels per day of production there. Union leaders had said on Tuesday they were going ahead with their action.

Oil's decline added to a more than $3 drop on Tuesday when a rebound in the U.S. dollar and easing concern about supply disruptions from Nigeria to the North Sea pressured the market.

http://news.yahoo.com/s/nm/20080430/bs_nm/markets_oil_dc_22

[Ghost Dog]

24. Iran conducts all crude trade in euro, yen -agency

TEHRAN, April 30 (Reuters) - Iran, the world's fourth-largest oil producer, is conducting all its crude trading in euro and yen, instead of the U.S. dollar, an Iranian official was quoted as saying on Wednesday.

Iran has been reducing its exposure to the dollar as the United States has ratcheted up sanctions because of a dispute over Tehran's nuclear programme. In December, an official said 90 percent of its oil export earnings were outside the dollar.

"All of Iran's oil trading is being done with euro and yen," Hojjatollah Ghanimifard, international affairs director of the National Iranian Oil Company, told Fars News Agency.

"We agreed with all the buyers of Iran's crude to trade oil in currencies other than dollar," he said. "In Europe, Iran's crude is being sold in euro, in Asia in euro and yen, and trading with yen has not only been in Japan."

Ghanimifard could not be immediately reached to confirm the report.

In the past, Iranian officials have said that oil remained priced in the U.S. dollar but with actual payments carried out in other currencies.

Iran said it earned $70 billion from oil exports in the year to March, windfall revenues on the back of soaring crude prices.

/... http://www.reuters.com/article/marketsNews/idINBLA02024820080430?rpc=44

[MilesColtrane]

37. Hmm...Iraq stopped accepting dollars for it's oil in 2000,...

...and look where that got them.

This is not good. BushCo™ will consider this move from Iran the same as a declaration of war.

When countries stop accepting dollars for their oil, other countries start switching their reserve currencies, threatening the house of cards economy here.

[Ghost Dog]

39. Yup. It does make perfect economic sense right now, though (and not just for Iran). n/t

[ozymandius]

5. Fed expected to cut key interest rates one more time

WASHINGTON - The Federal Reserve, which began the year aggressively fighting a severe credit crunch and economic weakness, may push the pause button after delivering perhaps one more quarter-point cut in interest rates.
ADVERTISEMENT

Fed Chairman Ben Bernanke and his colleagues were to wrap up a two-day meeting Wednesday and financial markets widely expected that the discussions will end with an announcement that the Fed will cut a key interest rate by a quarter-point.

That would be the seventh reduction in the federal funds rate since the central bank began battling against the credit squeeze and the growing possibility of a recession last September.

.....

While there is some thought that the Fed might decide to forgo a rate cut, most analysts believe that the greater likelihood is a quarter-point move.

....

The Fed's rate-setting Federal Open Market Committee, composed of Fed board members in Washington and regional Fed bank presidents, is split into two camps. One group is concerned that the severe credit crisis and prolonged housing slump could be pushing the country into a deep recession while a smaller faction is worried that the Fed could be running the risk of letting inflation get out of control even as the economy slows.

http://news.yahoo.com/s/ap/20080430/ap_on_bi_ge/fed_interest_rates

[ozymandius]

6. Investors see recession, Wall Street depression

BEVERLY HILLS, California (Reuters) - The U.S. economy may be in a funk, but that's nothing compared with the pall hanging over Wall Street.

Some of the biggest U.S. investors said on Tuesday they expected the nation's economy to get worse, but then work its way toward recovery later this year.

On Wall Street, however, the road back to health will take much longer.

.....

According to Griffin and other top U.S. investors at the conference, the credit and housing crises that led to hundreds of billions of dollars in losses for Wall Street firms will take those investment banks years to claw back from.

http://news.yahoo.com/s/nm/20080430/bs_nm/usa_economy_wallstreet_dc_1

[Tansy_Gold]

22. ". . . will take those investment banks years to claw back from. . . "

:nopity: :nopity: :nopity: :nopity: :nopity:

:nopity: :nopity: :nopity: :nopity: :nopity:

:nopity: :nopity: :nopity: :nopity: :nopity:

:nopity: :nopity: :nopity: :nopity: :nopity:

:nopity: :nopity: :nopity: :nopity: :nopity:


And how long has it taken the American WORKERS to claw their way back from the recessions of the 70s, 80s, 90s, and 00s?

Oh, that's right. THEY HAVEN'T. Wages are stagnant, wealth has accumulated at ever increasing rates into the hands of the uber-rich, families that used to have upward mobility on the income of one parent now need the income of two parents just to get by. . . . .

And someone expects me to feel sorry for the people who created that situation? In the words of Tansy Gold, I don't fucking think so.


:nopity: :nopity: :nopity: :nopity: :nopity:

:nopity: :nopity: :nopity: :nopity: :nopity:

:nopity: :nopity: :nopity: :nopity: :nopity:

:nopity: :nopity: :nopity: :nopity: :nopity:

:nopity: :nopity: :nopity: :nopity: :nopity:

[Ghost Dog]

23. BOJ cuts growth outlook; Japan industry slows

TOKYO, April 30 (Reuters) - Japan's central bank cut sharply its growth outlook and raised its inflation forecast on Wednesday, warning of highly uncertain times as industrial output figures painted a gloomy picture of how the credit crisis is hitting the world's No.2 economy.

The Bank of Japan kept its already low interest rates on hold, and cut its growth forecast for the year to March 2009 to 1.5 percent from a pick of 2.1 percent in its previous half-yearly economic report in October.

In a sign of the juggling central banks face with weak growth and rising oil and food prices, the BOJ almost tripled its forecast for consumer price inflation to 1.1 percent in the year to next March, from 0.4 percent.

The glum outlook came alongside figures showing Japanese industrial output fell 3.1 percent in March -- the biggest monthly fall for at least five years and far bigger than market forecasts of a 0.8 percent drop.

For a graphic of the data see: here

Jobs, household spending and housing figures, along with a weak private manufacturing survey, added to the glum tidings for the Japanese economy.

The weak data, along with a slump in U.S. consumer confidence, boosted Japanese bond prices, amid worries that American economic woes were hitting the big exporters that have so far sustained Japanese growth.

