STOCK MARKET WATCH, Tuesday December 2

[ozymandius]

Source: du

STOCK MARKET WATCH, Tuesday December 2, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 49
WHERE'S OSAMA BIN-LADEN? 2589 DAYS
DAYS SINCE ENRON COLLAPSE = 2886
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.
$1 USD = EUR 1.06678
$1 USD = JPY 116.6200

In recognition of those prescient of the Dow's precipitous return of Bush values (9/29/08): JuneBourder and AnneD

AT THE CLOSING BELL ON December 1, 2008

Dow... 8,149.09 -679.95 (-8.34%)
Nasdaq... 1,398.07 -137.50 (-8.95%)
S&P 500... 816.21 -80.03 (-8.93%)
Gold future... 776.80 -42.20 (-5.15%)
30-Year Bond 3.24% -0.25 (-7.20%)
10-Yr Bond... 2.72% -0.24 (-8.05%)






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

Shock and Awe at COMEX
BY ROB KIRBY

This past Friday, Nov. 28, 2008, was first notice day for delivery of the December COMEX (a division of NYMEX) gold and silver futures contracts which trade on the New York Mercantile Exchange. The chart appended below shows that on Friday, 8,600 gold futures contracts @ 100 ounces per contract (and 3,040 silver futures contracts @ 5,000 ounces per contract) were delivered. To try to give some perspective to these numbers the previous delivery month for gold futures was October, 2008 when there were 11,554 deliveries for the entire month – a “big” number by historical standards.

-see chart-

It is important for casual market observers to understand that normally, investors who are speculating on the price of gold DO NOT take delivery of the underlying commodity. Instead, whether they are “long” or “short” the future, they usually “roll” their positions into the next contract month as the current or “spot” month approaches its delivery cycle, which begins with first notice day (Friday was the 1st notice day for delivery of the Dec. Gold and Silver Futures Contracts).

.....

Why The Rush to Gold?

The reason that investors are flocking to gold the world over is highly understandable given that banks are failing all over the world and the U.S. Federal Reserve and U.S. Treasury are printing MASSIVE amounts of money to “bail out” many of those who remain in business. We see this empirically demonstrated by monetary aggregate data supplied by the St. Louis Federal Reserve:

-shocking chart-

While we see signs of “big money” moving into gold through machinations occuring with respect to “deliveries” at COMEX, there are other ‘tell tale’ signs that demand for physical metal is in fact SOARING. This is reflected by the recent decoupling of the price of COMEX gold futures and real costs one must incur to obtain physical ounces in coin or bar form. The premiums being paid for physical ounces have decoupled to the point where leading gold web sites now routinely list current ebay pricing for gold bars and coins to achieve “accurate” real world pricing for physical metal.

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

[JNelson6563]

33. Wow! That IS a shocking chart!

Knock your socks off shocking.

[Kolesar]

35. printing MASSIVE amounts of money to “bail out” many of those (banks?) who remain in business.

Why The Rush to Gold?

The reason that investors are flocking to gold the world over is highly understandable given that banks are failing all over the world and the U.S. Federal Reserve and U.S. Treasury are printing MASSIVE amounts of money to “bail out” many of those (banks?) who remain in business.

[JNelson6563]

40. I'd sure like to have one of those

magic printing presses! Damn what I could do with that!

Julie

[saigon68]

101. Not Long to Hyper inflation

[Kolesar]

107. Never fear, Paul Volcker's here! ... eom

[Dr.Phool]

41. Holy Shit!

It puts Festivito's numbers to a picture.

[happyslug]

50. Be careful watch the baselines for that chart

The bottom baseline is 800 Billion Dollars NOT Zero (0). This gives makes the monetary base looks low given its was only about 850 Billion and was stable at that level from September 2007 to September 2008 (The Second problem is the short time period of the chart one year in duration, a stable year, so the increase looks huge compared to the relatively stable amount in the year before September 2008). In September 2008 the monetary base shot up to move to about $1500 billion dollars.

Given the high base (800 Billion) on that chart it looks worse then what it is (Not that almost, but nor quite doubling the Monetary base is good, but the bases used makes it look worse then what it would look at a proper chart starting in 2000 and using Zero (0) as a base instead of 800 billion Dollars.

Just a comment on the chart, it shows a bad situation but uses bases to make it look worse then what it would if proper bases were used.

[Demeter]

85. This Chart Doesn't Show the Evaporation of "Vapor Dollars" Either

All those paper profits that went up like smoke when the securities were proven to be anything but secure. If that deflation was taken into account, I believe the chart would be plunging downward.

[ozymandius]

2. Today's Reports

00:00 Auto Sales Nov
Briefing.com 3.8M
Consensus NA
Prior 3.8M

00:00 Truck Sales Nov
Briefing.com 4.3M
Consensus NA
Prior 4.1M

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

[UpInArms]

84. Auto industry U.S. Nov results by auto groups

http://www.reuters.com/article/bondsNews/idUSN0228287220081202

CHICAGO, Dec 2 (Reuters) - Following are U.S. sales and
market shares of cars and light trucks listed by auto groups
and their wholly owned subsidiaries for November versus the
same year-earlier month and for the year-to-date. Percent
changes are based on the daily sales rate.

 Makers         Nov 2008 % Chng   Share  Yr Volume % Chng Share
 ------         -------- ------   -----  --------- ------ -----
 GM-Group        154,256  -41.4   20.8  2,754,978  -22.3   22.4
  Traditional    153,404  -41.3   20.7  2,734,789  -22.2   22.2
  Saab               852  -57.5    0.1     20,189  -32.9    0.2
 ----------
 Ford-Group      122,757  -30.6   16.5  1,843,450  -19.8   15.0
  Traditional    118,353  -29.8   15.9  1,775,301  -19.4   14.4
  Volvo            4,404  -46.5    0.6     68,149  -29.9    0.6
 ----------
 Chrysler LLC     85,260  -47.1   11.5  1,363,309  -27.9   11.1
 ----------
 VW-Group         21,083  -21.3    2.8    285,599   -3.5    2.3
  Traditional     14,295  -19.2    1.9    205,551   -2.5    1.7
  Audi             6,788  -25.4    0.9     80,048   -6.2    0.7
 ----------
 Hyundai-Grp      34,403  -38.6    4.6    636,458   -9.6    5.2
  Hyundai         19,221  -39.7    2.6    377,705  -10.5    3.1
  Kia             15,182  -37.2    2.0    258,753   -8.4    2.1
 ----------
 Mercedes         14,102  -38.2    1.9    206,396   -9.0    1.7
 ----------
 Other Firms     310,567  -33.8   41.8  5,207,863  -10.1   42.3
  Toyota         130,307  -33.9   17.6  2,075,711  -13.7   16.9
  Honda           76,233  -31.6   10.3  1,342,680   -5.8   10.9
  Nissan          46,605  -42.2    6.3    889,248   -9.5    7.2
  Mitsubishi       5,096  -36.2    0.7     92,687  -25.0    0.8
  Mazda           14,134  -31.3    1.9    245,984   -9.6    2.0
  BMW             19,762  -26.8    2.7    281,564   -7.1    2.3
  Subaru          13,706   -7.8    1.8    170,412    0.8    1.4
  Isuzu              130  -73.8    0.0      4,570  -31.1    0.0
  Suzuki           3,216  -46.0    0.4     81,126  -12.3    0.7
  Porsche          1,378  -48.2    0.2     23,881  -25.2    0.2
  Total          742,428  -36.8  100.0 12,298,053  -16.8  100.0
---------------------------------------------------------------

[ozymandius]

3. Oil falls to 3-year low on bleak US economic news

SINGAPORE – Oil prices fell to a 3-year low below $48 a barrel Tuesday in Asia, as more bleak U.S. economic news and plunging stocks markets darkened investor expectations for crude demand.

Light, sweet crude for January delivery was down $1.50 to $47.78 a barrel, the lowest since 2005, in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.

The contract plummeted overnight $5.15 to settle at $49.28 after more signs of a weakening U.S. economy sent the Dow Jones industrial average down 7.7 percent.

.....

In other Nymex trading, gasoline futures fell 1.83 cent to $1.09 a gallon. Heating oil dropped 2.24 cents to $1.59 a gallon while natural gas for January delivery slid 8.7 cents to $6.52 per 1,000 cubic feet.

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

[ozymandius]

4. Gloom returns to world markets after US plunge

TOKYO – Gloom and volatility returned to Asian and European markets Tuesday as investors dumped stocks following huge overnight losses on Wall Street and dismal U.S. economic reports revived fears of a global recession. Oil prices fell to three-year lows.

....

