STOCK MARKET WATCH, Wednesday 29 December

[ozymandius]

Wednesday December 29, 2004

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 4 YEARS, 22 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 18 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 72 DAYS
DAYS SINCE ENRON COLLAPSE = 1133
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54

---

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

---

AT THE CLOSING BELL ON December 28, 2004

Dow... 10,854.54 +78.41 (+0.73%)
Nasdaq... 2,177.19 +22.97 (+1.07%)
S&P 500... 1,213.54 +8.62 (+0.72%)
10-Yr Bond... 4.29% UNCH (UNCH)
Gold future... 445.30 -0.90 (-0.20%)





GOLD, EURO, YEN, Dollars and Loonie

---

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

---

[UpInArms]

1. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 80.83 Change +0.11 (+0.14%)

http://www.asahi.com/english/opinion/TKY200412290111.html

INTERVIEW/ Paul Sheard: `Chickens will come home to roost next year'

Dr. Paul Sheard, managing director and chief economist for Asia at Lehman Brothers Japan Inc., says the Japanese economy is nearing the end of its cyclical recovery, but the government appears to be unwilling to intervene. In an interview with Asahi Shimbun senior staff writer Manabu Hara, Sheard said his primary concern is the weakening U.S. dollar. As for Japan's economy, he says the chickens will come home to roost next year.

Q: The Japanese government has recently changed the way it estimates growth, which led to it offering a less optimistic view for the current economic situation. Did the downward revision change your view of the macroeconomic situation in Japan? Why do you think the government changed its method?

A: The recovery is not strong enough to bring an end to deflation and get the economy back on a sustainable growth path. The weak recovery is led by exports, not by domestic demand. A new estimation method of Japanese GDP data shows that the government has been moving toward a global standard in calculating Japanese economic growth.

Many industrialized countries, such as the United States, Britain and Canada, already use the so-called chain-weighted price deflator, which Japan has only recently chosen to adopt. The traditional method of a ``fixed-weight price deflator,'' which Japan had used previously, is problematic in that it tends to exaggerate the downward trend in the price deflator, resulting in an upward bias to real GDP growth, as we saw in the fourth quarter of 2003 and the first quarter of 2004.

<snip>

Furthermore, one should look at debt in terms of net, rather than gross basis which is what frequently hits the headlines of newspapers. Net debt is the amount which can be obtained by deducting public financial assets from public debt. For instance, part of the reason why public debt is so huge is because the government engages in grand-scale foreign exchange market intervention in order to sustain the value of the yen while issuing financial bills to buy the dollar.

As a result, Japan now has U.S. Treasury notes worth $870 billion, which should be counted as an asset. Japan's net debt now is about 65 percent of GDP. It is still high, but much less serious than the number based on a gross basis.

<snip>

What is of concern is the possible downward pressure on the U.S. dollar in the second half of 2005 as the U.S. economy won't be able to sustain its current deficit, which already stands at almost 6 percent of GDP. And, the yen would be heading toward the 90-yen range by the end of next year. So, the chickens will come home to roost for the Japanese economy next year.

...more at link...

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?font=Reuters&pv_noticia=MTFH83672_2004-12-29_13-08-01_L29715312

FOREX-Euro briefly taps new record high vs dollar

LONDON, Dec 29 (Reuters) - The euro briefly rose to a record high versus the dollar for the fifth session running on Wednesday and tested last year's lifetime high against the yen as investors' bearish views of the U.S. currency dominated trading.

There was little news to turn investors' focus away from their worries about the burden of the U.S. current account deficit on the dollar and about the ability of the U.S. economy to attract enough money to plug this shortfall.

Trading volumes were also thin in the holiday period between Christmas and New Year.

"The euro has been strong for a few days now. It is a repeat of late-2002 and late-2003," said Trevor Dinmore, foreign exchange strategist at Deutsche Bank in London.

"When you have low liquidity at the end of the year, you have fewer flows and you see more dollar weakness."

...more...

Today's Report:

Dec 29 10:00 AM
Existing Home Sales Nov
report -
briefing.com 6.60M
market 6.75M
last report 6.75M
revised -

Have a Great Day Marketeers!

[UpInArms]

5. looks like the calvary is coming to the rescue

9:16am 12/29/04 DOLLAR JUMPS AGAINST YEN, UP 1.07% AT 104.13 YEN

9:17am 12/29/04 AGAINST THE EURO, DOLLAR UP 0.31% AT $1.3569

[UpInArms]

6. from the "Hall of Shame" - lame excuse: Pending Japanese holiday prompts

Pending Japanese holiday prompts yen selling

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38350.3925991435-830536223&siteID=mktw&scid=0&doctype=806&

CHICAGO (CBS.MW) -- The dollar soared against the yen in early U.S. trade on thinking Japan would sell its currency during the country's coming holiday season. At 8:23 a.m. Eastern, the dollar was trading at 104.13 yen, up 1.07 percent from Tuesday.

Gack! they couldn't even make a grammatically correct sentence for that crap. :eyes:

[UpInArms]

25. Yen Falls to Record Versus Euro; Japan May Sell Its Currency

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aKnNSr3c9YtU&refer=home

Dec. 29 (Bloomberg) -- The yen fell to a record against the euro and dropped against more than a dozen other major currencies on speculation Japan will sell its currency during the New Year holiday.

Japan sold a record amount of yen in the year to March 31, including in each of the last three days of 2003. The Bank of Japan is the only central bank among the world's biggest economies to have bought or sold currency this year. Japanese Finance Minister Sadakazu Tanigaki yesterday said he ``will closely watch the exchange rate'' in the holiday period.

``I would definitely have money off the table going into the holiday,'' said T.J. Marta, senior currency strategist in New York for RBC Capital Markets. ``It's definitely a risk'' that Japan will sell its currency, he said.

<snip>

``If the yen appreciated further, it might affect not only corporate profits but also business sentiment,'' the central bank's policy makers said at their November meeting, according to minutes released a week ago. They also said the effect of the yen's advance to this point wasn't serious. The yen stood at about 104 per dollar at the time of the meeting.

``The fact is that people may not be comfortable yet in pushing the currency'' closer to 100 per dollar, said David Durrant, chief currency strategist at Bank Julius Baer & Co. in New York. ``There's always the fear the BOJ may do something at those levels.''

...more...

[UpInArms]

2. US Airways Wants Staff To Work For Free

http://news.airwise.com/stories/2004/12/1104315270.html

Bankrupt US Airways is seeking volunteers from non-union staff to work for free at its troubled Philadelphia operations over the New Year weekend, the Washington Post reported on Wednesday.

The airline canceled nearly 400 flights over Christmas weekend, leaving thousands of passengers stranded or without luggage after three times the normal rate of flight attendants and baggage handlers based at Philadelphia rang in sick.

US Airways on Tuesday said its flight operations were back to normal although it was still clearing the backlog of misplaced bags.

But the troubles threatened to further alienate customers as the carrier fights to avoid liquidation by cutting employee pay and other costs.

The newspaper said the airline has sent extra workers and executives to Philadelphia to help restore services, but is seeking employees to work for free between December 30 and January 3.

"This is a volunteer program," the airline said in an email to staff published by the paper. "You will not be paid if this is on your day(s) off. It promises to be a rewarding opportunity to learn more about the operation of our airline and come face to face with our customers."