/... http://www.reuters.com/article/marketsNews/idINT4413420080430?rpc=44&sp=true

[ozymandius]

7. Americans unload prized belongings to make ends meet

NEW YORK - The for-sale listings on the online hub Craigslist come with plaintive notices, like the one from the teenager in Georgia who said her mother lost her job and pleaded, "Please buy anything you can to help out."

Or the seller in Milwaukee who wrote in one post of needing to pay bills — and put a diamond engagement ring up for bids to do it.

Struggling with mounting debt and rising prices, faced with the toughest economic times since the early 1990s, Americans are selling prized possessions online and at flea markets at alarming rates.

To meet higher gas, food and prescription drug bills, they are selling off grandmother's dishes and their own belongings. Some of the household purging has been extremely painful — families forced to part with heirlooms.

.....

Earlier this decade, people tapped their inflated home equity and credit cards to fuel a buying binge. Now, slumping home values and a credit crisis have sapped sources of cash.

Meanwhile, soaring gas and food prices haven't kept pace with meager wage growth. Gas prices have already hit $4 per gallon in some places, and that could become more widespread this summer. The weakening job market is another big worry.

http://news.yahoo.com/s/ap/20080429/ap_on_bi_ge/cashing_out_the_attic

[AnneD]

20. Morning Marketeers......

:donut: and lurkers. Ozy, that article just strikes me as so sad it hurts my heart. It is another sign that folks are hitting hard times. We will see more of that as folks become desperate. I have noticed more folks moving into the resort village on a semi permanent basis these days. There is another park down the road-but those are the really desperate folks.

I wonder how long this will go on until folks stop going quietly into the night....

And to honor those hard working folks (hey survival is a full time job)and to celebrate the 75th birthday, I'd like to dedicate a Willie Nelson tune as a theme today. He is a true Texas treasure. I could do 'On the Road' 'My Heroes have always been Cowboys', 'Crazy', or many others, but I'll select this ballad:


Are There Any More Real Cowboys

Are there any more real cowboys
Left out in these hills
Will the fire hit the iron one more time
And will one more dusty pick-up
Come rolling down the road
With a load of feed before the sun gets high
Well, I hope that working cowboy never dies

Not the one that's snortin' cocaine
When the honky-tonk's all closed
But the one that prays for more rain, heaven knows
That the good feed brings the money
And the money buys the clothes
Not the diamond sequins shining on TV
But the kind the working cowboy really needs

Are there any more country families
Still working hand in hand
Trying hard to stay together and make a stand
While the rows and rows of houses
Come creepin' up on the land
Where the cattle graze and an old gray barn still stands
Are there any more real cowboys in this land
Are there any more real cowboys in this land

Happy hunting and watch out for the bears.

[Hugin]

31. Good Theme-ing AnneD...

:hangover:

One of the indicators of these looming bad economic times I began seeing, oh... Years ago now, was an increase in
the older coins I received as change for purchases. I took that to indicate people were raiding their long forgotten
coin caches to pay for things. As, I always check through my change as I'm pinching each one, I noticed a surge
in the number of wheat pennies and older quarters (pre-state quarter era). From my experience such an event always
precedes a massive downturn.


Note to Dub: Well, I -would- do something to fix this mess. But, haven't you always been bailed out of every bind
you've ever been in? Besides, I can't seem to come up with a way to fit my inevitable -crucifixion- by your
Right-Wing buddies in my Career Development Plan.

My Theme choice today... Following AnneD's lead:

"Where Have All The Cowboys Gone?" -- Paula Cole.

Oh you get me ready in your 56 chevy
Why don't we go sit down in the shade
Take shelter on my front porch
The dandy lion sun scorching,
Like a glass of cold lemonade
I will do laundry if you pay all the bills

CHORUS:

Where is my John Wayne
Where is my prairie song
Where is my happy ending
Where have all the cowboys gone

Why don't you stay the evening
Kick back and watch the TV
And I'll fix a little something to eat
Oh I know your back hurts from working on the tractor
How do you take your coffee my sweet
I will raise the children if you pay all the bills

Chorus

I am wearing my new dress tonight
But you don't, but you don't even notice me
Say goodbyes
Say goodbyes
Say goodbyes

We finally sell the chevy
When we had another baby
And you took the job in tennessee
You made friends at the farm
And you joined them at the bar
Almost every single day of the week
I will wash the dishes while you go have a beer

Chorus

Where is my Marlboro man
Where is his shiny gun
Where is my lonely ranger
Where have all the cowboys gone
Yippee yo, yippee yeah
http://www.lyricsmania.com/ ]

[AnneD]

47. Good Choice Prag....

I like that one too. I was doing a double-honouring Willie and keeping a SW economic theme. I really like 'My Heroes Have Always Been Cowboys'-but I went for the lessor known to broaden horizons-always a fun thing. I get a kick out of the themes as I am such an audiophile.

[Hugin]

28. Seems to be a typo in this piece...

"fuel a buying binge" Should be; "a buying binge of fuel"


Thnx.

[ozymandius]

8. AP Exclusive: 2 beef processors cited for humane violations

WASHINGTON - A government inspection of slaughterhouses found significant problems with the treatment of cattle and two of the nation's largest beef processors — both of which provide meat for the National School Lunch Program — were slapped with humane handling violations.

.....

Audits by the Agriculture Department's Food Safety and Inspection Service resulted in "noncompliance" records to a National Beef Packing Co. plant in Dodge City, Kan., and a Cargill Meat Solutions plant in Fresno, Calif., according to information obtained by the AP under a Freedom of Information Act request.

The audits of 18 slaughterhouses found that some cattle were not being stunned properly on the first try, others were subject to overcrowding conditions, and others had to be electrically prodded to get them to move.

.....

Paul Shapiro, senior director of the Humane Society's factory farming campaign, called Cargill's explanation of balking "far-fetched." He also questioned why the company would be using electric prods with no batteries in them.

http://news.yahoo.com/s/ap/20080430/ap_on_go_ca_st_pe/slaughterhouse_abuse

[ozymandius]

9. European shares in tight range ahead of Fed rate decision

LONDON (MarketWatch) -- European shares broadly held in a tight range on Wednesday ahead of a decision on interest rates from the U.S. Federal Reserve. Company movers included Siemens, up 1.4% after guiding for 2008 operating profit in line with 2007, while shares in SAP fell 4.3% after it posted a lower first-quarter net profit.