Australia's central bank slashed its key interest rate Monday a full percentage point to 4.25 percent in an attempt to prevent the economy from sliding into recession. But investors took scant comfort from the move, sending the benchmark S&P/ASX 200 index down 4.2 percent to 3,528.2.

Japan's Nikkei 225 stock average tumbled 533.53 points, or 6.4 percent, to 7,863.69, and Hong Kong's Hang Seng index lost5 percent to 13,405.85.

Tuesday's losing streak extended into Europe, where all major benchmarks retreated in early trading. Losses, however, were milder than in Asia. The FTSE 100 index of leading British shares was down 1 percent, Germany's DAX fell 0.4 percent, and the CAC-40 in France was 1.3 percent lower.

http://news.yahoo.com/s/ap/20081202/ap_on_bi_ge/world_markets_16

[Demeter]

86. There Was No Rational Reason To Give Up On Gloom Earlier

so no big deal to revert to it. So the pill wore off. Big deal.

[ozymandius]

5. Recession-hit automakers brace for grim US sales

WASHINGTON – Walloped by the recession, automakers' U.S. sales are plummeting as hard-to-get credit, job losses and other stresses make many Americans wary of taking on big-ticket financial commitments.

Auto sales for November, released Tuesday, are expected to show a drop of 36 percent from a year ago to a seasonally adjusted annualized rate of 10.2 million vehicles, according to Joseph Amaturo, analyst at Buckingham Research. Those sales figures would include the Big Three Detroit car makers as well as foreign companies that sell vehicles in this country.

Later Tuesday, General Motors Corp., Ford Motor Co. and Chrysler LLC will provide a skeptical Congress with details about their long-term viability plans. The U.S. auto companies are desperately trying to secure $25 billion in fresh government loans to help them survive the economic carnage. They insist that bankruptcy isn't an option, even as companies burn through cash and bleed jobs.

http://news.yahoo.com/s/ap/20081202/ap_on_bi_ge/financial_meltdown

[tclambert]

21. Briefing.com says auto and truck sales account for 25% of all retail sales.

I knew it was big, but I didn't know it was that big.

[happyslug]

38. Why do you think State Sales tax receipts are down?

Auto sales have been the #1 source of Sale Tax Receipts for the states for decades. When you hear that your state has a drop is sales tax receipts it is almost always do to a drop in Car Sales NOT a drop in Retail sales.

Various reports showing local sales tax receipt DOWN do to the Drop in Auto Sales:
http://www.bizjournals.com/stlouis/stories/2008/11/10/story5.html?ana=from_rss
http://www.latimes.com/business/la-fi-dealers1-2008dec01,0,6804146.story
http://www.al.com/news/huntsvilletimes/local.ssf?/base/news/122657142187180.xml&coll=1&thispage=2
http://www.signonsandiego.com/uniontrib/20080902/news_1m2sales.html

Report form the state of Michigan, which shows that total Sales Tax Receipt was 6.5 Billion in 2006-2007 out of which over .6 Billion was from the sale tax on Gasoline and .7 billion from the sale of cars (Total 1.3 Billion out of total 6.5 Billion or 20% of buying and operating Automobiles, and this after over four years of sale DECLINE i.e. it use to be a higher Percentage of total Sales receipts):
http://www.senate.michigan.gov/sfa/Publications/Notes/2008Notes/NotesJulAug08jw.pdf

[Festivito]

6. Debt: 11/28/2008 10,661,174,903,807.60 (UP 13,257,348,443.30) (217% of report-avg)

(Public debt up a little. Mostly FICA fluctuating near end of month. Checks go out. Good day all.)

= Held by the Public + Intragovernmental(FICA)
= 6,396,590,860,569.49 + 4,264,584,043,238.19
UP 783,239,406.89 + UP 12,474,109,036.40
(NOTE: Excel 2007 cannot handle ten-trillion plus to the penny. It zeroes the penny.)

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

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 22 reports in the last 30 to 31 days.
The average for the last 22 reports is 6,111,579,406.33.
The average for the last 30 days would be 4,481,824,897.98.
The average for the last 31 days would be 4,337,249,901.27.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 40 reports in 59 days of FY2009 averaging 15.91B$ per report, 10.79B$/day.

PROJECTION:
GWB** must relinquish the presidency in 53 days.
By that time the debt could be between 10.7 and 11.2T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
11/28/2008 10,661,174,903,807.60 GWB (UP 4,932,979,107,626.03 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 636,450,006,895.20 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
11/06/2008 +056,540,493,221.63 ------------**********
11/07/2008 -000,129,624,570.02 ---
11/10/2008 -000,178,876,517.33 --- Mon
11/12/2008 +000,116,562,137.90 ------------********
11/13/2008 -037,830,308,231.82 -
11/14/2008 +039,714,906,312.49 ------------**********
11/17/2008 -001,168,758,314.18 -- Mon
11/18/2008 +035,027,406,490.17 ------------**********
11/19/2008 -000,433,628,717.22 ---
11/20/2008 -000,189,695,810.14 ---
11/21/2008 -000,151,096,322.01 ---
11/24/2008 -000,086,920,504.20 ---- Mon
11/25/2008 +001,468,316,558.23 ------------*********
11/26/2008 +000,650,427,812.76 ------------********
11/28/2008 +000,783,239,406.89 ------------********

94,132,442,953.15 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $996,543,100,548.53 in last 71 days.
That's 997B$ in 71 days.
More than any year ever, except last year, and it's 98% of that highest year ever only in 71 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 71 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3624845&mesg_id=3624852

[Festivito]

76. Debt: 12/01/2008 10,681,135,920,463.00 (UP 19,961,016,655.40) (373% of report-avg)

(Public debt up a lot. FICA/SS brought it down probably due to SS checks gone out for beginning of month.)

= Held by the Public + Intragovernmental(FICA)
= 6,434,879,220,132.56 + 4,246,256,700,330.51
UP 38,288,359,563.07 + DOWN 18,327,342,907.68
(NOTE: Excel 2007 cannot handle ten-trillion plus to the penny. It zeroes the penny.)

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

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 20 reports in the last 30 to 31 days.
The average for the last 20 reports is 5,352,072,874.74.
The average for the last 30 days would be 3,568,048,583.16.
The average for the last 31 days would be 3,452,950,241.77.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 41 reports in 62 days of FY2009 averaging 16.01B$ per report, 10.59B$/day.

PROJECTION:
GWB** must relinquish the presidency in 50 days.
By that time the debt could be between 10.7 and 11.2T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
12/01/2008 10,681,135,920,463.00 GWB (UP 4,952,940,124,281.43 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 656,411,023,550.60 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
11/07/2008 -000,129,624,570.02 ---
11/10/2008 -000,178,876,517.33 --- Mon
11/12/2008 +000,116,562,137.90 ------------********
11/13/2008 -037,830,308,231.82 -
11/14/2008 +039,714,906,312.49 ------------**********
11/17/2008 -001,168,758,314.18 -- Mon
11/18/2008 +035,027,406,490.17 ------------**********
11/19/2008 -000,433,628,717.22 ---
11/20/2008 -000,189,695,810.14 ---
11/21/2008 -000,151,096,322.01 ---
11/24/2008 -000,086,920,504.20 ---- Mon
11/25/2008 +001,468,316,558.23 ------------*********
11/26/2008 +000,650,427,812.76 ------------********
11/28/2008 +000,783,239,406.89 ------------********
12/01/2008 +038,288,359,563.07 ------------********** Mon

75,880,309,294.59 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $1,016,504,117,203.93 in last 74 days.
That's 1,017B$ in 74 days.
More than any year ever, except last year, and it's 100% of that highest year ever only in 74 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 74 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3626641&mesg_id=3626657

[DemReadingDU]

96. That's 1,017B$ in 74 days. Over a trillion in only 74 days

boggles the mind

[tclambert]

102. I like the way Festivito puts that in "thinking in billions"

1,017B$ for 300 million Americans is $3,390, per person. Over ten thousand dollars for a family of three. You know, if you gave that much money to individuals, they could make a few of those mortgage payments that started all this flitter flutter.

[ozymandius]

7. This story is worth repeating, again.

Bush administration ignored clear warnings
Under pressure from banking industry, U.S. government eased lending rules

WASHINGTON - The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents.

....

Bowing to aggressive lobbying — along with assurances from banks that the troubled mortgages were OK — regulators delayed action for nearly one year. By the time new rules were released late in 2006, the toughest of the proposed provisions were gone and the meltdown was under way.

....

