STOCK MARKET WATCH, Wednesday January 16

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday January 16, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 370 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2553 DAYS
WHERE'S OSAMA BIN-LADEN? 2277 DAYS
DAYS SINCE ENRON COLLAPSE = 2238
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

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

AT THE CLOSING BELL ON January 15, 2008

Dow... 12,501.11 -277.04 (-2.17%)
Nasdaq... 2,417.59 -60.71 (-2.45%)
S&P 500... 1,380.95 -35.30 (-2.49%)
Gold future... 902.50 -0.90 (-0.10%)
30-Year Bond 4.29% -0.08 (-1.85%)
10-Yr Bond... 3.70% -0.09 (-2.43%)






GOLD, EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

[ozymandius]

1. Market WrapUp: Bear Market In Force -- C-YA!

BY FRANK BARBERA, CMT

More bad news, another brutal day in the markets, and no end in sight. Bear Markets make life impossible in a hurry for those fighting the downtrend and unwilling to step out of the way. They are equal opportunity killers, indifferent to whose money is being lost and indifferent to any set of positive fundamentals that may be in place.

Back in the late 1990’s, as the bull market moved into its final throws with NASDAQ pushing above 5,000 in early March, 2000, I did a full week-long special on why investors should be selling Technology stocks as the NASDAQ romped up above 5,000. My call in writing at the time was for the NASDAQ to drop 2,000 points into an April low, and lo behold, it happened. The hedge fund I was working for at the time made a killing shorting technology stocks, as we had more puts than we could really keep an eye on. PMC Sierra, JDS Uniphase, Human Genome Sciences, Broadvision and Inktomi -- we were short the lot of them. As time proved out, most of those companies had over-hyped fundamentals which were nowhere close to being able to sustain 50, 60 or even 90 times P/E multiples. For the next two years we surfed the NASDAQ on the downside shorting stocks, and then shorting more. At some point, it started getting ridiculous as names that had been $100, $90, and $70 turned into $10, $5, and lower, enough to leave even the most ardent and steadfast bear wondering, “How low can it go?” I can remember like it was yesterday, working with my partner at the time, we were looking at a Telecomm company that had been disassembled, the stock had gone from $50 down to $9. My partner, a top notch fund fundamentalist and a very good friend to this day, told me, “You know, I think we need to cover this short, because the Book Value of the company is $8.85, and how can this thing go below Book Value?” A big discussion ensued; could this company's stock price actually fall below its “book value.” It was a formidable concept at the time, but in the end, it did. Not only that, it fell all the day down to $1.10 in a long tortuous decline, that I am sure made every shareholder puke.
......

At the time, it was a luxury of being in a position where everything we were short was hugely profitable, and I really didn’t care if I ended up getting nicked a bit on one position. However, the point here is that everything about this climate screams “Bear Market.” Yesterday in watching the S&P, I noted that bulls and bears had fought one another to a near standstill over the last six to seven days. As a bear, I am long an ETF which rises as the stock market goes down. Yesterday, I pondered the question of adding more to the existing short position knowing full well that Citicorp would be coming out with negative news today. I thought, this news will be ugly, and perhaps the stock will go down; but maybe, just maybe, it might shake off the bad news and instead advance after all the stock is depressed and this is a former market darling. These were the usual mental gymnastics, back and forth, back and forth, that any trader agonizes over endlessly. The more I thought about it, the more today’s market reaction shaped up in my mind as a kind of referendum on the market. Would the Fed be tempted to come in with a surprise intra-meeting rate cut to gain extra bang for the rate cut buck on a day when Citi was out with negative news? Would the market digest Citicorp’s negative news and then push the substance of the news aside, and rally the stock on the assumption that the ‘worst is over’?
......

This reaction, today’s reaction, was something quite different. There is a key measure of defining a market climate and that is, how a market will react to news events. In healthy bull markets, good news serves as an excuse for a party and a huge rally, while bad news is shunted aside with prices refusing to go down very much at all. In Bear Markets, precisely the opposite psychology comes into play, as prices ignore good news and fall out of bed on bad news. In my view, today’s market is one of the first times in years that the stock market has really reacted in a strongly negative fashion to bad news that was telegraphed in advance. That makes today a doubly negative day as it really suggests that a psychology of fear is now taking control and in command of the equity market.