-quite short story with charts-

http://www.marketwatch.com/news/story/european-shares-tight-range-ahead/story.aspx?guid=%7B4074A5E8-A4B5-4611-9B3A-68F38F9C5FA4%7D&dist=msr_6

[Ghost Dog]

26. Europe shares turn positive after US GDP data

LONDON, April 30 (Reuters) - European shares reversed losses to trade higher on Wednesday after data showed the U.S. economy grew at a faster pace than expected in the first quarter, allaying recession fears as investors geared up for a key interest rate decision.

The U.S. government said gross domestic product grew by 0.6 percent in the first three months of this year, compared with growth of 0.6 percent in the last quarter and compared with estimates for growth of just 0.2 percent.

By 1233 GMT the FTSEurofirst 300 index of top European shares was up 0.2 percent at 1,331.30 points, versus 1,326.75 points just before the release of the data.

/.. http://www.reuters.com/article/marketsNews/idCAL3089326820080430?rpc=44

[Dr.Phool]

36. How much of that was from increased fuel costs?

Or medicines?

[Ghost Dog]

38. Mostly price inflation, I would guess.

Stock markets have become really very short-term, short-sighted, hence volatile, haven't they?

[Demeter]

41. Eyes Wide Shut

Or maybe they are celebrating the passing of the discoverer of LSD.

[Tansy_Gold]

51. Kevin Phillips on celebrations and what follows

From "Wealth and Democracy: A political history of the American rich," (c) 2002.

pp. 370-371


Because speculation played a significant role in so many of the major U.S. economic crises and downturns, a follow-up often came in moods or waves of post-Crash securities or financial reform. The most stark example came with the New Deal securities, banking, and holding company laws of 1933-35. Other responses included the reforms in state incorporation processes after 1837, the pressures for a financial lender of last resort that built up after 1907, and the restrictions on securities program trading imposed after 1987.

Beyond these topical reforms, however, the major economic downturns -- perhaps we should say "post-bubble repentance" -- often led to a wider range of upheavals dealing with taxes, the conduct of elections, and corporate behavior. Indeed, as we have seen, the Populist-Progressive years that followed the depression of 1893 and the New Deal era launched after the Crash of 1929 stand among the great reform periods of U.S. history. Each marked a major turn from the increasingly discredited politics of private interest to the beckoning causes of public interest.

In this sense, the United States has been a nation in which politics has justified the "creative destruction" theories of Joseph Schumpeter. Periodic watershed elections have led to reforms that cleared out the incompetent, reckless bankers, corporate executives, and goverment officials, the failed political party, and everyone else who might be blamed for the miscarriage of another economic cycle or bubble. Besides the reform eras that developed after the econmomic watersheds of 1896 and 1932, it is possible to take other national political watersheds, 1860 and 1968-72, and also find bubbles and bear markets nearby (1857, 1974). These economic connections, however, were less substantial.

For this discussion, what stands out about the prededents of the 1890s and especially the early 1930s is that they followed a level of speculation touched with myth and dream, the assurances of social Darwinism and the recurrence of what might be called conservative Market Utopianism. The utopia of American liberal or progressive politics has been the perfectability of man or the achievability of justice and equality. The equally unachievable utopia of economic conservatism has been laissez-faire or the perfectability and enthronement of the market.

The peril of any utopianism, of course, is how it suspends rationality and pursues a dream. In the case of millennial American conservatism, the political dream, for all its responsiveness to the tangible self-interest of rich constituencies, has been the illusion of markets as potential parliaments rather than descendants of carnivals, as rational decision-makers rather than precarious litmuses of human nature. Small wonder that when such exaggerated and irrational dreams implode speculatively, popular regret and remonstration have taken over -- the Flemish and Dutch fatal cycle of worldly fortune.

During the summer of 1998 in the Hamptons, a speculative epicenter, Business Week described a growing edginess: "'When will it all end?' is heard as much as 'Is that Martha Stewart?' No one actually says it out loud, but the question is always there. If the market goes, how in the world will I pay for that enormous house? The cars? The lessons? The clubs? So people bravely party on . . . it's splendid. It's exciting. It's like that other Long Island party that Gatsby threw in the '20s, waiting to end badly."

And, of course, it did. Twice before, in the Gilded Age and in the cataclysm leading to 1932, the failure of laissez-faire, a too-great reliance on markets, and the insistence of False Joy on blowing her disastrous bubbles had turned ideology and government in the United States back in the direction of democracy and reform. The cycle of worldly fortune so troubling to bygone centuries is hardly likely to worry cyber-markets that have long since forgotten their carnival past. Human nature, however, has also turned to a very different realm of politics to express its frustrations.

<end snip>

Seriously, SMWers, this book is pure gold, while I am just


Tansy Gold

[Demeter]

55. Other than the Period Surrounding the Revolution, When Has

this people ever followed or pursued the utopia of liberalism and progressive politics, the perfectability of Man (forget it girls, it's not possible), and the achievement of justice and equality?

My god, America was dragged kicking and screaming into existence in the first place. A lot of people left, so they could stay British. And it took a bloody civil war to free the slaves, however planned or inadvertent that may have been, a near-civil-war to get women the vote, and civil rights to get other races and the opposite sex nearly the same rights as white males.

The only thing that looked like liberal excess was the Temperance movement, and that was more a combination of religious fundies and desperate women than anything else, a combination that will never happen again, and which didn't really work anyway.

[ozymandius]

10. Alcatel-Lucent posts fifth straight quarterly loss

LONDON (MarketWatch) -- Shares of Alcatel-Lucent SA fell as much as 9% on Wednesday after the world's largest maker of telecommunications equipment posted its fifth straight quarterly loss and forecast a decline in sales this year.

The net loss for the three months through March 31 widened to 181 million euros ($282 million) from a loss of 8 million euros posted in the year-ago quarter.

Adjusted operating profit came in at 36 million euros compared with a loss of 244 million euros in the first quarter of 2007. The latest results, helped by a capital gain of 31 million euros from the sale of intellectual property rights, beat the 46 million-euro loss forecast by 11 analysts polled by Dow Jones Newswires.

.....

Alcatel-Lucent also turned more cautious on its outlook for the industry. It now expects the global telecommunications equipment market to be flat this year. It had previously forecast it to be flat to slightly up. The group said that while the long-term prospects for the industry are "positive," the current macroeconomic environment remains "uncertain," leading it to be "prudent."

http://www.marketwatch.com/news/story/alcatel-lucent-posts-quarterly-loss-cuts/story.aspx?guid=%7B80A6742D-B514-4382-A131-66C008D972BE%7D&dist=msr_1

[ozymandius]

11. Housing prices post record declines

Las Vegas, Miami and Phoenix all saw prices plummet by at least 20%. And so far, there is no sign of a bottom.