In 2005, faced with ominous signs the housing market was in jeopardy, bank regulators proposed new guidelines for banks writing risky loans. Today, in the midst of the worst housing recession in a generation, the proposal reads like a list of what-ifs:

* Regulators told bankers exotic mortgages were often inappropriate for buyers with bad credit.
* Banks would have been required to increase efforts to verify that buyers actually had jobs and could afford houses.
* Regulators proposed a cap on risky mortgages so a string of defaults wouldn’t be crippling.
* Banks that bundled and sold mortgages were told to be sure investors knew exactly what they were buying.
* Regulators urged banks to help buyers make responsible decisions and clearly advise them that interest rates might skyrocket and huge payments might be due sooner than expected.

Those proposals all were stripped from the final rules. None required congressional approval or the president’s signature.

http://www.msnbc.msn.com/id/28001417/

---

There is another issue that concerns Bush's oversight of the OCC (Office of the Comptroller of the Currency). The OCC is charged with enforcing ethical business practices among the banks. The OCC was created after the American Civil War. Never in its history was the OCC used in such a way such that it blocked states from enforcing their own fair lending practices to protect borrowers from predatory lending. So, yet again, we have a case of the Bush administration going beyond passive neglect to a case of enemy action against the governed.

[fasttense]

8. Republicon bushies - destroying America one rule at a time. n/t

[Tansy_Gold]

11. And there is certainly anecdotal evidence going back even further

Even ignorant Tansy Gold saw signs of "something ain't right here" as far back back as early 2002.

I very nearly became a victim in early 2006 when a lender -- and I have no idea who it was -- was willing to lend me $120K on the basis of my having worked three weeks at a temp job at $12/hour. In none of those three weeks had I worked a full 40 hours.

This hand wringing and abject apologies and we didn't know and excuse-mongering is just so much bull shit. They knew. They all knew. They just didn't want to do anything. I won't even suggest they were in denial. They saw a way to suck a whole bunch of wealth out of the working classes and they went for it.



I did some work a few days ago on an insurance claim, details of which will be kept vague and slightly distorted to disguise the actual parties involved. The gist of it was that a landlord was filing a claim on a rental property he owned -- one of several -- that had suffered a serious fire. The property was vacant at the time, but he mentioned in the interview that another of his properties was a frequent target of homeless people. When he recounted an instance where he had been gone for a few weeks and returned to find an entire family had "set up housekeeping" in this vacant house, he said, "And you know what they told me when I brought the police in to evict them? They said they had a RIGHT to decent housing. A RIGHT! And I said well yeah I guess you do but it ain't gonna be in MY house." And the insurance adjuster interviewing him said, "I just don't know what gets into some people's minds that they think they can just walk in and like live someplace."

I felt like asking them if they thought this family should just go into some kind of suspended animation for a while or, more efficiently, just commit mass suicide and decrease the surplus population.

ho ho ho and happy holidays. bah. what a sorry attitude!



Tansy Gold, full of 'tude at 4 a.m.!

[ozymandius]

14. Sounds like you are channeling your inner Dickens.

It was Dickens' social commentary on Victorian England's social and economic policies that we have come to cherish as "quaint" at this time of year. Look at the disastrous callousness of Adam Smith's economic policies then, replace them with those of Milton Friedman today and there's your story.

"Decrease the surplus population" indeed, Tansy. Straight out of "A Christmas Carol" that is.

I wonder if this adjuster would herald the return of debtor prisons and poor houses.

[Tansy_Gold]

15. The inner Dickens

Oh, yes, indeedy!

It is, after all, December and we are being bombarded with the news of the shopping season and the urgency of getting big screen tvs and the latest electronic gizmo, as if that is all there is to the meaning of Christmas (or any other similar holiday that masks the ancient people's understanding that the Solstice marks the changing of the year).

Uncle Ebenezer, unlike Uncle Sam, learned the error of his ways and bailed out the folk who needed it most. He had plenty of his own so he let others keep theirs by tearing up their indebtedness.

Uncle Ben and Uncle George and Uncle Hank haven't yet seen the Ghosts of Christmas and Hannukah and Kwanzaa yet to come -- or maybe they have and they don't care.



Tansy Gold

[ozymandius]

17. No, I don't think they would care either.

Especially that George fellow.

In my mind, the ghosts of Christmas Past, Present and Future stomp off frustrated after showing how these individuals badly impacted so many lives, parried with each showing the ghosts their individual bank balances.

[tclambert]

22. And now you're channeling your inner Charlie Brown as well.

We need an American Dickens. He awakened the British to the horrible treatment of orphans, debtors, child laborers, and children made into criminals. And they passed laws to improve their society. He also held up the example of good businessmen vs. the bad. Really, don't we want our businessmen to be Fezziwigs instead of Scrooges?

[Tansy_Gold]

24. Well, as a recovering novelist. . . . . . . .

I totally agree.


Seriously -- if you look at the instruments of change, most of them are "stories." whether they are "sacred texts" or parables or poems or even novels, it is stories that move us.

Uncle Tom's Cabin

The Jungle

A Christmas Carol


And SMW's favorite, Atlas Shrugged


Michael Harrington's non-fiction "The Other America" moved LBJ to institute his war on poverty, but there was no single character to identify with, no "hero" to cheer for and feel for. Maybe we need that. No maybe about it.



Tansy Gold, who would gladly write it but has no time left after the day job :-(

[SpiralHawk]

18. BUSH REPUBLICONS ignored clear warnings

Gee, isn't that exactly how 9/11 happened.

[Tansy_Gold]

20. Karma

Good goddess, he looks 20 years younger in that pic, not seven.


Tansy Gold, with no sympathy

[AnneD]

46. Morning Marketeers......

:donut: and lurkers. The Thanksgiving trip to visit my daughter was a success and I had a wonderful visit with my daughter. I didn’t have the full California platter-just the sampler. Now what kind of person would I be if I didn’t bring back some cyber goodies to my SMW friends? Now don’t crowd- I have plenty for everyone….

Ozy-a photo of the mother tree. We saw this tree on 101-Straight out of a primordial forest. If you were a floppy footed mammal-you’d hug this tree for dear life.

54anickle-a wonderful bottle of red wine we picked after we toured a vineyard. It goes great with cheese.

Roland99-a picnic lunch for you and an important female in your life at a vineyard.

Prag-the Grand tour of several hospitality rooms in the N. Ca. vineyards. :toast:

Demeter-our best picture of the Golden Gate Bridge. It was taken ass back wards and blind-but it still turned out OK. And it was fun anyway.

Ghost Dog-reservations at the Jimi Hendrix Red House Hookah Lounge in Haight Ashbury

Talking Dog-reservations at a charming Zagat rated Italian restaurant-I recommend the the creamy tomato truffle ghnocci , Greek salad, and tomato/basil mussel and clam antipasto.

Maeve-the Neptune pool at San Simeon, vitamin D is essential in the winter.

JNelson-the formal gardens at San Simeon, because gardening is not just an English thing.

DrPhool-a years worth of In N Out Burgers for you and Fudd. Unless you have them made "Animal style", they are lo cal, very tasty, and go great with adult beverages.

Tansy-A picture of what the kids call FEMAVILLE-a shanty town composed of trailers and tents near the town and my worn copy of Grapes of Wrath and a bottle of good Paso Robles Petite Sirah. I think we can update a great American Novel and I think you are the one that can do it well.

I have a lot more here in my virtual goody bag so don’t be shy-everyone gets a gift. If I didn't mention you right away-speak up.


Happy hunting and watch out for the bears.

[ozymandius]

92. That is truly lovely, Anne. Thank you.

:hug:

[AnneD]

103. The tree was charming indeed.......

maybe not as spectacular as the giant redwoods-but we all had a wow moment when we first laid eyes on it.

[florida08]

75. it sure is

the President and thief deliberately ignored this..I would like to know why. Perhaps he'll write a book explaining it? :sarcasm:

[ozymandius]

9. Automakers ready bold pitch; UAW to mull concessions

WASHINGTON -- Top UAW officials from across the country will meet in Detroit on Wednesday to consider key concessions in hopes of helping Detroit's automakers gain congressional approval of $25 billion in federal loans.
Advertisement

Automakers must submit plans to Congress today to show how they will use the loans. Ford Motor Co. planned to give Congress a clear picture of future, more-efficient models and General Motors Corp. readied a blueprint for cuts across the board.

UAW officials from Ford, GM and Chrysler LLC will meet Wednesday and later break off into meetings of representatives of the individual automakers.

One UAW local official who plans to attend expects the issues considered to include eliminating the jobs bank and further concessions in the way automakers fund the retiree health care trust.

....

