STOCK MARKET WATCH, Thursday 16 March

[ozymandius]

Thursday March 16, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1040 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1911 DAYS
WHERE'S OSAMA BIN-LADEN? 1611 DAYS
DAYS SINCE ENRON COLLAPSE = 1572
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
Other Arrests of Execs = 54


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




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

AT THE CLOSING BELL ON March 15, 2006

Dow... 11,209.77 +58.43 (+0.52%)
Nasdaq... 2,311.84 +15.94 (+0.69%)
S&P 500... 1,303.02 +5.54 (+0.43%)
30-Year Bond 4.75% +0.05 (+1.04%)
10-Yr Bond... 4.73% +0.04 (+0.75%)
Gold future... 554.40 +1.40 (+0.25%)






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

[ozymandius]

1. WrapUp by Jim Willie CB

SIGNALS FROM THE BANKING WORLD

A few key signals should gain attention as the investment community struggles to fix on accurate indications for US Federal Reserve policy changes. A review is offered to paint a broader picture than a mere glimpse at the Treasury Yield Curve and its future shape. At the same time, a claim is made that debt rating agencies have been solicited to join the USFed policy. Lastly, FedSpeak is an exported practice of deception, now used in Tokyo, Brussels, and Vienna (OPEC) in order to attempt to control important markets.

-cut-

DEFINITION OF “NEUTRALITY”

The end of higher rates might be soon, or might be a long time coming. Who knows, because who knows what their motives are really? Last June, the hack novice Dallas Fed Governor Fisher shared his wisdom on the incredibly deceptive and inept “ninth inning” call in a clear piece of disinformation to control the stock and bond market. It fooled me briefly and with embarrassment. Have we had four rate hikes since then, or five? Can they or anyone define the elusive “neutrality” term in any meaningful way? At one time, my unconventional view was that “neutral” meant fixed mortgage rates equaled adjustable rates, motivated by ushering millions of homeowners into fixed contracts in safe fashion. They must be protected from continued tightening and escalating household monthly mortgage costs. That event occurred (almost) a few months ago, when the 15-year fixed rate hit the ARM rate. At a later date, my view changed on neutrality more toward what rate would adequately defend the USDollar, in an effort to satisfy Asians and Persian Gulfers unhappy with low paying Treasury yields. They had begun dreaded diversification of their foreign dowries won from hapless consumption hogs in the United States. A long-term bond premium yield of 6% to 8% might be necessary for foreigners to hold tight on their mountain of reserves holdings. They are breaking ranks overseas.

-cut-

TREASURY YIELD CURVE

The uniform rise in term yields across the Treasury spectrum might relieve the threat of inversion, but it poses a different problem. Gone might be the reliable longstanding signal (fully denied by Wall Street joy boys). However, new on the billboards is a signal of global tightening, lost liquidity, and dark clouds over the entire stock market and economic landscapes, from the United States to Europe to Japan. Rather than show the Treasury Yield Curve graph, let’s look at a forward indicator on the future shape of the yield curve itself. This chart shows the ratio of the 10-yr TNote yield (TNX) to the 3-month TBill yield (IRX). Instead of the typical spread difference in yield, it is the ratio. It reveals a bottom formation in progress and some upward momentum in the weekly stochastics.

-see chart-


...and there's more...

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

[auagroach]

47. Thanx for the new Willie post Ozymandius...

he's one of my favorites unless he's get too technical. Anybody out there translate it into layman's English in 50 words or less?

P.S. Willie wrote last week that his contacts in the City told him the prim donna mullahs in Tehran are so spoiled rotten they'll never let the radicals let a Iranian oil bourse threaten the status quo. We'll see.

[ozymandius]

2. Today's Reports

8:30 AM Building Permits Feb
Briefing Forecast 2100K
Market Expects 2113K
Prior 2216K

8:30 AM Core CPI Feb
Briefing Forecast 0.2%
Market Expects 0.2%
Prior 0.2%

8:30 AM CPI Feb
Briefing Forecast 0.2%
Market Expects 0.1%
Prior 0.7%

8:30 AM Housing Starts Feb
Briefing Forecast 2050K
Market Expects 2030K
Prior 2276K

8:30 AM Initial Claims 03/11
Briefing Forecast 290K
Market Expects 298K
Prior 303K

12:00 PM Philadelphia Fed Mar
Briefing Forecast 11.0
Market Expects 13.0
Prior 15.4

[UpInArms]

8. 8:30 Reports tumbling in:

8:29 AM ET 3/16/06 U.S. REAL HOURLY WAGES DOWN 0.1% IN PAST YEAR

8:29 AM ET 3/16/06 U.S. FEB. APPAREL PRICES FALL 1%

8:29 AM ET 3/16/06 U.S. FEB. SHELTER COSTS RISE 0.4%

8:29 AM ET 3/16/06 U.S. FEB. MEDICAL CARE PRICES UP 0.5%

8:29 AM ET 3/16/06 U.S. FEB. ENERGY PRICES FALL 1.2%

8:29 AM ET 3/16/06 U.S. CORE CPI UP 2.1% IN PAST 12 MONTHS

8:29 AM ET 3/16/06 U.S. CPI UP 3.6% IN PAST 12 MONTHS

8:29 AM ET 3/16/06 U.S. CONTINUING JOBLESS CLAIMS AT 5-YEAR LOW

8:29 AM ET 3/16/06 U.S. INITIAL JOBLESS CLAIMS HIGHEST THIS YEAR

8:29 AM ET 3/16/06 U.S. CONTINUING JOBLESS CLAIMS FALL 49,000 TO 2.445 MILLION

8:29 AM ET 3/16/06 U.S. INITIAL WEEKLY JOBLESS CLAIMS RISE 5,000 TO 309,000

8:29 AM ET 3/16/06 U.S. FEB. CORE CPI UP 0.1% VS. 0.2% EXPECTED

8:30 AM ET 3/16/06 U.S. JAN. STARTS REVISED UP TO 2.30 MLN VS 2.28 MLN PREV

8:29 AM ET 3/16/06 U.S. FEB. CPI RISES 0.1% AS EXPECTED

8:30 AM ET 3/16/06 U.S. FEB. HOUSING STARTS ABOVE CONSENSUS 2.04 MLN

8:30 AM ET 3/16/06 U.S. FEB. HOUSING STARTS DOWN 7.9% TO 2.12 MLN

[JNelson6563]

9. Not very pretty

Been busy helping organize a state House caucus event this morn. Glad to be able to just check in and get numbers (no matter how ugly) quickly and easily. Thanks UIA.

I just love you Marketeers! :toast:

Julie

[UpInArms]

10. Morning Julie!

Glad to have you drop by - come back when you can!

I miss your insights on the bond markets!

:hi:

[UpInArms]

12. U.S. Feb. CPI up 0.1%; core CPI up 0.1%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCE10B59B%2D99BE%2D48D6%2D8342%2DEF7DA965F658%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - U.S. consumer price index rose 0.1% in February, the Labor Department reported Thursday. Falling prices for energy, food and clothing offset higher prices for medical care, shelter and air fares. The increase matched Wall Street's expectations. The core CPI, meanwhile, increased 0.1%, a tick lower than the 0.2% gain expected. The CPI has risen 3.6% in the past 12 months, down from 4% last month. The core rate is up 2.1% year-over-year, the same as last month. In February, energy prices dropped 1.2%. Food prices rose 0.1%. Housing prices increased 0.1% as falling utility prices offset gains in lodging away from home, rents and owners' equivalent rents.

[UpInArms]

13. U.S. Feb. housing starts down 7.9% to 2.12 mln

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BEF356D43%2D42CA%2D4D1D%2D8DEA%2D262C9E8FF22B%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - Construction of new U.S. houses retreated in February after soaring in January. Starts fell 7.9% in February to a seasonally adjusted 2.12 million annualized units, the Commerce Department estimated Thursday. January new construction was revised higher to an increase of 15.8% to 2.30 million from the initial estimate of a 14.5% gain to 2.28 million. The decline was not as large as expected. Economists were looking for starts to fall to 2.04 million. Building permits for new housing fell 3.2% to a 2.15 million annual rate.

[54anickel]

14. Heh, but look at that spike in the futures chart! They love it!!!

Higher open seen for stocks
Stock futures rise following inflation, housing reports released before opening bell Thursday.
March 16, 2006: 8:51 AM EST


NEW YORK (CNNMoney.com) - Stocks were poised to open higher before the bell Thursday following a flurry of mixed economic data on inflation, construction and unemployment.

snip>

The February Consumer Price Index, the key measure of the inflation at the retail level, rose by 0.1 percent last month, falling in line with Wall Street expectations. Core CPI, which excludes the effect of energy and food prices, also rose 0.1 percent.

Economists surveyed by Briefing.com predicted the overall CPI to edge up 0.1 percent after a 0.7 percent gain in January on higher fuel prices. The more closely watched core CPI was expected to again post the 0.2 percent rise seen in January.

The Census Bureau also delivered its latest reading on the housing market Thursday, reporting that housing starts fell 7.9 percent to a 2.12 million annual pace from an upwardly revised 2.303 million unit rate in January. Building permits, an indicator of future growth, fell 3.2 percent to a 2.15 million unit pace from January's revised 2.22 million unit pace.

Economists expected both numbers to slow from the jump seen during the warmest January on record. Housing starts were expected to slow to an annual rate of 2.03 million homes from the 2.28 million rate in January. Building permits, seen as a measure of builder confidence in the market, were expected to drop to an annual rate of 2.11 million from 2.22 million in January.

more...

[UpInArms]

18. yet the dollar says it's a crap report

Last trade 89.35 Change -0.51 (-0.57%)

Settle Time 15:04 Open 89.87

Previous Close 89.86 High 89.97

[54anickel]

21. Yeah, I was wondering if that wasn't an "artificially stimulated" spike.

Just an attempt to give some direction from the flat line they were riding. Guess we'll have to see how long it holds. :shrug:

[UpInArms]

11. U.S. initial jobless claims rise to 309,000, most this year

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B5FBAE2C0%2D1D53%2D4AD6%2DA711%2D387863F7C4A6%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - New applications for state unemployment benefits rose by 5,000 to 309,000 in the week ending March 11, the highest level since December, the Labor Department said Thursday. Initial claims have risen three weeks in a row and five of the past six weeks since hitting a six-year low of 273,000 in late January. The four-week average of new claims, which strips out one-time events such as holidays and weather, rose by 5,750 to 296,500, the highest since the second week of January. Meanwhile, the number of people continuing to collect unemployment benefits fell by 49,000 to 2.45 million, the lowest since Feb. 10, 2001.

[UpInArms]

45. DOE: US NatGas Supply Down 55 bln cubic ft

10:31 AM ET 3/16/06 U.S. NATURAL GAS SUPPLY DOWN 55 BLN CUBIC FT: ENERGY DEPT

10:31 AM ET 3/16/06 APRIL NATURAL GAS LAST UP 3.7C AT $7.18/MLN BTUS

[UpInArms]

79. Philly Fed says factory activity slowed in March to 12.3

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T170948Z_01_N16435531_RTRIDST_0_ECONOMY-PHILLYFED-URGENT.XML

NEW YORK, March 16 (Reuters) - Factory activity in the U.S. Mid-Atlantic region slowed a little in March, but the inflation picture continued to improve, a survey released on Thursday showed.

The Philadelphia Federal Reserve Bank said its business activity index fell to 12.3 in March from 15.4 in February, below Wall Street forecasts of an easing to 14.0.

Any reading above zero indicates growth in the region's manufacturing sector.

The new orders index, a gauge of future growth, jumped to 20.8 from 12.5 in February, while the jobs component fell to 5.4 from 11.3.

In a positive sign for the inflation outlook, a measure of prices paid by manufacturers dived to 17.2 from 30.5 last month and the regional Fed said this measure has dropped by 50 points over the past five months.

...more...

[Mnemosyne]

3. Morning Oz! Did the Iranian Oil Boarse open yesterday?

When can we expect to feel the effects if so? Thanks!:hi:
Did I spell it wrong?

[54anickel]

16. Launch of Iranian oil trading hits wall

Oil exchange unlikely to begin till at least midyear

http://www.theglobeandmail.com/servlet/story/LAC.20060314.RIRAN14/TPStory/Business

As the nuclear standoff pitting Iran against the West continues, some conspiracy theorists are more focused on another plan that the Middle Eastern nation is pursuing.

But they are jumping the gun if they still figure Iran is within days of launching a new international oil exchange that would sell its own and other Middle Eastern oil producers' black gold in euros rather than U.S. dollars -- and which, the theory goes, could ultimately torpedo the greenback and the U.S. economy.

Despite repeated reports over the past 18 months or so that the planned bourse would finally open for business on March 20, 2006 -- and go head to head with the New York Mercantile Exchange and the ICE Futures Exchange in London -- the start date has been postponed by at least several months and maybe more than a year.

"In the middle of 2006, we are able to start the bourse," Mohammad Asemipur, special adviser on the project to Iran's Oil Minister, said when reached in Tehran. The plan is to trade petrochemical products first, with a crude oil contract coming last, a rollout that likely will take three years, he said.

more...

[Mnemosyne]

146. Thanks for the info 54anickel! Hopefully we aren't in a

quagmire in Iran by then.:hi:

[ret5hd]

17. i think the iranian oil bourse opens on the 20th...

i might be mistaken as to the date and the spelling tho. :-)

[Mnemosyne]

145. Thanks ret5hd! Guess I thought it was the 15th

because when I first heard about it someone commented "beware the Ides of March". My bad. :hi:

[UpInArms]

4. daily dollar watch

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

Last trade 89.75 Change -0.11 (-0.12%)

Dollar fundamentals propelled the euro higher

http://www.dailyfx.com/story/dailyfx-reports/top-fx-market-movers/7331-dollar-fundamentals-propelled-the-euro.html

EURUSD

High, But Not High Enough
Dollar fundamentals propelled the euro higher as the net foreign securities purchases data fell short of expectations. Although rising above the consensus, the figure falls way short of the trade deficit witnessed last week, turning concern to the sustainability of the current pace in the world’s largest economy. Already higher off of the 1.1900 handle, the Euro climbed to above the 1.2000 figure even as no real data was scheduled in favor of the European nation. The single piece of data expected was in line with expectations as consumer prices for the Italian economy rose 0.2 percent on the monthly measure. Now with most of the U.S. event risk out of the way, players may be looking across the Atlantic for a reason to push the European single currency higher. Expected for tomorrow are consumer prices for the region. Estimated to rebound to a positive rise in the month, consumer price increases would indefinitely fuel further rate hikes as central bankers have shifted gears to a more tightening bias on higher energy concerns. Should the figures fall short, traders will turn attention to the U.S. inflationary figure later in the day to initiated a pull back on the major pair.

...more...

[54anickel]

78. Achieving new lows

Last trade 89.11 Change -0.75 (-0.83%)

Settle Time 15:04 Open 89.87

Previous Close 89.86 High 89.97

Low 89.11 2006-03-16 12:17:42, 30 min delay

52wk High 92.63 52wk High Date 2005-11-16

52wk Low 81.59 52wk Low Date 2005-03-17

[UpInArms]

84. still dropping

Last trade 89.05 Change -0.81 (-0.90%)

Settle Time 15:04 Open 89.87

Previous Close 89.86 High 89.97

Low 89.04 2006-03-16 12:31:07, 30 min delay

[54anickel]

104. Smoke and mirrors...Daily Pfenning

http://www.kitcocasey.com/displayArticle.php?id=606

Good day...The dollar declined against the euro and the yen yesterday after a Treasury Department report showed foreign purchases of U.S. securities were less than the amount needed to finance the trade deficit for a second straight month. If international investors are no longer investing enough to finance the trade deficit, just how is the dollar keeping as strong as it is? Smoke and mirrors... It sounds like the U.S. government may be taking a page out of the Enron guide to economic management.