...more...

[54anickel]

9. HA! Just what kind of bonus and pay package did the big wigs

at THAT airline get? They want people to work for FREE? A rewarding opportunity? Bwahahahahaa - that is the most ridiculous thing I've read in a long time, well other than each time BeezleBush opens his yap.

[UpInArms]

3. Oil Edges Up to $42 Ahead of U.S. Data

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=7198303

LONDON (Reuters) - Oil prices edged higher for the second day on Wednesday ahead of U.S. government data expected to show a slight decline in winter heating fuel stocks.

Lower-than-usual temperatures probably caused distillate fuel stockpiles to fall last week, a Reuters survey found, and they would still be in a double-digit deficit versus last year.

U.S. light crude oil futures were up 15 cents at $41.92 a barrel by 5:28 a.m. EST, building on Tuesday's 45 cent rise.

London's Brent crude fell by $1.47 a barrel to $38.60, catching with heavy U.S. losses earlier this week when the London market was closed.

Brokers said activity was set to be light and potentially volatile this week with many traders away for holidays and big-money funds likely to have closed their books for the year.

<snip>

Weekly U.S. government data due at 10:30 a.m. EST is expected to show a drop of 700,000 barrels in distillate supplies in the week to Dec. 24, a Reuters poll of 11 analyst showed, as the first blast of cold weather hit the U.S. Northeast.

...more...

[UpInArms]

17. here's the data

10:33am 12/29/04 FEB CRUDE CLIMBS 83C TO $42.60/BRL ON U.S. SUPPLY FALL

10:32am 12/29/04 U.S. CRUDE STKS DOWN 800,000 BRLS LAST WK: ENERGY DEPT

10:32am 12/29/04 U.S. DISTILLATE STKS DOWN 800,000 BRLS : ENERGY DEPT

10:32am 12/29/04 U.S. GASOLINE STKS UP 900,000 BRLS: ENERGY DEPT

[UpInArms]

4. pre-opening blather

briefing.com

9:00AM: S&P futures vs fair value: flat. Nasdaq futures vs fair value: -2.0. No real change in sentiment as futures trade still indicates a relatively mixed open for the cash market... Quiet trade in Europe, mixed action in Asian markets and very little in the way of corporate news has provided little impetus for early trading interest

8:30AM: S&P futures vs fair value: +0.2. Nasdaq futures vs fair value: -1.0. Still little enthusiasm seen in the futures market as current indications suggest the indices may start the day on a mixed note... Meanwhile, Merck (MRK) said its CEO may testify in Vioxx lawsuits while Walt Disney (DIS) launches a new global ad campaign...

8:00AM: S&P futures vs fair value: -0.6. Nasdaq futures vs fair value: -2.0. Futures suggesting a flat to slightly lower open for the cash market as investors wait to see how much influence existing home sales data (10:00 ET) and weekly oil inventories (10:30 ET) will have on early market activity... Reports suggest that Time Warner Cable (TWX) and Sprint (FON) are close to a deal that would let TWX offer cellphone service on a trial basis while Boeing (BA) could be in focus after China announced it will not approve new aircraft purchases next year...

There are no earnings reports of note out today

ino.com

The March NASDAQ 100 was slightly lower overnight in quiet holiday trading as it consolidates some of Tuesday's rally but remains above the 20-day moving average crossing at 1619.22. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If March renews this fall's rally, weekly resistance crossing at 1717 is the next upside target. Closes below the reaction low crossing at 1595 are needed to confirm that a short-term top has been posted. The March NASDAQ 100 was down 1.00 pt. at 1629 as of 5:48 AM ET. Overnight action sets the stage for a steady to weaker opening by the NASDAQ composite index later this morning.

The March S&P 500 index was slightly lower overnight due to light profit taking as it consolidates some of Tuesday's rally. Stochastics and the RSI are diverging and have turned neutral hinting that a short-term top might be in or is near. If March extends this fall's rally, weekly resistance crossing at 1265 is the next upside target. Closes below the 20-day moving average crossing at 1200.24 are needed to confirm that a short-term top has been posted. The March S&P 500 Index was down 1.10 pts. at 1214.40 as of 5:51 AM ET. Overnight action sets the stage for a steady to weaker opening when the day session begins later this morning.

[UpInArms]

7. 9:42 markets are open

Dow 10,831.69 -22.85 (-0.21%)
Nasdaq 2,174.22 -2.97 (-0.14%)
S&P 500 1,211.92 -1.62 (-0.13%)
10-Yr Bond 4.285 -0.06 (-0.14%)

NYSE Volume 55,464,000
Nasdaq Volume 132,829,000

[UpInArms]

8. Gold falls under $440 to two-week low

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38350.4045999769-830536665&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (CBS.MW) -- Gold futures fell under $440 an ounce Wednesday morning to the lowest level in two weeks, pressured by some strength in the dollar, an improving economic growth outlook, and easing investment concerns linked to the weekend's tsunami disaster in the Asian region. February gold is down $5.60 at $439.70 an ounce in New York, after trading as low as $438.50. March silver is also down 3 percent at $6.845 an ounce and minig shares are broadly lower, with Idaho-based Coeur d'Alene Mines (CDE) among the biggest losers, down 2.5 percent.

[54anickel]

11. Funny how gold gets hit by over $5 on a little move up in the buck, yet

Monday when the buck dropped like a rock gold only eeked out $3. Heh, I'm still hoping for a January clearance sale. B-)

[UpInArms]

45. looks like the "fire sale" is nearing

:shrug:

Gold futures drop as much as $11 an ounce

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38350.5080552431-830539289&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (CBS.MW) -- Gold futures dropped as much as $11 an ounce Wednesday, with strength in the dollar and the potential for further Fed interest rate increases weighing on the market. February gold is down $9.30 at $436 an ounce after trading at a more than two-week low of $434.40 earlier. It's set to log its biggest one-day decline since Dec. 10, when prices closed $15 lower.

[54anickel]

51. Woo-hoo! Get the "Blue light" ready! n/t

[ozymandius]

10. Good morning all. Here's news.

I have been formally offered the job at the Michael C. Carlos Museum at Emory University. My job title will be Senior Preparator. We are now negotiating my salary and the start date (likely the second week of January). At the very least, this development will spell long-term changes in every respect.

Recent weeks have produced situations that have precluded my avid participation in this ongoing discussion here at the SMW and at DU at-large. I do not know how this job will impact my ongoing stewardship of posting this thread. Now that we are scrambling for a quality childcare situation, family-friendly work hours for my wife and reforming our weekly schedules, any extra-curricular interests are set aside. So my concerns are altruistic with respect to those who enthusiastically contribute to this thread.

Unlike radfringe's unfortunate circumstance, I will be afforded web access at my new place of employment. This thread can confidently post daily. However, there are others who contribute mightily to the thread's rich depth and longevity at a level that I am unable to sustain at this time. Any review of the past threads will indicate whom I mean. Foremost on my thoughts about this DU institution is any potential resentment that may arise about me being a thread squatter: able to post but unable to participate in its development. I reckon it somewhat to spamming the message board.