A Senate committee will review the automakers' plans Thursday, and a House committee will do so Friday, with the same lineup of the three chief executives and UAW President Ron Gettelfinger expected to testify. A spokesman for the office of House Speaker Nancy Pelosi, D-Calif., said it would be up to the committees to judge the automakers' plans, and that their decision would drive whether Congress returns next Monday.

http://www.freep.com/article/20081202/BUSINESS01/812020354

[Kolesar]

36. Gettlefinger had some animus against Sherrod Brown and would not endorse him

...in the March 2006 primary for US Senate. The UAW endorsed Paul Hackett. It was a big story with Ohio politicos like me.

I gave Sherrod more $$$ than Kerry, Obama, and Howard Dean, combined. Sherrod went on to bury incumbent Dewine by 12 percent.

[TheWatcher]

10. Global Markets Collapsing, Economic Doom And Gloom Everywhere but you wouldn't know it by looking at

the US Futures

http://quotes.ino.com/chart/?s=CBOT_YM.Z08.E

Jammed almost 300 points off the lows set after the close yesterday.

They really are getting obnoxious about this aren't they?

Look, no one wants the Markets to do badly, but no one should want Power Mad Junkies rigging, manipulating, and staging the Markets in a fabricated environment either, because it solves nothing, and creates even worse problems down the road within the system.

What exactly would they have us believe is the reason for all the "optimism" this morning?

Hank and Ben are talking about Zero Rates as casually as you and I would talk about the latest episode of "Heroes."

The new rumor is The Fed will start directly buying US Treasuries.

The other new rumor is the next Financial Heavyweight waiting in the Gallows. Begins with a "B" and ends with an "A".

California is near Bankruptcy.

Mass Layoffs continue to accelerate, including 9,200 from JPM, showing former WAMU employees their appreciation for their service.

Auto Sales are plummeting to record lows.

Perhaps this morning's cover story will be that Thanksgiving Holiday Sales were "brisk" and up some imaginary percent higher from the previous year, and that trampling people to death for cheap Chinese goods only illustrates the determination of the consumer to continue to consume, therefore, everything is bullish, and things will turnaround soon.

Who knows, maybe there won't be one and they'll just say "Just because". That would be the closest thing to The Truth we have heard in a long time.

My preliminary guess is that any strength this morning gets sold, but if volume is light, look for Santa Fed to show up in the last hour of the day or so to bring the Sleigh Of False Hope to your brokerage account.

The ONLY thing Wall Street and TPTB care about this point is keeping the Game going.
One of these days Main Street is going to figure out Wall Street doesn't care if their actions bankrupt, starve, and destroy everyone on this planet except themselves. They just might decide they've had enough of it.

A certain Rush Song from Caress Of Steel Comes To Mind.

Take Care today Marketeers.

The Junkies obviously need their fix, and our intelligence is apparently in dire need of insulting. AGAIN.

[ozymandius]

19. Well said.

Where is there value anymore?

[Dr.Phool]

26. The Forrest Gump Market. Stupid is, as stupid does.

Except for Forrest, everything turned out like a box of chocolates.

If the all powerful market reflected anything other than a loaded-dice crap table, it would have fallen another 1,000pts yesterday. There has been nothing but horrendous economic news for months on end, and what do we get? A sucker rally, a dip, and now a "buying opportunity"? It's like the guy on the ghetto street corner offering to sell you some powdered Drano as heroin, to fix what ails you.

They're just going through the motions right now. Another 50 days, and they can get out of town with all their loot, leaving the country and the new President with a mess that will take generations to fix.

[KoKo]

42. Yes...keeping the last suckers in their Mutual Funds hoping for some return

because "The Market always come back" ...there's a great buying opportunity for every 600 to 700 point dip. Meanwhile watching the market every day it's obvious it's all programmed by the Traders with their puts and calls and the ETF Shorts that make you money on the way down along with the counter ETF's that make you money on the way up. Hedge Funds playing and Shadow Side Markets, Black Boxes and the rest all playing the Casino making money while the average working stiff who's forced into 401-K's or IRA's sits and watches and hopes they are young enough to be able to pull anything of value out down the road for retirement, and those close to retirement are told they will have to just "work longer." What are they supposed to work longer at? What are they supposed to "re-train" to do when thousands are being layed off who will be applying to be Wall Mart Greeters?

Meanwhile the Band Plays On...

[llmart]

94. Yes, yes, and yes.......

As two 60-year olds, my husband and I are sick to death of hearing how we should just buck up and get jobs and ole' Jean Chatzkey says, "Just face it - you'll have to work longer, that's all." Well, that sounds good on paper or as a sound bite, but we live in Michigan. Where do you propose we work? There are NO jobs. And even if there are some out there, as soon as they see you're 60 they aren't going to hire you. And what about those our age who aren't in the best of health? Oh, right now you may be able to get a snow plowing job and maybe if you're lucky you won't have a heart attack. Or I could take a part time $7.00 an hour job that is not close to home and the gas costs more than the money I make. Yeah, that's the ticket.

What a lot of hooey. I'm sick and tired of the meme that baby boomers are spoiled. We've worked very, very hard all our lives. We're not hurting but retirement is not going to be fun.

[DemReadingDU]

98. we are two 60-year olds in Ohio

and it's bleak in this state too. Governor Stickland on front page of today's paper detailing the biggest budget shortfall in 40 years.

Dayton Ohio unemployment already at 9%, and will rise soon when GM shuts down the factory.

:(

[KoKo]

99. "Stocks are Less Net Worth than You Think! (Something I found on Yahoo Retirement) that's a good

read...........It's something...

http://finance.yahoo.com/focus-retirement/article/106224/Stocks-Are-Less-of-Your-Net-Worth-Than-You-Think?mod=retirement-post-spending

[llmart]

105. I read the link.......

I think you have to be realistic here (not you, per se, but the author). How many people have $1 million at the age of 60? Do you know any? I don't. My husband and I have done a pretty good job of saving, but because a lot of it was done through his 401k we didn't have the option of deciding if we wanted it to be in safer vehicles. The company didn't really offer that many safe vehicles, though I did invest a lot of it in the safest thing they offered.

[DemReadingDU]

108. Doesn't the author of that article

understand that the amount in in a 401K, may be declining? Due to toxic things invested by mutual funds, who really knows what anything is worth nowadays? A person might be 'rich' on paper, but it means nothing until they have cash in hand.

I sympathize with people in Michigan too, as they have even more exposure to auto making than Ohio. Indiana too has many auto supplier industries. This section of the country needs more jobs for people who are laid off, or soon to be laid off.

[llmart]

109. My husband was laid off from Chrysler.....

in September. He had sixteen years as an engineer. His pension will be minimal if it's there at all - or if Chrysler even survives. Years ago he worked as an auto engineer at a company in Cleveland that went belly up. The employees had to file a class action suit to get anything from the company and it took twelve years before he got anything. He worked there twelve years and got $5,000. So much for a guaranteed pension. I think a lot of people in this country are very naive in thinking that something is guaranteed. They also think the autoworkers are so lucky because they even have a pension, but what he'd get monthly at 65 is less than $1,000 per month. Meantime, Nardelli keeps collecting golden parachutes from all the places he took down the tubes.

[DemReadingDU]

110. My spouse is a retired union Ironworker

While he does get a nice pension now (worked 35+ years), we were recently sent a warning letter that the pension could be turned over to the Pension Benefit Guaranty Corp (PBGC) because it is underfunded. I doubt that we would receive such a letter, if there weren't some chance the pension would be turned over to the PBGC. If/when it does get turned over to PBGC, spouse would only receive about 1/4 of what he receives now. It wouldn't surprise me if one of these days, the PBGC needed to be bailed out too. Bailout after bailout, this country is barely keeping afloat. Scary times.

[llmart]

111. My brother.....

is a retired Teamster - truckdriver and he got a similar letter recently. He still lives in Ohio. He said he has no illusions that he'll ever get the pension he's supposed to and yet he says there are people there who still think that it could never happen even though there are many instances of it happening in other industries.

[llmart]

104. I feel for you.....

I was born and raised in Ohio. All of my siblings still live there. They fill me in on how terrible things are. I can sympathize.

[tclambert]

60. "powdered Drano as heroin?"

Is that some sort of cure for atherosclerosis? Clears the hair and grease out of those clogged arteries. Or just kills you stone dead. Either way, you're cured.

[Dr.Phool]

72. From the folklore that I've heard,

Probably an old urban legend, it just sort of liquefies the brain.

[ozymandius]

12. ‘Bernanke-san’ Signals Policy Shift, Evoking Japan Comparison

Dec. 2 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke signaled he’s ready to dig deeper into the central bank’s toolkit after cutting interest rates almost as much as he can, opening the door to a shift by policy makers this month.