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

[Nimrod2005]

10. Nice!

[ozymandius]

2. Today's Reports

8:30 AM CPI Dec
Briefing Forecast 0.3%
Market Expects 0.2%
Prior 0.8%

8:30 AM Core CPI Dec
Briefing Forecast 0.2%
Market Expects 0.2%
Prior 0.3%

9:00 AM Net Foreign Purchases Nov
Briefing Forecast NA
Market Expects NA
Prior $114.0B

9:15 AM Industrial Production Dec
Briefing Forecast -0.4%
Market Expects -0.2%
Prior 0.3%

9:15 AM Capacity Utilization Dec
Briefing Forecast 81.1%
Market Expects 81.2%
Prior 81.5%

10:30 AM Crude Inventories 01/12
Briefing Forecast NA
Market Expects NA
Prior -6736K

2:00 PM Fed's Beige Book

http://biz.yahoo.com/c/e.html

[UpInArms]

22. 8:30 reports - U.S. 2007 CPI up 4.1%, most since 1990

01. U.S. real weekly earnings rise 0.1%
8:30 AM ET, Jan 16, 2008 - 4 minutes ago

02. U.S. Dec. CPI food prices up 0.1%
8:30 AM ET, Jan 16, 2008 - 4 minutes ago

03. U.S. Dec. CPI medical care prices up 0.3%
8:30 AM ET, Jan 16, 2008 - 4 minutes ago

04. U.S. Dec. CPI apparel prices up 0.2%
8:30 AM ET, Jan 16, 2008 - 4 minutes ago

05. U.S. Dec. CPI owners' equivalent rent up 0.3%
8:30 AM ET, Jan 16, 2008 - 4 minutes ago

06. U.S. Dec. CPI energy prices up 0.9%
8:30 AM ET, Jan 16, 2008 - 4 minutes ago

07. U.S. 2007 CPI up 4.1%, most since 1990
8:30 AM ET, Jan 16, 2008 - 4 minutes ago

08. U.S. 2007 core CPI up 2.4%
8:30 AM ET, Jan 16, 2008 - 4 minutes ago

09. U.S. Dec. core CPI up 0.2% as expected
8:30 AM ET, Jan 16, 2008 - 4 minutes ago

10. U.S. Dec. CPI up 0.3% vs. 0.2% expected
8:30 AM ET, Jan 16, 2008 - 4 minutes ago

[UpInArms]

31. Consumer prices see biggest rise in 17 years (rate cut still a go!)

http://news.yahoo.com/s/nm/20080116/bs_nm/usa_economy_prices_dc

they shot up at the fastest rate in seventeen years, largely because of soaring energy costs, the Labor Department reported on Wednesday.

The Consumer Price Index, the most broadly used gauge of inflation, rose 4.1 percent in 2007, well ahead of the 2.5 percent increase posted in 2006 and the largest 12-month rise since a 6.1 percent increase in 1990.

December's CPI monthly rise followed a sharp 0.8 percent jump in November and was modestly ahead of Wall Street economists' forecasts for a 0.2 percent gain.

Analysts said it underlined the pressure consumer budgets were under but also left room for the Federal Reserve to cut interest rates again at the end of this month to help prop up the economy.

"What this means for monetary policy, it seems, is that there is some room in there for the Fed to go ahead and cut rates without fear that inflation is going to rear up," said Oscar Gonzalez, an economist at John Hancock in Boston.

...more...

(emphasis mine)

[Roland99]

32. U.S. consumer prices rise 0.3% in December

http://www.marketwatch.com/news/story/consumer-prices-rise-03-december/story.aspx?guid=%7B9CCA8A4F%2D8017%2D448D%2DA8BB%2D2BF56DF8D2BB%7D

Prices rose at a 5.6% annual rate in the final three months of 2007, much hotter than anyone is comfortable with, with energy prices jumping at a 37% annual rate. Even the core rate increased at a 2.7% annual rate during the December quarter.

For all of 2007, the CPI increased 4.1%, the biggest gain since 1990. Energy prices jumped 17.4% during the year, while food prices rose 4.9%.

It was the largest annual gains for both categories since 1990. Meanwhile, the core CPI increased 2.4% for the year.