So I offer to pass this responsibility to someone new. A reasonable partition between my stewardship and the next is my trip to Los Angeles, marked for January 5-10.

Please take this into consideration. I ask that someone volunteer for the time that I am away - with the potential to expand into the job permanently.

I encourage you to express any thoughts you may have on the matter.

Best, as always,

Ozymandius

[UpInArms]

13. Ozy, I am so happy for your family

in some ways and sad that you will not have the daily time with your son - it's such a tough situation - dealing with daycare and changes.

I have never felt that you were a "spammer" and would love to have you to continue to "start" our thread each morning. Just knowing that you are there is comforting to me.

I will be taking my "annual sabbatical" (it's really not that, but appears that way) in January and into February, so am not a reliable person for that period.

I will offer up whatever I can to keep this thread going during that period and more throughout the remainder of the year.

Best wishes to you and yours for the coming year :hug:

[CabalPowered]

15. I just want give thanks ozy..

I read the thread daily and appreciate everyone that contributes.

Best of luck with the new position!

[54anickel]

18. Woo-Hoooo!!! Congrats on the job Ozy!

Your search for a quality daycare situation and a smooth transition for you and your family will be in my thoughts and prayers.

I would love to have you continue starting off this thread every day! As someone once posted, "isn't Ozy's gig?". It wouldn't be the same without you, and I feel so much better knowing that you are here.

Thread squatter. HA! There's a thought that would never even cross my mind - I have been so-o-o-o-o thankful that you have (and are willing to continue) starting this thread every day. "It's hard work!"

I would be willing to try to cover the start while you are away those few days in January. Hoepfully, UIA will be around to lend a hand. It would give me a good reason to get to bed and up at a decent hour again (one of my new year resolutions). B-) Just checked my calendar and all of my jobs are scheduled for the afternoons that week. Heh, guess while I was making the schedule I didn't have much faith in my new year's resolution either.

Best wishes to you and yours!

[RawMaterials]

27. Congrats with the job

I do not think you are a message board spam-mer. If you can find the time to start up the SMW every morning, I wouldn't have a problem with it, and if you cant maybe others can find the time to do it, maybe someday even me.

[loudsue]

44. Congratulations, Ozy!!! And THANK YOU for all you've done for us.

Like many others, I read the Market Watch threads every day, even if I don't have time to read anything else on DU, or to post. Your daily cartoons are also greatly appreciated.

:hi::party::silly: HAPPY NEW JOB IN A HAPPY NEW YEAR!!! :hi::toast::beer:

Be here whenever you can!

:kick::kick::kick:

[bahrbearian]

52. Congratulations,

[merkins]

60. Jolly Good Ozy!

I come by almost everyday and lurk in the background reading up on the
daily buzz and helping myself to the occasional donut and coffee.
Hope you continue to fire it up in the mornings and congrats again
on your good fortune...

[MARALE]

62. Congrats!!!

I hope you know how many people watch this thread every day. Look for an older person for daycare. My child did not watch TV, learned to crochet and many other things. She also did not have the stress that many do from other institutionalized daycares. Good luck with the new job!

[UpInArms]

12. Housing bubble continues growing

10:02am 12/29/04 U.S. NOV. EXISTING HOME INVENTORIES UP 2.1% TO 2.48M

10:00am 12/29/04 U.S. NOV. EXISTING HOME SALES UP 2.7% TO RECORD 6.94M

10:01am 12/29/04 EXISTING HOME MEDIAN SALES PRICE UP 10.4% Y-O-Y

[UpInArms]

14. U.S. November existing home sales at record 6.94M units

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38350.4204101389-830537130&siteID=mktw&scid=0&doctype=806&

U.S. Nov. existing home sales WASHINGTON (CBS.MW) -- The nation's sales of existing homes rose 2.7 percent in November to a record seasonally adjusted annual rate of 6.94 million, the National Association of Realtors said. The inventory of homes for sale rose to 2.48 million, a 4.3-month supply at the November sales rate. The median price of a sold home rose 10.4 percent on a year-over-year basis to $188,200, the highest appreciation seen in 17 years.

[54anickel]

22. Mortgage Applications Fall in Latest Week

http://biz.yahoo.com/rb/041229/economy_mortgages_2.html

NEW YORK (Reuters) - Applications for U.S. home mortgages fell last week as refinancing activity slumped and mortgage rates were little changed, an industry group said on Wednesday.
But analysts said the U.S. housing market remains strong.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity declined 1.7 percent to 677.4 in the week ended Dec. 24, after remaining steady in the MBA's prior survey.

The MBA's seasonally adjusted index of refinancing applications fell 7.9 percent to 1,803.9 last week, more than offsetting a 5.7 percent gain the prior week.

It was the fifth decline in refinancing activity in the last six weeks, according to MBA data.

snip>

"There is no sign from these numbers of any material decline in home buying," he said.

more...

[UpInArms]

26. U.S. fixed, adjustable mortgage rates up in latest week

http://cbs.marketwatch.com/help/default.asp?page=support/help/reprint.asp&dist=reprints&siteid=mktw

CHICAGO (CBS.MW) -- A U.S. 30-year fixed-rate mortgage averaged 5.81 percent this week, up from last week when it averaged 5.75 percent, Freddie Mac (FRE) said Wednesday. A 15-year fixed rate rose to 5.23 percent on average, from 5.18 percent. A 1-year, Treasury-indexed adjustable rate mortgage, or ARM, stood at 4.19 percent from 4.17 percent. Freddie Mac released its weekly survey results one day early ahead of the New Year's holiday.

10:38am 12/29/04 30-YEAR MORTGAGE RATE AT 5.81% VS. 5.75% WEEK AGO

10:38am 12/29/04 15-YEAR MORTGAGE RATE AT 5.23% VS. 5.18% WEEK AGO

[54anickel]

36. 2004 was "a dream market" for real-estate buyers and sellers

http://seattletimes.nwsource.com/html/homerealestate/2002130089_homeyear26.html

Last December, real-estate experts predicted that mortgage rates would rise, pushing the number of home sales down in 2004. If their prediction had proved true, it would have meant that stories like the one real-estate executive Dan Givens tells would be tales of the past.

Givens' tale concerned the sale of a neglected, nearly century-old North Seattle house. Its foundation sagged; its siding was bad. And that was just the start of its problems. Anyone brave enough to buy this money pit was probably looking at spending "a couple of hundred thousand dollars" to bring it up to shape, said Givens, a Windermere manager.

As the home went on the market, agents speculated that it might fetch about $400,000. Nineteen offers later, the sad old house sold for $509,000.

That sale, which occurred a few months ago, is indicative of this year's super-hot housing market, Givens says. He puts Seattle's sales numbers and sales prices up about 11 percent over last year (final year-end numbers aren't in). Even more telling: "Half the homes sold in less than nine days," Givens said.

2004 has been "the dream market for residential real estate — for buyers, sellers and homeowners who refinanced," said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate.

more...

[UpInArms]

40. hoping I'm wrong, but I think they are going to awaken to

a nightmare.