Bernanke yesterday said he may use less conventional policies, such as buying Treasury securities, to revive the economy, because his room to lower the main U.S. rate from the current 1 percent level is “obviously limited.” Even so, reducing the rate is “certainly feasible,” he said.

Policy makers may decide at their next meeting Dec. 15-16 on the details of carrying out such a shift, which might resemble the “quantitative easing” strategy the Bank of Japan pursued in 2001-2006 after driving interest rates close to zero. The Fed chief’s readiness to rely more on adding reserves to the banking system prompted JPMorgan Chase & Co. economist Michael Feroli to refer to him as “Bernanke-san” in a note yesterday.

....

The Bank of Japan is the only major central bank in modern times to rely on quantitative easing -- the strategy of injecting more reserves into the banking system than needed to keep the target interest rate at zero.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aziecc.MkO28&refer=home

[TheWatcher]

13. We don't have the Savings Rate to be Japan.

That is one of the ONLY reasons they survived as they did since 89, is because they had such a high household Savings rate.

Bernanke-San tries to adopt that Model here, you are looking at a disaster of Poseidon Adventure proportions.

Dear GOD save us from these Madmen.

[Demeter]

87. God Helps Those Who Help Themselves

We voted in Obama, and unless you want to take to the barricades, we can't do much else right now.

Those barricades have been looking more and more inevitable to me, though. I just hope Obama comes with us.

[llmart]

95. There's no incentive to save any more.

You get .0005% interest and even that is taxable at the end of the year.

[ozymandius]

16. Recession in U.S. May Be Just Beginning as Job Losses Mount

Dec. 2 (Bloomberg) -- The U.S. economy, now officially in recession, may be in the midst of the longest slump in the post- World War II era as job losses mount and credit dries up.

....

“We’re going on 12 months already, and we’re just getting started,” said Stephen Stanley, chief U.S. economist at RBS Greenwich Capital in Greenwich, Connecticut. “We’re looking at some pretty severe numbers for the fourth quarter, and the first quarter of 2009 will be pretty bad as well. The economy isn’t going to turn around definitively until the credit markets unclog.”

....

The longest economic slumps since 1945 were the 16-month downturns that ended in March 1975 and November 1982. The Great Depression lasted 43 months, from August 1929 to March 1933.

....

American manufacturing contracted in November at the steepest rate in 26 years, the ISM said yesterday. The Tempe, Arizona-based group’s report came as factory indexes in China, the U.K., euro area, and Russia all fell to record lows.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aXTWFDfLt8KM&refer=exclusive

---

The U.S. economy is expected to contract 5% this quarter according to economists at Goldman Sachs and Morgan Stanley.

[tclambert]

23. The Great Depression ended in March, 1933?

That seems a rather artificial date. I've always heard recovery took much longer. Or is that just when the bottom was hit, and indicators began to head upward? It doesn't feel like it's over until the economy has regained what it lost. Although the Bush Depression may feel like it's over on January 20th. Only 7 weeks to go! Are we there yet? Are we there yet? Are we there yet?

[AllieB]

25. I was under the impression that WWII was the beginning of recovery.

Maybe the stock market recovered earlier, but the average person certainly didn't.

[Warpy]

57. The country was well into recovery by 1937

but conservatives in Congress persuaded FDR to end many of the programs that had brought us there.

The result was a big recession in 1937 that really didn't start to reverse until war production geared up in the early 40s.

That's where the fiction came from. FDR ended the Depression and the country would have done just fine without a world war had conservatives not ended his programs prematurely.

[nolabels]

27. I would suggest the US has been in a self-made depression for eight years

and it has been hidden with over abundant credit for the same. Our whole ability to produce wealth has been boxed up and shipped overseas. It will become more obvious sooner rather than later

[eowyn_of_rohan]

29. You said it - the bottom was hit, and indicators headed upward

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

[happyslug]

45. Watch the numbers after 1934, FDR converted the Dollar from $20 an ounce of Gold to $35 an Ounce

Thus the subsequent prices, while never near the highs of the 1920s, were in realivty lower then the given number value do to that devaluation of the dollar (i.e. you have to cut the price of those stocks by about 1/3rd to do a true comparison with pre-Depression stock prices to reflect the drop in value of the Dollar do to the devaluation of the Dollar by FDR). Please note the Devaluation was needed and was one of the key to the recovery after 1933, the US needed a god dose of inflation without being called inflation and thus the devaluation of the Dollar.

[happyslug]

44. The Great Depression is considered to have ended in 1938, after the end of the NEXT Recession

The Great Depression is considered to be the product of the recession of 1929-1933, the subsequent very modest recovery (No where near what it had been in the 1920s) and the second recession that ended in 1938 (A Recession brought on by FDR's decision to balance the budget in 1938, do to attacks from the Right that he had NOT balanced the Budget since he took office). Thus you had over 10 years of bad times that only ended as the 1938 recession bottomed out and the subsequent boom (That rolled into the WWII era). Thus the Great Depression is the product of these three periods, the Recession of 1929-1933, the Subsequent modest boom that "peaked" in 1937 and the Recession of 1938.

A list of Recessions over the last 200 years:
http://www.nber.org/cycles.html

[tclambert]

59. OK, I think I get it.

Economic indicators kept heading down from August, 1929 to March, 1933, for 43 months, it said on the link. (Thanks for the link.) Then they headed up until 1937, 50 months, not reaching previous levels, though. Then they started down again from May, 1937 to June, 1938 for 13 months. Then from 1938 they continued up through the WWII years (actually, February, 1945, 80 months), and somewhere in there we could say the country finally reached full recovery.

But the only economic indicator that really matters is jobs. Twenty years ago a wise old soon-to-be retiree explained it to me: "Things like inflation, recession, and interest rates don't matter to you so much as long as you have a job. And if you don't have a job, those other problems hardly matter at all."

[ozymandius]

88. It lasted a whopping 72 months.

Though that figure is open to a small amount of debate.

[UpInArms]

91. very small debate

http://www.huppi.com/kangaroo/Timeline.htm

       Tax       Federal    GNP       Unemp.
Year   Receipts  Spending   Growth    Rate
-------------------------------------------------
1929      --       --         --      3.2%  < Hoover era, Great Depression begins
1930     4.2%     3.4%     - 9.4%     8.7
1931     3.7      4.3      - 8.5     15.9
1932     2.9      7.0      -13.4     23.6
1933     3.5      8.1      - 2.1     24.9   < FDR, New Deal begins; contraction ends March
1934     4.9     10.8      + 7.7     21.7
1935     5.3      9.3      + 8.1     20.1
1936     5.1     10.6      +14.1     16.9
1937     6.2      8.7      + 5.0     14.3   < recession begins, May
1938     7.7      7.8      - 4.5     19.0   < recession ends, June
1939     7.2     10.4      + 7.9     17.2
1940     6.9      9.9  
1941     7.7     12.1  
1942    10.3     24.8   
1943    13.7     44.8   
1944    21.7     45.3   
1945    21.3     43.7

[DemReadingDU]

28. Columbus, Oh - National Century Final Trial

12/1/08 NCFE’s Happ starts his day in court by Kevin Kemper

The fourth and final criminal trial involving a former executive of National Century Financial Enterprises Inc. began Monday at U.S. District Court in Columbus as lawyers picked jurors to decide the fate of James Happ.

The government has accused Happ of a count each of conspiracy and money laundering conspiracy plus three counts of wire fraud.

He has pleaded not guilty to all of the charges.

The former executive vice president of Dublin-based National Century is standing trial on accusations he was part of an executive-level cabal at the medical financing company that defrauded investors out of $2.84 billion.

Happ’s trial began at 9 a.m. with jury selection, which was expected to last the day. It will be followed by opening arguments from government attorneys and then defense lawyers, likely to begin Tuesday.

Happ becomes the seventh National Century executive to stand trial on fraud charges and the 11th to be charged with crimes. Six other former executives, including company founders Lance Poulsen, Rebecca Parrett and her ex-husband Donald Ayers, were found guilty by juries earlier in the year.

A financier for health-care providers like doctors’ offices and hospitals, National Century’s bread and butter was buying accounts receivable from care providers at a discount, then securitizing the receivables into AAA-rated bonds for sale to investors. At its peak, the company employed more than 350 workers at its office campus in Dublin while recording annual revenue of more than $250 million.

The government has alleged the company collapsed into bankruptcy in 2002 after running a sophisticated pyramid scheme that fell apart.

In addition to purchasing legitimate accounts receivable, the government alleged National Century funded companies owned by its founders without getting receivables in return, effectively making risky unsecured loans with investor cash. The company charged its clients for those advances, the government has said, which inflated National Century’s revenue and generated bonuses for senior executives.