NEW YORK (CNNMoney.com) -- Home prices have posted another record decline, as most of the nation's largest markets suffered double-digit drops over last year, a survey released Tuesday shows.

The S&P Case/Shiller Home Price Index, which tracks 20 of the largest housing markets, showed prices plummeting by 12.7% in the 12 months ending February. That's the biggest fall since the index began tracking prices in 2000.

Of those 20 metro areas, 17 posted their largest year-over-year declines ever. Ten of the 20 cities posted double-digit dips.

.....

But the drop in home prices appears to be accelerating. Indeed, Baker said that at the rate prices are falling, as much as $6 trillion in home values could be wiped out from the top of the market in June, 2006, through the end of this year.

http://money.cnn.com/2008/04/29/real_estate/housing_price_fall_deepens/?postversion=2008042914

[ozymandius]

12. Countrywide: Bad loans and $900M loss

NEW YORK (CNNMoney.com) -- Countrywide Financial Corp. once again found itself mired in red ink, reporting a loss Tuesday of nearly $900 million as higher housing-related credit losses engulfed the mortgage lender's results.

The Calabasas, Calif.-based company said it lost $893 million, or $1.60 a share, in the first quarter, down from a profit of $434 million, or 72 cents a share, a year ago.

Wall Street's forecasts about the company's results varied wildly, but analysts, on average, were expecting the company to report a profit of 2 cents a share, according to Thomson Financial.

Revenue at the company also fell sharply to $678.9 million from $2.41 billion a year ago.

.....

The dreary numbers were largely due to higher credit-related costs, which were driven by more mortgage delinquencies and defaults by borrowers. During the quarter, the company said it was forced to set aside $1.5 billion for losses on residential loans, up from just $158 million a year ago.

In a sign of just how bad things have gotten, the already harrowing delinquency numbers in Countrywide's subprime portfolio moved higher to 35.88% from 33.64% in the previous quarter. Even the company's conventional loan portfolio showed deterioration, as delinquencies jumped to 6.48%.

http://money.cnn.com/2008/04/29/news/companies/countrywide/index.htm?postversion=2008042912

[ozymandius]

13. Short's story (Wall Street short seller's tale)

(Fortune Magazine) -- This is indeed a concern and we will tackle it." That was SEC chairman Christopher Cox's handwritten note to a senator worried that companies were retaliating against analysts who produced research critical of them.

Almost three years later, it's hard to see any sign that the SEC takes this issue seriously. Stories about companies not permitting questions on conference calls from critical analysts, or excluding them from meetings, are routine. These days we have lawsuits, job loss, and the slander of those whose livelihoods depend on their reputations.

......

But the most troubling material concerns an issue that is bigger than Allied and Einhorn's battle: It's the way criticisms of corporate behavior are received in the marketplace. Many, including the SEC, appeared inclined to shoot the messenger. (Even you, dear reader, probably don't like to hear criticism of stocks that you own.) The scary result, Einhorn argues, is that "the cost of open analysis and open criticism (is) much too high for participants." The losers? Investors.

http://money.cnn.com/2008/04/29/news/companies/McLean_Bulldog_Shorts_Story.fortune/index.htm

[ozymandius]

14. Rebates might be too little, too late

NEW YORK (CNNMoney.com) -- Tax rebates are starting to arrive in bank accounts. But many economists doubt that they will keep the economy from recession.

The stimulus package, passed with overwhelming bipartisan support earlier this year, will give rebates to about 130 million Americans, costing the U.S. Treasury more than $110 billion. Married taxpayers earning $150,000 or less will get up to $1200 while single taxpayers earning $75,000 will receive up to $600.

But since the measure passed Congress, there have been growing signs that the U.S. economy has already fallen into recession.

......

Another 80,000 job losses are forecast to be reported in the April employment report this Friday, according to economists surveyed by Briefing.com, while the unemployment rate is expected to climb to 5.2%.

In addition, leading retailers have reported disappointing sales. Auto sales have tumbled 8% from year-earlier levels in the first quarter. Home prices and sales have also continued their slide.

Finally, rising food and energy prices have hit consumer confidence. With that in mind, Achuthan thinks that people who will be receiving rebates will probably use them to pay bills or deal with a tighter budget brought on by higher prices. In other words, there won't be the type of incremental spending that could actually spur the economy.

http://money.cnn.com/2008/04/28/news/economy/rebate_recession/index.htm?postversion=2008042813

[UpInArms]

16. dollar watch

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

Last trade 72.886 Change +0.023 (+0.03%)

FOMC Preview: Will A Rate Cut Stem Further EUR/USD Declines?

http://www.dailyfx.com/story/topheadline/FOMC_Preview__Will_A_Rate_1209498355964.html

Federal Reserve interest rate announcements have traditionally been big market movers for the US dollar, but with the markets weighing the odds for a pause in the Federal Open Market Committee’s rate cut cycle, this week’s decision could prove to be a pivotal point for the markets. Currently, futures markets are pricing in an 84 percent chance of a 25bp cut to 2.00 percent on Wednesday afternoon, but given signs that a hawkish bias may be emerging within the FOMC, they are also pricing in a 16 percent chance that the Committee will leave rates unchanged for the first time since August 2007. Regardless of how the FOMC votes, the news has the potential to spark significant volatility not only for the US dollar, but also the Treasury and US stock markets.




As indicated in the data tables above, the majority of US indicators reflect major weakness in the US economy. As consumer sentiment has waned amidst rocketing energy costs and crumbling equity markets, personal spending has slowed. Indeed, while Advance Retail Sales reflected an improvement in March, this was purely the result of rising gas prices, as the index is not adjusted for inflation. Indeed, the non-manufacturing sector in general – which accounts for approximately 70 percent of total economic activity in the country and includes retail, services, and finance – is looking rocky as the March ISM survey remained in contractionary territory, despite a mild improvement. Likewise, the manufacturing sector isn’t faring well as the depreciation of the US dollar has done little to boost export demand. Producers are also grappling with high raw material costs that they are unable to pass on to their buyers, and as a result, profit margins are narrowing. Labor market trends do not bode well for growth either, as non-farm payrolls have fallen negative for three consecutive months and are expected to do so again when NFPs are released this Friday. With finance-related companies, among many others, likely to shed even more workers as the market turmoil persists, employment conditions may continue to sour as well.

