STOCK MARKET WATCH, Monday, April 18, 2011

[Pale Blue Dot]

Source: du

STOCK MARKET WATCH, Monday April 18, 2011

AT THE CLOSING BELL ON April 15, 2011

Dow 12,341.83 +56.68 (+0.46%)
Nasdaq 2,764.65 +4.43 (+0.16%)
S&P 500 1,319.68 +5.16 (+0.39%)
10-Yr Bond... 3.37 -0.04 (-1.20%)
30-Year Bond 4.44 -0.03 (-0.67%)

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Market Conditions During Trading Hours

Euro, Yen, Loonie, Silver and Gold

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Bush Administration Officials Convicted = 2
Names: David Safavian, James Fondren
Dishonorable Mention: former House majority leader, Tom DeLay

Bush Administration Officials Charged = 1
Name(s): Richard Lopez Razo

Financial Sector Officials Convicted since 1/20/09 = 11

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This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.

Read more: du

[Pale Blue Dot]

1. One measly report.

Apr 18 10:00 NAHB Housing Market Index Apr 17 17 17

Read more: http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm#ixzz1Js4OapXj

[Pale Blue Dot]

2. Oil near $109 as US gasoline prices jump

SINGAPORE – Oil prices fell to near $109 a barrel Monday in Asia as gasoline jumped to average $4 a gallon in six U.S. states, raising fears higher fuel costs will undermine crude demand.

Benchmark crude for May delivery was down 62 cents at $109.04 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.55 to settle at $109.66 on Friday.

In London, Brent crude for June delivery was down 52 cents to $122.93 a barrel on the ICE Futures exchange.

On Sunday, New York became the sixth state to top $4 a gallon for the average price of gasoline, joining Alaska, California, Connecticut, Hawaii and Illinois, according to AAA's Daily Fuel Gauge. Gasoline in Washington, D.C also averaged above $4.

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

Gas here went from 3.59/gallon on Friday to 3.76/gallon this morning.

[Pale Blue Dot]

3. Oil market oversupplied: Saudis

Saudi Arabia’s Oil Minister Ali al-Naimi said Sunday the global oil market was oversupplied and that the world’s top oil exporter had already reduced production due to weak demand.

Consumers have urged OPEC to quickly add supply to quell the rally that has taken oil (CL-FT108.43-1.23-1.12%) to its highest level in two and a half years amid unrest in North Africa and the Middle East.

“The market is overbalanced ... Our production in February was 9.125 million barrels per day, in March it was 8.292 million barrels per day. In April we don’t know yet, probably a little higher than March. The reason I gave you these numbers is to show you that the market is oversupplied,” he told reporters.

Two Saudi-based industry sources told Reuters last week the kingdom had cut production by 500,000 barrels per day in response to weak demand.

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/oil-market-oversupplied-saudis/article1988603/

[Demeter]

45. High oil prices start to hit demand

The combination of rising oil prices and growing demand that has allowed the world’s biggest oil producers to bask in renewed prosperity appears to be breaking down

Read more >>
http://link.ft.com/r/J0VG55/LQK69Y/YGZ3O/V1SPM7/18UG2Q/9A/t?a1=2011&a2=4&a3=18


TODAY'S BUZZWORD: DEMAND DESTRUCTION: when the price gets too high, people can't or won't buy....

[happyslug]

86. Just remember the following Numbers

$7.15 US Minimum Wage
2080 Total number of work hours in a year (40 hours per week Time 52 weeks equal 2080).
$14872, Annual Income for one person working full time at Minimum Wage.
20 mpg, average mpg of an American car (and low income people tend to buy used cars, so the recent batch of does NOT affect their mpg.
12,000 miles, what the Insurance Companies say is average annual mileage
15,000 miles, what everyone else says is average annual mileage
750 Gallons, the amount of Gasoline what a 20 mpg car uses when driven 15,000 miles per year
30% of Total Income, what is the Federal MANDATED rent in Public Housing Authorities,
7% of Total Income, what is the Employee Social Security Tax (Some of this has been waived for this year)
2% Pennsylvania local Wage tax, approximate what is the average local wage tax nationwide.
3.07 % Pennsylvania's Straight income tax, approximates what is average nationwide.
$3650 Average food eaten by people per day, based on the following formula:
$10 a day, approximate cost of Eating, $2 for Breakfast, $3 for lunch and $5 for dinner.

Thus the average Minimum wage worker's wages are used as follows:

$14782 (Total Income)
Less $3650 For Food
Less $1041.04 Social Security Taxes
Less $297.42 Local Taxes
Less $356.57 State Income Tax
Less $4461.40 Rent (if in Public Housing, this includes utilities but NOT phone service).

Thus after the above FIXED cost the Worker has $4975.21 left over to pay for Gasoline

Divide that by 750 Gallons, you comes a a price of $6.63, at which point the Minimum wage worker has no money for ANYTHING ELSE (i.e. No money for Medical Cars, including just Aspirin, No Money for Clothing, no money for a phone, no money for PAYING on the car he or she needs to get to work, repair such car or even pay insurance on such a car).

The above is unrealistic, When the price of gasoline reached $4 a gallon, Minimum wage was %5.25 a gallon. In effect when the price of Gasoline reached within 80% of Minimum wage, we had a massive recession (Remember it?). 20% of $6.33 is about $1.27. $6.33 less $1.27 is thus about $5.06 a gallon. Thus we can say $5 a gallon is about 80% of the present Minimum wage of $7.15 per hour.

Things locally started to look bad at $3.50 a gallon in 2008, at $3.79 it is NOT that bad locally. I attribute this is the Increase in the Minimum Wage, inflation since 2008 and the increase use of high mileage cars by the poor (Most jobs are in Suburbia, thus low income people need a car to get to work). but saying that it also looks like $5 a gallon for Gasoline is what $4 a gallon was in 2008. At about $5 a gallon, the poor can no longer drive to work.

[tclambert]

89. Bicycles, man, I'm tellin' ya.

Then again, it snowed today in the mitten-shaped state. Not so good for biking.

[happyslug]

92. Studded tires are the key, I had not problem over the last two winters

Yes, I mean studded tires on my BICYCLE. Helps a lot on keeping on the road with ice on the road. Stopped most of me slipping when Ice is on the roads (I live in Johnstown PA, we had a long winter this year then last, but last year we had more snow).

The down side of studded tires is increase roll resistance (you will feel the difference), thus my Sumer slicks stay on mt bike till snow actually stays on the ground (i.e. does not melt) till the snow melts and no longer stays on the ground. Most years that is December 1 till March 1. This year I had to keep the studs on for an extra three weeks.

I obtain my studded tires via Peter While Wheels, he sells three levels of studs, all you need is the one with the least studs:
http://www.peterwhitecycles.com/

Peter Whites Web page on studded tires he sells:
http://www.peterwhitecycles.com/studdedtires.asp

Please note, El Nino is believed to have ended this spring, we are this in a La Nana period. Snow falls are lower in La Nana Periods then El Nino periods, thus the last La Nana Period I did not have to change out of my Slicks all winter long for about 2-3 years (No long term period below 32 degree in the Johnstown PA area). The last two years we had Six weeks to a two month period of almost constant temperatures below 32 degree. Thus I had to use Studded tires for a longer time period.

My present set of studs are about 8 years old, I use them almost every day to go to work and home (about three miles each way) but I rarely go any further with them, thus they last a long time.

[Po_d Mainiac]

65. Or maybe they just can't suck more outa the ground.

Don't be surprised when the House of Fr/S-aud downgrades their reserves. Can you spell Kaboom?

[Demeter]

25. $ 3.99 Yesterday

[xchrom]

36. BP's Russia dream turns to nightmare

http://www.atimes.com/atimes/Central_Asia/MD14Ag01.html

MONTREAL - Of all the Western major oil and gas companies, BP has the largest stake in Russia. After the troubles that it faces in the United States as a result of the Deepwater Horizon blowout in the Gulf of Mexico last year became clear, the company seemed to have made a strategic decision to prefer a partnership with Russian firms over further significant investment in North America.