Happ’s trial is expected to last most of December.

http://columbus.bizjournals.com/columbus/stories/2008/12/01/daily5.html


link backwards to previous trials...
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3580248&mesg_id=3580301

No recent info about Rebecca Parrett. She flew the coop, vanished.

[UpInArms]

30. dollar watch

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

Last trade 86.865 Change -0.126 (-0.16%)

Dollar Edge Lower on the Rumor of U.S Bank

http://www.dailyfx.com/story/market_alerts/fundamental_alert/Dollar_Edge_Lower_on_the_1228210858791.html

USD edged lower on U.S. bank stake rumor, with speculation that USD 150 bln will be invested in 52 banks by the U.S. Treasury. U.S. equity market futures have turned highs and European indices pared earlier losses, leading to an unwinding in earlier safe haven trades via USD and JPY.

US Dollar Bound to See Weak ISM, NFP Results - What Impact Will They Have?

http://www.dailyfx.com/story/currency/eur_fundamentals/US_Dollar_Bound_to_See_1227915390506.html

The US dollar generally ended the week lower across the majors, but lacked the momentum to yield the breakouts expected amidst the low volume trading typical of US market holidays. On Friday during the European trading session, the greenback jumped but lackluster price action during the US session left the major currency pairs within well-defined ranges. In fact, EUR/USD has held firmly between 1.2425 and 1.3075 since late October, GBP/USD has not been able to break above 1.55 since falling below on November 11, and the USD/JPY remains below falling trendline resistance that has held since mid-October.

Looking ahead to this week, event risk will pick up quite a bit for the greenback. On Monday, ISM Manufacturing is forecasted to slip to a fresh 16-year low of 37.5 from 38.9, and would also mark the fourth straight month that the index held below 50, signaling a contraction in business activity. Manufacturers are facing increasingly rocky times in light of slowdowns in the US and abroad, which is impacting both domestic and foreign demand. On Wednesday, ISM Non-Manufacturing is forecasted to drop to a new record low of 42.0 from 44.4, which will only add to speculation that Q4 GDP will be just as disappointing as the Q3 results, if not more. Last, but not least, US non-farm payrolls on Friday are sure to garner significant attention from the media and traders alike as they are forecasted to fall negative for the 11th straight month and by the most since September 2001. Furthermore, the unemployment rate is anticipated to rise to 6.8 percent - the highest since August 1993 - from already lofty levels of 6.5 percent.

It is rather obvious that the markets are expecting a round of pretty disappointing releases, but the big question is: how will the US dollar respond? Last week, the US dollar generally responded to fundamentals reports by falling when data suggested the Federal Reserve would cut rates further. This differs from previous weeks when the greenback responded solely to risk trends, as the currency would rise during times of risk aversion and stock market declines and vice versa. As a result, gauging the impact of risk sentiment on the forex markets will be important at the start of next week since it may determine whether the US dollar will break higher or fall for a deeper retracement.



...more...

[UpInArms]

31. Sears suffers 3Q loss on weak US, Kmart sales

http://news.yahoo.com/s/ap/20081202/ap_on_bi_ge/earns_sears

HOFFMAN ESTATES, Ill. – Sears Holdings Corp. said Tuesday hefty charges and weak results at its U.S. department stores and Kmart locations drove it to post a much wider-than-expected third-quarter loss, and the retailer withdrew its operating profit outlook due to the severe economic downturn.

The Hoffman Estates, Ill.-based company, led by financier Edward Lampert, also boosted its stock buyback plan by $500 million to $572 million.

Sears reported a loss of $146 million, or $1.16 per share, compared with year-ago profit of $4 million, or 3 cents per share. Excluding a hefty charge related to 14 store closings and gains on Sears Canada hedges, Sears posted a loss of 90 cents per share in the latest period.

Revenue dropped 8 percent to $10.66 billion from $11.62 billion as Sears U.S. same-store sales slid 10.6 percent and Kmart same-store sales slipped 7 percent. Total same-store sales, or sales at stores open at least a year, a key retail gauge, fell 9 percent.

Analysts surveyed by Thomson Reuters expected a much smaller loss of 49 cents per share on higher revenue of $10.93 billion.

Sears said it will take a pretax charge of $21 million in the fourth quarter, related to the closing of eight underperforming stores. The company said it will continue to evaluate additional store closings or divestitures, remodels, acquisitions and stock and debt repurchases to boost financial flexibility.

...more...

[UpInArms]

32. Beazer Homes 4Q loss balloons as revenue plunges

http://news.yahoo.com/s/ap/20081202/ap_on_bi_ge/earns_beazer_homes

ATLANTA – Struggling homebuilder Beazer Homes USA Inc. said Tuesday its fiscal fourth-quarter losses more than tripled as revenue plunged and its income tax provision ballooned.

Losses for the quarter ended Sept. 30 totaled $473.9 million, or $12.29 per share, compared with year-ago losses of $155.2 million, or $4.03 per share. Losses from continuing operations totaled $12.32 per share in the latest period.

Atlanta-based Beazer said revenue fell to $712.6 million from $1.09 billion as home closings tumbled 38 percent.

Meanwhile, the company's income tax provision swelled to $334.9 million versus a tax gain of $76.6 million last year. Having posted losses for the last four years, the company must reserve against deferred tax assets when it's likely those assets won't be realized.

Analysts surveyed by Thomson Reuters expected a loss of $2.10 per share on revenue of $593.4 million.

The homebuilder said demand for new homes continues to be hurt by low consumer confidence, falling prices, extensive supply and less access to mortgage financing.

...more...

now if those damned consumers would just get confident! :eyes:

[Tansy_Gold]

34. Now if those damned consumers could just get JOBS.

:grr:

[KoKo]

37. New Fannie Mae finance chief to make $625,000

Monday December 1, 6:07 pm ET

New Fannie Mae chief financial officer to make annual salary of $625,000 plus bonuses WASHINGTON (AP) -- Mortgage finance company Fannie Mae said Monday that new Chief Financial Officer David Johnson will make an annual salary of $625,000, slightly less than his predecessor.

Johnson, 48, formerly was named the company's CFO on Nov. 24. He formerly was chief financial officer at Hartford Financial Services Group.

Fannie Mae said in a Securities and Exchange Commission filing Monday that Johnson's salary will consist of the $625,000 salary, plus a cash bonus and a long-term incentive plan that will vest over two years.

His predecessor at Fannie Mae, Stephen Swad, left the company in August and was briefly replaced by David C. Hisey, who was named deputy chief financial officer after Johnson was hired last month. Swad earned a salary of $650,000.

http://biz.yahoo.com/ap/081201/fannie_mae_personnel.html?.v=1

[JNelson6563]

39. Most excellent 'toon Ozy.

It expresses a sentiment shared by all of us. :toast:

Julie

[DemReadingDU]

43. Agreed! n/t

[tclambert]

61. Agreed! n/t

[ozymandius]

93. Thank you.

I really wish January 20th would hurry its ass up.

[Roland99]

47. Potpourri of earnings reports.....

http://www.marketwatch.com/news/story/Updates-advisories-surprises/story.aspx?guid=%7BF051C1B2%2D87B7%2D4010%2DB609%2D1CD938CBDEBF%7D&dist=hplatest

General Electric sees Q4 net at low end of range
Walgreens Nov. same-store sales slip
Patterson-UTI rig count falls in November
Staples Inc. net income falls 43%
Sears swings to loss on 8.3% lower sales
Beazer Homes 4th-period loss widens, revenue off 35%
Acorn Intl swings to loss and affirms full-year view
Zoltek narrows loss on 17% higher revenue
Greene King pretax drops 15%, holds dividend
Thomas Cook adjusted pretax climbs 32% after deal
Goldman 4th-period loss may be up to $5-share:

[antigop]

53. Goldman to post first loss--EVER???

http://financialweek.com/apps/pbcs.dll/article?AID=/20081202/REG/812029997/1036

Goldman Sachs is likely to report a net loss of as much as $2 billion for the fourth quarter, the Wall Street Journal said, citing industry insiders.

The quarterly loss, equivalent to about $5 a share, will be Goldman’s first ever as a public company, as it faces write downs on everything from private equity to commercial real estate, the paper said.

Analysts on average are expecting a loss of $1.27 a share, excluding items, for the quarter ended November 28, according to Reuters Estimates.

But what will those poor executives do? Is their year-end bonus at stake? Probably not..

[Roland99]

65. Good thing Paulson isn't there to drive them further into the ground. He's harmless now.

oh wait.....


:(

[Demeter]

89. The Chickens Coming Home to Roost At Last

after crapping all over the rest of the neighborhood.