:(

[54anickel]

43. Brings new meaning to "Sleepless in Seattle"...n/t

[UpInArms]

16. 10:18 EST numbers and blather (no bounce)

Dow 10,811.32 -43.22 (-0.40%)
Nasdaq 2,178.17 +0.98 (+0.05%)
S&P 500 1,211.76 -1.78 (-0.15%)
10-Yr Bond 42.85 -0.06 (-0.14%)

NYSE Volume 162,519,000
Nasdaq Volume 332,992,000

10:00AM: Equities continue to trade with a tinge of caution as buyers remain a reluctant bunch in the early going... Crude oil ($42.25/bbl +$0.48) continues to trade higher ahead of the Energy Department's weekly oil report which will hit the wires at 10:30 ET... Distillate inventories are expected to decline by 500K barrels while crude oil supplies are expected to increase by 200K barrels... Meanwhile, November Existing Home Sales rose 2.7% to 6.94 mln (consensus 6.75 mln), better than October's reading of 6.75 mln, but the data has done little to move the indices in either direction...NYSE Adv/Dec 1188/1403, Nasdaq Adv/Dec 1052/1440

9:40AM: Without much in the way of market-moving news, stocks show little follow through as major indices open lower and remain under pressure... Thin volumes are expected again which could provide sharp swings in overall market activity throughout the session... Separately, the only piece of economic data out this morning will be November Existing Home Sales (10:00 ET), which is expected to match October's reading of 6.75 mln...

[54anickel]

19. Taiwan Gets Real: How Will Washington & Beijing Respond?

http://www.prudentbear.com/internationalperspective.asp

Last week, Mr. Chen's Democratic Progressive Party (DPP) and its allies were stunned when an opposition alliance — which was disorganised and beset with squabbling — won the country’s legislative election, taking 114 of the 225 seats. The success of the Nationalist Party and its allies, the People First Party and the New Party, in preserving their slim majority in the legislature should curb the aspirations of the pro-independence forces in the DPP, whose actions have engendered a significant deterioration in relations between Taiwan and the mainland. How will the result be viewed in Washington and Beijing? Will the region remain a comparative bastion of stability and prosperity? Or will Taiwan become the next conflict flash point after North Korea?

An improvement in relations between Taiwan and the People’s Republic of China would be a welcome development, given existing tensions on the Korean peninsula. Taiwan’s Nationalists and their allies have vowed to block President Chen's plans to write a new constitution for the island and take other actions that Beijing has labelled as provocative and possibly leading to war. They have already proved themselves reticent to approve a fresh $18bn purchase of weapons offered by the Bush administration, viewing it as unduly antagonistic to China, which has thus far refused to have any meetings or negotiations with President Chen until he accepts the PRC’s “one China” policy – a demand consistently refused by Taiwan’s president.

So will this election result cool rising temperatures across the Taiwan Straits? Already President Chen has resigned as chairman of his party. This may make him less beholden to the party’s radical wing, which has continued to push for an immediate declaration of independence, something that could threaten war with the PRC.

There are also solid economic reasons to cool the conflict: Trade and investment have exploded across the Taiwan Strait. China has become Taiwan's largest export market, and also the destination for some $70 billion or more in Taiwanese capital, second only to the US. It is gradually replacing the US as the main engine of growth for the entire Asia/Pacific region.

Of more long term significance is Washington’s response to this new development. If the war on terror has had any silver lining from China’s perspective, it has been that the United States has ratcheted down its conflict with Beijing, which the President termed a “strategic competitor” in his first year in the White House. Before 9/11 neoconservatives in Washington were more worried about an eventual war with Beijing than with Baghdad, and in the early part of 2001 the Pentagon declared China an emerging threat, just before the now infamous “spy plane incident”.

But recently, the Bush administration’s calls for restraint has been directed less at Beijing and more on President Chen’s drive to secure the trappings of independence. On the surface, its role here has been one of conciliator, a sharp departure (at least in Asian eyes) from the perception of America as the big bad unilateralist bully. An improved perception of American foreign policy aspirations may have implications for the US dollar: to the extent that the dollar’s decline signifies the Asian savings bloc’s reticence to underwrite further American foreign policy adventurism, any rebound in the greenback could very well hinge on whether the Bush administration plays a constructive foreign policy role by using this election result to cool temperatures between the hard-liners in China and the pro-independence radicals in Taiwan.

more...

[54anickel]

20. Charged today, tapped out tomorrow?

http://money.cnn.com/2004/12/28/news/economy/holiday_creditspending/index.htm

The big tabs that holiday shoppers racked up on credit cards may haunt retailers in '05.
December 28, 2004: 2:58 PM EST
By Parija Bhatnagar, CNN/Money staff writer


NEW YORK (CNN/Money) - Retailers probably celebrated Tuesday's news that shoppers used their charge cards for a record number of transactions over the holidays.

Industry observers, however, were divided about whether there really is a reason to cheer.

Visa, the No. 1 payment card issuer, said spending on its Visa branded cards last week spiked about 32 percent, while MasterCard boasted the highest number of transactions ever recorded in its history for the crucial November-December holiday shopping season.

Retail consultant Howard Davidowitz said he's concerned the strong numbers belie troubling times for retailers in the months to come.

"The big picture is that we're a debtor nation but remain the most profligate spenders," said Davidowitz., president of New York-based Davidowitz & Associates.

more...

[54anickel]

21. Mortgage loan payments might pile up the risks

http://www.freep.com/money/business/homes29e_20041229.htm

Will a bunch of baby boomers be stuck making a monthly mortgage payment -- plus paying down a home equity loan -- well into their retirement years?

When you dig into the numbers, it doesn't look good. Already, more older Americans are saddled with mortgages than in the past.

The Federal Reserve Survey of Consumers showed that 24.7 percent of households headed by someone age 65 to 74 had mortgage debt in 1995. That number grew to 32 percent in 2001, according to the most recent Fed survey.

The baby boomers -- those ages 40 to 58 now -- are expected to push that trend even further.

"This is a generation that grew up surrounded by debt. So it's not at all surprising that they're carrying their debt into retirement," said Karen Gross, professor of law at the New York Law School and president for the Coalition for Consumer Bankruptcy Debtor Education.

more...

[54anickel]

23. Needing Cash, Veterans Sign Over Pensions

http://www.nytimes.com/2004/12/29/business/29vets.html?adxnnl=1&oref=login&adxnnlx=1104336256-xEs4ihW6WUd+ysq3fnV48Q

Kevin D. Jones, a retired Army veteran, was desperate for money. He wanted to get his wife out of the Philippines quickly after her home had been destroyed in a bombing. But she was being delayed as she waited for immigration papers to come through that would allow her to join him in North Carolina.

His military contacts, cultivated during a 25-year career that included duty in Bosnia and Kosovo, helped speed the paperwork. And a Florida financial services company that he had found through an advertisement in The Army Times helped him raise the money to fly to Manila, resettle his in-laws and return home with his wife.

He was too frantic, he said, to consider the cost of that money. But it was steep. In exchange for $19,980 after fees and insurance, Mr. Jones signed over his $1,000-a-month military pension for the next five years, a total of $60,000. That is the equivalent of paying interest at a rate of 56 percent a year.

Federal law prohibits retired military people from signing over their future pension payments to others. The companies offering these deals say they are arranged to avoid that restriction. But two federal bankruptcy judges ruled this year that deals like Mr. Jones's, in which veterans in need of quick cash give up their future pensions for a small fraction of their value, do in fact violate that law.