Its principal partner in Russia is, or should be, or indeed contractually is required to be, the firm TNK-BP, which is half-owned by the companies of a group of Russian oligarchs known together under the rubric AAR.

Earlier this year, BP reached agreement with another Russian firm, Rosneft, over exploration and development of a major Arctic field in the Kara Sea. At Rosneft's insistence, this deal was sealed by an exchange of shares between the two companies.

The agreement was very advantageous to the Russian firm. Not only would the deal allow Rosneft to get the advanced technology necessary to explore the Kara Sea deposits, it also would provide the company some cover (in the guise of BP's legal department) against any eventual claims concerning the illegitimacy of its having obtained its assets from Yukos after the arrest of Mikhail Khodorkovsky, who remains in jail. (See Rosneft extends foreign tie-ups, Asia Times Online, February 4, 2011.)

[xchrom]

50. Summer airfares may climb 15% from a year earlier

http://www.latimes.com/business/la-fi-summer-fare-hikes-20110418,0,1739623.story

As the summer travel season approaches, airline industry experts predict that soaring fuel prices and a sharp pickup in passenger demand will push airfares up 15% over a year earlier — to levels not seen since before the economic downturn.

Fare hikes have already begun, with six of the nation's largest airlines each raising rates at least five times since Jan. 1 for nearly all routes.

By the time the peak summer travel season rolls around, travel industry experts predict, domestic airfares may reach an average of nearly $390, up from a low of $302 two years ago.

"We are definitely getting higher and higher and higher fares," said Tom Parsons, who runs the popular website BestFares.com. "They've been going up once or twice a month, a nickel here and a dime there."

[xchrom]

68. Oil shortages and environmental decline could create 'global quagmire': military report

http://www.vancouversun.com/technology/shortages+environmental+decline+could+create+global+quagmire+military+report/4630846/story.html

KINGSTON, Ont. — The planet is running out of oil and heading toward a future that could trap Canada in a violent spiral of decline in the economy and the environment, a special research unit within the Canadian military is predicting.

This "global quagmire" is one of four possible future scenarios advanced by the six members of the team who are developing a plan for the army of tomorrow based on existing scientific research and analysis.

In a best-case scenario, they predict that Canada could be at the forefront of a prosperous green economy, in which clean energy and environmental protection are priorities and living standards improve around the world.

Two other scenarios fall in between, but all four alternatives conclude that energy security and global environmental change are the most serious and unpredictable factors that could radically alter society as well as the role of Canada's army.

Read more: http://www.canada.com/technology/shortages+environmental+decline+could+create+global+quagmire+military+report/4630846/story.html#ixzz1JszdxQdr

[xchrom]

69. Tech Talk - the new EIA Shale gas report

http://www.theoildrum.com/node/7802

I had intended to start my country-by-country detailed analysis this week, but with the publishing of the EIA compendium on world gas shale deposits, and a little controversy I got into in comments elsewhere, I thought it worthwhile spending a post looking at the global prospects for gas shale. I am indebted to Art Berman for first bringing some of the problems to my attention, though I have since looked into the issue sufficiently to draw my own opinions, which this article reflects.

The EIA document (actually prepared on their behalf by ARI) begins by noting the importance of this new resource to the US Energy picture:

The development of shale gas plays has become a “game changer” for the U.S. natural gas market. The proliferation of activity into new shale plays has increased shale gas production in the United States from 0.39 trillion cubic feet in 2000 to 4.87 trillion cubic feet (tcf) in 2010, or 23 percent of U.S. dry gas production. Shale gas reserves have increased to about 60.6 trillion cubic feet by year-end 2009, when they comprised about 21 percent of overall U.S. natural gas reserves, now at the highest level since 1971.

Development of US shale deposits began to be aggressive around 2005, and “technically recoverable” gas resources in the USA are now considered to be 862 Tcf. With this discovery of this potential future domestic supply, it became wise to see what the equivalent potential was elsewhere, and thus the report which looked at some 32 countries, 48 shale basins, and 70 formations. The assessed basins (in red with an estimate, in yellow without) are shown in the map below.

[Pale Blue Dot]

98. It went from 3.76/gallon this morning to 3.83/gallon tonight.

Wow. I'm starting to get nervous about what I can afford now.

[fasttense]

4. I like the toon.

I wonder if I sent out a million letters like that, would I get a response? It can't be anymore futile than applying for jobs while being over 50 and unemployed for 2 years.

[DemReadingDU]

23. like the toon too

[InkAddict]

74. I liked the cartoon also - Out of frustration one day, I actually did revise my

cover letter as though written by a (wage)slave including the skills I imagined slaveholders would enjoy: submission to authority, compliance to regulation(s), dressing for failure (so the boss would look good in Prada), private and free to the slaveholder marketing of services (I would be honored to wear the company logo on everything from T-shirts to winter jackets) whenever off the clock, a "like" on Facebook, having the ability to serve refreshments unobtrusively to all bosses visitors and hook up all the AV-equipment correctly and in time for the presentations.

It was a work of sarcastic venom...so I blew it away. That's supposed to be cathartic, but it did not work. I was reminded that one actually had to send letters in order to get a response, LOL.

Judging by what I've experienced, it is extremely likely that at least 400,000 of that million would have nothing better to do than respond in their own inimitable creative ways as well. They're not the only ones who do interviews solely for shits and giggles (to keep their skills current).

[Pale Blue Dot]

5. Remember the massive snowstorms in January?

In my neck of the woods, we are starting to see the effects. I recently talked to a small business owner in Northampton, MA. She said the shops in her town did hardly any business in January; now, many of them are shutting down. Hers is just barely staying afloat.

I drive through Sturbridge, MA every evening on my way home and the main street in town is now pockmarked with "For Lease" signs.

I know that this is anecdotal evidence, so take that for what it's worth, but if these trends are emerging throughout the northeast then we're in deep, deep trouble.

[Demeter]

26. You are looking at Michigan's History of 2004 or so

Whenever the professional hand wringers discuss "small business", I wonder what they are talking about.

[InkAddict]

76. I remember visiting Old Sturbridge Village

Who knew those skills could once again be necessary for Americans' survival.

Has the Inn closed? (probably long ago). The food was fabulous in the early 70s.

[xchrom]

6. The Battle Royale for Supercorn

http://www.businessweek.com/magazine/content/11_17/b4225072062602.htm

Marc Albertsen, the bespectacled, 62-year-old research director at Pioneer Hi-Bred, DuPont's (DD) seed development unit, was catching up on paperwork one morning in July 2007 when he got a call from an assistant, Sharon Cerwick. "Marc," Cerwick said, "you'd better come out here and see this."

Cerwick had been in the field, literally, inspecting rows of experimental corn planted next to Pioneer's headquarters in Johnston, Iowa. The corn had been genetically engineered by Albertsen and his colleagues in hopes of achieving a new trait: more efficient use of nitrogen. That's at the top of the corn growers' wish list because the cost of ammonium nitrate fertilizer has soared to $450 per ton, up 130 percent since 2002. Albertsen and other seed scientists have been trying to build nitrogen-efficient stalks for at least five years, but their supercorn is still 5 to 10 years away. "You're talking about our holy grail," says Pamela Johnson, a National Corn Growers Assn. (NCGA) board member with 1,200 acres in Floyd, Iowa.

In the field, Albertsen discovered one row of corn whose leaves were afflicted by a V-shaped yellowing, the telltale sign of nitrogen deficiency. The other row—the plants that had been engineered for nitrogen efficiency—was green and thriving. Both had been planted in severely nitrogen-deficient soil, but the genetically engineered plants seemed unaffected.