As Chuck has explained numerous times over the past years, the trade deficit and net foreign purchases are two of the most important fundamental factors affecting the value of the US$. The trade deficit, a monthly figure, grew to a record $68.5 billion in January, from 65.1 billion a month earlier. To compensate for the gap in the current account and maintain the value of the dollar, the U.S. has to attract from overseas just under 3 billion dollars a day, or about 85 billion dollars a month. If and when international investors can't or won't finance this gap, the value of the US$ must fall. The currency markets may push these fundamentals to the side and react to interest rate differentials in the short term, but eventually the value of the US$ will be determined by these structural factors, which currently predict a sharp fall in the US$.

You can believe that even though Chuck was down in Florida, he was analyzing these reports to see just how they would impact the greenback. Here are some of his thoughts: "The flows into the U.S. are interesting, because for the first time in over a year, equity purchases increased to a significant level! You just have to ask yourself, how many times do these foreign investors have to get burned by this scandal or the next scandal before they say... 'never again!' I think their foray into the equities will meet the same fate as previous ones... And once again, the foreign central banks will be left to finance what now has become $3 billion dollars A DAY!"

The dollar extended losses in afternoon trading after the Federal Reserve released its 'beige book' report, which showed the economy was growing at a moderate pace. This weakened the argument for additional interest rate increases past the one or two additional rate increases that have already been priced in. This data just confirms that any rate increase after March 28 is becoming even more questionable. With the Fed nearing the end of their rate cycle, expected rate increases by the European Central Bank and the Bank of Japan will likely put more downward pressure on the greenback.

[54anickel]

106. Protectionism May Hurt Dollar

http://www.merkfund.com/merk-perspective/insights/2006-03-15.html

Protectionism is on the rise in the U.S. – can we afford it? If we tell our trading partners that their money is not welcome, they should be excused if they invest elsewhere. Because of its massive current account deficit, the United States must attract over US$2 billion in foreign investments every day to keep the dollar from falling. To illustrate why we should be concerned about a potential decline in the dollar, look at inflation: just about everything around us has been getting more expensive, except for the goods we can import. As the dollar falls, inflation – and with it interest rates - may pick up significantly.

As China sold over $200 billion more in goods to the U.S. than it acquired, its foreign currency reserves swelled to over $800 billion (not just US dollar reserves). Foreigners have had an incentive to keep their currencies weak to promote exports to the United States. Rather than merely buying U.S. Treasury securities, foreigners have shown an increased appetite for real assets. At the same time, with politicians instilling xenophobia into Americans, isolationist sentiment has grown. With mid-term elections later this year, politicians across the political spectrum jump at the opportunity to stir the paranoia; even some moderate commentators have referred to the trend as jingoism.

snip>

Foreigners do not vote, so why bother stepping up for them? Labor Secretary Elaine Chow put it bluntly: “We are after all a debtor nation!” (interview on CNBC March 10, 2006). Not only that, but she also confirmed that between 22 and 29 million jobs in the US are dependent on trade. Rarely has the US been so vulnerable. One of the beauties of the US economy is that it can adjust to new environments: a lot of businesses facilitate trade these days. If trade barriers are imposed now, then we have not only lost the manufacturing base through outsourcing, but will destroy the jobs of those who have been able to adapt. We should have learned our lessons from the Great Depression: there, protectionism deepened the hardship on people. Today, we are just at the beginning of an economic downturn – a downturn few economists even acknowledge at this stage - and we are already playing the blame game.

Last summer, the Chinese controlled oil conglomerate CNOOC was in the media as it tried to acquire US-based Unocal. There, too, the political firestorm that resulted caused CNOOC to abandon the deal. It shall be noted that CNOOC was only interested in non-US assets with no direct impact on oil produced for the US market. At the time, we published a cynical note entitled “China: U.S. Dollar may not be Worth the Paper it is Printed on” – the essence of the article was: if you can’t buy anything of use with your dollars, why bother holding them? Indeed, the Chinese have since ventured beyond the U.S. to secure their natural resource needs in Canada, Latin America and Australia. Last year, China has started to partner with India on some acquisitions. And in Africa, China has provided development aid in return for increased access to natural resources.

There may well be room for improvement in the process of how international transactions are approved. But rather than squarely blaming foreigners, it may be helpful to start by evaluating domestic policies that have contributed to creating unprecedented liabilities to US consumers, have accelerated outsourcing and made the US dependent on foreign capital.

[54anickel]

118. Dubai Company Plans to Sell All U.S. Operations

http://nytimes.com/2006/03/15/national/15cnd-port.html?hp&ex=1142485200&en=d8dcfa5d4be13e6b&ei=5094&partner=homepage

DP World, the state-owned Dubai company that dropped its bid to manage American ports in the face of bipartisan opposition, said today that it planned to sell all its United States operations to an American-controlled company within the next six months.

But the political tussling over port security continued today, as House Republicans blocked an attempt by Democrats to add money for cargo inspection and other safety measures to a $91 billion emergency spending measure for the wars in Iraq and Afghanistan and the aftermath of Hurricane Katrina.

snip>

While Democrats were the first to raise questions about putting operations into the hands of a company owned by the United Arab Emirates, Republicans came out against the deal as well. President Bush pledged to veto a bill to block the takeover, arguing that it would send "the wrong signal" to the world about American willingness to trust an Arab ally. But after Republican leaders informed the White House that any veto would be overriden, DP World pulled out.

In its statement last Thursday, DP World pledged to "transfer" its leases to an unnamed American company. That drew concern from members of Congress, who said it left open the possibility that DP World might keep control through an American subsidiary.

[UpInArms]

5. U.S. Senate, House begin talks on tax cut bill

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T011253Z_01_N15382606_RTRIDST_0_CONGRESS-TAXES.XML

WASHINGTON, March 15 (Reuters) - Congressional negotiators on Wednesday began negotiations on a $70 billion tax cut package that Republican leaders are insisting include an extension of tax breaks for capital gains and dividends.

Negotiators are trying to merge vastly different bills approved by the Senate and the U.S. House of Representatives, and Senate Finance Committee Chairman Charles Grassley said he wants a final bill that will win broad bipartisan support.

The House-passed bill would extend for two years the 15 percent tax rate for capital gains and dividends that was the centerpiece of President George W. Bush's 2003 tax cut. Without congressional action that rate will expire at the end of 2008 and taxes on long-term capital gains would revert back to 20 percent. Dividends would be taxed the same as other income.

"This is not so much a tax cut as preventing a tax increase," said Rep. Jim McCrery, a Louisiana Republican who is a member of the House Ways and Means Committee and one of the tax bill negotiators.

At the heart of the Senate-passed bill is a provision extending alternative minimum tax relief for one year. AMT relief expired at the end of 2005 and millions of taxpayers could pay the tax when they file their 2006 returns next year. The tax was originally meant for only the richest people, but more middle-income people face paying the tax.

"This provision would keep 16 million American families from being hit by the "stealth" tax this year," Grassley, an Iowa Republican, said of the AMT as negotiators met publicly for the first time.

...more...

[54anickel]

22. Cripes sake! Talk about twisted logic. I knew they would take that BS

route.

"This is not so much a tax cut as preventing a tax increase,"...

[UpInArms]

6. U.S. Senate sets Thursday vote on raising debt limit

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T234054Z_01_N15344142_RTRIDST_0_ECONOMY-TREASURY-LIMIT-UPDATE-1.XML

WASHINGTON, March 15 (Reuters) - The Senate will begin debate on Wednesday on legislation to raise U.S. borrowing authority with a vote on passage on Thursday, Senate Majority Leader Bill Frist said on Wednesday.

The U.S. Treasury Department has bumped up against its current limit on borrowing, which is set by law at $8.18 trillion. The legislation would raise the U.S. debt limit by $781 billion.

Frist said the Senate will vote on one amendment to the legislation: a Democratic move calling for a study of foreign-held debt, which has been rising rapidly in recent years.

If the Senate were to approve that amendment, the legislation would be sent back to the U.S. House of Representatives for approval. The House initially passed the $781 billion debt limit hike nearly a year ago.

Senate Republican aides in recent days have indicated there might be support for the foreign-held debt study on separate legislation. Republican leaders were hoping to avoid amending the bill on borrowing authority and thus avoid a House vote.

The Treasury Department earlier this week notified Congress that March 24 was the latest it could go without an increase in borrowing authority.

...more...

[UpInArms]

24. Debt Ceiling to Hit $9T After Senate Vote

http://www.chron.com/disp/story.mpl/ap/politics/3727225.html

WASHINGTON — The national debt limit would rise to $9 trillion _ about $30,000 for every man, woman and child in the United States _ under a bill coming to a Senate vote.

The must-pass measure would allow the government to borrow $781 billion more to finance its addiction to budget deficits, even as pressure is building to bust President Bush's cap on the agency budgets passed each year by Congress.

<snip>

"We are plunging deeper and deeper into debt and it is increasingly financed by foreigners," said Sen. Kent Conrad of North Dakota, top Democrat on the Senate Budget Committee. "We keep on spending, we keep on cutting taxes, we keep on running up the debt."

Senate Finance Committee Chairman Charles Grassley, R-Iowa, said Bush's tax cuts account for just 30 percent of the debt limit increases required during his presidency. Revenue losses from a recession and new spending to combat terrorism and for the war in Iraq are also responsible, he said.

<snip>

But Gregg's measure re-ignites last year's battle over allowing oil drilling in Alaska's Arctic National Wildlife Refuge, since it would let Senate leaders bring an ANWR drilling measure to the floor under rules blocking a filibuster by opponents.

...more at link...

I am tired of hearing about a "recession" that they claimed in 2001 - now they say this freakin' economy is "booming" and where in the hell do they get their cross-assed stories from anyway? Just pulling more shit out of their arses. :grr:

[UpInArms]

39. US's Snow to Congress-raise debt limit this week - w/no amendments!

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T150708Z_01_WBT004988_RTRIDST_0_ECONOMY-DEBT-URGENT.XML

WASHINGTON, March 16 (Reuters) - U.S. Treasury Secretary John Snow urged Congress to raise the $8.18 trillion U.S. debt limit this week, a letter released on Thursday said.

"Failure to do so threatens the full faith and credit of the United States government," Snow said in a letter to Senate Majority Leader Bill Frist dated March 15 and released by the Treasury Department.

Amendments to proposed legislation would only delay raising the debt ceiling, Snow said.

What's the hurry, crook?

[OrangeCountyDemocrat]

43. They're Killing A Democratic Ammendment Right Now

Bacchus of Montana(D) has proposed an amendment to study the effects of foreign ownership of our debt, and it is about to be voted down on party lines.

Let's see how many amendments the Dems can conceive to delay this final vote. I don't hold out much hope however. It's only a matter of hours until the repubs get their $9 TRILLION Limit.

[OrangeCountyDemocrat]

48. Voted Down 55-44. Harry Reid Babbling Now. nt

[UpInArms]

55. U.S. Senate defeats amendment to debt limit bill

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T161435Z_01_N16273422_RTRIDST_0_ECONOMY-DEBT-CONGRESS.XML

WASHINGTON, March 16 (Reuters) - The U.S Senate on Thursday heeded warnings by the Bush administration and defeated an amendment to legislation raising the federal debt limit, clearing the way for the bill's passage.

By a vote of 55-44, the Senate defeated an amendment by Sen. Max Baucus, a Montana Democrat, requiring a study of the impact of foreign-held debt.

The House approved legislation last year to raise U.S. borrowing authority by $781 billion. The Senate is poised to pass an identical measure.

Ask this mal-administration no questions, Dammit! Don't watch as they sell out our country!

[wordpix2]

62. FOR SALE to FOREIGN OWNERS: USA

[wordpix2]

61. this should be used against repukes in '06: sheeple are waking up to debt

and the fact this $9 Trillion debt is repuke-backed should be shouted out

[54anickel]

50. Bwahaha! Is he trying to save House members the embarrassment

of having their names associated with raising the ceiling to yet another record breaker? This is a roll call vote, isn't it? Are the Repukes conceding the Senate for '06 and trying to save the House? Ahhh, I can dream - can't I?

[54anickel]

71. WTF? The House DID approve it in a sneaky little move.....

http://www.washingtonpost.com/wp-dyn/content/article/2006/03/14/AR2006031401693.html
When $8 Trillion Isn't Enough

snip>

In the end, of course, Congress will vote to raise the debt ceiling, as it must. Indeed, the House has already done so, quietly, under a rule designed to let members take that step without having any politically damaging attention called to it. The Senate is to take up the issue this week, most likely just before it leaves on its latest recess; there, too, the hope of the majority is to get this unpleasant business over with as quickly as possible. But Democrats have secured an agreement to vote on several amendments, including tying the debt increase to restoring pay-as-you-go requirements on new entitlement spending or tax cuts. This is mostly for purposes of political point-scoring -- the amendment's not likely to be approved -- but that doesn't take away from the importance of doing something to get the budget under control.

[OrangeCountyDemocrat]

72. I Really See Little Hope For This Country's Future

I realize it's negative, and a defeatist attitude. And don't give up until it's over. Look on the bright side.

But frankly, one party, and at least 35%+ of the country is either Evil or Stupid, while the remaining "Minority" party, is Weak, Incompetent, and Uninterested.

I had heard how the Dems were going to debate this debt increase, how it was going to be a fight, and talked about, and people led to realize what an impact it has for the future of our whole economy. What I saw didn't even last one soundbyte! WHERE WAS THE DEBATE? WHERE WAS THE OUTRAGE?

Even with a 52-48 vote, and getting a couple of repubs to defect, this went absolutely NOWHERE! It will be buried on Page 30 of the 31 page paper tomorrow, and probably won't even earn a soundbyte on any show, except possibly Countdown.

I truly think that we're doomed, and even winning an election in '08, will not be soon enough to help us. That is assuming the Dems even have a shot at winning an election in Any Year.

[UpInArms]

83. No Democrats voted for raising the debt limit

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T165603Z_01_N16206950_RTRIDST_0_ECONOMY-TREASURY-LIMIT-UPDATE-1.XML

The Senate voted 52-48 to raise the federal debt limit to $8.965 trillion. The measure, the fourth time the cap has been raised since 2002, now goes to U.S. President George W. Bush for signing into law.

Before the vote, the Republican-controlled Senate defeated a move by Democrats to amend the legislation. Had Democrats been successful, they would have forced the U.S. House of Representatives to vote on the bill before recessing on Thursday for more than a week.

<snip>

The Senate amendment, by Max Baucus, a Montana Democrat, would have required a study on the impact of rapidly-growing foreign-held debt.

<snip>

No Democrats voted for raising the debt limit, leaving Republicans with casting the politically-difficult vote in favor of increased borrowing.

Senate Minority Leader Harry Reid, a Nevada Democrat, said the rapid run-up in U.S. debt since 2002 was because of the "reckless fiscal policies of this president" and because of a Republican-controlled Congress that he said is a "rubber stamp" of Bush's initiatives.

[OrangeCountyDemocrat]

87. Politically Difficult Vote?

Why is this any different? They'll get away with this vote also. I doubt it will even be talked about, except on those websites with economists or crazy left wing liberals.

[54anickel]

90. Any Dems vote to kill the amendment? eom

[UpInArms]

92. there must have been 3 .... eom

[54anickel]

94. Yeah, I kind of guessed that. It wouldn't have changed the outcome,

but it would have been nice if they were able to show a little solidarity on that one. It was a damned good amendment for an extremely pertinent study. Unless of course you agree with F-yourself Dick that deficits don't matter.

[54anickel]

128. Hmmm, I can't find any - Biden didn't vote, but I cant find any Ds in

the NAY column...then again my eyes aren't that great.