But the law has not been enforced or consistently interpreted. Indeed, the Defense Department's payroll centers routinely handle the paperwork that diverts the pension payments, even though veterans are warned "to exercise caution in these arrangements," a Pentagon spokeswoman said.

As a result, a small but persistent band of financial companies using military-sounding names continue to offer these so-called pension advances to retired military people over the Internet and in military newspapers.

more...

[54anickel]

24. Bond Market Defies Expectations in 2004

http://story.news.yahoo.com/news?tmpl=story&cid=588&ncid=749&e=6&u=/ap/20041228/ap_on_bi_co_ne/all_business

NEW YORK - The bond market wasn't supposed to finish out the year this way. With the dollar slumping, the U.S. economy improving and the Federal Reserve (news - web sites) taking action to keep growth in check, the good times were supposed to fizzle.

But that didn't happen. In fact, it turns out the yield on the 10-year Treasury note — the benchmark for everything from mortgage rates to how much corporations have to pay to borrow money — might close out 2004 lower than where it started.

Sure, that's higher than the near half-century lows that the yield dropped to more than a year and a half ago, but this market hasn't been performing over the last 12 months like anyone expected.

It's starting to sound a bit like a broken record when you talk about bonds. Over the last year or so, there have been forecasts predicting an imminent retreat leading to prices dropping and yields rising — they move in opposite directions.

And at points along the way, it has looked like the pullback was beginning. Then the market would switch course.

more...

Quite a bit of discussion on the Yahoo board on this one.

[54anickel]

28. Who of the superrich actually got richer?

http://www.msnbc.msn.com/id/6762737/

With a little luck the Dow Jones Industrial Average will eke out a modest 3 percent gain for the year. For these Forbes 400 members, 2004 brought better tidings and joy. A frothy initial-public-offering market, a resurgent technology sector and an ongoing love affair with gambling helped send the fortunes of these notables flying.

Rank Fortunes that roared in 2004

Check out the table at the article - easier to read

To see a slideshow, click here
Name Fortune 2004 increase
Click on a name to view the fortune
• Sheldon Adelson $15.3 billion $13.5 billion
• Sergey Brin and Larry Page $7 billion $6 billion
• Pierre Omidyar $13.4 billion $5.6 billion
• Kirk Kerkorian $8.1 billion $3.1 billion
• Michael Dell $15.9 billion $2.1 billion
• Warren Buffett $41.5 billion $1.5 billion
• Edward Lampert $2.5 billion $1 billion
• Stephen Wynn $2 billion $1 billion
• Martha Stewart $850 million $550 million
• Jeffrey Katzenberg $1 billion $200 million

[UpInArms]

31. more "investing" in China?

Sheldon Adelson
$15.3 billion
Net Worth Increase In 2004: $13.5 billion
Owner of the Strip's Venetian resort, who's now the king of Las Vegas. His net worth was up 750% in 2004 following mid-December public offering of Las Vegas Sands, making him the 11th-richest person in America. The stock is largely hyped on mogul's future: big plans for new casinos in Chinese gambling mecca Macau to go along with the Sands Macau casino (opened May 2004); and construction is under way on a Beverly Hills-themed mega-resort next to the Venetian.

[54anickel]

42. We must Murikanize China!!!...n/t

[54anickel]

29. Fannie Mae Considering $4 Bln Preferred Stock Sale

http://www.bloomberg.com/apps/news?pid=10000103&sid=aZReQKIk0mD0&refer=us

Dec. 29 (Bloomberg) -- Fannie Mae, the largest source of money for the U.S. mortgage industry, is considering selling $4 billion of preferred stock to build its capital after its regulator said it broke accounting rules.

The two sales may price as early as this week, Fannie Mae said today in a press release distributed by PR Newswire. The Office of Federal Housing Enterprise Oversight on Dec. 22 said the company was ``significantly undercapitalized.''

The government-chartered company in September agreed to build a surplus of capital after Ofheo found it broke rules in accounting for hedges on its $913 billion portfolio, used improper ``cookie jar'' reserves, and improperly deferred expenses. The Securities and Exchange Commission agreed with the regulator this month.

A Dec. 15 ruling by the SEC to disallow Washington-based Fannie Mae's derivatives accounting methods sets the stage for the company to record a $9 billion after-tax loss, based on announcement by the company a month earlier. Derivatives are financial contracts whose value is derived from debt, equity securities, currencies and commodities.

bit more...

[UpInArms]

32. NLPC Says Stop Franklin Raines' Rape of Fannie Mae And Taxpayers

http://releases.usnewswire.com/GetRelease.asp?id=41068

WASHINGTON, Dec. 29 /U.S. Newswire/ -- Peter Flaherty, president of the National Legal and Policy Center, today expressed surprise and disgust at the current attempt by fired Fannie Mae Chairman and CEO Franklin Raines to walk away with millions of dollars despite his central role in the accounting scandal rocking the company.

NLPC promotes ethics in public life, and sponsors the Corporate Integrity Project.

Flaherty said, "Let me get this straight. Raines apparently cooks the books, brings disgrace to the company, and imperils Fannie Mae's standing with regulators, the Congress and administration. So for his punishment he is made wealthy for the rest of his life?"

According to a December 27 Form 8-K filing with the Securities and Exchange Commission, Raines is entitled to:

-- "Deferred compensation" of $8.7 million.

-- Stock options currently worth $5.5 million, and potentially millions more.

-- "Performance Share Payouts" through 2006, potentially worth millions more.

-- A monthly pension of $114,393 for the rest of his life, and for the life of his spouse should she survive him.

-- Free medical and dental coverage for the rest of his life, as well as for his wife for the rest of her life, and his children until age 21.

-- Free life insurance in the amount of $5 million until age 60, and $2.5 million thereafter.

The agreement even allows for Raines to receive a "cash bonus" for 2004.

...more...

[54anickel]

35. Ain't life in BeezleBush's Murika Grand?...n/t

[UpInArms]

30. 11:27 EST numbers and blather

Dow 10,826.46 -28.08 (-0.26%)
Nasdaq 2,181.34 +4.15 (+0.19%)
S&P 500 1,213.58 +0.04 (+0.00%)
10-Yr Bond 42.85 -0.06 (-0.14%)

NYSE Volume 329,773,000
Nasdaq Volume 606,763,000

11:00AM: Major indices continue to trade in split fashion as oil prices fall to session lows following weekly inventories data... The Energy Department showed that weekly distillates fell by 800K barrels (to 119.1 mln barrels), which has left stockpiles nearly 13% below year ago levels, but crude oil inventories, which also fell by 800K barrels (to 295.1 mln) barrels, remains 8% above year ago levels... In response, crude oil has given up its initial gains and dropped to new lows of around $41.65/bbl (-$0.12)...