[Pale Blue Dot]

7. Stock-Index Futures Fall; Citigroup, Texas Instruments Drop Before Reports

U.S. stock futures fell, indicating the Standard & Poor’s 500 Index will extend last week’s decline, before earnings reports from Citigroup Inc. (C) and Texas Instruments Inc. (TXN)

Citigroup, the third-largest U.S. bank, and Texas Instruments, the nation’s second-biggest chipmaker, retreated more than 0.5 percent in European trading. Johnson & Johnson (JNJ), the world’s largest health-products company, dropped after Synthes Inc. (SYST) said it’s in talks about a possible merger.

S&P 500 futures expiring in June declined 0.6 percent to 1,310.4 at 10:28 a.m. in London. Dow Jones Industrial Average futures dropped 0.5 percent to 12,240 and Nasdaq-100 Index futures decreased the same amount to 2,298.5.

“People are waiting for earnings data,” said Walter Harecker, a Vienna-based fund manager at Semper Constantia Privatbank AG, which oversees about $11 billion. “The outlooks are even more important than the figures from last quarter. Analyst expectations are going too far, too fast again.”

http://www.bloomberg.com/news/2011-04-18/stock-index-futures-fall-citigroup-texas-instruments-drop-before-reports.html

Looks like the Bernanke is going to need to speed up the printing presses today.

[Demeter]

78. Looks LIke Ben Is Falling Down on His Self-Appointed Job

When I said the End was near, I didn't mean TODAY!

[xchrom]

8. Delays in Short Sales Frustrate Home Buyers

http://www.businessweek.com/magazine/content/11_17/b4225013122956.htm


Charles Wright of Henderson, Nev., fell behind on his mortgage last year after a divorce squeezed his finances. He twice arranged to sell his house for less than its loan balance, a so-called short sale, only to see the buyers walk away because it took too long to get approval from the holder of the mortgage. "I couldn't even get a call back, never mind a yes or no," says Wright, 30, whose loan was owned by Fannie Mae (FNMA), the government-run mortgage-finance company. "Why make it so hard to sell when the alternative, foreclosure, means an even bigger loss for lenders?"

Good question. Thomas Popik, research director for Campbell Surveys in Washington, which conducts national monthly surveys of 3,000 real estate brokers, says more short sales could stem steep home-price declines. Although the home is sold for less than the mortgage in a short sale, it stays out of foreclosure, where the holder of the loan seizes the house and auctions it off at a steep discount to current value. "Any time a short sale can be substituted for a foreclosure, it's extremely good for the housing market," says Popik.

There were 243,000 short sales in the first 11 months of last year, according to CoreLogic (CLGX), a research firm in Santa Ana, Calif. That compares with 1.2 million notices of pending auctions in the same period. A lengthy consent process by loan holders deters potential buyers from agreeing to a short sale. In a normal home sale, people make an offer and get a decision from its owners within days, if not hours. For a short sale, the average time between a price bid and response is three and a half months, according to Campbell. The California Association of Realtors estimates that delays kill about half the short-sale deals in the state.

[InkAddict]

77. The article blames the delay on the servicers, who stand to gain by

delay....

However, what about the sentence that the alternative, foreclosure, meant an even bigger loss for lenders. I thought this odd in light of the tranching of loans. If the structure was in a "good" tranche and re-insured into one great engineered asset via the swap vehicles, would intermediate "owners" of loans even care if the structure crumbled to the ground while awaiting a "go"?

[Demeter]

79. The Servicers Don't Want to Lose Their Cash Cows

so they get in the way of short sales.

[xchrom]

9. BSE Sensex provisionally closes 1.5 pct lower

http://in.reuters.com/article/2011/04/18/idINIndia-56405120110418

Reuters) - The BSE Sensex provisionally closed 1.5 percent lower on Monday led by losses in Infosys and financial stocks, as worries over quarterly earnings and further interest rate increases dampened investor sentiment.

[xchrom]

12. Infosys shares fall on downgrades, price target cuts

http://in.reuters.com/article/2011/04/18/idINIndia-56400620110418

Reuters) - Shares in Infosys Technologies fell nearly 4 percent on Monday after a slew of brokerages downgraded the target price on the stock, saying management changes at the top and lower margins at the firm would hurt growth in the near term.

Infosys shares fell nearly 10 percent on Friday after the No. 2 Indian software exporter forecast lower than expected annual sales growth on slower client spending and unexpectedly announced the resignation of its human resources chief.

Infosys, founded in 1981 by seven engineers including Narayana Murthy with $250 borrowed from their spouses, is seen as a trendsetter for the $60 billion export-focussed Indian outsourcing industry.

But analysts said it could lose some of that shine and narrow its premium gap with rivals Tata Consultancy Services and Wipro amid uncertainty related to management changes and softening profit margins.

[xchrom]

15. Tata Group to invest $27 bln in next 5 yrs - report

http://in.reuters.com/article/2011/04/18/idINIndia-56397820110418

(Reuters) - Indian industrial conglomerate Tata Group will invest up to 1.2 trillion rupees ($27 billion) in the domestic market over the next five years and more than double its revenue to $150 billion, the Press Trust of India said quoting a top official.

[xchrom]

16. Aurobindo gets USFDA tentative node for Venlafaxine capsule

http://www.moneycontrol.com/news/business/aurobindo-gets-usfda-tentative-node-for-venlafaxine-capsule_536623.html

Aurobindo Pharma Ltd Monday said it has got tentative approval from US Food and Drug Administration for its Abbreviated New Drug Application, Venlafaxine Hydrochloride extended-release capsule, used for the treatment of depression.

[Demeter]

28. Somehow, I don't think that is the solution for our economy

Good morning, Madame X!

[xchrom]

29. greetings from the Madame!

hope your weekend was really good.:hi:

[Pale Blue Dot]

10. Greece Risk Bloodbath Throws Italy And Spain Back In The PIIGS Default Mix

And so we see another tipping point in action: while absolutely nothing has changed in the fundamentals of Europe's insolvent peripherals, today, for the first time since early January, we are seeing an absolute bloodbath in the risk gauges of the European periphery. As the PIIGS list below shows, spreads are surging, and while it is no surprise that Greece is now trading north of 1200 bps following a weekend full of Greek default chatter, the important observation is that Spain and Italy are once again in the default mix.

Portugal 615 (+15) - officially insolvent
Italy 156 (+13)
Ireland 588 (+21) - officially insolvent
Greece 1225bp (+89) - officially insolvent
Spain 250 (+16)

As usual we are amused by the massively delayed reaction in what some continue to foolishly claim is an efficient market. Of course, expect a major overshoot of all risk indicators now that the world's attention is once again focused on Europe. Exhibit A: EURUSD which is now at 1.4290, even as it was trading at 1.45 on Friday. Hysteria is back.

http://www.zerohedge.com/article/greece-risk-bloodbath-throws-italy-and-spain-back-piigs-default-mix

[Pale Blue Dot]

11. $1 Billion of Gold Bars Taken Delivery Of By Pension Fund Due to Risk of COMEX Default and Shortages

Governments and central banks are debasing currencies through bailouts, deficit spending and quantitative easing which is leading to a massive increase in the supply of fiat currencies. Precious metals are rare and finite and this is why major currencies are falling in value versus gold and silver.

One of the largest pension funds in the world, the University of Texas Investment Management Co (which manages the endowment for the Texas teachers pension fund), has realized this and has put 5% of the pension fund into gold bullion (see news).

Unusually, but likely to be seen more frequently in the coming weeks and months, the pension fund has opted to own physical bars worth nearly $1 billion dollars in allocated accounts.

The fund has previously expressed concerns about the counter party risk in ETFs. However, the reason given for opting for taking delivery of 100 oz gold bars in a warehouse was that if the holders of just 5 percent of COMEX futures contracts opted to take delivery of the metal, there wouldn’t be enough to cover the demand leading to a COMEX default.

http://www.zerohedge.com/article/1-billion-gold-bars-taken-delivery-pension-fund-due-risk-comex-default-and-shortages

[Demeter]

30. That's gonna get ugly pretty fast

Gold being finite in supply, and all that

[AnneD]

73. If I am reading it right......

I feel much better about my Texas state pension right about now. It always has been managed on the conservative side. When Perry tried to open it up to "Texas entrepreneur business investment" (read his campaign donators ), he was soundly bitch slapped.