What about the housing sector? Pending, new, and existing home sales are still showing declining purchases as supply far outweighs demand; not to mention that restrictive borrowing requirements make it difficult for even the most credit-worthy to get a mortgage. The most frustrating development for the Federal Open Market Committee, however, is inflation: while headline CPI held steady at 4.0 percent in March, core CPI growth accelerated, suggesting that the massive gains in energy and food prices are feeding through into all consumer goods. Overall, nearly every growth indicator we follow points to additional rate cuts by the FOMC on Wednesday, but with inflation becoming uncomfortably high, the concurrent policy statement could contain a hawkish tone.

...more...

FOMC Ahead, Will Bernanke Surprise And Keep Rates On Hold?

http://www.dailyfx.com/story/bio2/FOMC_Ahead__Will_Bernanke_Surprise_1209549963505.html

The Euro fell below 1.5530 on weaker than expected German employment data. Jobless claims fell a mere 7K against expectations of 30K, as Europe’s largest economy starts to show signs of weakening. Despite the EZ CPI-estimate easing to 3.3% and business confidence falling to a 2 ½ year low of 97.1, the Euro eventually found a bid tone and has started to consolidate ahead of the FOMC rate decision. Although inflation has eased a bit, it still remains at extremely high levels and will remain a concern for the ECB going forward.

The BoJ left their benchmark rate unchanged at 0.50%, with new Governor Shirakawa noncommittal on future policy bias. The central bank head said that the MPC will remain flexible in its decision making and had no current slant toward subsequent decisions. Policy makers would warn that the downside risks to the economy were greater than the upside, which was reinforced by Japanese industrial production falling at its fastest pace in five years at -3.1% in March. However, the central bank also sees inflation rising 0.8% to 1.0% for the year and reiterated its belief that keeping interest rates low provides long-term risks, increasing speculation that the next policy move will be a rate hike. The remarks provided some selling pressure on the USD/JPY before the pair retraced above the 1.40 handle.

U.K. consumer confidence fell to the lowest level since 1992 according to the Gfk survey which fell to -24. The deteriorating housing market continues to weigh on the economy as house prices reported their first annual decline since 1996. According to Nationwide Building Society prices fell another 1.1% in April dragging the annualized rate to -1.0%. BoE committee member and perennial dove David Blanchflower warned that “We face a real risk that the U.K. may fall into a recession, and aggressive action is required to prevent this from happening”

The upcoming Q1 GDP numbers and the FOMC rate decision may put the dollar on a long-term path. Expectations are that the U.S. economy grew by 0.5%, signaling the economy hasn’t dipped into a recession yet. The key to the number will be whether companies have been building inventories or have they sold through goods to the consumer. The major event risk on the day is the Fed rate decision, with the MPC expected to cut rate s by 25 bps and signal a pause to their current easing policy. However, speculation has increased that Chairman Bernanke may heed the warnings of future inflation and the potential of new bubbles and leave rates unchanged. Either way the story is expected to a dollar bullish one.

...more...

[Ghost Dog]

40. Gold Falls, Heading for Second Monthly Drop After Dollar Gains

April 30 (Bloomberg) -- Gold fell, heading for a second straight monthly decline, as a strengthening dollar eroded demand for the precious metal as a hedge against inflation. Silver rose.

The U.S. Dollar Index has risen 1.7 percent in April, the first monthly gain this year, on speculation the Federal Reserve today will signal a slowdown in the pace of interest-rate reductions in the U.S. The rally in the index, which measures the U.S. currency against six major counterparts, has led to a 6.6 percent drop in gold this month.

``If the Fed signals a pause, the dollar will rally and we could see gold sell off pretty hard,'' said Matthew Zeman, a trader at LaSalle Futures Group in Chicago.

Gold futures for June delivery fell $1.20, or 0.1 percent, to $875.60 an ounce at 9:23 a.m. on the Comex division of the New York Mercantile Exchange, after earlier dropping to $864.10, the lowest prices for a most-active contract since Jan. 22. The metal fell 5.5 percent in March.

Trading in interest-rate futures shows a 22 percent chance the Fed will leave its benchmark rate unchanged in a policy announcement today. A month ago, trading showed that there was no chance of a pause.

...

Gold pared its losses as a rally in energy prices eroded the metal's appeal as a hedge against inflation. Crude oil gained as much as 0.9 percent after a Commerce Department report showed the U.S. economy grew faster than expected in the first quarter. Gross domestic product rose at a 0.6 percent annual pace in the period. <--- ???

``Gold found some support after crude oil rallied off the GDP number,'' said Frank McGhee, head metals trader at Integrated Brokerage Services LLC in Chicago. ``It's all about the crude move now. There's no independent thought in gold.''

/... http://www.bloomberg.com/apps/news?pid=20601012&sid=atzF6FMUUJ1E&refer=commodities

[UpInArms]

18. GM posts loss of $3.3B on weak US auto market, charges

http://news.yahoo.com/s/ap/20080430/ap_on_bi_ge/earns_gm

DETROIT - General Motors Corp. struggled to a $3.3 billion first-quarter loss, due in part to a weak U.S. market, a strike at a major supplier and plummeting sales of sport utility vehicles and pickups.

The loss reported Wednesday for the January-March period amounted to $5.74 per share and also reflected one-time charges. Without the charges, it appeared GM's adjusted results beat Wall Street expectations.

Its shares rose almost 6 percent in premarket trading.

The nation's biggest automaker had earned $62 million, or 11 cents a share, in the first quarter of 2007.

GM said a two-month strike at American Axle and Manufacturing Holdings Inc. has cost it $800 million and 100,000 vehicles. The strike has affected 30 GM plants.

GM's loss included a $1.45 billion charge to reflect a change in the value of GM's interest in GMAC Financial Services and $731 million to increase GM's liability in Delphi Corp.'s ongoing bankruptcy.

...more...

[DemReadingDU]

21. WSJ: Déjà Vu: The Fed's Interest Rate Dilemma

Déjà Vu: The Fed's Interest Rate Dilemma
By BRIAN WESBURY
April 30, 2008; Page A17

Despite record passenger traffic, airlines are bleeding cash and going bankrupt. Food riots have cropped up around the world, Canada is paying farmers to kill pigs because feed costs too much, and rice, it seems, is in very short supply.