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=109&session=2&vote=00053#position

[UpInArms]

130. I couldn't find any either -

here's the link to the increased debt ceiling vote

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=109&session=2&vote=00054

looks like Burns - R-Mont voted against it

am trying to see where the difference in votes is

yeas - 52
nays - 48

on this bill and the Amendment

yeas - 44
nays - 55

(a difference of 3)

okay - so Biden is 1 (abstained on Amendment vote)
and Burns is 1 (voted against debt increase)
and Coburn (R-OK) makes the 3rd (voted against debt increase)

[54anickel]

133. Thanks, I saw Coburn but missed Burns on the ceiling vote. So the Dems

did stick together for a change. Wonder what Biden's excuse is for ducking out?

[UpInArms]

105. "a mostly empty Senate chamber conducted a brief debate Wednesday evening"

http://www.kutv.com/topstories/topstories_story_075114131.html

excerpt:

The present limit on the debt is $8.2 trillion. With the budget deficit expected to approach $400 billion for both this year and next, another increase in the debt limit will almost certainly be required next year.

<snip>

Democrats blasted the bill, saying it was needed because of fiscal mismanagement by Bush, who came to office when the government was running record surpluses.

“When it comes to deficits, this president owns all the records,” said Minority Leader Harry Reid, D-Nev. “The three largest deficits in our nation’s history have all occurred under this administration’s watch.”

Only a handful of Republicans spoke in favor of the measure as a mostly empty Senate chamber conducted a brief debate Wednesday evening.

...more...

[UpInArms]

80. US's Snow - debt limit increase shields US credit

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T171032Z_01_WBT004993_RTRIDST_0_ECONOMY-DEBT-SNOW-URGENT.XML

WASHINGTON, March 16 (Reuters) - The U.S. Senate's action to raise the federal debt limit protects the full faith and credit of the U.S. government, Treasury Secretary John Snow said on Thursday.

"This legislation ensures that the U.S. can deliver on promises already made, such as Social Security and Medicare payments and aid for the victims of the 2005 hurricanes," Snow said in a statement.

and the continued sell-out of Amerika goes on....

[OrangeCountyDemocrat]

57. I Believe They're Voting On The Limit Increase Now

So, that didn't take long. I thought there was going to be debate. I thought there were going to be amendments.

Well, glad we could get that minor problem solved quickly so other more important matters can be pursued. Senators....what's for lunch?

[wordpix2]

63. DISGUSTING show, senators

[OrangeCountyDemocrat]

59. Passes 52-48 nt

[UpInArms]

66. US Senate votes debt limit hike to $8.965 trillion

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T163739Z_01_WAT005087_RTRIDST_0_ECONOMY-TREASURY-LIMIT-URGENT.XML

WASHINGTON, March 16 (Reuters) - The Senate on Thursday approved a $781 billion increase in U.S. borrowing authority aimed at averting a possible government default on debt this month.

The Senate voted 52-48 to raise the federal debt limit to $8.965 trillion. The measure, which marks the fourth time the cap has been raised since 2002, now goes to U.S. President George W. Bush for signing into law.

These freaks need to forego their goddamn pay checks - they are disgusting.

[OrangeCountyDemocrat]

67. King george Has To Sign It....So It Still May Not Go Through.....

HA HA! Made Ya Look!

:rofl:

[UpInArms]

69. you're very funny OCD!

:rofl:

[InsultComicDog]

96. D'oh!

[54anickel]

76. Wonderful. If memory serves me correctly this isn't this the 4th time

since this mal-admin usurped our government? Or am I way off on that? Thought I just read that somewhere, but I don't want to be starting rumors.

[UpInArms]

93. yes, this was the 4th increase so that the GOPpiggies could loot our treas

Reuters Puts on a Happy Face!

WASHINGTON, March 16 (Reuters) - For those who struggle to balance their checkbooks every month, it might be difficult to comprehend the meaning of Thursday's vote by the U.S. Senate to raise the government debt limit to nearly $9 trillion.

After all, how much is a trillion?

It's the number one followed by 12 zeros. But that doesn't shed much light on just how deeply in debt the federal government is that it must pass a law enabling it to borrow up to $8.965 trillion.

"It's hard to understand what a trillion is. I don't know what it is," confessed Senate Budget Committee Chairman Judd Gregg, a New Hampshire Republican, this week when debating the government's staggering fiscal obligations.

<snip>

And that's the rub. The federal government has been on a spending binge. Just since 2002, the Republican-controlled Congress has had to hike the Treasury Department's credit card limit four times, for a total of more than $3 trillion.

...more...

[54anickel]

97. And their "justification" has been an illegal war, based on a lie, based

upon a war declared against a pseudo nameless, faceless enemy, based upon a neocon wet-dream of pre-emptive war, based upon 9-11 that was based upon??? Oh yeah, we'll never know cuz they killed any serious investigation of that little episode - didn't they?

[UpInArms]

7. Reliant Energy - Ex-Trader Sentenced for False Reporting

Reliant was formerly known as Houston Industries and headed by James A. Baker III

http://www.nytimes.com/2006/03/16/business/16reliant.html?ex=1143176400&en=e6b33581128bb04f&ei=5099&partner=TOPIXNEWS

HOUSTON, March 15 (AP) — A former trader for Reliant Energy has been sentenced to almost five years in prison for submitting false information about natural gas trades to an industry publication, in what prosecutors called the first such case in the nation.

The trader, Jerry A. Futch Jr., 43, pleaded guilty last year to a single count of reporting false gas trades in 2000 and 2001. Information on commodity trades is used to create price indexes.

Mr. Futch disputed the government's estimate of the damage caused by his actions, a factor in the length of his sentence. The government had estimated the damage at $272 million, but Mr. Futch's lawyers said it was a few hundred thousand dollars or less.

Federal District Court Judge David Hittner accepted a $7.1 million estimate recommended by probation officials, and sentenced Mr. Futch on Tuesday to four years and nine months in jail.

...more...

a bit of history:

http://educate-yourself.org/cn/southernstrategyassaultonamerica01jan01.shtml

When Bush moved to Houston in 1959, he began socializing with the likes of James A. Baker III, and the Houston oily-garchs, and became active with the Harris County Republican Party, of which he became chairman in 1963, helped both by Harriman money and the sudden dropping out of the race by his opponent. In September 1963, he announced another Senatorial bid. Bush won the Republican nomination, but lost the election to Yarborough. But Bush had an ace up his sleeve, with a lawsuit to force a redrawing of Congressional districts in Texas. The result was the creation of an entirely new district on the west side of Houston, an area which Bush had carried in the 1964 election. Faced with this gift of a friendly district with no incumbent, Bush left Zapata Offshore in 1966 to run for Congress. Not surprisingly, he won, and in January 1967, George Bush became a member of the House of Representatives. In Congress, Bush heavily pushed birth control and malthusian policies, while defending the oil depletion allowance. Dissatisfied with a seat in the House, however, Representative Bush decided to run for the Senate in 1970. In that race, he expected to face Yarborough, but Yarborough lost the Democratic nomination to Lloyd Bentsen, who beat Bush 53% to 47%.

After the defeat, Bush took a series of non-elective offices. In December 1970, Nixon appointed Bush to the post of U.S. Ambassador to the United Nations. Bush moved to New York City, and the Waldorf-Astoria. He was nominally working for Secretary of State William Rogers, but his real boss was National Security Adviser Henry Kissinger. In 1973, Nixon appointed Bush to head the Republican National Committee. When Nixon resigned in 1974, Bush angled for President Gerald Ford to appoint him Vice President, but the job went to Nelson Rockefeller, and Bush got the job as U.S. Liaison to the People's Republic of China; since the United States did not have formal diplomatic relations with China at the time, Bush was not officially an ambassador, and thus did not require what would likely have been a difficult confirmation by the Senate. In late 1975, Ford shifted personnel around, in preparation for his own Presidential bid, and George Bush was appointed director of the CIA. After a contentious confirmation battle, Bush was confirmed by the Senate and sworn in as CIA Director on Jan. 30, 1976. It was a short-lived post, as Ford lost to Carter, and Bush returned to Texas when Carter took over in 1977.

Back in Houston, Bush was appointed to the board of First International Bank of Houston, its parent First International Bankshares (a.k.a., InterFirst) of Dallas, and InterFirst's London-based First International Bankshares merchant bank. <8> Bush also joined a few corporate and educational boards, and became an adjunct professor at Rice University.

Bush's main preoccupation was building a political machine that would carry him to the White House, and one of his key allies was James A. Baker III. Baker was the chairman of the Reagan-Bush campaign in 1980, while fellow Texan Robert Strauss headed the Carter-Mondale effort. Baker had headed the Ford campaign in 1976, and had been Ford's Deputy Secretary of Commerce. Oilman Robert Mosbacher headed up Bush's national finance operation.

[UpInArms]

98. S&P cuts Reliant Energy deeper into junk

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T175334Z_01_WNA5188_RTRIDST_0_UTILITIES-RELIANT-S-P-URGENT.XML

NEW YORK, March 16 (Reuters) - Standard & Poor's cut Reliant Energy Inc. (RRI.N: Quote, Profile, Research) and two of its subsidiaries' credit ratings on Thursday, citing poor performance during 2005 and expected challenges for 2006.

Despite selling assets and reducing debt Reliant has a weak cash flow and business model compared to its peers, S&P said. The rating agency said the weakness is expected to continue through 2006.

"Post-2006, there remains uncertainty as to how the retail market will unfold in Texas and given that Reliant has little financial flexibility, it could be exposed to tough competition," S&P said.

S&P cut Reliant's corporate credit rating one notch to "B," the fifth highest junk level, from "B-plus."

The outlook is negative, reflecting Reliant's expected poor financial performance in 2006, said S&P. A negative outlook indicates the ratings may be lowered again over the next two years.

...more...

[UpInArms]

15. US Treasuries turn higher on mild inflation data

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T134319Z_01_NYG000149_RTRIDST_0_MARKETS-BONDS-URGENT.XML

NEW YORK, March 16 (Reuters) - U.S. Treasury debt prices turned higher on Thursday on data showing milder-than-expected core inflation, which played into views the Federal Reserve is not far from ending its monetary tightening campaign.

The core consumer price index, which excludes food and energy prices, rose 0.1 percent in February, half of both economists' expectations and January's reading of a gain of 0.2 percent.

...more...

[UpInArms]

44. Fed won't act to preserve high home prices: Kohn

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6116173A%2DA04F%2D4EDD%2D8D0B%2D835D37201544%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- The Federal Reserve has no intention of preserving all of the recent gains in home price values, said Federal Reserve board governor Donald Kohn on Thursday.

"If real estate prices begin to erode, homeowners should not expect to see all the gains of recent years preserved by monetary policy actions,' Kohn said in a speech prepared for delivery to a European Central Bank forum in Frankfurt, Germany.

In his remarks, Kohn attacked the popular 'Greenspan put' theory that Fed policy would always protect investors from sharp asset market drops while doing nothing to restrain these markets when prices rise.

<snip>

"For my part, I am dubious that any central banker knows enough about the economy to overcome these hurdles," Kohn said.

...more at link...

For my part, I am dubious that any central banker knows his ass from a hole in the ground. :eyes:

[54anickel]

82. The Greenspan "put" theory was never meant to cover the average Joe.

They WILL step in to protect the banks and corporate interests. The wealthy don't have to worry about loosing their shirt should their home price drop - they have plenty of those "other" assets that are covered by the Greenspin "put".

However, with that said, now that our economy is a complete cluster-f*ck and in the hands of foreigners willing to lend us money like there's no tomorrow - just how successful can they be in propping up the US? They will again need the help of the foreign CBs. Wonder if the big money behind all the CBs are looking to do a little consolidating or M&A among their "branches". :tinfoilhat:

[UpInArms]

51. US Treasury postpones bill announcement

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T160251Z_01_WBT004989_RTRIDST_0_ECONOMY-TREASURY-BILLS-URGENT.XML

WASHINGTON, March 16 (Reuters) - The Treasury Department on Thursday postponed the announcement of 13-week and 26-week bills to be auctioned March 20 as Congress debates increasing the federal debt ceiling.

Treasury provided no make-up date for the announcement. A Treasury official said rescheduling of the announcement would depend on congressional action regarding the debt limit.

[UpInArms]

108. Higher debt limit to ease US 2-year supply crunch

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T183333Z_01_N16155216_RTRIDST_0_FINANCIAL-TREASURIES-TWOYEARS.XML

NEW YORK, March 16 (Reuters) - A $781 billion increase in the U.S. debt ceiling on Thursday should ease a supply crunch of two-year Treasury notes in the repurchase market, analysts say.

The scarcity, or "squeeze," of two-year Treasury notes <US2YT=RR> in the repurchase market had underscored bond investors' worries over the U.S. government's ability to sell more debt after hitting its borrowing limit.

"The squeeze has eased considerably," said Michael Pond, Treasury strategist at Barclays Capital. "We knew the passage was coming."

Congressional approval of a higher debt ceiling at $8.18 trillion alleviated fears over a scheduled auction of two-year debt, the most sensitive to the market's expectations on monetary policy, at the end of the March.

Shortly before Congress' passage of an increase in the borrowing ceiling, the Treasury Department decided to delay its weekly bill sales on Monday.

The Treasury has been selling $22 billion worth of two-year notes each month since the start of the year.

...more...

[UpInArms]

125. U.S. Treasury to resume SLGS securities Friday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T193102Z_01_WBT004994_RTRIDST_0_ECONOMY-TREASURY-SECURITIES-URGENT.XML

WASHINGTON, March 16 (Reuters) - The U.S. Treasury Department said on Thursday it will resume sale of state and local government series securities (SLGS) on Friday.

Treasury had suspended SLGS issuance as the federal government neared a $8.18 trillion debt ceiling. Congress voted on Thursday to raise the debt limit by $781 billion to $8.965 trillion.

[UpInArms]

19. Hedge fund says it may try to remove Chiron CEO

http://www.boston.com/news/local/massachusetts/articles/2006/03/15/hedge_fund_says_it_may_try_to_remove_chiron_ceo/?rss_id=Boston.com+%2F+News+%2F+Local

BOSTON (Reuters) - A hedge fund that is working to scuttle a proposed acquisition of Chiron Corp. <CHIR.O> on Wednesday threatened to try and remove the biotech company's top executive if he campaigns for the deal to go through.

In a sharply worded letter, ValueAct Capital told Chiron's independent board members and Chief Executive Officer Howard Pien that the $3 billion hedge fund would lose confidence in management if it defended Swiss drugmaker Novartis AG's <NOVN.VX> plans to buy the 56 percent of Chiron that it does not yet own.

If Howard Pien agrees to solicit votes for the deal, "he will have lost the confidence of shareholders and must replaced if Chiron is not sold to Novartis," ValueAct partner Mason Morfit wrote.

ValueAct, Chiron's second largest shareholder outside of Novartis with 9.8 million shares, has publicly criticized Novartis' plan to buy Chiron for $45 per share, calling the deal unfair and accusing the Swiss company of having used insider information to attack when Chiron was weak.

So when Pien and two of Chiron's independent board members asked to meet with the hedge fund, presumably to spell out the deal's merits before the April 12 shareholder vote, ValueAct's partners were angry.

...more...

[UpInArms]

20. Judge orders FDA whistleblower to testify re: Vioxx

http://www.modbee.com/24hour/business/story/3230141p-11967772c.html

NEW YORK (AP) - The Food and Drug Administration whistleblower who has criticized the agency's handling of Vioxx will be deposed, a judge ruled, offering evidence that could aid thousands of lawsuits over the withdrawn pain killer.

A federal judge refused to grant a government motion to quash plaintiffs' lawyers subpoena of drug reviewer Dr. David Graham, who testified at a 2004 Congressional hearing that the Merck & Co. drug caused as many as 160,000 heart attacks and strokes.

Graham said in an interview Wednesday that he welcomed the opportunity to be deposed because he thinks his testimony will serve the public interest and that he hopes to counter what he called "spin" around the Vioxx data. Graham reiterated his belief that the FDA failed the public in its handling of Vioxx, yet said he didn't know whether his testimony would necessarily bolster plaintiff lawsuits.