The Gov of Texas has very little power. And despite all the Tea Baggers in the House - the Senate if full of some sound minded Dems and Gop. This was the group that left the state and saw the results of DeLay's meddling ( it hurt Gop as much as it did Dems). They are tough old bulls and I still have respect for some of these guys. They try to moderate all the craziness that comes out of the house.

[tclambert]

91. That's about 20 tons of gold!

Even at $1500/ounce, a billion dollars worth is a lot of ounces.

Gold started the year at $1388.50/oz. So, it's up 7.8%.

Silver started the year at $30.67/oz. It's up 41.5%. Somehow, I find that alarming.

[Po_d Mainiac]

95. Why?

[Demeter]

97. Because of what it means about the paper or electronic dollar

NOt to mention any dollar-denominated asset, like social security or pension...

[xchrom]

13. Inflation may be future G20 focus - OECD head

http://in.reuters.com/article/2011/04/18/idINIndia-56385320110418?type=economicNews

(Reuters) - World finance leaders must find a way to bring down debt while creating jobs and watching over their shoulders for the threat of inflation, the head of the Organisation for Economic Cooperation and Development said on Saturday.

"It's one of the most difficult policy moments... one of the most complex challenges I've ever seen, certainly in my lifetime," Angel Gurria said in an interview with Reuters Insider.

[xchrom]

14. China to examine bank loans, tighten licenses this year - paper

http://in.reuters.com/article/2011/04/18/idINIndia-56399420110418?type=economicNews

this is the third paragraph in a very short blurb:

The regulator will pay keen attention to "shadow banking" businesses as well as off-balance-sheet banking activities involving deals with trust companies in a bid to prevent the type of excessive leveraging that brought down Lehman Brothers, the article cited Liu as saying.

[xchrom]

17. Emirates Airline to add fuel surcharge to all air fares

http://www.arabianbusiness.com/emirates-airline-add-fuel-surcharge-all-air-fares-394544.html

Emirates, the Arab world’s biggest airline, has introduced a fuel surcharge to airfares after Middle East unrest pushed the global oil price to more than $110 a barrel.

Dubai’s flag carrier said passengers travelling to the US on economy tickets will be charged AED150 each way from April 18, rising to AED520 for those in business or first class.

The surcharge for a return trip in the Middle East or to the airline’s South Asian destinations will be AED40 each way for economy travellers, rising to AED130 for those in business or first class.

For those heading to Europe, Africa, the Far East, Australia or New Zealand, the levy each way will be AED80 for economy passengers and AED320 for business and first class.

[Po_d Mainiac]

22. But don't curse the price increase......n/t

[xchrom]

18. Templeton's Mobius upbeat on Mideast markets

http://www.arabianbusiness.com/templeton-s-mobius-upbeat-on-mideast-markets-394330.html

Veteran emerging markets investor Mark Mobius is bullish on Middle East markets and expects recent political events to benefit the region in the long-term, he said on Sunday.

"My outlook is very positive because I see these political changes result in more open societies, more dialogue and therefore better environment for markets including stocks and bonds," Mobius told reporters in Dubai.

"I am not saying the ride is going to be smooth and in many places we could see some bumps but the overall trend is positive."

Social unrest in the Middle East over the last few months has swept the leaders of Egypt and Tunisia from power, sparked a violent revolt in Libya and led to protests demanding reform from Syria and Jordan to Yemen and Bahrain.

[xchrom]

19. Bankers get off scot-free in industry overhaul

http://www.arabianbusiness.com/bankers-get-off-scot-free-in-industry-overhaul-394234.html


Everything you needed to know about the long-awaited report of the UK’s Independent Commission on Banking was summed up in a few share prices last week.

Barclays Plc (BARC) and Royal Bank of Scotland Group Plc (RBS) surged after details on overhauling the finance industry were released.

Split up the banks? Shut them down? Make them move elsewhere? No. The commission came up with some irrelevant, complex and hard-to-enforce rules aimed at raising capital ratios and separating their retail from investment arms.

In effect, the banks got off scot-free. The British economy and the nation’s taxpayers will be the big losers.

[Pale Blue Dot]

20. NASA Space Shuttle Contractor Announces Layoffs for 2,800 Workers

The NASA contractor responsible for most of the work of maintaining the space shuttles announced Friday (April 15) that it will have to lay off almost 50 percent of its employees – up to 2,800 workers – after the shuttle program shuts down this year.

The layoffs were already anticipated as a consequence of the looming end of NASA's shuttle program, which has only two more scheduled missions before the orbiter fleet is retired. The shuttle Endeavour is slated to lift off on its final flight April 29, and Atlantis is planned to follow on June 28.

The contractor, United Space Alliance, plans to reduce its workforce following that last launch. USA anticipates laying off between 2,600 to 2,800 of its total of 5,600 employees in late July and early August "due to the completion of tasks related to day-to-day operations of the Shuttle fleet," according to a USA statement.

http://www.space.com/11408-nasa-space-shuttle-contractor-layoffs-usa.html

[xchrom]

21. Open for business

http://www.arabianbusiness.com/open-for-business-391205.html

From his vantage point in an office high above Dubai Creek, Hamad Buamim has a grandstand view of the entrepot that has both made the emirate’s name, and on which the fortunes of its future rest. As director general of the Dubai Chamber of Commerce and Industry, he is effectively in charge of overseeing the interests of the private sector in the city. And for those who are questioning the ease of doing business in the UAE, not to mention the red tape that can be associated with certain processes — rest assured, because Buamim is definitely fighting your corner. It’s always refreshing to see local officials maintain a realistic outlook, and the director general’s view of Dubai’s business prospects manages to be candid yet diplomatic, at the same time.

Take — for example — the issue of labour card licences. In December, the UAE’s Ministry of Labour announced that it would be lowering the validity of labour cards from three years to two, effectively shortening residency visa periods by the same length of time. Cue uproar from the local business community, many of whom asserted that the move would lead to greater expense and more paperwork. Behind the scenes, however, Dubai Chamber was already acting, and has since met with chambers in the other emirates in a bid to bring the issue back before the relevant bodies.

[xchrom]

32. Saudi money wins Obama's mind

http://www.atimes.com/atimes/Middle_East/MD19Ak02.html

Twice during the past week senior United States officials have let it be known that the Barack Obama administration has chosen to adopt a highly selective approach to the ferment in the Middle East.

The US Secretary of State Hillary Clinton couched the message in appropriate diplomatic idiom in Washington last Tuesday in a speech at a gala dinner celebrating the US-Islamic World Forum before an audience of dignitaries from the Middle East including the foreign ministers of Qatar and Jordan and the secretary-general of the Organization of Islamic Conference.

Clinton acknowledged that the ''long Arab winter has begun to thaw'' and after many decades, a ''real opportunity for lasting change'' has appeared before the Arab people. It, in turn, raises ''significant questions'' but it is not for the US to provide all the answers. ''In fact, here in Washington we're struggling to thrash out answers to our own difficult political and economic questions,'' she said.

[Demeter]

24. It's Sleeting on the Daffodils

grrrrrrrrrrr

The weather underground calls it "light snow mist"

[Po_d Mainiac]

66. Poor man's fertilizer n/t

[Hotler]

27. Kicking for the toon. Good morning everyone.

Thank you for SMW.

[xchrom]

31. China tightens inflation curbs

http://atimes.com/atimes/China_Business/MD19Cb01.html

HONG KONG - China's decision on Sunday to increase the amount of reserves banks must hold is expected to be followed by further lending restrictions and interest rate rises after inflation rose at its fastest pace since 2008.

The People's Bank of China (PBoC), the central bank, raised the amount of money that banks must hold in reserve by 50 basis points yesterday, the fourth increase this year and the 10th since the beginning of 2010. Most big mainland banks will have their atio raised to 20.5%, effective from Thursday. It is estimated that the move will lock up about 376.4 billion yuan (US$57.6 billion) from the market.