While ethanol subsidies have created havoc, they don't explain everything – like huge increases in precious metals prices, the sharp decline in the value of the dollar, or record-high fuel prices.

What's missing in most analysis is the impact of inflationary monetary policy. Since 2001, and especially since September 2007 – when the Fed started cutting rates in response to credit market issues – excessively easy monetary policy has driven oil and other commodity prices through the roof.

The good news is we've been here before, and we know – well, at least 1980s Fed Chairman Paul Volcker knows – how to get out of this mess. Loose money in the 1960s and 1970s drove up the price of everything. A barrel of oil, which sold for $2.92 in 1965, rose to $40 in 1980. Most people believed that rising commodity prices indicated that the world was running out of resources. The Club of Rome predicted global ruin, and then President Jimmy Carter said that "peak oil" was right around the corner.
.
.
Nonetheless, the Fed opened up the old playbook and cut rates aggressively when subprime loans blew up. This cemented higher inflation into place, crushed the dollar, pushed commodity prices up sharply, and created major problems in the energy, airline and agricultural marketplaces. And just like the 1970s, it is now popular to argue that the world is running out of resources again.

The answer to all of this is for the Fed to lift rates back to their natural rate, which is somewhere north of 5%. Tax-rate reductions and interest-rate hikes cured the world of its ills in the early 1980s. They can do so again.

more in the article...
http://online.wsj.com/article/SB120951671713654689.html?mod=googlenews_wsj

[Demeter]

42. I Don't Think We Could Survive Another Volcker Regime

not right after BushCo finishes raping the economy. We need some recovery time, when things just don't get any worse, at least. And it wouldn't hurt if some serious government investment in people/infrastructure, like health care, education, and retirement/cost of living/unions/fair and transparent elections came first to build the safety net backup.

What we really need is another FDR New Deal.

[mdmc]

25. How much of a tax rebate will a single person in NYS earning 30000?

Anyone know?

[RawMaterials]

34. 600$

[mdmc]

63. thanks for the info

:toast:

[UpInArms]

27. US Treasury to resume 52-week bill as deficit grows

http://www.reuters.com/article/bondsNews/idUSN0123260720080430

WASHINGTON, April 30 (Reuters) - The U.S. Treasury said on Wednesday it will bring back issues of 52-week bills after a seven-year absence because of higher borrowing needs prompted by falling revenues, higher spending and debt redemptions by the Federal Reserve.

The Treasury, announcing a $21 billion refunding of 10-year notes <US10YT=RR> and 30-year bonds <US30YT=RR>, said it would pay down about $53 billion of maturing debt in auctions next week.

The first of the monthly auctions of 52-week bills will be announced on May 29 and will be held on June 3. These were retired in February 2001, when the United States was running budget surpluses.

"Over the last several months, changes in economic conditions, financial markets, monetary and fiscal policy have impacted Treasury's marketeable borrowing needs," the Treasury said in a statement.

...a bit more...

[UpInArms]

30. 9:59 EST ponies for everybody!

Dow 12,882.74 50.80 (0.40%)
Nasdaq 2,431.83 5.73 (0.24%)
S&P 500 1,394.94 4.00 (0.29%)
10-Yr Bond 3.804% 0.021

NYSE Volume 430,378,531.25
Nasdaq Volume 193,764,859.375

09:45 am : The stock market opens modestly higher on what has been a very busy morning for market participants. Better than expected economic reports lifted stocks out of the red in premarket action.

The headliner was the Department of Commerce's advance first quarter GDP reading, which showed the U.S. economy expanded by a larger than expected amount. First quarter GDP rose by 0.6%, topping the consensus estimate of 0.5%. Although growth remains sluggish, this reading shows the economy is not deteriorating rapidly as many pundits have claimed. The GDP deflator -- an inflation measure -- rose at an annual rate of 2.6%. This is better than the expected rise of 3%, but is up from the 2.4% increase in the fourth quarter.

The ADP Employment Report, a measure of nonfarm private employment, showed an increase of 10,000 jobs in April, easily beating the consensus estimate that called for a decline of 60,000. While this better than expected reading is encouraging, keep in mind that the ADP report has a history of inaccuracy compared to the government's jobs report, which is set for release on Friday.

In corporate news, earnings reports have been mostly postive, with Colgate-Palmolive (CL), General Motors (GM), Kellog (K), Kraft (KFT) and Procter & Gamble (PG) all topping their respective estimates. Time Warner (TWX), however, missed its earnings estimate.

The day has just begun since there is more big news on tap. The FOMC will be announcing its decision regarding the fed funds and discount rates at 2:15 ET.DJ30 +30.94 NASDAQ +5.75 SP500 +3.41 NASDAQ Dec/Adv/Vol 823/1318/90 mln NYSE Dec/Adv/Vol 977/1614/72

[UpInArms]

33. U.S. could have recession without drop in GDP

http://www.marketwatch.com/news/story/how-have-recession-even-without/story.aspx?guid=%7B763046C0%2D872E%2D4A00%2DA500%2D8D29FEF13451%7D&dist=sp_inthis

WASHINGTON (MarketWatch) -- The U.S. economy is in a recession, most analysts say, even though the government reported Wednesday that the economy managed to grow, albeit very slowly, in the first quarter.

Gross domestic product increased at a 0.6% annualized rate in the quarter after a 0.6% gain in the fourth quarter. See full story.

That's awfully slow, but is it compatible with a recession?

While some people use the old rule of thumb that a recession is defined as two consecutive quarters of declining GDP, the actual working definition is a bit more nuanced.

According to the economic historians at the non-profit National Bureau of Economic Research, a recession is defined as "a significant decline in economic activity spread across the economy, lasting more than a few months."

It turns out that you can have a recession without two consecutive declines in GDP (we did it in 2001). Indeed, if the $160 billion in fiscal stimulus has the desired impact on the second quarter, the economy may be on track for the first recession in U.S. history without any quarterly decline in growth.

...more...

[Hugin]

35. Well, yeah... Just like we could have a 'Recovery' without adding any jobs...

Just like a few years ago.

I'm gonna have to take a break this morning... Just too many Dumbasses. :eyes:

[Demeter]

43. Only If You Ignore the Fact of Inflation of the Money Supply

making everything twice as much in number of dollars....