"Who it hurts, who it helps is not my concern. I just want to make the truth clear," he said.

Others see it as a boon to plaintiffs' lawyers. As an FDA employee Graham counters part of Merck's defense: Vioxx was safe because the agency approved it, said Marc Scheineson, a former FDA lawyer who now represents drug and device companies.

...more...

[54anickel]

23. House Dems balk at quick fix to budget reconciliation typo

http://www.hillnews.com/thehill/export/TheHill/News/Frontpage/021406/budget.html

House and Senate Democratic leaders are divided on how to resolve the constitutional issues dogging the budget-reconciliation bill signed by President Bush on Wednesday.

Democrats in the House are sending signals that they will not accede to the Republican leadership’s evident desire to execute a quick fix. Clerical errors led to the House’s passing slightly different language than the Senate did.

But Senate Minority Leader Harry Reid (D-Nev.) has already signed off on the favored Republican strategy of adopting a concurrent resolution emphasizing that the legislation endorsed by the president represents the intent of Congress. The Senate agreed to the resolution Wednesday night under unanimous consent several hours after the president signed the budget bill.

House Minority Leader Nancy Pelosi (D-Calif.), meanwhile, is said to be considering an effort to obstruct the GOP leadership’s expected effort to get a unanimous-consent agreement through the House this week.

Former Sen. Tom Daschle (D-S.D.), who served as majority and minority leader, commended Reid for being “magnanimous” in consenting to Senate Majority Leader Bill Frist’s (R-Tenn.) plan, but agreed that House Democrats should act.

snip>

The Bush administration is forging ahead with the bill’s implementation. At a press briefing yesterday, Health and Human Services Secretary Mike Leavitt said, “I’m presuming that it’s law, and we’re moving forward on that basis.”

more...

[UpInArms]

25. 9:32 EST casino's open with a happy dance

Dow 11,232.26 +22.49 (+0.20%)
Nasdaq 2,318.63 +6.79 (+0.29%)
S&P 500 1,305.23 +2.21 (+0.17%)
10-Yr Bond 4.713 -0.18 (-0.38%)

NYSE Volume 33,457,00
Nasdaq Volume 74,331,000

09:02 am : S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +4.0. Futures trade is still suggesting a higher start for the stock market. The better than expected read on the core rate of CPI is behind the now-bullish bias. The Treasury market also took a positive cue from the data. For both market, the 0.1% rise is a bullish indication in terms of expectations on how far the Fed will go with its tightening policy. The data may help the stock market build on the technically-driven momentum that surfaced yesterday afternoon, and improvements in bond yields will be in focus. Helping to underpin the sentiment is Bear Stearns (BSC) - the latest broker to deliver very strong earnings results.

08:34 am : S&P futures vs fair value: +2.3. Nasdaq futures vs fair value: +4.5. Core CPI rose 0.1% in February - below the 0.2% that had been expected. Matching expectations, total CPI also rose 0.1%. Futures trade has ticked higher immediately following the report, and now suggests an upside open for the cash market. The bond market also improved. A host of other economic data has also hit the wires. Lat month, Building Permits rose 2145K (consensus 2113K), and Housing Starts came in at 2120K (consensus 2030K). Initial Claims increased 309K last week (consensus 298K).

[ozymandius]

26. Markets are open for bidness.

Everything's great if you neither eat nor drive nor heat nor power your home.

Dow 11,230.50 +20.73 (+0.18%)
Nasdaq 2,318.84 +7.00 (+0.30%)
S&P 500 1,304.79 +1.77 (+0.14%)
10-Yr Bond 47.17 -0.14 (-0.30%)
NYSE Volume 33,457,000
Nasdaq Volume 74,331,000

09:02 am : S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +4.0. Futures trade is still suggesting a higher start for the stock market. The better than expected read on the core rate of CPI is behind the now-bullish bias. The Treasury market also took a positive cue from the data. For both market, the 0.1% rise is a bullish indication in terms of expectations on how far the Fed will go with its tightening policy. The data may help the stock market build on the technically-driven momentum that surfaced yesterday afternoon, and improvements in bond yields will be in focus. Helping to underpin the sentiment is Bear Stearns (BSC) - the latest broker to deliver very strong earnings results.

08:34 am : S&P futures vs fair value: +2.3. Nasdaq futures vs fair value: +4.5. Core CPI rose 0.1% in February - below the 0.2% that had been expected. Matching expectations, total CPI also rose 0.1%. Futures trade has ticked higher immediately following the report, and now suggests an upside open for the cash market. The bond market also improved. A host of other economic data has also hit the wires. Lat month, Building Permits rose 2145K (consensus 2113K), and Housing Starts came in at 2120K (consensus 2030K). Initial Claims increased 309K last week (consensus 298K).

[54anickel]

42. THINK PRICES ARE RISING? THE GOVERNMENT DISAGREES

http://www.nypost.com/business/63154.htm

WHO says we can't teach Tokyo a thing or two?
Japanese politicians apparently don't want that country to be known as the Land of the Rising Prices, so they are digging into the U.S. playbook to pull a fast one.

snip>

It would a little worse if you included food and energy - but, hey, who eats or drives these days?

The Japanese reported earlier this month that their consumer prices rose 0.5 percent in January from a year earlier, a number that roiled the world markets, which are worried that Japan will start raising interest rates.

Japan imports all its oil. So it would be logical that the country would suffer from some inflation.

Logic, however, doesn't really play a part in the game of economic statistics. And there are academic theories aplenty that'll make bad numbers disappear and good ones suddenly show up on the ledger.

And that's exactly what the Japanese are apparently planning to do in a scandalous move that should - but never does - have the juices flowing in investigative reporters everywhere.

more...

[54anickel]

27. Top lobbyist makes offer to step aside

http://www.thehill.com/thehill/export/TheHill/News/Frontpage/031506/news3.html

The lobbying group representing drugstore companies is poised for a shakeup in its senior leadership after the industry took significant hits in Congress last year.

Craig Fuller, president and CEO of the National Association of Chain Drugstores (NACDS), has offered to resign after being notified of the board of directors’ decision to make changes within the organization, a spokeswoman said yesterday.

snip>

The enactment of a budget-reconciliation bill that cut Medicaid payments to pharmacies and the difficult rollout of the Medicare prescription-drug benefit have rankled drugstore companies this year.

Retail drugstores also have borne the brunt of many of the early problems with the implementation of the Medicare drug benefit. Fuller led the NACDS’s initial opposition to the GOP-backed bill but embraced the final version that was enacted in 2003.

The budget-reconciliation bill included changes to Medicaid that are designed to save money for the healthcare program for the poor — and will cost pharmacies $6.3 billion over five years, according to an industry estimate. The law reduces the fee pharmacists receive for dispensing generic drugs to Medicaid enrollees.

Fuller and the NACDS, along with allied pharmacy groups, took an aggressive tack trying to fight off the budget-reconciliation bill last year. The NACDS led a coalition of pharmacy groups against the bill, bolstering its public-relations, advertising and lobbying onslaught, but failed to prevent the Medicaid cuts.

more...

[UpInArms]

29. Craig Fuller - the face of evil

When contemplating war, beware of babies in incubators

More than 10 years later, I can still recall my brother Sean's face. It was bright red. Furious. Not one given to fits of temper, Sean was in an uproar. He was a father, and he had just heard that Iraqi soldiers had taken scores of babies out of incubators in Kuwait City and left them to die. The Iraqis had shipped the incubators back to Baghdad. A pacifist by nature, my brother was not in a peaceful mood that day. "We've got to go and get Saddam Hussein. Now," he said passionately.

I completely understood his feelings. Although I had no family of my own then, who could countenance such brutality? The news of the slaughter had come at a key moment in the deliberations about whether the US would invade Iraq. Those who watched the non-stop debates on TV saw that many of those who had previously wavered on the issue had been turned into warriors by this shocking incident.

Too bad it never happened. The babies in the incubator story is a classic example of how easy it is for the public and legislators to be mislead during moments of high tension. It's also a vivid example of how the media can be manipulated if we do not keep our guards up.

<snip>

The Kuwait government had to find a way to "sell the war" to the American public, who were interested, but not deeply involved. So under the auspices of a group called Citizen for a Free Kuwait, which was really the Kuwait government in exile (the group received almost $12 million from the Kuwaiti government, and only $17,000 from others, according to author John R. MacArthur) the American PR firm Hill & Knowlton was hired for $10.7 million to devise a campaign to win American support for the war. Craig Fuller, the firm's president and COO, had been then-President George Bush's chief of staff when the senior Bush has served as vice president under Ronald Reagan. The move made a lot of sense – after all, access to power is everything in Washington and the Hill & Knowlton people had lots of that.

...more...

[UpInArms]

30. Propaganda 101 - by Craig Fuller

http://www.prwatch.org/books/tsigfy10.html

Hill & Knowlton produced dozens of video news releases at a cost of well over half a million dollars, but it was money well spent, resulting in tens of millions of dollars worth of "free" air time. The VNRs were shown by eager TV news directors around the world who rarely (if ever) identified Kuwait's PR firm as the source of the footage and stories. TV stations and networks simply fed the carefully-crafted propaganda to unwitting viewers, who assumed they were watching "real" journalism. After the war Arthur Rowse asked Hill & Knowlton to show him some of the VNRs, but the PR company refused. Obviously the phony TV news reports had served their purpose, and it would do H&K no good to help a reporter reveal the extent of the deception. In Unreliable Sources, authors Martin Lee and Norman Solomon noted that "when a research team from the communications department of the University of Massachusetts surveyed public opinion and correlated it with knowledge of basic facts about US policy in the region, they drew some sobering conclusions: The more television people watched, the fewer facts they knew; and the less people knew in terms of basic facts, the more likely they were to back the Bush administration."78

Throughout the campaign, the Wirthlin Group conducted daily opinion polls to help Hill & Knowlton take the emotional pulse of key constituencies so it could identify the themes and slogans that would be most effective in promoting support for US military action. After the war ended, the Canadian Broadcasting Corporation produced an Emmy award-winning TV documentary on the PR campaign titled "To Sell a War." The show featured an interview with Wirthlin executive Dee Alsop in which Alsop bragged of his work and demonstrated how audience surveys were even used to physically adapt the clothing and hairstyle of the Kuwait ambassador so he would seem more likeable to TV audiences. Wirthlin's job, Alsop explained, was "to identify the messages that really resonate emotionally with the American people." The theme that struck the deepest emotional chord, they discovered, was "the fact that Saddam Hussein was a madman who had committed atrocities even against his own people, and had tremendous power to do further damage, and he needed to be stopped."79

Every big media event needs what journalists and flacks alike refer to as "the hook." An ideal hook becomes the central element of a story that makes it newsworthy, evokes a strong emotional response, and sticks in the memory. In the case of the Gulf War, the "hook" was invented by Hill & Knowlton. In style, substance and mode of delivery, it bore an uncanny resemblance to England's World War I hearings that accused German soldiers of killing babies.

On October 10, 1990, the Congressional Human Rights Caucus held a hearing on Capitol Hill which provided the first opportunity for formal presentations of Iraqi human rights violations. Outwardly, the hearing resembled an official congressional proceeding, but appearances were deceiving. In reality, the Human Rights Caucus, chaired by California Democrat Tom Lantos and Illinois Republican John Porter, was simply an association of politicians. Lantos and Porter were also co-chairs of the Congressional Human Rights Foundation, a legally separate entity that occupied free office space valued at $3,000 a year in Hill & Knowlton's Washington, DC office. Notwithstanding its congressional trappings, the Congressional Human Rights Caucus served as another Hill & Knowlton front group, which - like all front groups - used a noble-sounding name to disguise its true purpose.80

[UpInArms]

31. Like Father, Like Son - Bush administration blurs media boundary

http://www.csmonitor.com/2005/0217/p01s01-uspo.html

WASHINGTON – First came video "news releases" produced by the Bush administration using a TV news format. Then came three conservative columnists who got big paychecks from federal agencies. Now, there's Jeff Gannon (not his real name), a journalist (maybe) who gained surprisingly easy access to the president, only to lob a sympathetically slanted question.

No evidence has surfaced that Mr. Gannon was directed by the White House, but the circumstances ignited a debate over the inner workings of the White House press room.

<snip>

But taken together, these recent controversies suggest that the Bush administration may be pushing that craft into new territory - and testing the limits of presidential public relations.

<snip>

A 2004 video produced by the Health and Human Services Department to promote the administration's new Medicare prescription drug law ended with the tagline in journalese: "In Washington, I'm Karen Ryan reporting."

A number of local TV stations aired this spot and others produced by federal agencies, without disclosing their source.

...more...

[UpInArms]

32. SSDD - "Sanitized News Coverage"

http://www.prwatch.org/books/tsigfy10.html

The military build-up in the Persian Gulf began by flying and shipping hundreds of thousands of US troops, armaments and supplies to staging areas in Saudi Arabia, yet another nation with no tolerance for a free press, democratic rights and most western customs. In a secret strategy memo, the Pentagon outlined a tightly-woven plan to constrain and control journalists. A massive babysitting operation would ensure that no truly independent or uncensored reporting reached back to the US public. "News media representatives will be escorted at all times," the memo stated. "Repeat, at all times."87

Deputy Secretary of Defense for Public Affairs Pete Williams served as the Pentagon's top flack for the Gulf War. Using the perennial PR strategy of "good cop/bad cop," the government of Saudi Arabia played the "heavy," denying visas and access to the US press, while Williams, the reporters' friend, appeared to intercede repeatedly on their behalf. This strategy kept news organizations competing with each other for favors from Williams, and kept them from questioning the fundamental fact that journalistic independence was impossible under military escort and censorship.

The overwhelming technological superiority of US forces won a decisive victory in the brief and brutal war known as Desert Storm. Afterwards, some in the media quietly admitted that they'd been manipulated to produce sanitized coverage which almost entirely ignored the war's human cost - today estimated at over 100,000 civilian deaths. The American public's single most lasting memory of the war will probably be the ridiculously successful video stunts supplied by the Pentagon showing robot "smart bombs" striking only their intended military targets, without much "collateral" (civilian) damage.

"Although influential media such as the New York Times and Wall Street Journal kept promoting the illusion of the 'clean war,' a different picture began to emerge after the US stopped carpet-bombing Iraq," note Lee and Solomon. "The pattern underscored what Napoleon meant when he said that it wasn't necessary to completely suppress the news; it was sufficient to delay the news until it no longer mattered."88

[54anickel]

36. Oh yeah, I can't tell you how many people I know still tout that "smart

bombs" low civilian casualties BS. Of course, they're the ones that still quote the baby incubator stories and claim Saddam ate babies. :eyes:

So glad they de-regulated media ownership so the US could have their own version of Pravda.

[54anickel]

33. Looks like he's lost his "Midas touch". Wonder what evil lurks to

take his place now that they're bootin' his ass. Looks like another "fresh face" move. Heh-heh, I'd die laughing if I found Howard Baker was behind this one too. :evilgrin:

[UpInArms]

37. Baker - Fuller - Russia

The Russians Are Coming

The Bush administration is high on hydrogen. The president's proposed 2005 budget includes $228 million to help businesses develop better hydrogen fuel cells, triple the assistance the federal government provided in 2001. What's left unsaid in his speeches about America's potential to "lead the world in developing clean, hydrogen-powered automobiles" is that the initiative holds out a massive windfall for Bush insiders and well-connected lobbyists, not to mention a Russian oligarch with a history of shady dealings and environmental destruction.

<snip>

So how did Norilsk Nickel win such easy approval for its acquisition of Stillwater, taking eight months for a process that critics say should have lasted longer? A look behind the scenes reveals that influential people, with clout at the White House, had much to gain by pushing it forward.