The latest increase came after PBoC governor Zhou Xiaochuan said on Saturday that China will remove the monetary factors that are related to inflation and will continue tightening monetary policy for "some time."

[xchrom]

59. GM aims to double China car sales to 5 million

http://seattletimes.nwsource.com/html/businesstechnology/2014803012_apaschinaautoshowgm.html

General Motors Co. said Monday it plans to double the number of cars it sells in China to 5 million by 2015.

GM China President Kevin Wale said he's optimistic the company can achieve the "ambitious" target, which is more than twice the 2.35 million vehicles it sold in 2010.

Global automakers are focusing their efforts on China's auto market, which is the world's biggest. Some 13.7 million passenger vehicles were sold in the country last year, when sales grew by a third over 2009.

Automakers and analysts don't expect such strong growth this year because of the end of tax incentives for some vehicle purchases and efforts by cities to bring traffic congestion under control.

[fasttense]

93. They are only selling 2.5 million cars in China?

Out of a population of a billion?

I just expected them to have sold more.

[Demeter]

33. Inflation & the Great Beyond

http://www.zerohedge.com/article/stock-world-weekly-inflation-great-beyond

CLICK FOR CARTOON:

http://ilene.typepad.com/.a/6a010536583aff970b014e87de3201970d-800wi

In a classic retelling of the ancient “irresistible force meets immovable object” riddle, irresistible forces of rampant oil speculation, political and social instability in North Africa and the Middle East, and the Federal Reserve’s policy of quantitative easing (QE) are combining to support higher oil prices. Unfortunately, when the price gets high enough, it hits an immovable object called demand destruction every time.

<...>

As the American consumer copes with rising food prices, rising energy costs, stagnant wages, high unemployment, and declining real estate values, the premise of a “consumer led” recovery is difficult to fathom. High gasoline prices alone are costing U.S. consumers $360 million more a day compared to prices a year ago, according to petroleum industry analyst Bob van der Valk. Bob also expects the price of West Texas Intermediate Crude to drop sharply over the next few weeks, and points to the fact that inventories at the Cushing, Oklahoma hub are at all time highs, something we have been noting for months.

Jan Hatzius is Goldman Sachs’ chief US economist, and is responsible for setting the firm’s US economic and interest rate outlook. Friday afternoon, Zero Hedge reported that Mr. Hatzius issued a major downgrade in his forecast for the “real GDP” for 2011, revising it down to 1.75% (annualized), from 2.5% previously (and from 3.5% not too long ago). He is very concerned about the downside risk to household real disposable income. In his view, the best chance for improvement in the forecasts is either “a substantial acceleration in the labor market and/or a large drop in gasoline prices.” (Jan Hatzius Friday Night Bomb: “We Are Downgrading Our Real GDP Growth Estimate”)

[Demeter]

35. Our only Hope

“What the true believers of hyperinflation and the destruction of the dollar cannot accept is that debt is an asset to the owner of that debt. In focusing solely on the advantages of inflation to borrowers, they ignore the critical fact that inflation quickly destroys the value of the asset that debt represents to the owner. And debt is a primary asset to pension funds, insurance companies, banks, and indeed the entire financial sector."

http://www.oftwominds.com/blogapril11/setup-con-of-decade4-11.html

[xchrom]

34. Race on for Kazakh uranium

http://www.atimes.com/atimes/Central_Asia/MD19Ag01.html

As global nuclear energy demand grows, countries possessing uranium reserves are poised to reap enormous economic and political dividends from production and export of this resource. Yet, the gains may come with costs as global rivalry accelerates among major powers, concurrently enhancing environmental, health, and proliferation risks of global and regional proportions.

This struggle also concerns Kazakhstan, possessing some of the world's largest uranium deposits, increasingly facing competition from Russia, Japan, and China, as it aims to become a major global supplier of nuclear fuel and reactors.

[Demeter]

37. FDIC eyes tougher rules for big banks

----------


American banks should ringfence their riskier investment banking operations, according to a top financial regulator who wants the US to adopt restrictions similar to those proposed last week by Britain’s Independent Commission on Banking.

Read more >>
http://link.ft.com/r/VKY5JJ/UURZ6J/4VXHZ/TPQNPZ/OJK9LY/PJ/t?a1=2011&a2=4&a3=17

[xchrom]

44. hmmmm -- we'll see.

i want to know -- is this more business insiders 'regulating' business?

[Demeter]

80. Mais oui!

[xchrom]

38. The Rise of the Chief Customer Officer

http://blogs.hbr.org/cs/2011/04/the_rise_of_the_chief_customer.html

The customer's voice has a new champion sitting at the highest levels of power in companies. Whether firms call the position Chief Customer Officer (CCO) or some other label, these individuals serve as top executives with the mandate and power to design, orchestrate, and improve customer experiences across the ever-more-complex range of customer interactions. The role exists in B2B and B2C firms as diverse as Allstate, Dunkin' Brands, USAA, Philips Electronics, FedEx, the Cleveland Clinic, and SAP.

Who are these new customer experience executives — and why do companies appoint them? Over the past five years, we have followed the rise of customer experience efforts from small outposts to central players in executing company strategies, especially as firms have faced growing challenges in maintaining meaningful differentiation based on product innovation alone. This past year, we gathered data on 155 CCOs, surveyed a panel of customer experience decision makers from large North American firms, and conducted in-depth interviews with CCOs from both B2C and B2B companies. In our recent report, The Rise Of The Chief Customer Officer, we found that:

Titles can vary. While many of these executives hold the title of Chief Customer Officer, others go by names like Chief Client Officer (at OptumHealth), Chief Experience Officer (at Cigna), Executive Vice President, Member Experience (at USAA), or Chief Global Customer and Marketing Officer (at Dunkin' Brands).





:eyes:

[xchrom]

39. Did Cisco Slip on Flip or Was Flip a Flop?

http://blogs.hbr.org/hbr/mcgrath/2011/04/did-cisco-slip-on-flip-or-was-flip-a-flop.html

So riddle me this: A business that generates an estimated $400 million in revenue, with 550 employees, and which sells an iconic product that was regularly praised as a model of innovation, is going to be shut down. In an analysis of Cisco's decision to shut down its Flip video recorder division, the New York Times reported April 12, 2011, that the networking giant had finally given up on a business that, at one point, was destined to bring it to relevance in consumer markets (along with networking gear company Linksys). The company was purchased just two years ago for $590 million.

The story is a familiar one. Large organization swallows up innovative smaller one, resulting eventually in the departure of the acquired company's leadership, complaints that the large organization doesn't understand what the small one is all about, lack of attention and commitment to developing the small company's future technology, and eventual disappearance of the small firm. It happens in technology all the time.

Theories on why Flip ...uh... flopped, abound. Did smartphones with easy Internet access make its functionality obsolete? Is running a consumer business simply not in the DNA of a company whose heart and soul revolve around networking gear for corporate customers? That might be an argument that Geoff Moore would make, in his well known distinction between complex operations and high volume businesses (he's long said it's extremely difficult to house both under a single corporate umbrella). Or maybe analysts just hated Cisco's consumer strategy, and the company struggled for too long to justify the acquisition. Or maybe they concluded that the product had no future and just decided to bail, without even attempting to find a buyer for the business.




my comment: cisco didn't ever give detailed info about why they were doing this.
transparent? not.