The commodity, which rebounded yesterday after plummeting more than 6% on Monday, is still off roughly 24% since touching record high prices of $55 in late October... NYSE Adv/Dec 1523/1444, Nasdaq Adv/Dec 1302/1528

10:35AM: Market holds fairly steady at current levels despite a disappointing weekly oil report... Crude oil supplies fell -800K barrels (consensus +200K) while distillate stockpiles came in at -800K (consensus -500K)... Limited reaction has been seen in stocks but there has been a bounce in heating oil and crude futures... Under pressure early on have been materials, telecom services, transportation, consumer staples, drug, financial while semiconductor, retail, disk drive, networking, homebuilding and energy have shown relative strength...NYSE Adv/Dec 1522/1356, Nasdaq Adv/Dec 1246/1475

[54anickel]

33. India, China Fuel Record Asian Stock and Bond Sales

http://www.bloomberg.com/apps/news?pid=10000087&sid=aNFZT1wbxvwk&refer=top_world_news

Dec. 29 (Bloomberg) -- China and India fueled record sales of stock and bonds in Asia outside Japan this year, luring investors with the world's fastest economic growth rates.

Asian companies and governments raised $98.6 billion selling debt and equity, setting records for both types of funding, Bloomberg data show. India, which increased the value of sales tenfold, combined with China to account for a third of the total, a trend bankers say will extend into 2005.

``If you have aspirations as a global bank and you're not strong in China and India, you don't really have a very good Asian business,'' said Kenneth Poon, head of Asia Pacific Equity Capital Markets at Citigroup Inc., which ranked first among global debt underwriters in the region this year.

snip>

``On what we could see visibly now, India and China seem to be dominating issuance for 2005,'' said Ian Carton, Hong Kong- based head of Asia Capital Markets & Financing at Merrill Lynch & Co., the world's biggest securities firm by capital.

more...

[UpInArms]

34. Treasurys edge up in listless action

http://cbs.marketwatch.com/news/story.asp?guid=%7BFBD83C93%2D7BF5%2D4263%2DAFF1%2DAC381C54FAF2%7D&siteid=mktw

CHICAGO (CBS.MW) -- Treasury notes were flat to mildly higher Wednesday ahead of a government sale of $24 billion in U.S. debt, scheduled for later in the day.

"The 10-year yield continues to sulk just below 4.29 percent and the 2-year is mired near 3.07 percent ahead of the 2-year note auction later," said analysts at Action Economics.

The benchmark 10-year note rose 4/32 point to 99 24/32. Its yield ($TNX: news, chart, profile), used in setting corporate and consumer loan rates, fell to 4.28 percent from 4.3 percent in late U.S. trade on Tuesday.

The market displayed little reaction to a spike in U.S. home sales, which tallied a record in November. The National Association of Realtors reported sales of existing homes climbed 2.7 percent in November to a record seasonally adjusted annual rate of 6.94 million. See full story.

"The ability of existing home sales to set a record pace despite other signs of year-end slowing in the sector has not had a material impact on Treasurys, which have been mostly immune to housing developments," Action Economics said.

...more...

[54anickel]

37. PCs in '05: Tough Act to Follow

http://www.thestreet.com/tech/billsnyder/10200527.html

The PC industry was good to investors in 2004, despite a slow start. Dell (DELL:Nasdaq - news - research) and even troubled Gateway (GTW:NYSE - news - research) sported advances on Wall Street of 25% and 41%, respectively, while a reinvigorated Apple Computer (AAPL:Nasdaq - news - research) appreciated by an astonishing 212% as of mid-December.

All three of the sector's publicly traded pure plays were helped by a second-half rally that floated a lot of technology boats, and by strong sales of PCs as well. Market researcher IDC estimates that worldwide sales of desktop PCs, notebooks and low-end servers will have increased by 14.5% by the time the ball drops in Times Square.

Apple, of course, is becoming less of a computer company every minute -- and is therefore less vulnerable to the ups and downs of the PC market. In its fourth quarter, for example, sales of Apple's hit iPod music player and related services such as iTunes accounted for 27% of the company's total revenue. In the December quarter, when consumer-electronics items top holiday shopping lists, the iPod will contribute 32% of the company's revenue and about 26% of gross profit, estimates Goldman Sachs analyst David Bailey.

The coming year is not likely to be a replay of 2004, but that's not to say it won't be interesting.

The growth in PC sales is expected to slow to 10.1% in 2005, said IDC analyst Roger Kay.

more...

[54anickel]

38. Auditor Found Recent Lapses At Fannie Mae (So they got fired)

http://www.washingtonpost.com/wp-dyn/articles/A32472-2004Dec28.html?sub=AR

snip>

KPMG "observed deficiencies" in the way Fannie Mae closed its accounting records for the third quarter, Fannie Mae said in a report filed with the Securities and Exchange Commission. It added that entries were made after the books were closed.

Neither Fannie Mae nor KPMG would explain the deficiencies. But Charles V. Greener, a Fannie Mae spokesman, said the company made the "post-closing entries" to address the auditor's concerns.

Fannie Mae was unable to file a standard quarterly financial report for the third quarter because various investigations were unresolved.

KPMG observed the deficiencies after the company's regulator, the Office of Federal Housing Enterprise Oversight, had accused Fannie Mae in a Sept. 17 report of violating accounting rules, Greener said. Earlier this month, the SEC chief accountant agreed with OFHEO and directed the company to correct its financial statements. Fannie Mae said those changes could wipe out $9 billion in reported profit since 2001.

Fannie Mae last week dismissed KPMG as the company's auditor and announced that investors should no longer rely on its audited financial reports filed since 2001. The same day, its board announced the ouster of chief executive Franklin D. Raines and chief financial officer J. Timothy Howard.

more...

[UpInArms]

57. Fannie Mae's future auditor faces no small task

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=7201363

NEW YORK, Dec 29 (Reuters) - A daunting task faces the accounting firm that takes over as the new auditor of housing finance giant Fannie Mae (FNM.N: Quote, Profile, Research) .

A new auditor will not only have to overhaul books studded with a complex set of financial instruments. It will also have to assure Fannie's investors that the mortgage giant will correctly tackle one of the most complex accounting rules facing corporate America.

The rule is called FAS 133 and is designed to account for derivatives, which include financial instruments used for protection against swings in interest rates.

"The crux of the problem will be continuation of the same problem: Clear, concise interpretation of the derivative rule," said Paul Brown, accounting professor at New York University's Stern School of Business.

Critics have claimed that the rule is not just complex but its interpretation can vary, opening the door for firms and their auditors to treat it to one's advantage.

"There are still substantial gaps between one auditor's approach from another," said Andrew Davidson a New York consultant on mortgage-backed securities. "It (FAS 133) should be either replaced or substantially revised."

...more...

[54anickel]

39. A Year for Asia to Remember -- and Forget

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_pesek&sid=anWwRadolaww

Dec. 29 (Bloomberg) -- Suddenly, the events of the last year in Asia seem trivial. The fast-rising death toll from the weekend's earthquake and tsunamis eclipses everything else.

The disaster, which has claimed at least 50,000 lives and perhaps far more, highlighted the region's vulnerability to the whims of nature. And lessons can be learned all around.

Governments received a grim wakeup call for the need to upgrade warning systems that proved woefully inadequate in the face of a magnitude 9.0 quake and subsequent tsunamis. For investors, it was a reminder of how quickly exogenous events can shake an otherwise improving economic outlook.

Yet even without the tragedy, 2004 has been a year to remember for many reasons; it's also been one many would just as soon forget. Be it the increasingly bizarre events in North Korea, China's boom, war in Iraq or Japan's recovery, 2004 is a year worth talking about.