Norilsk Nickel hired Baker Botts, the lobbying firm headed by longtime Bush family political adviser James Baker III. Baker Botts assigned a special counsel named Diana Dietrich, a former Federal Trade Commission litigator, to plead Norilsk Nickel's case before the agency where she used to work. The Russian company also put forward the group it planned to add to Stillwater's board of directors after the takeover, and four of its five nominees are neither Russians nor mining executives, but American power players. They include Craig Fuller, the former chief of staff to then Vice President George H.W. Bush; Steven Lucas, a partner at Nielsen-Merksamer, a California firm specializing in lobbying and electoral law; former Senator Donald Riegle (D-Mich.), who served as chairman of the Senate Banking Committee; and Todd Schafer, who works in Moscow for the lobbying firm Hogan & Hartson and has assisted Potanin in battling challenges to his control of Uneximbank. Stillwater vice president John Stark says that his company proposed some of these nominees to Norilsk Nickel, while others were suggested by the U.S. Chamber of Commerce.

In December 2002 -- one month after the deal was announced -- the Treasury Department, which has to approve foreign purchases of strategic assets, okayed the deal. Then the SEC gave Norilsk Nickel's accounting practices a pass, clearing the way for it to acquire a company listed on the New York Stock Exchange. "It's pretty odd that it was allowed to go through without any extensive checks," says Brad Shorey, president of Local 8-0001 of the Paper, Allied-Industrial, Chemical and Energy Workers International, which represents Stillwater workers.

[UpInArms]

41. full circle to Carlyle

Arrested Russian Businessman Is Carlyle Group Adviser

November 10, 2003; Page E04

The arrest of two of Russia's top businessmen in recent months was more than a distant headline for Washington's well-connected private equity firm, Carlyle Group.

Carlyle, known for the glittering roster of former statesmen among its partners and advisers, has ties to both Mikhail Khodorkovsky and Platon Lebedev, the jailed Russian tycoons.Khodorkovsky, 40, Russia's richest man and former chief executive of Yukos Oil Co., serves as an adviser to Carlyle's Energy Group. He is among 15 luminaries who help the firm sort through investment opportunities in energy industries, along with former secretary of state James A. Baker III, former British prime minister John Major and Pulitzer-Prize-winning author Daniel Yergin.

Khodorkovsky was arrested last month by Russian authorities for alleged fraud and tax evasion. Because the billionaire is seen as a possible political rival to President Vladimir Putin, his arrest has unsettled the country's business community and worried foreign investors.

...more...

Have you heard? Story details mine sale to Russians

The April issue of Harper's magazine includes an article called "The Oligarchs' Ball" offering details about the roles President George W. Bush, along with his father and Vice President Dick Cheney, played in the sale of the majority of stock in Montana-based Stillwater Mining Co. to a Russian corporation.

Last June, Stillwater Mining completed the sale of a majority of its stock to Norimet Limited. Norimet is the wholly-owned London trading subsidiary of Norilsk Nickel, Russia's mining giant.

This is important because Stillwater Mining's two Montana mines are the only U.S. source of the precious metals, platinum and palladium, used primarily in catalytic converters.

The same day the sale was approved during a special shareholders meeting in Denver, company executives announced that the Federal Trade Commission waived any antitrust concerns over the deal.

<snip>

After 9/11, The Carlyle Group was losing important Arab investors, including members of the extended family of Osama Bin Laden. Harper's wrote that the Carlyle Group begin a quiet campaign to woo the oligarchs as a source of non-Arab oil. Russia among other countries opposed the U.S. invasion of Iraq.

As previously reported in this column, Norilsk hired Jim Baker's law firm, Baker Botts LLP, to lobby the sale through three federal regulatory agencies. Sen. Conrad Burns, R-Mont., traveled to Moscow in the fall of 2002 to support the sale.

...more...

[UpInArms]

52. Country for sale, slightly used, inquire within (from 2004, but still good

http://www.unknownnews.net/040716a-te.html

excerpt:

Funny how invading a country so full of oil has raised our gas prices and stirred OPEC up. That’s not a problem though, only weenies watch their gas mileage. And we can afford to pay $2+ a gallon for gas for Iraqis too, then sell it to them for 10 cents a gallon.

The amount of money spent isn't important, and neither is accountability for the expenditures. Hey, it's the Pentagon, they pay $500 for hammers, remember? So massive profits made by select companies who happen to have ties to the administration are totally irrelevant. That's what defense contractors do.

The looting of our treasury, and the massive shift of wealth to the upper 2 percent of the population through tax cuts is insignificant. Rich people DESERVE to pay less money that they won't miss to the government.

The Medicare bill that actually takes some of what little Medicare recipients get, and gives it to the drug companies, or to corporations in the form of subsidies, while fewer elderly have drug coverage than had before? Well, those people should have planned better for their retirement, and figured in the $500 a month in drugs they need to keep living.

That the Bush Administration's treasury secretary supports outsourcing jobs overseas, and uses taxpayer dollars to promote it isn't any big deal. Oh, the career you chose (and still owe big bucks in college loans on) is done much cheaper in India now? Well, you should've thought ahead, made a better choice. Like computer technology, law, maybe one of the biological sciences, or rocket science.

...more...

[54anickel]

75. The entire piece ties in sooooo nicely to today's thread. Thanks. eom

[54anickel]

28. ANWR drilling backers set to try again

http://www.adn.com/news/alaska/story/7536780p-7448406c.html

WASHINGTON -- It didn't work last year, but Senate backers of opening the Arctic National Wildlife Refuge to oil development are again trying to pass the drilling measure as part of a budget bill.


"It's a little bit of deja vu all over again," said Sen. Lisa Murkowski, R-Alaska.

So far, the game plan looks identical to last year's. A Republican-drafted Senate resolution calls for opening the refuge. It is headed for a vote, probably today.

The resolution doesn't have the force of law, but it lays the groundwork for an ANWR measure later, in something called a budget reconciliation bill. Under Senate rules, budget bills of this type can't be held up with a filibuster, so they need just 51 votes to pass instead of 60.

Last year, the budget bill with ANWR in it passed the Senate with 52 votes. Then it skidded to a halt in the House, where a group of anti-drilling Republicans sided with all the Democrats to defeat it. It passed only after House leaders took out the ANWR provision.

Once again, the moderate Republicans in the House are balking at passing a budget that includes ANWR drilling.

more...

[54anickel]

34. Big Oil's Smaller Cushion

http://www.thestreet.com/_pbear/stocks/energy/10273395.html

Energy investors are smiling. Crude prices are skyrocketing, energy companies are enjoying record earnings, and share prices are climbing.

But those smiles may be gone soon. Big oil profits may not last.

Record energy prices have diverted attention from the oil industry's dirty little secret: Production is falling and reserves are on the decline. Rather than address the problem, most oil companies are sinking their money into share buybacks and dividends to boost their stock prices.

Without new investment, companies run the risk of not having enough oil to sustain record profits and may hasten a far worse energy crisis. The country's national security, based largely around cheap and plentiful oil, could be put at further risk if oil becomes scarce and prices rise.

snip>

Some of those record profits are being funneled into share buybacks and dividends. Every time a company repurchases stock, it reduces the number of outstanding shares and increases an individual stakeholder's position. Buybacks can also pump up a company's earnings per share and stock price.

Last year, Exxon gave back $23.2 billion to shareholders, a 56% increase over 2004. Yet the oil giant sank only $17.7 billion in capital and exploration expenses, according to the company. BP distributed $19 billion in buybacks and dividends, but devoted $14 billion to investments. Shell invested $15.9 billion in capital expenses, and sent $17 billion to shareholders. Only Chevron spent more on its capital and exploration program to the tune of $11.1 billion, vs. $6.8 billion in shareholder distributions. But many investors see nothing wrong with this corporate largesse and contend oil giants are doing the right thing for shareholders.

"Instead of wasting money on a project, they're giving back to shareholders," says Lanny Pendill, an energy analyst at Edward Jones in St. Louis. "Ultimately, their fiduciary responsibility is to their shareholders." :eyes:

more...

[UpInArms]

35. Lenovo (Chinesed IBM) cuts jobs in restructuring push

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T145938Z_01_WEN2869_RTRIDST_0_TECH-LENOVO-URGENT.XML

NEW YORK, March 16 (Reuters) - Lenovo Group Ltd (0992.HK: Quote, Profile, Research) said on Thursday that it will cut 1,000 jobs, or about 5 percent of its staff, and integrate its global sales and back-office support as part of a restructuring plan which will cost it $100 million in charges.

The computer manufacturer said that it expects to achieve annual savings of approximately $250 million.

Other components of the plan include moving the global supply chain closer to the manufacturing and suppliers and moving its corporate headquarters from Purchase, New York, to Raleigh, North Carolina.

[54anickel]

38. Now this pisses me off. While they chip away at OUR rights to privacy

they are building a wall of confidentiality protections around farm producers?

http://www.decaturdaily.com/decaturdaily/news/060316/cow.shtml

How now, mad cow?
Search continues for offspring of Alabama mad cow; state vet wants all farm data to be off-limits to public

snip>

Presently, Alabama has a voluntary animal identification system. Farmers can give the state information about where animals are housed, their medical treatment history and other animals with which they have come into contact.

About 2,000 producers in Alabama have joined the Premises Registration Process program.

"We're trying to get that information, and before we go too far into the process, we're trying to get confidentiality fixed," Frazier said.

If Frazier has his way, the state will keep secret all of the data the state collects from Alabama farmers.

Regional media outlets Tuesday focused on the possibility that the infected animal was on a farm in Lawrence County, but Frazier and state Agriculture Commissioner Ron Sparks declined to identify the county, citing confidentiality rules.

"We will continue to work with USDA, and the (state agriculture) commissioner is working with the Legislature (for laws that would render data) from farm practices confidential," Frazier said. "We have collected a lot of data through the years about farm practices — where fertilizer plants are, seed distributors, poultry houses and stockyards. That information doesn't need to get into the wrong hands — for example, terrorists and animal rights activists. We don't want to be forced to give that data to a person that doesn't need it."

more...

[54anickel]

40. Billionaire boosts Saudi stocks (Follow-up to yesterday's post)

http://news.bbc.co.uk/1/hi/business/4810206.stm

Saudi stocks have rebounded after Saudi billionaire Prince Alwaleed bin Talal announced he would invest significantly in the Saudi bourse.
Kingdom Holding, the Prince's business, could invest up to 10bn Riyals ($2.7bn)(£1.54bn) in the near future.

Stocks across the region had been at an 11 month low, but rose by over 4% after Prince Alwaleed's statements.

The Prince's decision came as the Finance Ministry said it might allow foreign residents to invest directly.

"Splitting shares is beneficial and allowing foreign residents is a very good decision", said the Saudi prince.

Trading earlier in the day had seen the Saudi Tadawul All-Shares Index (TASI) drop 4.81% - or 717 points - to 14,182.90, but the Prince's announcement boosted the market by 4%, almost regaining the previous day's loss.

more...

[54anickel]

46. Is Business Ready for a Flu Pandemic?

http://www.nytimes.com/2006/03/16/business/16bird.html?pagewanted=1&_r=2

ROME — Governments worldwide have spent billions planning for a potential influenza pandemic: buying medicines, running disaster drills, developing strategies for tighter border controls. But one piece of the plan may be missing: the ability of corporations to continue to provide vital services.

Airlines, for instance, would have to fly health experts around the world and overnight couriers would have to rush medical supplies to the front lines. Banks would need to ensure that computer systems continued to move money internationally and that local customers could get cash. News outlets would have to keep broadcasting so people could get information that might mean the difference between life and death.

"I tell companies to use their imagination to think of all the unintended consequences," said Mark Layton, global leader for enterprise risk services at Deloitte & Touche in New York. "Will suppliers be able to deliver goods? How about services they've outsourced — are they still reliable?"

snip>

Some of the most important planning involves not employee health, but how to continue to deliver vital services in a crisis. Time Warner's Cable News Network is making preparations to stay on the air from different locations.

"If there should be something that quarantines the production center here in Hong Kong, we could hand off to London and Atlanta," Stephen Marcopoto, president of Turner International Asia Pacific, a Time Warner unit in Hong Kong, said.

Time Warner is also working to create a mechanized cart that could automatically load tape after tape into a satellite transmission system, so it could keep stations like Cartoon Network on the air — a boon if children were homebound for months.

more...

[54anickel]

100. Government Recommends Stocking Up on Canned Tuna (Duct tape redux)

New HHS Checklist Advises Buying Extra Canned Tuna to Prepare for the Possibility of a Flu Pandemic

http://biz.yahoo.com/prnews/060316/dcth045.html?.v=49

WASHINGTON, March 16 /PRNewswire/ -- Got enough canned tuna on hand? You should, according to the U.S. Department of Health and Human Services (HHS), which just published new recommendations encouraging consumers to prepare for the possibility of a bird flu outbreak by stocking up on canned tuna and other healthy, nutritious canned foods and juices.

In conjunction with the release of a new Pandemic Planning Update report issued on March 13, HHS has published a series of checklists to aid in influenza preparations, including a Pandemic Flu Planning Checklist for Individuals and Families. Among the recommendations listed, HHS advises consumers to have adequate stores of canned tuna and other ready-to-eat meats, fruits, vegetables and soups as well as canned juices, bottled water, canned baby food and pet food.

Stating that no one in the world is prepared for an influenza pandemic, HHS Secretary Michael Leavitt said, "When you go to the store and buy three cans of tuna fish, buy a fourth and put it under the bed. When you go to the store to buy some milk, pick up a box of powdered milk. Put it under the bed. When you do that for a period of four to six months, you are going to have a couple of weeks of food, and that's what we're talking about."

more...


So, whatcha got under your bed?

[UpInArms]

49. Shock and Awe Redux: US says launches biggest air assault in Iraq

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2170593&mesg_id=2170593

http://today.reuters.com/news/newsarticle.aspx?type=topNews&storyid=2006-03-16T154227Z_01_L16126894_RTRUKOC_0_US-IRAQ-USA-OFFENSIVE.xml

BAGHDAD (Reuters) - The U.S. military said on Thursday it had launched its biggest air offensive in Iraq since the 2003 invasion.

A military statement said the operation involving more than 50 aircraft and 1,500 Iraqi and U.S. troops as well as 200 tactical vehicles targeted suspected insurgents operating near the town of Samarra, 100 km (60 miles) north of Baghdad.

The statement said "Operation Swarmer" was launched on Thursday morning and is "expected to continue for several days as a thorough search of the objective area is conducted."

Samarra was the site of a bombing attack last month on a Shi'ite shrine that set off sectarian reprisals and pushed Iraq to the brink of civil war.

Operation Scorched Earth continues unabated :cry:

[54anickel]

73. You know what's really sad?....

This will probably give Beelzebush a bump in his poll numbers. Who can forget the Repuke battle cry - "Bomb the entire ME back into the stone ages". I willing to bet there are knuckle-draggers across the US cheering on this latest military action. :cry:

[UpInArms]

101. Bush's Doctrine Calls Iran Greatest Challenge to U.S.

(This is what is really sad - another war will really pump up those sagging numbers)

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

March 16 (Bloomberg) -- The Bush administration, updating a national security strategy that laid the groundwork for invading Iraq, said that Iran's nuclear threat is the biggest future challenge to the U.S.

``We face no greater challenge from a single country than from Iran,'' a 49-page foreign policy doctrine scheduled for release today says. ``We will continue to take all necessary measures to protect our national and economic security against the adverse consequences of their bad conduct.''

President George W. Bush's national security adviser, Stephen Hadley, is scheduled to deliver an address to present the updated strategy later today in Washington. The policy document was released by the administration last night.

Along with disputes over its nuclear policy, the U.S. has accused Iran of intervening in Iraq. U.S. Defense Secretary Donald Rumsfeld on March 7 accused Iran of sending Revolutionary Guards into Iraq to foment violence.