[Demeter]

40. Finnish poll turns on anti-euro feeling

Early results show advances for populist party amid growing public resistance in several northern European countries to taxpayer-funded rescue packages

Read more >>
http://link.ft.com/r/J0VG55/LQK69Y/YGZ3O/V1SPM7/GKZXSD/9A/t?a1=2011&a2=4&a3=18

[Demeter]

41. Fed to signal end of monetary easing

An end to global monetary policy easing is on the horizon, with the US Federal Reserve set to signal it will cease asset purchases at the end of June

Read more >>
http://link.ft.com/r/J0VG55/LQK69Y/YGZ3O/V1SPM7/JI5YFS/9A/t?a1=2011&a2=4&a3=18

AND THEN, ALL HELL BREAKS LOOSE

[Demeter]

42. Germany puts off day of reckoning over rescues

Until Europe’s banks are cleaned up, the German-devised solution for the eurozone amounts to little more than a recipe for never-ending financial support for the area’s weakest states

Read more >>
http://link.ft.com/r/J0VG55/LQK69Y/YGZ3O/V1SPM7/IYMDJ8/9A/t?a1=2011&a2=4&a3=18

[Demeter]

43. China tightens liquidity to tackle inflation

China has raised banks’ reserve ratio requirements for the fourth time this year in an attempt to tighten liquidity

Read more >>
http://link.ft.com/r/J0VG55/LQK69Y/YGZ3O/V1SPM7/9Z6AXN/9A/t?a1=2011&a2=4&a3=18

[Demeter]

46. Fears over CFO changes on Wall St

The unusually high rate of departures among chief financial officers of Wall Street banks is unnerving investors at a time when they crave a return to stability after crisis

Read more >>
http://link.ft.com/r/ZE9K33/EWZ1WJ/XBAN6/18PBDW/BM07IL/RF/t?a1=2011&a2=4&a3=18

[plumbob]

96. Rats off a sinking ship?

CFOs oughta know..

[Demeter]

47. Dollar Stores on 5th Avenue?

Cheap chic lifts Fifth Avenue’s flagging fortunes

Foreign purveyors of ‘cheap chic’ are colonising the New York shopping street that was once a symbol of luxury as changing consumer habits alter the retail landscape

Read more >>
http://link.ft.com/r/ZE9K33/EWZ1WJ/XBAN6/18PBDW/26187I/RF/t?a1=2011&a2=4&a3=18

[Demeter]

48. Here Come the Parasites!

JPMorgan looks to expand in Brazil

The US bank plans to nearly double its headcount in Brazil as it seeks to tap opportunities in asset management, corporate finance and other areas in the country

Read more >>
http://link.ft.com/r/ZE9K33/EWZ1WJ/XBAN6/18PBDW/M9XQUG/RF/t?a1=2011&a2=4&a3=18

[xchrom]

52. ...

:mad:

[Fuddnik]

64. If they're smart, they'll stop the pirates at the border.

[xchrom]

49. U.S. is increasing nuclear power through uprating

http://www.latimes.com/news/local/la-me-uprates-20110418,0,7739985.story

The U.S. nuclear industry is turning up the power on old reactors, spurring quiet debate over the safety of pushing aging equipment beyond its original specifications.

The little-publicized practice, known as uprating, has expanded the country's nuclear capacity without the financial risks, public anxiety and political obstacles that have halted the construction of new plants for the last 15 years.

The power boosts come from more potent fuel rods in the reactor core and, sometimes, more highly enriched uranium. As a result, the nuclear reactions generate more heat, which boils more water into steam to drive the turbines that make electricity.

Tiny uprates have long been common. But nuclear watchdogs and the U.S. Nuclear Regulatory Commission's own safety advisory panel have expressed concern over larger boosts — some by up to 20% — that the NRC began approving in 1998. Twenty of the nation's 104 reactors have undergone these "extended power uprates."

[plumbob]

99. Aww, what could go wrong with stressing a nuclear plant?

Hmmm?

[xchrom]

51. Payday loans, foreign currency, Ponzi scheme: Your Weekly ScamWatch

http://latimesblogs.latimes.com/money_co/2011/04/payday-loans-foreign-currency-ponzi-scheme.html

Payday loans – The Federal Trade Commission has filed a complaint accusing two men and their Las Vegas companies of participating in a scheme to unfairly charge people who inquired on in the Internet about payday loans. According to the FTC’s complaint, Michael Bruce Moneymaker, Daniel De La Cruz, and their companies obtained consumers’ personal information from websites that claimed to match consumers with payday lenders and then enrolled them in worthless “continuity” programs. These programs included an up-front cost of up to $49.99 each, plus additional weekly or monthly recurring fees of up to $19.98. Continuity programs charge recurring fees until a consumer takes action to cancel. At the FTC’s request, a federal court temporarily ordered the defendants to stop the practices, froze their assets and appointed a receiver to take control of the business and its assets. The FTC complaint seeks to stop the practices and make the defendants provide refunds to consumers.

Shopping discounts – Two men who stole $8 million by promoting a bogus shopping club have been convicted of grand theft and securities fraud. Patrick M. Ryan, of Canyon Lake, Calif., and James A. Sweeney II of Tennessee were accused of luring consumers to pay dues and invest in a Riverside company, called Big Co-Op Inc., by promising discounts, rebates and commissions for bringing in new customers. The company generated $1.2 million in revenue from 2005 to 2006 and an additional $7 million through the promotion of an initial public stock offering that never took place, prosecutors said. The pair are scheduled to be sentenced June 14 in Riverside County Superior Court.

[Demeter]

81. Scamming is Exponentially Increasing

and the scammers are so much better at it, with all the new technology....

[tclambert]

90. Michael Bruce Moneymaker is his real name?

Srsly?

[DemReadingDU]

53. Poll: US economy improving despite global events

4/18/11 Poll: US economy improving despite global events
Survey: Economists see US economy improving despite events in North Africa, Middle East, Japan

Economists say the U.S. economy is gaining strength despite political unrest in North Africa and the Middle East and last month's devastating earthquake and tsunami in Japan.

A survey from the National Association for Business Economics finds that economists are hopeful that the broader economy is substantially improving, with rising employment reported for the fifth quarter in a row. The survey found that "companies appear to be positioning themselves for a firming economic environment," said Shawn DuBravac, an economist with the Consumer Electronics Association, who analyzed the findings.

The outlook for employment rose slightly, reaching a 12-year high. No firms reported significant layoffs, with the only reductions coming from already planned cuts.

more...
http://finance.yahoo.com/news/Poll-US-economy-improving-apf-3083716779.html?x=0&sec=topStories&pos=main&asset=&ccode=



I bet they'd get a different outcome if they asked ordinary people.

[xchrom]

55. indeed. nt

[xchrom]

56. more poll news on the economy: Students optimistic despite money doubts

http://seattletimes.nwsource.com/html/nationworld/2014802860_apusappollmoneyandtheyoung.html

For young people who came of age in the recession, the American dream of life getting better for each new generation feels like a myth.

A majority expect to have a harder time buying a house and saving for retirement than their parents did. More than 4 in 10 predict it will be tougher to raise a family and afford the lifestyle they want, according to an Associated Press-Viacom poll of Americans ages 18 to 24.

Only about a fourth expect things to be easier for them than the previous generation - a cherished goal of many hardworking parents.

"I just don't really see myself being able to obtain the kind of money my parents could when they were my age," said Mark McNally, 23, who earned a history degree from the University of Minnesota a year ago and now works part-time in a liquor store.

[Demeter]

82. Maybve It's Only In Comparison

to other nations....

[InkAddict]

87. Speaking of "natural" (?) disasters' effects...

Salman Rushdie - The Ground Beneath Her Feet

"To many third-world observers it seems self-evident that earthquakes are the new hegemonic geopolitics, the tool by which the superpower quake-makers intend to shake and break the emergent economies of the South, the Southeast, the Rim. The boastful triumphalism of the West during the revolutionary upheavals of 1989-90 has come back to haunt it. Now all earth tremors are perceived as Euro-American weapons, what were once classified by insurance brokers as acts of god are now close to being treated by entire states as acts of war, and the altruism with which ordinary Western citizens contribute to disaster relief funds, and even the indefatigable efforts of the international aid agencies, look like post-facto attempts at salvaging the guilty consciences of the powerful after the damage has been done. India, Pakistan, Israel, Syria, Iran, Iraq and China all announce the allocation of giant "plate war" budgets. A new kind of weapons scramble has begun."

=====================================================

One needs to change some dates, nations, and consider a wider scope of just who is a third-world observer, but hey, on application of same....it's things that make one go hmmmmmmm...