As a memorable year draws to a close, some awards seem in order for the Asian countries, companies and people that, for better or worse, mattered most in 2004. Drum roll, please.

more...

[54anickel]

41. Inflation Disinformation

http://www.321gold.com/editorials/benson/benson122904.html

Now that the Pentagon has won the domestic war over the United States' intelligence services, our blinders have been removed and we are allowed to see the real reason that the Pentagon wants to control intelligence: to run "disinformation" campaigns against America's enemies around the world. If our military industrial complex is serious about understanding disinformation, they should become students again and participate in a case study to learn how to get disinformation right.

The Federal Reserve has done a masterful job of distributing disinformation. Last year, they were scaring Americans by announcing that deflation was a threat. This year, they continue to announce "inflation is contained" so interest rates can be raised at a "measured pace." The Federal Funds Rate has moved up from 1 percent to 2.25 percent while the CPI has risen from 2 percent to 3.5 percent! The real interest rate - the Federal Funds Rate less inflation - remains clearly negative. "Loose as a goose" as in continuing to "goose the money supply" might be a good analogy. Meanwhile, everyone is fighting deflation and totally focused on the core inflation rate, which is running at about 2 percent. The reason the core rate goes up so slowly is because it is carefully designed to leave out the key expenses that really affect our lives and go up in price such as energy costs, food, and housing. The essence of disinformation is basically to get everyone to look the other way when something like inflation is really big and in your face constantly.

Critically, the mainstream press has been a big help to the Fed in this endeavor. For the most part, they simply print what they are told without doing any factual digging or additional research, or actually examining the "real" inflation numbers. When the Fed claims that all that matters is the core rate, you really need to go to the BLS and find out what the year-over-year rate is. Price increases are downright ugly and the last thing the government wants you to do is take a closer look.

Well, let's peek anyway at some of the government's numbers on prices, courtesy of the Bureau of Labor Statistics ("BLS"):

more...

[UpInArms]

46. shhhhh! SHUT UP! SHUT UP! SHUT UP!

That type of information will undermine the morale of our military in Iraq!

[54anickel]

48. DOH!!!! WHAT was I thinking?!?...n/t

[DoBotherMe]

67. What does this mean?

"Unfortunately for savers, they are being slaughtered by inflation very silently but at least they are alive to work like a wage slave for another day."

I'm a saver (cashed out this year), a complete financial novice, and do not understand how inflation is going to "slaughter" me. Would someone please explain. Thanks! D ; )

[UpInArms]

68. it means that no matter how

"fast" you save, you can't get ahead of the curve of the price increases that eat your money before you can buy your food.

inflation - a nasty beast

[UpInArms]

47. 12:27 EST numbers and blather

Dow 10,817.52 -37.02 (-0.34%)
Nasdaq 2,176.46 -0.73 (-0.03%)
S&P 500 1,212.42 -1.12 (-0.09%)
10-Yr Bond 4.302 +0.11 (+0.26%)

NYSE Volume 441,521,000
Nasdaq Volume 787,619,00

12:05PM: Market opens a bit lower and remains under pressure, despite lower oil prices, as investors find little enthusiasm and few catalysts to extend yesterday's gains... A weekly oil inventories report, which showed larger than expected 800K barrel declines in both distillates and crude supplies, versus expectations of -500K and +200K, respectively, initially appeared to be disappointing, as heating oil and crude futures surged higher... The broader averages, however, have shown resilience and shrugged off the report suggesting that investors can accept oil prices at current $40-43/bbl ranges...

With winter forecasts for the US Northeast also having recently been revised to "near normal" from "above normal" temperatures, oil prices ($42.05/bbl +$0.28) remain volatile but have had little effect on stocks... In economic news, existing home sales rose 2.7% in November to a new record high of 6.94 mln (consensus 6.75 mln) as low mortgage rates continued to power the housing sector... The news initially helped homebuilding turn the corner but the sector remains in negative territory...

Showing weakness has been materials, consumer staples, financial, drug and transportation while semiconductor, retail, disk drive and energy have shown relative strength... There have been no earnings reports and little in the way of market-moving news to reignite broad-based buying interest... Separately, the 10-year note has remained relatively unchanged all morning, currently down 1 tick to yield 4.29%...

[UpInArms]

53. updating blather

12:30PM: More of the same as ongoing weakness in the dollar prompts some investors to lock in year-end profits... Despite showing slight signs of resilience over the last two days in early trading, the greenback has fallen to its fifth straight record low against the euro (1.3568)... The greenback, which is headed for its third annual decline against the Euro, has declined 22% since the beginning of 2002... The Yen/Dollar (104.18) has also traded lower today on speculation that the Bank of Japan may intervene by selling Yen before the end of the year...

While the weaker dollar has been good for exports and corporate profits, the possibility of importing inflation from abroad continues to linger should the US currency fail to recover over the long term...NYSE Adv/Dec 1661/1475, Nasdaq Adv/Dec 1342/1650

[54anickel]

54. Not so sure on that good for exports claim, but they've got it right

on the corporate profits side!

Gotta run for the day folks - work to be done, money to be made!!!

[54anickel]

49. Asian disaster is a test for the world

http://news.ft.com/cms/s/9e100a16-593e-11d9-89a5-00000e2511c8.html

We are constantly reminded that we live in the era of globalisation. Never have people, information and money travelled so far and so fast. The tragedy that is engulfing countries on the shores of the Indian Ocean provides a heart-rending test of the world's ability to harness those forces to limit further suffering.


The numbers of foreign holidaymakers caught in the tsunami caused by Sunday's earthquake ensured the rest of the world paid attention to a disaster that, according to the United Nations, was unique in encompassing such a large area and so many countries. The brunt has been born by tens of thousands of nameless poor fishermen, their families and children. Whole communities have been wiped out.

Time is now of the essence for the UN, governments, aid agencies and individuals to prevent the catastrophe worsening as the death toll rises, the sea disgorges the dead, and fears grow that polluted drinking water and putrefying bodies will lead to disease. The UN says hundreds of relief aircraft carrying emergency goods from about two dozen countries will arrive in the next 48 hours. Rescue teams have, however, only begun to reach remote areas.

The world must provide whatever is needed as swiftly as possible. The UN is poised to launch its biggest aid appeal to donor nations, exceeding the $1.6bn (£800m) requested for Iraq last year. Jan Egelund, head of the UN Office for the Co-ordination of Humanitarian Affairs, on Monday accused rich nations of being "stingy", bringing a rebuke from Colin Powell, the US secretary of state, who said Washington would do more on top of its initial $15m pledge. This is no time for bickering but the rich world should be generous with cash, humanitarian goods, skilled personnel and equipment.

The handling of the disaster poses a huge test for governments in the region, not least because some of the worst-hit areas - notably Sri Lanka and Indonesia's Aceh province - have seen some of Asia's worst guerrilla conflicts. It may be naïve to hope the tragedy could be a catalyst for peace, but it is vital for warring parties to put differences aside and co-operate in dealing with the catastrophe. There are signs of that in Sri Lanka, where Tamil Tiger rebels and the army have co-operated to transfer evacuees. Indonesia has called a temporary halt to hostilities with separatist rebels in Aceh. Indonesia has also lifted a ban on allowing international aid agencies into Aceh, though it was unclear yesterday how far international organisations would be able to operate on the ground.

more...