<snip>

Bush's strategic doctrine is an update to one outlined by Bush in September 2002, a year after the Sept. 11 terrorist attacks, which stated the U.S. reserved the right to preempt threats by striking first against rogue states and terrorists.

It replaced longstanding U.S. policy that was centered on the circumstances of the Cold War and containing the Soviet Union. Now the U.S. stands as the lone superpower facing what Secretary of Defense Donald Rumsfeld has labeled the ``asymmetrical threats'' of terrorists and unstable nations armed with weapons of mass destruction.

The 2002 doctrine raised concerns at the time among some lawmakers and analysts that the U.S. was setting a precedent for taking aggressive action against other nations. While the invasion of Iraq turned up no weapons of mass destruction --the original rationale for the war -- the updated doctrine doesn't alter the original policy.

...more...

[54anickel]

102. ...

[54anickel]

120. America will strike first, says Bush in new security plan

http://www.timesonline.co.uk/article/0,,11069-2089075,00.html

America will continue to pre-emptively attack its enemies and Iran is now the greatest danger facing the United States, George Bush announced today in a new version of his "National Security Strategy".

In the 49-page document released four days before the third anniversary of the American -led invasion of Iraq, Mr Bush gave a resolute, upbeat account of the ongoing wars in Iraq and Afghanistan and said his Administration would continue to confront states before they had a chance to attack America or develop nuclear weapons.

"Our strong preference and common practice is to address proliferation concerns through international diplomacy, in concert with key allies and regional partners," he wrote.

"If necessary, however, under long-standing principles of self defense, we do not rule out the use of force before attacks occur, even if uncertainty remains as to the time and place of the enemy’s attack." :argh:

more...

[54anickel]

112. Bonds Jump on News of Airstrike on Iraq (BS)

http://biz.yahoo.com/ap/060316/bonds.html?.v=1

Thursday March 16, 12:20 pm ET
Bonds Jump on News of Airstrike on Iraq; Treasury's 10-Year Note Up 16/32 Point

NEW YORK (AP) -- Bond prices surged Thursday after news that the United States had launched a massive air assault on Iraq, the largest since 2003.

Investors piled into U.S. government bonds in what some traders were calling a safe-haven bid. Treasuries are seen as the world's safest investment when investors want to reduce risk exposure.

The price of the Treasury's 10-year note was up 16/32 point, or $5 per $1,000 in face value, around midday Thursday, while its yield fell to 4.66 percent from 4.73 percent late Wednesday. Prices and yields move in opposite directions.

The 30-year bonds were up 1 2/32 point and yielded 4.69 percent, down from 4.75 percent late Wednesday, according to Moneyline Telerate.

snip>

Ian Lyngen, bond strategist at RBS Greenwich Capital in Greenwich, Conn., said the move higher, which happened suddenly around 10:30 a.m., coincided with news that the U.S. military had launched the assault.

But some traders said the reaction was somewhat baffling, given that fierce fighting in Iraq has been going on for years, and has not had much of an effect on the bond market.

"I don't know why that's a new story, even if it is a bigger air attack" than others seen recently, said Scott Gewirtz, head of Treasuries trading at Lehman Brothers in New York.

more...

[54anickel]

116. Treasuries Rally After Inflation Report, U.S. Air Raid in Iraq

http://www.bloomberg.com/apps/news?pid=10000103&sid=aZ_hsQFPST0I&refer=us

March 16 (Bloomberg) -- U.S. Treasuries rallied, pushing 10- year notes to their biggest gain since December, as a report showing consumer prices rose less than forecast bolstered optimism that the Federal Reserve has inflation under control.

Treasuries reached their highs of the day after the Philadelphia Fed said its manufacturing index fell and the U.S. military launched the largest air assault in Iraq since the March 2003 invasion that ousted Saddam Hussein. Government debt is seen as a haven for investors in times of turmoil.

``I don't need to be as concerned about the Fed raising rates beyond expectations,'' said Thomas Atteberry, who manages $2.3 billion in fixed income assets at First Pacific Advisors in Los Angeles. Atteberry said he still expects bonds to fall through June.

snip>

In recent days, comments by Fed policy makers Jack Guynn and Janet Yellen that suggested the central bank still has further to go in increasing rates.

Reversing Bets

Operation Swarmer is expected to continue for several days, the military said in a statement e-mailed from Baghdad. The assault likely contributed to the rally by causing investors to reverse trades that bond prices would fall, said Michael Cheah, who manages about $2 billion at AIG SunAmerica Asset Management in Jersey City, New Jersey.

Treasuries got an added boost from Fed Governor Donald Kohn, who said central bankers risk damaging an economy by trying to pop housing and stock markets bubbles with higher interest rates, a signal to some investors that the Fed may be almost done raising borrowing costs.

[54anickel]

137. Cripes look at the size of that launch!!!

[UpInArms]

53. 11:16 EST markets love debt, death and destruction

Dow 11,260.50 +50.73 (+0.45%)
Nasdaq 2,316.41 +4.57 (+0.20%)
S&P 500 1,306.92 +3.90 (+0.30%)
10-Yr Bond 4.674 -0.57 (-1.20%)

NYSE Volume 785,171,000
Nasdaq Volume 835,513,000

10:30 am : Buying has become more aggressive, and the major averages have spiked higher. Nine of the ten economic sectors are advancing, with Financial (+0.6%), Materials (+0.8%), and Utilities (+0.8%) leading the pack. Dragged by ConAgra Foods (CAG 19.00 -1.41), Consumer Staples (-0.1%) is the lagging sector. The company announced an aggressive restructuring plan that will depress earnings until fiscal 2009, and it also slashed its dividend by about 34%. The stock's sharp decline is nearly offset by broad-based buying, thought, and the Staples sector is having a muted effect on trade. DJ30 +57.97 NASDAQ +8.70 SP500 +4.76 NASDAQ Dec/Adv/Vol 952/1710/487.9 mln NYSE Dec/Adv/Vol 818/2107/261.5 mln

10:00 am : The market is advancing. At this point, all but one of the economic sectors are lending support. The Materials sector (+0.6%) is currently faring best, but it's Financial (+0.4%) that is leading the market. Because of its association with expectations for rate hikes, the better than expected CPI report has particular implications for that area of the market. The subsequent improvement in bond yields (the 10-year is up seven ticks and yielding 4.70%) is a factor that is especially helpful for the Financial sector. Additionally, the investment banking and brokerage industry continues to contribute significant upside. Record results from Bear Stearns (SBC 135.63 +1.42) continued the group's strong earnings trend today. DJ30 +33.94 NASDAQ +8.20 SP500 +2.98 NASDAQ Dec/Adv/Vol 956/1521/228.0 mln NYSE Dec/Adv/Vol 1011/1673/79.0 mln

[wordpix2]

68. apparently, that's true

[mike923]

54. Does anybody know what the all time high is for the dow?

nfm

[UpInArms]

60. 11,722.98 on 1/14/2000

http://www.finfacts.com/Private/curency/djones.htm

11722.98 01/14/2000

[UpInArms]

56. SS Agent says 1st Amendment doesn't protect threats to the president

http://citizen-times.com/apps/pbcs.dll/article?AID=/20060316/NEWS01/60315073/1001

excerpt:

MARS HILL — The U.S. Secret Service seized a computer from the dorm room of a Mars Hill College student after he posted a message on a Web site apparently deemed threatening to President Bush.

<snip>

Willis said he made the post in late February as a response to a posting about Bush by a friend, who also had his computer seized. Willis said he took the lyrics from “Bullet,” a song recorded by The Misfits in the late 1970s, and replaced the references to President Kennedy with President Bush.

<snip>

“He asked me if I was a member of any organizations, and I told him I was in the Boy Scouts and got my Eagle Scout,” he said. The agent also asked him if he was aware of any plots to overthrow the government, and told him the First Amendment doesn’t protect threats to the president, Willis said.

...more...

[OrangeCountyDemocrat]

70. That Pesky Constitution Thing Again....

First Amendment? What First Amendment? Oh....that one? Well, it doesn't matter since 9/11. We're in a war here people! The constitution is irrelevant.

[UpInArms]

58. Department of Defense worker charged with bribery accepts plea

(your government at work)

http://www.mercurynews.com/mld/mercurynews/news/special_packages/iraq/14109469.htm

ORLANDO, Fla. - A Department of Defense worker in Iraq charged with bribery for allegedly accepting $9,000 in gifts from Iraqi contractors has accepted a plea agreement, according to court documents.

However, at a plea hearing Tuesday, federal Magistrate Karla Spaulding questioned whether she had jurisdiction over events that occurred in Iraq and halted the proceedings, according to the Orlando Sentinel.

The government also had failed to explain why the case against Bonnie Murphy, 59, of Indialantic, was filed in Orlando, Spaulding said. She gave the government until March 31 to restate its case.

As part of the agreement with the U.S. Department of Justice in Washington, Murphy admits accepting a scarf, shawl and several pieces of gold and silver jewelry. The gifts were accepted from the owners and employees of an Iraqi contractor while Murphy oversaw hazardous-waste-disposal operations, according to the plea agreement.

<snip>

Murphy oversaw invoices and monitored the contractors' performance and also recommended the company for contracts, according to court documents.

...more...

[UpInArms]

64. Police Say Former Bush Aide Admitted Theft

http://www.nbc10.com/news/8002152/detail.html

ROCKVILLE, Md. -- A former top White House aide who was arrested on a theft charge admitted to a store investigator he fraudulently returned merchandise that he didn't buy, according to charging documents.

Police allege that Claude Allen, a former domestic policy adviser to President Bush, made fraudulent returns worth at least $5,000 at Target and other stores in the Washington suburbs on 25 different occasions.

Target Corp. investigator Pete Schomburg said he stopped Allen on Jan. 2 outside the company's Gaithersburg store after Allen allegedly received a refund for items using a receipt from an earlier purchase.

"Allen had receipts from previous purchases at Target stores and admitted to Agent Schomburg that he was committing fraudulent returns," according to the charging documents filed March 7, two days before Allen was charged with theft and theft scheme.

...more...

[54anickel]

65. India ready to shoulder global role: US report

http://timesofindia.indiatimes.com/articleshow/msid-1451755,curpg-1.cms

WASHINGTON: India is now poised to shoulder global obligations in cooperation with the United States "in a way befitting a major power," the Bush administration said on Thursday in a sweeping overview of American strategic interests worldwide.

The administration’s National Security Strategy document for 2006 built on its 2002 report which first identified India as a "growing world power with which we have common strategic interest."

In effect, the latest report said New Delhi has arrived and spoke more glowingly about India than any other country.

snip>

While the report spoke of shared democratic values that underpinned its ties with India, it said the U.S was "eager to see Pakistan move along a stable, secure, and democratic path."

The report was also sharply critical of China while acknowledging the advances made by the Asian giant.

"China’s leaders must realize, however, that they cannot stay on this peaceful path while holding on to old ways of thinking and acting that exacerbate concerns throughout the region and the world," the report bluntly observed.

more...


U.S.–India ties contain China
http://www.straight.com/content.cfm?id=16470

Chances are you didn’t hear a single word about U.S.– Indian military links in the mainstream media’s reporting about U.S. President George W. Bush’s first visit to India recently. For months, the media in both countries have been encouraged to speculate about whether or not a deal on American-Indian cooperation on civilian nuclear power would be ready in time for Bush’s visit, but that deal is just the quid pro quo. The actual “quo” was a de facto military alliance between India and the United States, but we don’t talk about that in front of the children.

“The largest democracy in the world and the oldest democracy in the world are becoming strategic partners, and that is a very consequential development in international politics,” said U.S. undersecretary of state for political affairs Nicholas Burns on February 24 after a visit to New Delhi. Consequential is the right word. The two countries that will have the world’s second- and third-largest economies a generation from now have made an alliance against the country that will have the biggest economy, China—but hardly anybody in the media seems to have noticed.

It’s no secret. The joint U.S.– Indian military-training exercises of the past few years and the arms sales that are now eagerly awaited by the American defence industry are public knowledge (but only if you have been paying close attention). Indian Defence Minister Pranab Mukherjee went to Washington in person last June to sign the 10-year agreement on military cooperation and joint weapons production with the United States. It’s just that talking too loudly about all this would upset the Chinese, and it would upset some people in the United States, too. Not everybody in Washington welcomes the idea of a military alliance to “contain” China.

So let’s pretend our priorities are elsewhere and send the press chasing off down the wrong path. Happily, there is a different issue that they can be persuaded to believe is important, because New Delhi’s defiant series of nuclear-weapons tests in 1998, which were followed by a series of Pakistani nuclear tests, triggered not only U.S. sanctions against the two countries but broader sanctions by the 44-member Nuclear Suppliers Group.

Since then, India has faced serious obstacles in importing nuclear fuel and technology for its ambitious civil nuclear-power program because everybody suspected that the sensitive material would end up in India’s nuclear-weapons program. This mattered less in practice than it did in theory, since India obviously had nukes already—but international acceptance of a nuclear-armed India is still seen as a prize worth having in New Delhi. So Washington had leverage.

more...


Deepening freeze between Japan and China
http://www.onlineopinion.com.au/view.asp?article=4262

snip>

While the US is scaling down its troop presence in the Korean peninsula, it is by no means withdrawing from the region. The reduction in quantity is more than made up for by strategic upgrades in qualitative, high tech and rapidly deployed battle groups. The recent move by Washington to create a new generation nuclear arsenal fits into the overall picture of US determination to maintain its position as the sole superpower. China may have the upper hand now in the Six Party Talks but it may not be able to contain the fall out if the prolonged diplomatic stalemate and Pyongyang’s game of nuclear blackmail forces the hand of the US to attempt another pre-emptive strike.

On the one hand, China cannot help but feel encircled by a growing US presence and on the other hand, it struggles to maintain its diplomatic space. The recent East Asian Summit at Kuala Lumpur in December may have been a coup de grace for Beijing, leaving the Japanese marginalised and the US watching the historic gathering from the sidelines. But the strategic US-Japan realignment and Washington’s extension of its influence to India have more than neutralised China’s gain in creating an alternative playing field based on multilateralism rather than bilateralism.

The epoch-making deal between President George W. Bush and Prime Minister Manmohan Singh of India could well signal an enlargement of the “coalition of the willing” not just to fight terrorism but to contain China. With the US presence in all parts of Asia, China cannot help but feel entrapped although it remains committed to its peaceful economic development rhetoric. Only time will tell if Beijing’s strategy of not confronting and countering US strategic moves will give way to a situation resembling great power rivalries.

A pessimistic reading of these recent developments will raise the possibility of flashpoints triggering a larger conflict. The Taiwan problem and the North Korean issue will continue to simmer, with one of the two issues taking turns to pose security challenges to the Asia Pacific region. Chen Shuibian’s abolition of the reunification council is a disturbing development, and so is President’s Bush praise for Taipei’s progressive form of democracy for Beijing. We should not conclude that China’s frequent outburst over Taiwan’s intransigence is a mere paper tiger. There is no telling how China would react when territorial sovereignty is compromised, since this has been the key driver when Beijing does resort to armed conflicts to resolved disputes.

The optimistic prediction is that Chinese and Japanese politicians who pursue their respective national interests will learn to accommodate each other on shared values of maintaining peace and security in the region. The Sino-Japanese rivalry will continue amid parallel projects on co-operation in energy, trade and other forms of confidence-building measures.

At present, it is hard for one to remain hopeful as relations continue to be based on old animosities and unresolved tensions. Has a silent, unofficial cold war begun between China and Japan? No, certainly not at all. But prolonged Sino-Japanese tensions will certainly sour the fruits of peace built over the years and create a contagious effect of uneasy restiveness over the Asia Pacific community.