[RetailSlave]

48. I just want to say thank you to all of the regular contributors

to this thread every day. I've been reading this as one of my main sources of economic information for years, and I just registered on the site primarily to convey my appreciation for all of your work and good humor. Thank you.

[bethdoc]

49. I second that! n/t

[antigop]

54. Welcome to DU, Retailslave and bethdoc! n/t

[PassingFair]

51. Third.

It's the first thing I look for when I log in.

Thanks to all "in the know" who help us sort
things out!

[BelgianMadCow]

52. fourth

treasure trove

[sam kane]

55. fifth

it is now an addiction.

[AnneD]

58. Welcome to all you newbies....

and lurkers.:hi:

I came for the politics but stayed for the economic information. I have always found the SMW thread to be the mother lode of economic information both technical and general economics. It has evolved into a user friendly island in a sometimes hostile sea. You just never know what interesting object will wash up on the beach.

[tclambert]

63. Sixth!

[Roland99]

67. Welcome to DU! And did you see the SMW disclaimer?

Anything we say can and will be used to denigrate TPTB.
Anything we say that leads to your financial windfall, be sure to thank us kindly.
Anything we say that leads you to the soup kitchen, umm....sorry 'bout your luck!

[Dr.Phool]

71. And if you're already there,

I just made a big pot of cream of potato! Everyone's invited!

[llmart]

97. Speaking of which......

This may sound silly, but in the winter when I was growing up (we were a large family in a small house with little money) my mother made lots of big pots of healthy, nutritious homemade soups and that and a loaf of bread with butter was dinner. It was cheap, healthy, filling and I still love it in the winter. Many people nowadays spend so much money on gourmet foods or eating out etc. that they don't realize how much they could save if they just gave a little more thought to their eating habits. We have an epidemic of obesity in this country.

Just my little rant. I try not to sound like an old fogey talking about the past too much, but I really do think that we have to start using our noggins more instead of letting advertising tell us what to buy.

[tclambert]

100. If the economy continues flailing, SMW may turn into the Soup Recipe Exchange.

Personally, I'll start with canned soup, and then start throwing stuff in. Garlic and ginger, Italian seasoning, macaroni firmly al dente, and leftovers.

[llmart]

106. Canned soup.....

ugh. Yeah, I eat it in a pinch and keep some on hand but you really can make a huge pot of soup for next to nothing and it's easy. If you can read, you can cook. One of my mother's favorites of mine was vegetable bean soup. And I make a potato leek soup that is to die for.

[antigop]

56. Watson Wyatt: Securities lending losing its shine

http://www.watsonwyatt.com/news/press.asp?ID=20114

Watson Wyatt, a leading global consulting firm, has recommended its clients suspend securities lending activity if they are in any doubt about their lending guidelines and arrangements. In a note to UK clients the firm asserts that the risk reward trade off around this activity has changed and that, in some instances, it may no longer be worthwhile.

Colin Rainbow, head of custody consulting at Watson Wyatt, said: “Recent market events have had a substantial impact on securities lending practitioners and their clients. So it is imperative that pension funds review their lending arrangements to ensure they fully understand the risks involved and confirm their lending guidelines are appropriate.”

The firm identifies counterparty risk, collateral and indemnification as the three key areas that pension funds should focus on when dealing with their lending agents, typically custodians. Regarding counterparty risk, agents were able to re-purchase most clients’ assets within two days of the Lehman Brothers default. While the lending industry coped well with the process, it highlighted the risks involved. On collateral, the firm is advising that pension funds ensure the collateral agreed for their lending programme is in line with their risk tolerances and that it should be generally high quality. While it acknowledges that it would be an extreme chain of events that invokes indemnification and then for it to fail, Watson Wyatt recommends that its clients be aware of the potential risks.

Colin Rainbow said: “We recommend UK pension funds first research collateral types and amounts as well as their reinvestment guidelines, particularly where cash collateral is taken. Then they should investigate counterparty restrictions and any collateral indemnification provisions provided by lending agents. Having done this, if the risk relative to the reward is found to be unacceptable they should immediately suspend securities lending where possible or initiate a gradual withdrawal. Alternatively, they could remain in the programme once they have changed the lending guidelines by amending the collateral requirements, reviewed the borrowers and indemnification structure and strengthened any cash collateral reinvestment guidelines.”

Watson Wyatt is a consulting firm. From their website, one of their services:
"Advising pension plan sponsors and other institutions on optimal investment strategies"

antigop continues to ask, "What is (was?) being done with our pensions -- both 401(k) and defined benefit?"

[tclambert]

66. Maybe this means the next generation of ambitious students will become engineers

and actually MAKE something, instead of just moving money around and filching a slice as it passes. One of the criticisms I've always heard of lawyers and money managers is they don't make any real wealth, they just move it around. (Sorry, Ozy.)

[AnneD]

62. And begging you pardon.....

The list of Presidential pardons grows. Here is the every growing list

http://www.usdoj.gov/pardon/bushpardon-grants.htm

Many of you have heard me bitch time and time again that this current financial fiasco was too much like the the S&L scandal that hit Texas hard in the 80's(and the rest of the nation to a lesser extent). Well just look and the number of financial crimes that have been forgiven as of late. Don't piss on my leg and tell me it's raining. What happened in Texas was a warm up for what they accomplished in the nation-and now these skanks are getting away with it.

Maybe we can't impeach him now but he needs to be prosecuted president, ex president or no. It set a disastrous precedent when Nixon wasn't tried and impeached. No one is above the law and to not try for a crime implies that they are. You may not want to kill or imprison them, but how stupid do we look in history if we stood by and did nothing. Take away his library funding, forbid federal naming or coinage, but don't let him get away with it and don't let the blame get lost in comittee-like the 9/11 comittee.

edited to add that this months spate of pardons have had many S&L convicts.

[tclambert]

68. Agreed.

Gerald Ford did this country a terrible disservice when he pardoned Nixon. The trial of Richard Nixon would have riveted the country's attention for months, yes. But a conviction and imprisonment, even for just a couple of years in a minimum security country club prison, would have been one of our nation's proudest accomplishments. Imagine the moral authority we could have when we said, "In America, NO ONE is above the law. Not even the President."

Instead, look where we are today. We have a President who openly thumbs his nose at the Constitution. If Gerald Ford hadn't pardoned Nixon, there'd be no water boarding, no special rendition, maybe no war with Iraq, no warrantless wiretapping, and no "signing statements."

As for Bush, I think this is the first gut check for Obama. Will he have the courage to face the partisan outrage from the Republicans and do the right thing--put Bush in jail? Mr. President Elect, it would be hard. But think past the hard part to what a proud, proud moment it would be in American history to not let the powerful get away with it for once. Imagine being able to say, "In America, no one is above the law," and believe it.

[AnneD]

69. And anyone can gow up to be President.....

and all men are free.


Wow what a concept.

[Demeter]

90. We Just Look Like Every Other Banana Republic, That's All

[Roland99]

64. 2:10pm - Who pulled the plug?

DJIA 8,201.89 +52.80 +0.65%
Nasdaq 1,413.29 +15.22 +1.09%
S&P 500 825.01 +8.80 +1.08%
Global Dow 1,374.69 +1.87 +0.14%
Dow Util 355.84 -2.18 -0.61%
NYSE 5,167.79 +75.13 +1.48%
AMEX 1,252.23 +23.68 +1.93%
Russell 2000 425.93 +8.86 +2.12%
Semcond 181.27 -1.97 -1.08%
Gold future 784.00 +7.20 +0.93%
30-Year Bond 3.20% -0.03 -0.99%
10-Year Bond 2.68% -0.04 -1.32%

[question everything]

70. I was going to moan here and now it is up 70?

Really like a dart board.

About two hours ago it was up above 8400, 15 min ago was up 3 and now...

[specimenfred1984]

73. Stocks banking on gov't propping up failed and corrupt business criminals

If only the big 3 are given 100s of billions, everything will be OK, LOL. The American public acts like a huge head injury-suffering population with no ability to think beyond the last 5 minutes as large portions of their brains have been destroyed. Every 5 minutes it's "Where's the bottom, where's the bottom, I'm bottom fishing, where's the bottom"? Five minutes later, after it's been explained to them what's really going on, it's "OK, where's the bottom, where's the bottom"?

[specimenfred1984]

74. Also, note the words "crime" and "criminals" are never used, that's be corporo-cide

--- Greed, Denial, Lack of Transparency: Goldman Not Immune to Wall St. Crisis

...Expect at least another six months of bad news from the financial sector (and the economy generally), says Nariman Behravesh, chief economist of IHS Global Insight and author of Spin-Free Economics. "We're not out of the woods yet. There's a lot more retrenchment and restructuring" to go on Wall Street, meaning more layoffs and industry consolidation.