[xchrom]

54. Journalists tackle major healthcare cost, quality issues at national gathering

http://latimesblogs.latimes.com/money_co/2011/04/journalists-tackle-major-healthcare-cost-and-quality-issues-at-national-gathering-.html

Call it all-healthcare, all the time.

Hundreds of journalists are huddling in Philadelphia this week to examine major healthcare issues facing the nation as Washington and states grapple with rising medical costs and new requirements in federal law to expand health coverage.

Among the topics before reporters at the annual meeting of the Assn. of Health Care Journalists: the future of President Obama’s year-old healthcare law.

Will it be repealed or tossed out by the courts? A lot will depend on the 2012 election, and whether congressional Republicans are able to hold up funding, leading experts told reporters. Adding to the uncertainty: No one can predict the outcome of several legal challenges around the country, although legal scholars at the meeting said they do not expect the Supreme Court to immediately weigh in.

[xchrom]

57. Toyota resumes production at all Japan plants

http://seattletimes.nwsource.com/html/businesstechnology/2014802026_apasjapanearthquakeautomakers.html

Toyota Motor Corp. resumed car production at all of its plants in Japan Monday for the first time since the March 11 earthquake and tsunami, but said the factories will run at half capacity due to parts shortages.

The world's No. 1 automaker said it was still struggling to secure around 150 types of auto parts. The magnitude-9.0 earthquake and ensuing tsunami destroyed parts factories in northeastern Japan, causing severe shortages of components.

The twin disasters forced Toyota to shut down all output in Japan except at three plants, which have been running at limited capacity since late March and early April to produce hot-selling Prius, Lexus and Corolla cars.

The 900 workers at Toyota's auto plant in Miyagi, one of the worst-hit areas in the disasters, observed a minute's silence for tsunami victims before starting work Monday. The quake and tsunami left nearly 28,000 people dead or missing. In Miyagi alone, police said over 8,400 people have been killed.

[Fuddnik]

58. Somebody took a dump in the punch bowl.

Dow -163 15 minutes after the open.

[xchrom]

60. huh -- and here i thought everything was coming up roses. nt

[Roland99]

Standard & Poor’s Puts ‘Negative’ Outlook on U.S. AAA Rating

http://www.bloomberg.com/news/2011-04-18/standard-poor-s-puts-negative-outlook-on-u-s-aaa-rating.html

Standard & Poor’s put a “negative” outlook on the U.S. AAA credit rating, citing rising budget deficits and debt.

“We believe there is a material risk that U.S. policy makers might not reach an agreement on how to address medium-and long-term budgetary challenges by 2013,” New York-based S&P said in a report today. “If an agreement is not reached and meaningful implementation does not begin by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer ‘AAA’ sovereigns.”

Under President Barack Obama’s fiscal year 2012 budget, released in February, the total debt subject to the ceiling would be $20.8 trillion in 2016. The plan House Republicans approved April 15, written by Budget Committee ChairmanPaul Ryan, would need a debt ceiling of at least $19.5 trillion, according to data compiled by Bloomberg Government.

Treasuries fell, reversing earlier gains, after S&P lowered its outlook to negative from stable. The benchmark 10-year note yielded as much as 3.45 percent in New York before trading little changed at 3.43 percent. The dollar dropped 0.7 percent to 82.58 yen and pared its gain versus the euro. The S&P 500 Index fell 1.5 percent.

[maddogesq]

75. WH downplays S&P downgrade.

Says it's political

http://www.cnbc.com/id/42645647l.

[Vinee]

85. because America's credit has never been better. so will someone please lend us $1.6 trillion

so we can continue to function as a AAA rated country.

[xchrom]

61. Chinese overseas students 'hit record high'

http://www.bbc.co.uk/news/world-asia-pacific-13114577

A record number of Chinese students are studying in foreign universities, the country's Education Ministry says.

Officials say there are now some 1.27 million students attending foreign universities.

In 2010 alone more than 284,000 Chinese went abroad to study, most of them privately funded.

At the same time, more Chinese students are choosing to return home to work after graduation.

Chinese officials say the country has the largest number of overseas students in the world.

[xchrom]

62. Dutch dollars down under

http://www.bbc.co.uk/blogs/thereporters/nickbryant/2011/04/dutch_dollars_down_under.html

Is Australia in danger of catching the Dutch disease? Lest there be any confusion, this has nothing to do with soft drugs, canal jumping, total football, wooden footwear or cycling royals. It is the economic malady that infects a country when its resources sector becomes so very dominant that it has a distorting and damaging effect on its manufacturing. Revenues from natural resources make the national currency so strong that the country's other exports are simply too expensive to buy.
A shopper brandishes Australian dollar banknotes in Sydney

The term was first coined by The Economist in the early 1970s, which reported on the decline of Dutch manufacturing in the wake of the discovery of a large natural gas field in the 1950s. And it was the same newspaper, as The Economist prefers to think of itself, that this month asked whether Australia had become infected. It quoted a survey of manufacturing chief executives, 93% of whom warned that their exports could not compete when the Australian dollar was at parity with the US greenback. In recent weeks, a currency once mocked as the Pacific Peso has been purchasing well over a dollar.

A resources-linked currency, the strength of the Australian dollar is bonza news if you are importing goods from abroad or a tourist visiting a foreign country because your money obviously goes a lot further. It is also quite useful for mortgage holders, because the strong Australian dollar is suppressing inflation and thus reducing the pressure on the Reserve Bank of Australia to increase the cost of borrowing. Tellingly, interest rates have been on hold since November.

[xchrom]

63. World Bank president: 'One shock away from crisis'

http://www.bbc.co.uk/news/business-13108166

The president of the World Bank has warned that the world is "one shock away from a full-blown crisis".

Robert Zoellick cited rising food prices as the main threat to poor nations who risk "losing a generation".

He was speaking in Washington at the end of the spring meetings of the World Bank and International Monetary Fund.

Meanwhile, G20 finance chiefs, who also met in Washington, pledged financial support to help new governments in the Middle East and North Africa.

Mr Zoellick said such support was vital.

[florida08]

67. Moving down

Dow Jones 12,114.71 -227.12 (-1.84%)
S&P 500 1,296.56 -23.12 (-1.75%)
Nasdaq 2,710.08 -54.57 (-1.97%)

[Pale Blue Dot]

70. Citi profit falls 32 percent as bond trading weakens

NEW YORK (Reuters) - Citigroup Inc's first-quarter profit fell 32 percent as bond trading revenue plunged and operating expenses jumped.

The results were better than analysts expected, but Citigroup shares were down a penny at $4.41 in morning trading.

The third-largest U.S. bank generated profit in large part because it dipped into funds previously set aside to cover bad loans, releasing $3.37 billion of reserves.

Revenue fell 22 percent to $19.7 billion, and operating expenses rose 7 percent, in part because of higher compensation and legal costs.

http://finance.yahoo.com/news/Citigroup-profit-falls-32-rb-803212851.html?x=0&sec=topStories&pos=2&asset=&ccode=

[xchrom]

71. David Baines: The strange case of the "fantasy" investment account run by former

http://communities.canada.com/vancouversun/blogs/howestreetfiles/archive/2011/04/08/david-baines-the-strange-case-of-the-quot-fantasy-quot-investment-account-run-by-former-canaccord-broker-alan-hackett.aspx

David Baines: The strange case of the "fantasy" investment account run by former Canaccord broker Alan Hackett

The strange case of former Canaccord Genuity stockbroker Alan Hackett took another turn on March 25 when a B.C. Supreme Court judge ruled that a multi-million-dollar “accumulation account” that Hackett ran on behalf of himself and several investors was a figment of his imagination.

Judge Brenda Brown also ruled that Hackett ran the account as an off-book investment and there was no way Canaccord could have reasonably known what was he was up to, therefore the brokerage firm could not be held vicariously responsible for investors’ losses.