Rice and Downer in talks on how to contain China
http://smh.com.au/news/world/rice-and-downer-in-talks-on-how-to-contain-china/2006/03/10/1141701692756.html


Downer says no to Condi

US, Japan, Australia Launch New Security Dialogue
http://www.cnsnews.com/ViewForeignBureaus.asp?Page=%5CForeignBureaus%5Carchive%5C200603%5CFOR20060316a.html

snip>

While Rice earlier placed China high on the agenda for the talks, Australian Foreign Minister Alexander Downer played down the focus, saying there were "plenty of issues for us to talk about other than China."

Prime Minister John Howard's conservative government, while a close ally of Washington and Tokyo on a multitude of fronts, has diverged from the U.S. and Japan in recent years over China.

Ahead of his meeting with Rice and Japan's Taro Aso, Downer made it clear Canberra opposed any attempt to "contain" China.



Condi denies....

Rice: no China containment
http://www.theaustralian.news.com.au/common/story_page/0,5744,18495381%255E601,00.html

THE US has no policy of containment against China and was striving to engineer a greater role for the Asian superpower in the international community, Secretary of State Condoleezza Rice said yesterday.

Washington would not shrink from pushing its concerns, including on Beijing's military build-up, but would do so within the framework of trying to encourage China to change to a more economically open and freer society, she said.

Speaking to The Australian yesterday, Dr Rice emphatically denied that the US was pursuing a policy of containment - the term used during the Cold War to describe the way Washington put diplomatic and economic pressure on the Soviet Union - against China.

"I come from the Cold War period," Dr Rice told The Australian in an exclusive interview.

"Containment has a special meaning. We never used it in this context ... I think it's just a phrase I wouldn't apply."

[UpInArms]

74. Winnebago 2Q Profit Falls 39 Percent

http://breakingnews.nypost.com/dynamic/stories/E/EARNS_WINNEBAGO?SITE=NYNYP&SECTION=BUSINESS

FOREST CITY, Iowa (AP) -- Winnebago Industries Inc., one of the nation's largest motor home manufacturers, reported Thursday that second-quarter profit fell 39 percent on lower demand and prices for motor homes. Its shares tumbled nearly 8 percent.

Net income for the quarter ended Feb. 25 declined to $7.7 million, or 23 cents per share, from $12.6 million, or 37 cents per share, a year ago. The latest quarter included 2 cents per share for stock option expense.

The Forest City, Iowa-based company's revenue fell 14 percent to $206.4 million from $239.4 million last year, citing lower motor home deliveries because of decreased industry retail demand and a shift to lower priced motor homes.

...more...

I have always called these behemoths "RE"s for "retched Excess"

[54anickel]

77. But, but, but I thought all the boomers were moving from Harleys to RVs

http://www.chron.com/disp/story.mpl/business/3726550.html

Harley wants a diversified ride
Motorcycle maker focuses on minorities and women to maintain its sales growth

snip>

As the baby boomers who transformed Harley's rumbling, lumbering bikes from countercultural totems into American icons enter their senior years — the leading edge of the generation is turning 60 this year — they're increasingly in the market for knee and hip replacements, not Harley's notoriously bone-shaking bikes.

snip>

But as Harley-Davidson tries to adapt to the changing marketplace, analysts say it needs to avoid the pitfalls that other baby boomer-favored businesses, like Levi Strauss & Co., have fallen into as they tried to navigate a similar transformation.

"How do they do it without hurting existing customers and destroying the brand?" asks Geoff Meredith, the president of Lifestage Matrix Marketing, a California consulting group that specializes in aging baby boomers and has worked with Levi Strauss. "That's the $64 million question."

For manufacturers of recreational vehicles, like Forest City, Iowa-based Winnebago Industries, the aging of the nearly 80 million Americans born between 1946 and 1964 represents the beginning of a golden age.

[ozymandius]

81. ponies for everybody!

12:29
Dow 11,272.37 +62.60 (+0.56%)
Nasdaq 2,321.57 +9.73 (+0.42%)
S&P 500 1,309.62 +6.60 (+0.51%)
10-Yr Bond 46.54 -0.77 (-1.63%)
NYSE Volume 1,124,509,000
Nasdaq Volume 1,144,932,000

12:00 pm : A less than expected rise in the core rate of the Consumer Price Index is helping extend the technically-driven momentum that closed yesterday's indices at multi-year highs. The data has spurred improvement across the bond market, and falling bond yields are behind the stock market's bullish bias.

As the Fed has asserted that monetary policy will depend on economic data, the economic calendar remains in focus and CPI data report garners particular attention. In February, core CPI - which excludes food and energy - rose 0.1%. Economists had expected a 0.2% increase. The report is good news in that it is not bad news, and it quells fears of a further uptick in inflation. However, we view the trend as still ambiguous. The year-over-year increase is 2.1%; the rate of increase over the past three months is 2.0%. It is not clear that inflation is moderate enough to prevent the Fed from raising rates more than just one more time. A rate hike in March is widely expected, and one after that is possible. Monetary action after that is uncertain. Today's data does not change our view on the market, and we remain Neutral. Today's very narrow trading range may be a reflection of that lingering uncertainty.

The data is teaming with technical factors in helping Treasuries rally. The yield on the 10-year broke through an eight-day technical level this morning, and is now standing at 4.66%. Rate-sensitive areas of the stock market are faring well. The Utlities sector has risen 1.0%, homebuilders are enjoying solid buying interest, and the Financial sector (+0.5%) is contributing some influential leadership. Within the latter sector, the investment banking and brokerage industry is in focus again today. Continuing the group's trend, Bear Stearns (BSC 133.53 -0.68) delivered record earnings results that well surpassed analysts' expectations. As its report comes on the heels of very strong results from Goldman Sachs (GS 148.73 -0.27) and Lehman Brothers (LEH 142.47 -1.68), traders appear to be locking in some recent profits.

Homebuilders and housing-related stocks are helping drive the Consumer Discretionary sector (+0.5%). Aside from the market's bullish interpretation of the CPI data, better than expected Housing Starts are positive factor for the industry. Despite a rebound in energy prices, retailers are outperforming. On a related note, Gymboree (GYMB 25.80 +0.75), one of our suggested holding for active investors, announced better than expected earnings results and raised its guidance.

The Consumer Staples sector has been today's laggard. ConAgra Foods (CAG 19.00 -1.41) is the sore spot, due to its announcement of an aggressive restructuring plan that will depress earnings until fiscal 2009. Further, the company slashed its dividend by about 34%. Some broad-based buying across several other areas of the sector is helping to offset that stock's sharp decline, though, and the sector is having a minimal effect on trade. DJ30 +44.51 NASDAQ +4.85 SP500 +3.94 NASDAQ Dec/Adv/Vol 1193/1668/990.6 mln NYSE Dec/Adv/Vol 986/2111/650.3 mln

[54anickel]

86. Eww, eww!!! Can I get the pinto one this time Ozy? Last time I got stuck

with the one-trick pony. Pleeeeeeze, please, pretty please?

[Roland99]

109. My daughers will be so happy! I promised them some last year but...

they were stolen by a roving gang of Republican thugs because their high horses fell over dead.

[UpInArms]

111. Here's your picture

[Roland99]

119. Does it have to come with Mr. All Hat No Cattle?

[specimenfred1984]

85. Any Guesses on Reasons for this Fraud Rally?

This BS upmove is pure speculation that rates are not going up, that's my guess. If rates are done, that means housing is done which means less money for investers to invest -- but that's not stopping these frauds.

Seriously, the faked gov't numbers are bad even though they're faked, investors will have less money to invest and, the U.S. just went further into debt hell; why the heck are funds buying this crap? It looks like pure manipulation to me.

[rfranklin]

91. Could be that today is options expiration...pump up the prices...

and put those options in the money.

[UpInArms]

88. April Gold @ $554.60 oz

12:25 PM ET 3/16/06 APRIL GOLD UP 20C AT $554.60/OZ, REVERSING FROM A $548 LOW

[UpInArms]

110. Gold closes @ $555.40 oz

1:39 PM ET 3/16/06 APRIL GOLD UP A 4TH DAY, ENDS AT HIGHEST LEVEL SINCE MARCH 6

1:39 PM ET 3/16/06 APRIL GOLD CLOSES UP $1 AT $555.40/OZ IN NY

[54anickel]

113. Gold refuses to quit winning streak

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC42EA68E%2D46E1%2D49B8%2D9BB5%2DF29F6AA58E8B%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

SAN FRANCISCO (MarketWatch) -- Gold futures, erasing earlier weakness, inched higher Thursday to extend its winning streak tally to four sessions as analysts remained upbeat about the precious metal's ability to reach the $600-an-ounce level.

"The U.S. dollar countertrend rally is over and a resumption of the secular bear market is underway," said Peter Grandich, editor of the Grandich Letter. "This and geopolitical news out of the Middle East are the fuel for a run to $600."

On Thursday, the dollar moved broadly lower after a Labor Department report showed U.S. core consumer price inflation remains benign, dampening expectations over how high U.S. interest rates might go. See Currencies.

snip>

"Profits are fine, but who really wants to close the books on the short side of the market before any weekend?" asked Jon Nadler, an investment products analyst at bullion dealers Kitco.com.

"The scale of U.S. deficits, growing impact of oil-driven inflation and rising investor interest within gold and the precious complex seem set to take us to $600 and beyond within the foreseeable future," said James Moore, an analyst at TheBullionDesk.com.

[OrangeCountyDemocrat]

115. Gold Supposedly Does Very Well After Debt Increases

I had read an article which showed that the price of Gold had some of it's biggest increases following the U.S. raising the debt limit.

I'd have to give an assessment based on today's action. This morning, before passage, Gold was down over $2. It ended on the upside. Will be interesting to see what tomorrow brings. I hope for a nice turnaround, and perhaps a push to reach $600.

[UpInArms]

89. April Crude @ $62.50 bbl - April NatGas @ $7.29 mln btus

12:25 PM ET 3/16/06 APRIL CRUDE CLIMBS 33C TO $62.50/BRL AFTER $61.60 LOW

12:25 PM ET 3/16/06 APRIL NATURAL GAS RISES 2.1% TO A 3-WK HIGH OF $7.29/MLN BTU

[UpInArms]

123. April Crude @ $63.50 bbl - April NatGas @ $7.34 mln btus

2:01 PM ET 3/16/06 APRIL CRUDE JUMPS $1.33, OR 2.1%, TO $63.50/BRL

2:01 PM ET 3/16/06 APRIL NATURAL GAS UP 19.7C, OR 2.8%, AT $7.34/MLN BTUS

[UpInArms]

135. April Crude closes @ $63.58 bbl - April NatGas @ $7.267 mln btus

3:01 PM ET 3/16/06 APRIL CRUDE ENDS AT 2-WK HIGH OF $63.58/BRL, UP 2.3%

2:59 PM ET 3/16/06 APRIL UNLEADED GAS UP 4.53C, OR 2.5%, TO END AT $1.8744/GAL

2:52 PM ET 3/16/06 APRIL NATURAL GAS CLOSES AT A THREE-WEEK HIGH

2:52 PM ET 3/16/06 APRIL NATURAL GAS RISES 1.7% TO END AT $7.267/MLN BTUS

[UpInArms]

95. US mortgage delinquencies rise in 4th qtr 2005-MBA

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T174325Z_01_N16176208_RTRIDST_0_FINANCIAL-MORTGAGES-DELINQUENCIES-URGENT-REPEAT.XML

NEW YORK, March 16 (Reuters) - U.S. residential mortgage delinquencies rose in the fourth quarter of 2005 from a year earlier, primarily due to Hurricane Katrina and an increased share of adjustable-rate and subprime loans, an industry trade group said on Thursday.

The Mortgage Bankers Association said the mortgage delinquency rate was 4.70 percent at the end of the fourth quarter, up from 4.44 percent in the third quarter and 4.38 percent at the end of the fourth quarter of the previous year.

The figures are seasonally adjusted and apply to one-to-four unit residential properties.

The percentage of loans in the foreclosure process in the fourth quarter fell from a year earlier.

The new foreclosure rate on mortgages was 0.42 percent at the end of the fourth quarter, down from 0.46 percent in the year-ago quarter.

...more...

[UpInArms]

99. Data leads home-builder stocks higher

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B447BCC18%2DCE3E%2D4093%2D84C1%2D4A9E62EFC6DE%7D&dist=newsfinder&symbol=&siteid=mktw

BOSTON (MarketWatch) -- Shares of public home builders traded sharply higher Thursday after a government report showed core inflation increased a lower-than-expected 0.1% in February, easing inflation fears and boosting expectations the Federal Reserve may soon pause in raising interest rates. Additionally, the Commerce Department said housing starts fell 7.9% in February, but the level was higher than economists' expectations. In afternoon trading, shares of Toll Brothers Inc. (TOL 34.83, +1.94, +5.9% ) gained 6% to $34.85, KB Home (KBH 67.28, +2.16, +3.3% ) added 3.3% at $67.25, Pulte Homes Inc. (PHM 39.12, +1.25, +3.3% ) rose 3.4% to $39.16 and Lennar Corp. (LEN 60.12, +1.29, +2.2% ) was up 2.3% at $60.18.

[UpInArms]

103. housing starts drop in February

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T181736Z_01_N16336661_RTRIDST_0_ECONOMY-WRAPUP-2.XML

excerpt:

Separately, the Commerce Department said housing starts, completions and permits for future building all dropped in February -- pointing to moderation after a five-year boom.

In addition, the Philadelphia Federal Reserve Bank said its gauge of factory activity in the U.S mid-Atlantic region fell to 12.3 in March from 15.4 in February, signaling a sharper slowing than Wall Street had expected.

Analysts said the data pointed to an economic expansion that was neither too hot nor too cold, and said the Federal Reserve may soon be able to wrap up a rate hike campaign it kicked off in June 2004.

<snip>

"The housing market is cooling off, but not too much, and inflation looks relatively benign," said Gary Thayer, chief economist at A.G. Edwards & Sons in St. Louis.

...more...

[UpInArms]

114. Late mortgage payments up in final quarter (2 1/2 yr high)

http://www.mercurynews.com/mld/mercurynews/business/financial_markets/14114402.htm

WASHINGTON - Late mortgage payments climbed to a 2 1/2-year high in the final quarter of 2005 as Gulf Coast homeowners struggled with fallout from the hurricanes and lofty energy prices along with rising interest rates squeezed the budgets of others across the country.

The Mortgage Bankers Association, in its quarterly mortgage survey, reported Thursday that the percentage of mortgage payments that were 30 or more days past due for all loans tracked rose to 4.70 percent in the October-to-December quarter of last year.

That was up from the prior quarter's 4.44 percent delinquency rate and was the highest since the second quarter of 2003.

The association's survey covers 41.2 million loans.

...more...

[UpInArms]

107. (FL) KL Group (hedge fund) principal settles SEC fraud charges

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-16T182732Z_01_WAT005090_RTRIDST_0_FINANCIAL-KLGROUP-SEC-URGENT.XML

WASHINGTON, March 16 (Reuters) - The head portfolio manager of a Florida hedge fund settled U.S. Securities and Exchange Commission fraud charges on Thursday without paying a fine, the SEC said.

John Kim, a former principal in KL Group LLC, settled the charges without admitting or denying them.

In March of 2005, authorities shut down the hedge fund group and its assets were frozen by a Florida judge after the SEC filed an emergency civil action to halt what it described as an $81 million fraud, regulators said at the time.

Only about $11 million of the original $81 million remained in investor accounts at the time the assets were frozen, the March 2005 statement said.

[UpInArms]

124. Bear Stearns Settles SEC Charges - $250M - Hedge Funds - Market Timing

http://www.forbes.com/markets/2006/03/16/bear-stearns-sec-0316markets13.html

Bear Stearns Cos will pay $250 million to settle charges it helped hedge funds engage in mutual fund market timing and improper late-trading in connection with a sweeping three-year investigation of the mutual fund industry.

The Securities and Exchange Commission announced Thursday it approved the settlement, which includes $160 million for disgorgement and $90 million in civil penalties. Bear Stearns (nyse: BSC - news - people ) has agreed to hire an independent consultant to monitor its clearing and mutual fund processing operations.