[54anickel]

50. History Will Show U.S. Lusted after Oil

http://www.commondreams.org/views04/1226-24.htm

Decades from now, historians will likely calmly discuss the war currently raging in Iraq, and identify oil as one of the key factors that led to it.

They will point to the growing U.S. dependence on foreign oil, the importance of oil in the rising competition between the U.S. and China, and the huge untapped store of oil lying unprotected under the Iraqi sand. It will all probably seem fairly obvious.

Just don't expect to hear this sort of discussion now, however, when it might actually make a difference.

In fact, a year-and-a-half into the U.S. occupation of Iraq, with the carnage over there spiralling ever more out of control, don't expect media discussions of Iraq to stray much beyond the issue of "fighting terrorism."

Indeed, while ordinary people around the world apparently suspect Washington was motivated by oil, not terrorism, there continues to be a strange unwillingness in the mainstream media to probe such a possibility.

more...

[wetbandit2003]

59. we dont really know that

We dont really know this for sure.

[htuttle]

61. Please define 'for sure'

What sort of documentary evidence would it take for you to 'really know this for sure'?

[54anickel]

69. Heh-heh, so maybe the "he tried to kill my daddy" is a better

justification for illegally occupying Iraq? It wasn't WMD, or an imminent threat to the US, or any of the other original reasons Beezlebush gave us...so yeah, that's gotta be it - Saddam tried to kill Shrub's dad. :crazy:

[UpInArms]

55. SLM completes privatization of Sallie Mae

http://cbs.marketwatch.com/help/default.asp?page=support/help/reprint.asp&dist=reprints&siteid=mktw

SAN FRANCISCO (CBS.MW) -- SLM Corp. (SLM) said Wednesday that it has completed the seven-year privatization process of the Student Loan Marketing Association by defeasing its remaining debt. The company said that it completed the process four years ahead of schedule.

[UpInArms]

58. (more details) Sallie Mae completes privatization

http://cbs.marketwatch.com/news/story.asp?guid=%7B4F64501F%2D9182%2D48AB%2D97FD%2DBFB7F302F5EB%7D&siteid=mktw

WASHINGTON (CBS.MW) -- Educational lender SLM Corp., commonly known as Sallie Mae, completed its makeover from a government-sponsored enterprise into a private company Wednesday.

Reston, Va.-based Sallie Mae (SLM: news, chart, profile) owns or manages student loans for more than 7 million borrowers, and is the nation's premier student lender.

"We're very happy and very proud" to complete the privatization process, Chief Executive Albert L. Lord told reporters at a signing ceremony at the Treasury Department.

Congress chartered Sallie Mae in 1972 to create a secondary market for student loans. Lawmakers authorized the company to begin going private in 1996, and the company has been managed as a private entity since 1997, Lord said. Sallie Mae owes the government no money.

Sallie Mae's stock rose modestly on the news, up 17 cents to $53.67.

Lord predicted the company's loan business would not change following Wednesday's announcement.

<snip>

"We're just getting started" negotiating with the agency, he said Wednesday. "It's a question of who speaks for the taxpayer up there."

...more...

[UpInArms]

56. 1:42 EST numbers and blather

Dow 10,799.26 -55.28 (-0.51%)
Nasdaq 2,174.57 -2.62 (-0.12%)
S&P 500 1,211.32 -2.22 (-0.18%)
10-Yr Bond 43.07 +0.16 (+0.37%)

NYSE Volume 564,953,000
Nasdaq Volume 967,359,000

1:30PM: A renewed wave of selling interest pushes the major indices to their lowest levels of the day as oil hits new session highs... Crude oil ($43.05/bbl +$1.28) has surged following news that explosions and shooting have been heard in Riyadh near the Interior Ministry... Concerns that recent gains, which have pushed market averages to 3 1/2-year highs, are not justified has also added to some of the selling pressure to stocks in afternoon trading... NYSE Adv/Dec 1662/1518, Nasdaq Adv/Dec 1333/1701

1:00PM: Market remains on the defensive as the bulk of sector leadership remains negative... One group failing to extend yesterday's rally has been biotech, despite encouraging news from Genzyme Corp (GENZ 58.21 +0.68)... Shares of the drug maker have climbed more than 1% after it received FDA approval for its leukemia drug Clolar; but sector-wide profit taking appears to be taking a toll on a group that, with a year-to-date gain of more than 10% including Tuesday's 2.1% surge, has outperformed both the Dow and S&P...NYSE Adv/Dec 1706/1462, Nasdaq Adv/Dec 1371/1652

[loudsue]

63. Any closing numbers???

Just checked back in.... and I'm wondering if the market held under 10,800 since the last update?

Thanks Marketeers!! :hi:

:kick::kick:

[DoBotherMe]

64. Here's something clipped from Yahoo

--------------------------------------------------------------------------------
Dow 10,829.19 -25.35 (-0.23%)
Nasdaq 2,177.00 -0.19 (-0.01%)
S&P 500 1,213.45 -0.09 (-0.01%)
10-Yr Bond 4.322% +0.031
NYSE Volume 934,406,000
Nasdaq Volume 1,516,758,000

[UpInArms]

65. thanks DanaM! Here's some blather to go with those numbers

Close: The market opened lower and never recovered while higher oil prices and year-end profit taking pressured equities as corporate news was limited and volumes were seasonally light... Crude oil futures ($43.64/bbl +$1.87) recouped some of the 6.5% it lost on Monday, on the heels of a weekly oil inventories report which showed larger than expected 800K barrel declines in both distillates and crude supplies...

But while the commodity dictated much of the day's late action, bouncing in and out of negative territory much of the session, the weekly oil report did little to influence action in the broader averages... It wasn't until oil prices got an additional boost in late action following a bomb blast in the Saudi capital of Riyadh that kept buyers on the sidelines for good... Meanwhile, November existing home sales, the only piece of economic news out today, rose 2.7% to a new record high of 6.94 mln (consensus 6.75 mln)... But the data, which caused a knee-jerk reaction in homebuilding stocks and turned the sector slightly positive, provided little influence on the overall market...

News that China would not approve new aircraft purchases in 2005 sent Boeing (BA 52.09 -1.16) shares tumbling while cost cutting at the Pentagon that will result in fewer F/A-22 fighters made by Lockheed Martin (LMT 55.22 -1.54) kept LMT shares under pressure... BA, the largest laggard on the Dow, helped keep a lid on blue-chip buying interest throughout the day as the aerospace/defense sector (-1.6%) led the list of laggards... Other areas under pressure were biotech (-0.3%), despite an FDA approval on Genzyme Corp's (GENZ 58.21 +0.68) leukemia drug Clolar, as well as telecom services, financial, airline and consumer staples...

[DoBotherMe]

66. I'll be glad to help out, just

give me an assignment and I'll do it! I check this thread many times a day and first thing after signing on. D ; )

[54anickel]

70. Ouch, isn't Boeing like our biggest exporter - aside from jobs that is?

Our export numbers are mainly made up of aircraft lately. :shrug:

[54anickel]

71. Thanks DanaM. Lookie there, the DOW hung on to 10,800 afterall. n/t