For that reason, the judge said the plaintiff in the case, Mark Hiscott, had no valid claim against Canaccord. Furthermore, she noted that over the years Hackett had given Hiscott $1.4 million, which is far more than the value of the assets he invested, so he suffered no loss.

The full judgment can be viewed here. Also, I have appended below Canada Stockwatch’s excellent report on the decision, which editor John Woods has kindly permitted me to republish.




:rofl: you could say the same about goldmans, lehman, bear sterns, b of a, etc

[Festivito]

72. Debt: 04/14/2011 14,270,792,119,184.89 (UP 6,644,760,138.61) (Thu, UP some.)

(Still under the old debt limit of 14.294-trillion dollars by 23-billion dollars. Good day.)
Sleeping in, essential.
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 9,657,636,099,303.31 + 4,613,156,019,881.58
UP 4,827,508,513.07 + UP 1,817,251,625.54

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 312-Million person America.
If every American, man, woman and child puts in $3.21 THAT'S 1B$, and $3,207.29 makes 1T$.
A family of three: Mom, Dad, Child: $9.62, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 12 seconds we net gain another American, so at the end of the workday of the report, there should be 311,789,792 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2010 04:37 -> 310,403,677
Currently, each of these Americans owe $45,770.56.
A family of three owes $137,311.67. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 21 reports in the last 30 to 31 days.
The average for the last 21 reports is 4,988,634,828.81.
The average for the last 30 days would be 3,492,044,380.17.
The average for the last 31 days would be 3,379,397,787.26.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 133 reports in 196 days of FY2011 averaging 5.33B$ per report, 3.62B$/day.
Above line should be okay

PROJECTION:
There are 647 days remaining in this Obama 1st term.
By that time the debt could be between 15.2 and 17.6T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
04/14/2011 14,270,792,119,184.89 BHO (UP 3,643,915,070,271.81 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
01-WJC +0,053,598,528,417.78 ------------* WJC 31% of FY, 40% of FY-Debt
01-GWB +0,079,686,673,895.42 ------------* GWB 69% of FY, 60% of FY-Debt
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
09GWB +0,602,152,152,000.60 ------------* * * * * * * * * * * * * * * GWB 31% of FY, 32% of FY-Debt
09-BHO +1,282,951,954,598.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO 69% of FY, 68% of FY-Debt
FY2010 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +0,709,169,088,293.10 ------------* * * * * * * * * * * * * * * * * BHO
Endof11 +1,320,646,516,464.19 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
03/22/2011 +000,366,066,174.28 ------------********
03/23/2011 -000,063,255,741.95 ----
03/24/2011 -015,763,143,549.40 -
03/25/2011 -000,034,574,737.25 ----
03/28/2011 +000,227,402,237.21 ------------******** Mon
03/29/2011 +000,181,007,415.32 ------------********
03/30/2011 +000,670,089,469.30 ------------********
04/04/2011 +000,336,873,927.41 ------------******** Mon
04/05/2011 -000,031,815,631.67 ----
04/06/2011 -000,011,756,275.73 ----
04/07/2011 +002,235,163,853.48 ------------*********
04/08/2011 +000,001,314,747.36 ------------******
04/11/2011 +000,390,366,211.15 ------------******** Mon
04/13/2011 +000,216,450,469.86 ------------********
04/14/2011 +004,827,508,513.07 ------------*********

-6,452,302,917.56 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008 while Bush was in power JUST BEFORE fiscal year end.
Bush admin borrowed $962,245,245,654.01 in those last 124 days in office crossing two fiscal years.
$360,093,093,653.42 in last 12 days of FY2008, and $602,152,152,000.59 in subsequent 112 days before leaving office.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock
http://www.usdebtclock.org/
DUer primer on National debt

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4815027&mesg_id=4815607

[Festivito]

88. Debt: 04/15/2011 14,305,336,580,992.11 (UP 34,544,461,807.22) (Fri, UP a lot. Over limit.)

(Over the old debt limit of 14.294-trillion dollars by 11-billion dollars. Good day.)
Off to the races.
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 9,679,202,714,701.01 + 4,626,133,866,291.10
UP 21,566,615,397.70 + UP 12,977,846,409.52

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 312-Million person America.
If every American, man, woman and child puts in $3.21 THAT'S 1B$, and $3,207.22 makes 1T$.
A family of three: Mom, Dad, Child: $9.62, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 12 seconds we net gain another American, so at the end of the workday of the report, there should be 311,796,992 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2010 04:37 -> 310,403,677
Currently, each of these Americans owe $45,880.29.
A family of three owes $137,640.87. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 21 reports in the last 30 to 31 days.
The average for the last 21 reports is 3,208,776,385.40.
The average for the last 30 days would be 2,246,143,469.78.
The average for the last 31 days would be 2,173,687,228.82.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 134 reports in 197 days of FY2011 averaging 5.55B$ per report, 3.78B$/day.
Above line should be okay

PROJECTION:
There are 646 days remaining in this Obama 1st term.
By that time the debt could be between 15.2 and 17.6T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
04/15/2011 14,305,336,580,992.11 BHO (UP 3,678,459,532,079.03 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
01-WJC +0,053,598,528,417.78 ------------* WJC 31% of FY, 40% of FY-Debt
01-GWB +0,079,686,673,895.42 ------------* GWB 69% of FY, 60% of FY-Debt
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
09GWB +0,602,152,152,000.60 ------------* * * * * * * * * * * * * * * GWB 31% of FY, 32% of FY-Debt
09-BHO +1,282,951,954,598.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO 69% of FY, 68% of FY-Debt
FY2010 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +0,743,713,550,100.40 ------------* * * * * * * * * * * * * * * * * * BHO
Endof11 +1,377,946,425,312.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
03/23/2011 -000,063,255,741.95 ----
03/24/2011 -015,763,143,549.40 -
03/25/2011 -000,034,574,737.25 ----
03/28/2011 +000,227,402,237.21 ------------******** Mon
03/29/2011 +000,181,007,415.32 ------------********
03/30/2011 +000,670,089,469.30 ------------********
04/04/2011 +000,336,873,927.41 ------------******** Mon
04/05/2011 -000,031,815,631.67 ----
04/06/2011 -000,011,756,275.73 ----
04/07/2011 +002,235,163,853.48 ------------*********
04/08/2011 +000,001,314,747.36 ------------******
04/11/2011 +000,390,366,211.15 ------------******** Mon
04/13/2011 +000,216,450,469.86 ------------********
04/14/2011 +004,827,508,513.07 ------------*********
04/15/2011 +021,566,615,397.70 ------------**********

14,748,246,305.86 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008 while Bush was in power JUST BEFORE fiscal year end.
Bush admin borrowed $962,245,245,654.01 in those last 124 days in office crossing two fiscal years.
$360,093,093,653.42 in last 12 days of FY2008, and $602,152,152,000.59 in subsequent 112 days before leaving office.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock
http://www.usdebtclock.org/
DUer primer on National debt

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4817979&mesg_id=4818192

[Demeter]

83. I wonder: Is this Down Market the Sign

of a Goldman Sachs major indictment?

[TalkingDog]

84. For those that missed this in GD over the weekend: The White American Underclass

http://www.joebageant.com/joe/2011/04/american-undertow.html

The United States has always maintained a white underclass — citizens whose role in the greater scheme of things has been to cushion national economic shocks through the disposability of their labor, with occasional time off to serve as bullet magnets in defense of the Empire. Until the post-World War II era, the existence of such an underclass was widely acknowledged. During the Civil War, for instance, many northern abolitionists also called for the liberation of “four million miserable white southerners held in bondage by the wealthy planter class”. Planter elites, who often held several large plantations which, together, constituted much or most of a county’s economy, saw to it that poor whites got no schooling, money, or political power. Poll taxes and literacy requirements kept white subsistence farmers and poor laborers from entering voting booths. Often accounting for up to 70 percent of many deep-Southern counties, they could not vote, and thus could never challenge the status quo.


An exceptional examination of an often denied state of affairs.

[girl gone mad]

94. k & r