That said, Behravesh believes "the writing off of Wall Street" is premature, even if many corporate executives were guilty of denial, lack of transparency, and blind greed that led to a herd mentality during the boom years, as discussed in the accompanying video. ---

http://finance.yahoo.com/tech-ticker/article/137527/Greed-Denial-Lack-of-Transparency-Goldman-Not-Immune-to-Wall-St.-Crisis?tickers=GS,C,XLF,JPM,MS,MHP

[Hugin]

77. ~15:00 thru ~16:00 ET: WTF Edition...

Anybody check out the step function on the NASDAQ with similar actions on the Dow and S&P? :wtf:

Blatant manipulation, sudden bargain hunter frenzy, or a banging-of-the-close? :shrug:

I guess I'll have to hear what the blather has to say.

[TheWatcher]

78. As predicted. As Expected. Like Clockwork. There Is Nothing New Under The Sun.

Today was one of those days that the "Official Sector" Presence was obvious.

Early Strength sold into, Ramp And Camp arrives at 10 AM.

I suppose Da Boyz thought they had clear sailing the rest of the day until the Auto Sales Numbers showed up just after 1PM to inject some reality into things.

But lucky for all of us proles, they got their act together, and, as was foretold this morning (Trust me, I am not claiming to be a prophet here. A CHILD could figure this out at this point.) The Invisible Hand showed up in the last half hour to give us that late day Electronically driven, based on nothing Heroin High we've all become so accustomed to.

Here is the Official Line for those who can stomach it.

NEW YORK (AP) -- Buyers returned to Wall Street Tuesday, sending stocks higher in a session that was marked by indecision even as the Dow Jones industrials closed up 270 points. Encouraging news from Ford Motor Co. and General Electric Co. calmed the market a day after a massive decline.

Investors wary about the economy drew solace from Ford Motor Co. Chief Executive Alan Mulally, who said the automaker has enough cash to make it through 2009 and might not need government help. Rival General Motors Corp. said late in the day that it needs $12 billion in government loans to continue operating; the news briefly shook the market, but stocks rebounded before the close.

Meanwhile, the market was encouraged after General Electric Co. said it expects to pay a dividend despite projections that fourth-quarter results will near the low end of its previous guidance.

http://biz.yahoo.com/ap/081202/wall_street.html

So unsubstantiated rumors and fantasy projections, and a vaporware bailout that will likely never materialize (My guess is the Autos will be nationalized instead.) is the reason that half of yesterdays losses were snatched back by "soothed, savvy, solace-soaked, bargain drunk investors".

Today was about as obvious as it could get. There was NO logical reason for the Market doing these kind of theatrics. Absolutely NONE.

Since our Financial Media has become the New Pravda, here is what they DIDN'T tell you today:

Auto Sales have plummeted to 1991 levels.

Sun Lays Off 6000.

Pepsi Lays Off 3150

Hong Kong losing 1000 Jobs a week.

Sonoco permenantly closes down plants in Illinois

Bank Of America cuts 10,000 Investment Banking Jobs

California Near Bankruptcy, fiscal emergency.

And there is a lot more that I don't have time to track down and type out. The news today was about as bad as it gets.

But tonight the Pom-Poms and Dancing Girls will come out, and Kudlow with his endless Mountain of Pre-Tax Coke, and Cramer with his endless amount of hyper-testosterone fueled faux rage will be screaming at us about "double bottoms", "money on the sidelines", "historical bargain levels that will never be seen again", and "no-brainer cheap prices."

This is your Economy America.

Had Enough Yet?

There's no bread, let them eat cake
There's no end to what they'll take
Flaunt the fruits of noble birth
Wash the salt into the earth

But they're marching to Bastille Day
La guillotine will claim her bloody prize
Free the dungeons of the innocent
The king will kneel and let his kingdom rise

[Hugin]

79. Your's is probably the best explanation for what I just witnessed.

Sad as it is to say.

I mean, just check out the NASDAQ chart for the last hour of trading.

[TheWatcher]

81. It's been going on for years Prag, but the past few months it has become blatantly obvious

Even to people who don't even follow the Market.

They don't even try to hide it any more, and it's just shoved in our faces day after day.

"Why, yes, dear proles. Your Market is fake, rigged, manipulated, and corrupt beyond any reasonable ability to repair. Much like your Economy. Much like your Country. What of it?"

The worst part about all of this is that this kind of Circus Of Stupidity solves nothing. it does nothing to solve the problems of the economy, it does nothing to stabilize the Market, it does nothing for the greater good, and it does nothing but delay the inevitable.

The wonderful, intelligent, thoughtful contributors that post to this thread every day, and take the time and energy to put really great insight into what's REALLY going on (I do not include myself in that list. I am just a great ranter and observer. :) ) get it, but sadly, as fred often reminds us, the majority of the Public DOES NOT.

They need to get it through their cathode soaked heads that Wall Street, Corporate America, The Fed, our Leadership, and those that actually CONTROL things do not have the slightest scintilla of interest in doing ANYTHING that will actually fix the crisis we are in.

They have two jobs.

1. Cover it up and fictionalize it as long as possible.

2. Save themselves.

THAT'S IT.

Or as Phil Collins would say:

"That's All."

[etharmon]

80. Stop the Economic Outrage

Go to www.stoptheoutrage.org if you are ready to stop bitching and act!

Take back the Future!
-Evvie

[ozymandius]

83. Thanks etharmon. Welcome to DU and the SMW.

This is a noble mission statement:

(excerpt)Our mission is to provide a vehicle of expressing our opinions on how our taxpayer dollars are spent and to whom they are given.

[ozymandius]

82. Let's close this thing. Anyone need a pony? They're free.

Dow 8,419.09 Up 270.00 (3.31%)
Nasdaq 1,449.80 Up 51.73 (3.70%)
S&P 500 848.81 Up 32.60 (3.99%)
10-Yr Bond 2.693% Down 0.026
NYSE Volume 6,967,895,000
Nasdaq Volume 2,147,017,500

4:25 pm : The stock market regained about 40% of yesterday's massive 8.9% sell-off. Stocks were in positive ground after General Electric (GE 17.61, +2.11) gave a better-than-feared business update and then surged to session highs in the final minutes of trade after General Motors (GM 4.85, +0.26) outlined its plan for government aid.

The S&P 500 rose 4.0% in a volatile session, with all ten sectors posting a gain. Volume was slightly above average and on pace with Monday's level.

General Motors and Ford outlined to Congress how the automakers would use $25 billion in loans from the government. Ford asked for a $9 billion loan, saying it will focus on more fuel efficient vehicles and downsize its dealer-base, among other initiatives, to reach at least breakeven by 2011. GM requested $12 billion in government term loans and a $6 billion line of credit in case the downturn persists. GM plans to start repaying the loans as early as 2011.

November U.S. auto sales results were dismal. On year-over-year basis, sales plunged 41% at GM, 31% at Ford, 47% at Chrysler and 34% at Toyota (TM 62.00, +3.44).

General Electric was the best-performing stock. The conglomerate said it expects fourth quarter earnings on the low end of its previous guidance, but this was better than many analysts had expected. GE also said it will keep its dividend unchanged in 2009. At Monday's closing price, GE's dividend represented a hefty yield of 8%.

The financial sector (+7.9%) outperformed following its 17% plunge in the previous session. Goldman Sachs (GS 65.10, -0.66), however, was a notable underperformer. The Wall Street Journal reported that Goldman is likely to report a net loss of as much as $2 billion in its later quarter, which would be five times worse than the consensus estimate.

In earnings news, Sears Holdings (SHLD 36.03, +4.19) and Beazer Homes (BZH 1.37, -0.13) posted larger-than-expected third quarter losses. Staples (SPLS 16.32, +1.20) reported a slightly higher-than-expected profit.

Separately, The Federal Reserve said due to the strains in the financial markets it will extend three liquidity facilities through April 30, 2009. The facilities aim to increase liquidity for asset backed commercial paper and financial firms.

Despite the gains in stocks, Treasuries advanced as investors speculated that the Federal Reserve will buy longer-term Treasuries. The 10-year note rose 15 ticks to send its yield down to 2.67%.

Oil prices had a volatile session, eventually falling 3.8% to $47.42, which is the lowest level since May 2005.DJ30 +270.00 NASDAQ +51.73 NQ100 +3.6% R2K +5.9% SP400 +4.8% SP500 +32.60 NASDAQ Adv/Vol/Dec 1972/2.11 bln/776 NYSE Adv/Vol/Dec 2398/1.62 bln/749