The final settlement, first disclosed by Bear Stearns in December, comes on a day the investment bank reported record fiscal first-quarter profit of $514 million, or $3.54 a share. Revenues rose 19%, to $2.19 billion. The results included a 56% gain in equity capital markets revenue and a 36% gain in investment banking revenue.

Bear Stearns said in December it was fully reserved for the settlement. “As one of the leading financial services providers, we take our responsibilities to our clients very seriously," said chief executive James Cayne at the time. "We believe that seeking to resolve this issue is in the best interests of our shareholders, clients and employees."

...more...

[UpInArms]

117. 2:01 EST floor getting messy and confused

Dow 11,250.92 +41.15 (+0.37%)
Nasdaq 2,310.68 -1.16 (-0.05%)
S&P 500 1,306.48 +3.46 (+0.27%)
10-Yr Bond 4.652 -0.79 (-1.67%)

NYSE Volume 1,512,355,000
Nasdaq Volume 1,561,371,000

1:30 pm : Energy prices continue to rise, and they've taken some steam out of the market's advance. The indices are now back in the range they left an hour ago. The Energy Department's report that natural gas inventory fell 55 billion cubic feet last week has been a catalyst for that commodity. Natural gas futures are up 1.8% and leading the complex higher. Crude is now up 1.5% and at a session-high of $63.05 per barrel. Gasoline has rebounded and is now up 1.1%; heating oil trails close behind with a 1.0% gain. The Energy sector is benefiting, and its 1.3% gain is supporting the market. Positive conditions within the Treasury market continue to somewhat divert traders' attention from spiking energy prices. DJ30 +44.27 NASDAQ +2.65 SP500 +4.41 NASDAQ Dec/Adv/Vol 1281/1662/1.38 bln NYSE Dec/Adv/Vol 990/2207/930.4 mln

1:00 pm : The indices are standing near recently-reached session highs. Virtually every area of the market is benefiting from broad-based buying interest. Even the Consumer Staples sector, which has been the session's laggard and solo sector to be trending negatively, has just cleared the flat line. Semiconductors remain a pocket of weakness. AMD is one of the SOX Index's sore spots. That stock' recent suffering continues today, following a report that indicates rival Intel (INTC 19.19 -0.01) intends to gain market share in China. The company said that it's very confident that it will reclaim its worldwide market share, which AMD has been gaining. As a side note, INTC is one of our suggested holdings for active investors. DJ30 +67.48 NASDAQ +9.36 SP500 +6.90 NASDAQ Dec/Adv/Vol 1126/1790/1.24 bln NYSE Dec/Adv/Vol 841/2335/833.4 mln

[UpInArms]

121. Medicare drug plan gaps may hit soon

http://news.yahoo.com/news?tmpl=story&cid=676&e=5&u=/usatoday/medicaredrugplangapsmayhitsoon

Seniors and disabled Americans enrolled in Medicare's new prescription-drug program face more coverage disruptions in two weeks, state officials, doctors and pharmacists warn.

A special 90-day transition period, set by Medicare to prevent beneficiaries from losing any drug coverage, ends April 1. Private insurance plans can then stop covering drugs they don't usually pay for. Most of the 36 states that stepped in on an emergency basis to help low-income beneficiaries also will stop paying.

State insurance counselors and health care advocates say the result could be a repeat of problems first encountered in January, when the program began. Thousands of beneficiaries were turned away from pharmacies when their records weren't found or their drugs weren't covered.

"Some of these people are going to be in really difficult spots," said Jude Walsh, special assistant to Maine Gov. John Baldacci. "I think they're going to be going without medication again."

...more...

Yeah, that's a really "good deal" :grr:

Bush: "In the end it is a really good deal."

Silver Spring, Md. — President Bush acknowledged some shake-down problems with the new Medicare prescription drug program, but defended the plan overall in a visit Wednesday to a retirement community.

Bush participated in a town hall meeting at Riderwood, a large retirement community of about 3,000 in Maryland. Calling the plan a "cost-effective decision for our seniors," the president encouraged audience members to examine their insurance options.

"I really urge you to take a look," Bush said. "Take a look at what's available. I think you're going to like what you see."

<snip>

Bush admitted, "It can be confusing to people," and added, "In the end it is a really good deal."

...more...

[54anickel]

126. From the same mind that brought you "We'll all be dead". eom

[54anickel]

122. Poll: Americans slightly favor plan to censure

http://www.rawstory.com/news/2006/Poll_Americans_slightly_favor_plan_to_0316.html

A new poll finds that a slim majority of Americans favor plans to censure President George W. Bush, while a surprising 42% favor moves to actually impeach the President.

A poll taken March 15, 2006 by American Research Group found that among all adults, 46% favor Senator Russ Feingold's (D-WI) plan to censure President George W. Bush, while just 44% are opposed. Approval of the plan grows slightly when the sample is narrowed to voters, up to 46% in favor of the Senate censuring the sitting president.

Even more shocking is that just 57% of Republicans are opposed to the move, with 14% still undecided and 29% actually in favor. Fully 70% of Democrats want to see Bush censured.

more...

[OrangeCountyDemocrat]

127. 30% Of Democrats Would Like To Have A Beer With King george

Yeah, it's sad that 1/3rd of the party still thinks our King is A-OK.

[54anickel]

129. Hard to tell without knowing the questions. Could be, but it could also

be that they were against censure and for impeachment. :shrug:

I'd like to give the party the benefit of the doubt.

[UpInArms]

131. 30% of Democrats say censure not enough - IMPEACHMENT NOW!

:evilgrin:

[54anickel]

134. Heh-heh!!! Here's a link to the poll Q&As.

http://americanresearchgroup.com/

[UpInArms]

136. I don't really trust ARG - they called my house once

and asked if I was willing to answer a survey, and when I said "yes" they said they needed to talk to the "man" of the house.

Hmmmm....

They (imho) needed to skew their numbers away from "women", I guess :eyes:

[54anickel]

138. Hah! Did you tell them they were? That always throws 'em for a loop!!!

I did find their polling of the SOTU speech pretty interesting. http://americanresearchgroup.com/sotu/

Looks like he pretty much lost his audience's attention shortly after saying "Thank you all."

[UpInArms]

139. as a matter of fact, I did tell them that I thought they were

attempting to skew the results of their poll and they hung up on me.

[UpInArms]

132. Refco Probes Lead to $525 Million in Phantom Bonds, Hedge Fund

http://www.bloomberg.com/apps/news?pid=10000087&sid=aQ0Nt31p4mPs&refer=top_world_news

March 15 (Bloomberg) -- Refco Inc. held offshore accounts with as much as $525 million in fake bonds, indicating the futures broker's troubles may be more extensive than previously reported, according to four people with direct knowledge of evidence gathered by U.S. prosecutors investigating Refco's collapse.

New York-based Refco held the securities for Bawag P.S.K. Bank, Austria's fourth-largest bank, and Liquid Opportunity, an offshore hedge fund, under identification numbers that don't correspond to registered bonds, said the people, who declined to be identified because the investigations are ongoing. One person said Bawag and Liquid Opportunity had shares in six Anguilla companies, which in turn held the bonds.

The U.S. Attorney in Manhattan and the Securities and Exchange Commission are trying to find out where the bonds originated and how they were valued, the people said.

The bond accounts were at Refco's Bermuda-based unit, beyond the reach of U.S. regulators. Refco owed creditors $16.8 billion when it filed for bankruptcy protection on Oct. 17, a week after former Chief Executive Phillip Bennett allegedly used a loan from Bawag to pay uncollectible debts he had concealed from investors. Bennett denied wrongdoing.

<snip>

The fund administered the bonds on behalf of an investor until the end of 2004, when the assets were transferred to Bawag, according to one person close to Liquid Opportunity, who declined to be identified because of the probes. Liquid Opportunity had no reason to believe the bonds were fake, the person said.

A predecessor, Liquid Opportunity-Plus Fund, was formed in 2000 and raised about $325 million from unidentified investors, according to a 2001 press release by International Portfolio Analytics, a Bahamas-based money manager that ran it. Jonathan Knight's father, Jon Knight, owned a stake in International Portfolio Analytics until at least 1999, SEC filings show.

PlusFunds Connections

Through a Liechtenstein-based partnership, Bawag and Liquid Opportunity's Jonathan Knight are co-investors in at least two dozen companies, according to SEC filings. They also share a connection to Refco through PlusFunds Group Inc., a New York- based money manager that sells investments based on hedge fund indexes.

...more...

Who's willing to bet that there are any assets to be seized in this mess?

[UpInArms]

140. 3:43 EST the clock is ticking toward the close

and time is running out to get to the exits :evilgrin:

Dow 11,254.42 +44.65 (+0.40%)
Nasdaq 2,303.14 -8.70 (-0.38%)
S&P 500 1,305.84 +2.82 (+0.22%)
10-Yr Bond 4.646 -0.85 (-1.80%)

NYSE Volume 2,050,948,000
Nasdaq Volume 2,147,342,000

3:30 pm : Mixed, sideways trade persists. Heading toward the close of trade, the S&P and Dow are sustaining gains. The Nasdaq, meanwhile, remains submerged. The market's breadth reveals the divergence in sentiment between blue chips and tech stocks. On the NYSE, advancing issues are leading decliners by a two-to-one ratio. On the other hand, declining stocks have taken a slight lead over advancers on the tech-heavy Composite. There, the decliners lead 1.53-to-1.49. Sentiment began to shift there this afternoon; at 10:00 ET, the Nasdaq's decliners were outnumbered three-to-two. DJ30 +49.87 NASDAQ -7.62 SP500 +3.59 NASDAQ Dec/Adv/Vol 1530/1493/1.94 bln NYSE Dec/Adv/Vol 1127/2128/1.29 bln

3:00 pm : Selling across the Tech sector (-0.5%) has increased, and the Nasdaq has sunk lower. Adding to the Composite's trouble is relative weakness in biotech stocks. Telecom (-0.2%) and Consumer Staples (-0.1%) are the other sectors that are currently trading on negative turf. Leadership continues to lie within the Energy sector (+1.4%), but other spirited leadership is fading. Because of today's CPI read and favorable bond market conditions, rate-sensitive areas continue to fare well, but they are off of their highs. Meanwhile, gains in several other sectors, like Industrials, Healthcare, and Consumer Discretionary, are being pared.DJ30 +37.61 NASDAQ -8.03 SP500 +2.78 NASDAQ Dec/Adv/Vol 1451/1530/1.80 bln NYSE Dec/Adv/Vol 1044/2203/1.21 bln

[Roland99]

141. Yet Another Mexed Missages Day.

That's become the norm.

[ozymandius]

142. trouble's coming

It's just a wild idea of mine: the Dow should not really be listed in the same column as the Nasdaq and the S&P. They really are very different animals. The Nasdaq is highly speculative. The S&P is so broad-based that it serves as a better barometer for overall corporate health that any other index. The Dow is security - the blue chip stocks. We seem to have a flight to security happening in our midst.

I have made it a point to compare the previous day's indeces to those listed on January 20, 2001. Only the Dow has been given confidence. The other two listed among the "big three" are laggards. Look at Ike Iossif's weekly charts. They tell of head-and-shoulders patterns emerging among major players that have driven our economic train since the last documented recession. Pardon me for being vague here, but you can see for yourself in the past two WrapUps from Ike Iossif and Martin Goldberg.

So we have mixed messages to a degree. But by looking at the broader index of the S&P 500 - small and mid-cap companies are just spinning their wheels. Plus we have a flight to quality happening with the Dow.

Just my opinion.

[Roland99]

144. Excellent observation, Sir Ozy!

[ozymandius]

143. closing up shop

Dow 11,253.24 +43.47 (+0.39%)
Nasdaq 2,299.56 -12.28 (-0.53%)
S&P 500 1,305.33 +2.31 (+0.18%)
10-Yr Bond 46.46 -0.85 (-1.80%)
NYSE Volume 2,292,235,000
Nasdaq Volume 2,390,694,000

4:20 pm : A softer than expected read on a closely watched economic report gave buyers a reason to extend the technically-driven momentum that closed Wednesday's indices at multi-year highs. Weakness in technology stocks helped stunt the market's advance, but the Dow and S&P 500 still managed to close at 4 ¾-year highs. The Nasdaq did not fare so well, and booked a loss.

Last month, the core rate of the Consumer Price Index - which excludes food and energy - rose 0.1%. Economists had expected a 0.2% increase. The report was good news in that was not bad news, and it gave the market a sense that the end of tightening is nearing. The data assuages worries over a further increase in inflation, and it was well received by both the stock and bond markets. In our view, though, the trend remains ambiguous. The year-over-year increase was 2.1%, and the rate of increase over the past three months was 2.0%. It is unclear whether inflation is moderate enough to prevent the Fed from raising rates more than just one additional time. A rate hike in March is widely expected, and one after that is possible. Today's read feeds the argument that a third hike may not happen, but, ultimately, monetary policy remains uncertain. The 0.1% rise has not changed our view on the market, and we remain Neutral.

Treasuries rallied on the read. Technical factors and the geopolitical front also played parts in that market's improvement. Yields fell across the curve, and the stock market benefited. The 10-year has particularly been on stock traders' radar; the benchmark bond rose 22 ticks and fell to a 4.64% yield. That is down from 4.76% on Monday. Rate-sensitive areas fared well. The Utilities sector advanced 0.7%, homebuilders gained more than 2%, and the Financial sector notched 0.4%. The investment banking and brokerage industry occupied much of the latter sector's spotlight again today. Bear Stearns (BSC 133.26 -0.95) delivered record earnings results that far exceeded analysts' expectations. But because its news came on the heels of similarly outstanding results from Goldman Sachs (GS 147.69 -1.31) and Lehman Brothers (LEH 142.42 -1.73), traders took the opportunity to secure some of the profits the industry has recently registered. A modest decline in the group pushed the Financial sector off of its high.

On account of a spike in prices across the energy complex, the Energy sector (+1.5%) contributed some spirited leadership. The price of crude pushed $64 per barrel intra-day, and closed about 2.0% higher at $63.45 per barrel. A decline in natural gas inventory, although it was less than expected, was a catalyst. Ongoing geopolitical turmoil and colder temperatures in some parts of the country also helped fuel the rise. Higher energy prices weighed on trade, but investors' attention was somewhat diverted by positive bond market conditions and relief over CPI. The Consumer Discretionary sector managed to close 0.4% higher. Retailers outperformed, and, as mentioned above, homebuilders enjoyed solid buying. On a related note, February Housing Starts dropped 8%, but a decline was anticipated. As the read (2120K) was better than expected, it helped underpin the bullish tone that CPI had set for that area of the market. With respect to retailers, Gymboree (GYMB 25.50 +0.45), one of our recommended holdings for active investors, reported upside earnings and raised guidance today.

Due to an aggressive restructuring plan and a slashed divided announced by ConAgra (CAG 19.50 -0.91), the Consumer Staples sector had been the market's laggard for most of the session. Some broad-based buying helped offset ConAgra's sharp decline, however, and the sector rose 0.1%. By the end of the day, it was Tech that took the laggard tag. Weakness in semiconductors had plagued it for most of the session, and selling picked up in the afternoon. Comments about the semi industry from equipment company Kulicke & Soffa (KLIC 8.99 -2.29) spurred the decline. That stock plunged, and issues across the semi and semi equipment boards faced considerable selling. The SOX Index dropped 3.2%. Apple (AAPL 64.31 -1.92), following Bear Stearns' estimates and target price cut, also weighed heavily. The sector lost 0.9% and helped sink the Nasdaq. DJ30 +43.47 NASDAQ -12.28 SP500 +2.31 NASDAQ Dec/Adv/Vol 1510/1506/2.38 bln NYSE Dec/Adv/Vol 1116/2150/1.65 bln