[AnneD]

45. A Fascinating Website from another thread...

Kudos to Economic Thread...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x38249#38347

This is a great website to see the number of foreclosures in a give zip code. I checked areas in my town and it was fairly accurate.

http://www.realquest.com/jsp/rq.jsp?action=switch&page=main

[DemReadingDU]

46. That is a good site

We live in a small village in Ohio. Yet there are 12 houses listed in foreclosure, and 1 is in the next street from our house. Yikes!

[AnneD]

48. Local group to hold foreclosure prevention classes

A local community group will hold foreclosure prevention classes twice a week in Houston starting today, to help strapped homeowners devise ways to stay in their homes.

The classes are part of a new campaign by the Association of Community Organizations for Reform Now, which recently received a national grant of $7.8 million from the National Foreclosure Mitigation Counseling Program.

more.....

http://www.chron.com/disp/story.mpl/business/5742699.html


A sign of the times, even thought the recession has not inundated us yet.

[AnneD]

49. Foreclosure can push renters out the door

<snip>
In the Houston area, it's not just homeowners who are hurting from rising foreclosures. Renters are facing eviction, as investors who own the houses fail to make payments on the homes.

According to Houston Association of Realtors data, 21,304 homes, including condos and townhomes, in the Houston area were rented by real estate agents in 2007. That's up from 17,718 the year before.

Exactly how many of those homes are in or near foreclosure is unclear. Still, consumer groups say they get a handful of calls from tenants each month on the issue.

"Between my e-mails and the consumer complaints, this is not uncommon," said Richard Alderman, director of the Consumer Law Center at the University of Houston.


<snip>

http://www.chron.com/disp/story.mpl/business/5741271.html

This is showing up more and is actually making the news here.

[AnneD]

50. Troops stranded by airline bankruptcy

WASHINGTON — The abrupt collapse of ATA Airlines has left an untold number of U.S. soldiers, sailors and Marines stuck in Iraqi and Afghan airports while they await a ride home. Some face travel delays of up to a week, military officials acknowledge.

"It's hard to believe that when this bankruptcy happened, the Department of Defense didn't have a backup plan," Bret Rumbeck, press secretary for Rep. Jim Costa, D-Calif., said Tuesday. "It seems they dropped the ball a little bit."

Costa is one of several lawmakers who have been drawn into the homecoming headache. The mother of a Marine reconnaissance sergeant from Fresno, Calif., who was stranded in Iraq contacted Costa's office late last week to complain about her son's treatment.

<snip>


The company was part of a larger military charter team managed by Federal Express. In September, according to Aviation Week, the FedEx team won a one-year, $1 billion airlift contract with the U.S. Transportation Command. When FedEx recently announced plans to drop ATA from the military charter team, offering no public explanation, airline officials said they had no choice but to shut down.

http://www.chron.com/disp/story.mpl/business/5741050.html

If I didn't know better-I'd swear this was another way to keep troops in Iraq. God I am so cynical.

[AnneD]

52. FDA warns Merck to fix vaccine plant problems

TRENTON, N.J. — The Food and Drug Administration has ordered drugmaker Merck & Co. to correct manufacturing deficiencies at its main vaccine plant.

The agency on Wednesday released a warning letter sent to Merck's chief executive, Richard T. Clark, that states FDA inspectors determined manufacturing rules are not being followed at the plant in West Point, Pa., just outside Philadelphia, which makes a number of children's vaccines.

The nine-page letter refers to what the FDA calls "significant objectionable conditions" found during repeated inspections at the plant between November and January.

Merck officials didn't thoroughly investigate when vaccine batches inexplicably failed to meet specifications, even if batches had been distributed, according to the heavily redacted letter.

The FDA also said that some drug components were tainted, and that the plant didn't have written procedures, tests or other laboratory controls to ensure "strength, quality, and purity" of products.

http://www.chron.com/disp/story.mpl/ap/business/5742774.html

Last year they had to recall 1.5 mill doses of hib b. We have met the enemy and they is us.

[AnneD]

53. Shrinking Dollar Meets Its Match

In Dolphin Teeth

HONIARA, Solomon Islands -- Forget the euro and the yen. In this South Pacific archipelago, people are pouring their savings into another appreciating currency: dolphin teeth.

Shaped like miniature ivory jalapeños, the teeth of spinner dolphins have facilitated commerce in parts of the Solomon Islands for centuries. This traditional currency is gaining in prominence now after years of ethnic strife that have undermined the country's economy and rekindled attachment to ancient customs.

Over the past year, one spinner tooth has soared in price to about two Solomon Islands dollars (26 U.S. cents), from as little as 50 Solomon Islands cents. ...

http://online.wsj.com/article/SB120951522912254575.html?mod=hps_us_pageone


Some how the thought of Dolpins gumming their way our of tuna nets is a bit much....

[Demeter]

56. You're On a Roll There, AnneD!

good articles! I get a morning off tomorrow, and can do some posting from the week's newsletters accumulating in the mailbox....

[Demeter]

57. So What Kind of Lightning Bolt Struck at 3 PM to Bring the Market to Its Senses?

Was it the earthquake in California, or something?

[Hugin]

58. Well, there was a rate cut...

:shrug:

[Demeter]

59. And It Wasn't Big Enough?

That's what a downer means, right?

[Hugin]

60. It was only a quarter of a point...

Broke their little hearts.

They'd been kept waiting since Tuesday, after-all.

It's all so opaque now... My calls are pretty much guess work.

[Ghost Dog]

61. Not a strong enough signal that there will likely be no further cuts,

as inflation demands, I understand:

US stocks, dollar slip on intereset rate doubts
Wed Apr 30, 2008 4:15pm EDT
NEW YORK, April 30 (Reuters) - U.S. stocks fell on Wednesday after the Federal Reserve cut interest rates but left its next move unclear, causing the dollar to slip and raising the chances of still higher commodity prices ahead.

With an uncertain outlook on interest rates and after U.S. economic data showed the weakest consumer spending since 2001 and reduced business investment, investors locked in profits in stocks, which in April posted the first positive month since October.

The U.S. 30-year Treasury bond <US30YT=RR> traded a full point higher in price as a debt rally gained momentum after the Fed cut its benchmark lending rate to banks one-quarter of a percentage point to 2 percent.

Oil fell $2 a barrel, extending a retreat from a record high this week to more than 5 percent following a U.S. government report that showed crude oil stockpiles rose much more than expected in the world's top energy consumer.

The rate cut by the Fed -- which has now trimmed rates by 3.25 percentage points since September -- had been expected. But Fed policy-makers did not signal a pause in their rate-cutting campaign.

Many economists and analysts worry that the rate cuts will only spur higher inflation down the road and keep commodity prices on the boil, especially if rates are cut more in the future.

"They had such an opportunity to send (commodity) prices tumbling," said Peter Beutel, president of energy consultancy Cameron Hanover in New Canaan, Connecticut.

"Every time they cut rates and leave the door open for another cut, they basically are just giving away the store when it comes to commodity prices," Beutel said.

/... http://www.reuters.com/article/marketsNews/idINN3053781620080430?rpc=44&sp=true

[Demeter]

64. It's Really Hard to Get "Cutters" to Stop

Whether they are sexually abused and trying to stop the psychic pain, or economic abusers looking for a way out to stop the pain of their economic crimes...

[AnneD]

66. LOL,LOL

they need to find other avenues to release pent up pressure. Instead of screwing the counrty or economy perhaps we should order some room service for the next meeting.

[ozymandius]

62. 4.5 billion shares traded. And this was all that happened?

Dow 12,820.13 Down 11.81 (0.09%)
Nasdaq 2,412.80 Down 13.30 (0.55%)
S&P 500 1,385.59 Down 5.35 (0.38%)
10-Yr Bond 3.759% Down 0.066
NYSE Volume 4,508,903,000
Nasdaq Volume 2,219,327,250

4:30 pm : It was an incredibly busy day for market participants on Wednesday. The market was bombarded with an FOMC announcement, several economic releases and a plethora of earnings reports. The stock market posted a healthy gain for most of the session on news the U.S. economy expanded by a larger than expected amount in the first quarter, but then retreated into negative territory shortly after the FOMC announcement.

As expected, the Federal Reserve cut the fed funds rate by 25 basis points to 2.00%, bringing its total easing since September to 325 basis points. The discount rate was also cut by 25 basis points to 2.25%. The FOMC cited continued weakness in economic activity.

The Fed's statement regarding inflation concerns was largely unchanged from the March 18 release. The Fed said readings on core inflation have improved somewhat, but energy and commodity prices have increased, as have inflation expectations. The Fed believes inflation will moderate in the coming quarters and will continue to monitor inflation developments carefully.

Similar to its previous statement, the Fed said its rate cut easing to date and other efforts to improve market liquidity will help "promote moderate growth over time and mitigate risks to economic activity." However, this release left out the statement that "downside risks to growth remain." The absence of this comment indicates the Fed plans to stand pat on rates, but as it noted, will act as needed depending on future economic and financial developments.

Basically the Fed is giving the indication that its latest rate-cutting cycle is over. That does not mean the Fed is going to raise rates imminently though. Rather it means the Fed is in a wait-and-see mode. The stock market spiked as high as 1.0% on the release, but quickly reversed course to trade down as much as 0.5%. In the end, the stock market settled with a modest loss, near its worst level of the session. At the same time, the long end of the Treasury curve saw buying interest.

Although the FOMC announcement overshadowed the day's prior events, there were plenty of important items -- most importantly a better than expected reading on the state of the U.S. economy.

Advance first quarter GDP rose by 0.6%, topping the consensus estimate of 0.5%. Although growth remains sluggish, this reading shows the economy is not deteriorating rapidly as many alarmists have claimed. The GDP deflator -- an inflation measure -- rose at an annual rate of 2.6%. This is better than the expected rise of 3%, but is up from the 2.4% increase in the fourth quarter.

Separately, the ADP Employment Report, a measure of nonfarm private employment, showed an increase of 10,000 jobs in April, easily beating the consensus estimate that called for a decline of 60,000. Although the better than expected data are encouraging, the ADP report has a history of being inaccurate when compared to the government's monthly jobs report, which will be released on Friday.

In corporate news, Citigroup (C 25.27, -1.05) announced it is raising $4.5 billion in a common stock offering at a 4% discount from Tuesday's closing price. The dilutive nature of the offering kept Citigroup's stock depressed, and sent the financial sector (-1.0%) into a laggard position.

The majority of earnings reports were better than expected. Colgate-Palmolive (CL 70.70, -5.08), General Motors (GM 23.20, +2.00), Kellogg (K 51.17, -0.81), Kraft (KFT 31.63, +0.86) and Procter & Gamble (PG 67.05, +1.15) all topped expectations. Time Warner (TWX 14.85, -0.42), however, missed its earnings estimate.

Crude oil had an interesting day of trade, going from a gain of 0.9% to a loss of 2% after the Department of Energy said in its weekly report that crude stockpiles rose by a larger than expected amount. Crude eventually recovered to a loss of just 0.6% at $114.90 per barrel after the dollar (-0.4%) weakened following the FOMC rate cut.

Although the stock market did not end the month of April on a strong note, the bulls are pleased with the end result. The S&P 500 rebounded 4.8%, snapping its five-month losing streak, and marking its largest monthly percent gain since December 2003. Commodities also had a strong month, gaining 5.8% with crude oil rallying 13.1%.DJ30 -11.81 NASDAQ -13.30 NQ100 -0.8% R2K -0.4% SP400 -0.1% SP500 -5.35 NASDAQ Dec/Adv/Vol 1463/1403/2.20 bln NYSE Dec/Adv/Vol 1475/1652/1.44 bln

[Demeter]

65. I Guess We Should Be "Grateful" If Wasn't Worse

Personally, I'd like a big crash that wipes out the serial fraudsters instantly so that they lose the ability to dictate economic policy--and hits too fast to touch the little people--- with a crackerjack set of economic advisors and a President willing and able to make swift and useful repairs, and a Congress too scared to f*** it up.

Clone FDR!

Open the windows on Wall Street and let the chips fall where they may.

[Tansy_Gold]

67. I'm with you

The question is, do I want it to happen soon, and still on boooooshie's watch where he'd have to take the blame but would also still have time to screw up the "recovery" -- or do I want it to happen a little later, when we've got (we hope!) a Dem administration to contain the fall-out and direct the recovery, even if that gets booooosh off the hook and gives him time to make things even worse?

All I know is I don't think there is any hope for real recovery unless and until the pyramid collapses under its own weight. It must and it will happen, but when??????

Tansy Gold, scared