[UpInArms]

61. U.S. Dec. industrial production unchanged vs drop 0.2% est

21. U.S. Dec. industrial production unchanged vs drop 0.2% est
9:14 AM ET, Jan 16, 2008 - 2 hours ago

[UpInArms]

62. U.S. crude inventories up 4.3 mln barrels in latest week

10. Crude drops nearly $2 as inventories rise more than expected
10:32 AM ET, Jan 16, 2008 - 1 hour ago

11. U.S. gasoline inventories up 2.2 mln barrels in latest week
10:31 AM ET, Jan 16, 2008 - 1 hour ago

12. U.S. distillate stocks up 1.1 mln barrels in latest week
10:31 AM ET, Jan 16, 2008 - 1 hour ago

13. U.S. crude inventories up 4.3 mln barrels in latest week
10:30 AM ET, Jan 16, 2008 - 1 hour ago

[Roland99]

80. FED BEIGE BOOK SEES SLOW GROWTH IN MOST REGIONS OF U.S.

Beige Book sees slow, modest growth in most regions
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB5BDD9E1%2DD321%2D4716%2DA87E%2D5A6DB276CABF%7D&siteid=mktw

[UpInArms]

92. Beige Book line items - tastes like vanilla to me

04. Beige Book: Demand for nonbank services 'robust'
2:00 PM ET, Jan 16, 2008 - 1 hour ago

05. Beige Book: Manufacturing mixed, with exports growing
2:00 PM ET, Jan 16, 2008 - 1 hour ago

06. Beige Book: Retail 'disappointing,' housing 'quite weak'
2:00 PM ET, Jan 16, 2008 - 1 hour ago

07. Beige Book: Labor markets 'relatively tight'
2:00 PM ET, Jan 16, 2008 - 1 hour ago

08. Beige Book: 5 regions slow, 5 growing modestly, 2 mixed
2:00 PM ET, Jan 16, 2008 - 1 hour ago

09. Beige Book: U.S. economy growing modestly in most regions
2:00 PM ET, Jan 16, 2008 - 1 hour ago

[ozymandius]

3. Oil falls sharply on economy worries

NEW YORK - Oil futures dropped sharply Tuesday as a dismal retail sales report confirmed a growing view among investors that the economy is slowing and that demand for energy is likely to fall.

Investors who have already been selling heavily on concerns about a weak economy dumped contracts again after the Commerce Department said retail sales fell by 0.4 percent in December. Not only was the drop much worse than the 0.1 percent analysts expected, it also was evidence that not even the holiday shopping season could encourage wary consumers to spend freely.

Light, sweet crude for February delivery fell $2.30 to settle at $91.90 a barrel on the New York Mercantile Exchange.
......

Expectations that the Energy Department's weekly inventory report will show supplies of crude oil and refined products rose last week also weighed on futures prices.

At the pump, meanwhile, gas prices fell 0.9 cent overnight to a national average of $3.061 a gallon, according to AAA and the Oil Price Information Service. Gas prices have fallen lately after following oil prices' rise to a record $100.09 a barrel two weeks ago. But retail gas prices remain nearly 83 cents higher than they were one year ago.

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

[ozymandius]

4. Bush hopes OPEC will raise production

SHARM EL-SHEIK, Egypt - President Bush is hopeful that after talks with Saudi King Abdullah OPEC will authorize an increase in oil production to ease pressure on prices.

White House press secretary Dana Perino said Wednesday that Bush brought up the subject of high gas prices, and their negative effect on world economies, after having dinner with the king Tuesday night in Saudi Arabia.
......

The White House would not provide more details about Bush's conversations with the king. "Obviously, it was a private conversation," she said. "We are reluctant to provide a readout of them."

http://news.yahoo.com/s/ap/20080116/ap_on_re_mi_ea/bush_oil_2

Hmmm... Another private conversation to determine pubic energy policy. Where have I heard that before?

[spotbird]

55. It looks like they tossed the Boy King

a few crumbs for his groveling.

[AnneD]

82. What..

no KY jelly for us?

[ozymandius]

5. Asian stock markets plunge

HONG KONG - Asian markets plunged Wednesday on growing speculation the U.S. economy — a vital export market — is sliding into a recession that could lead to a global slowdown.

Investors dumped stocks after an overnight sell-off on Wall Street and on news that Citigroup Inc. had lost nearly US$10 billion in the fourth quarter as it wrote down mountains of bad mortgage assets — the latest fallout from the credit crisis. Weak U.S. retail sales figures also added to the gloom.
.....

In Hong Kong, the benchmark Hang Seng index sank 5.4 percent to 24,450.85, while Tokyo's Nikkei 225 index fell 3.4 percent to close at 13,504.51 points, its lowest in more than two years.

Markets in Australia, China, India, South Korea, New Zealand and the Philippines also dropped sharply on worries about slower growth in the U.S. and uncertainty about the extent of the subprime mortgage crisis.

http://news.yahoo.com/s/ap/20080116/ap_on_bi_ge/world_markets

[ozymandius]

6. European shares slide, London FTSE 100 below 6,000 points

LONDON (AFP) - Europe's main stock markets extended losses in early trade on Wednesday amid widespread gloom over the US economy, with London's leading index below 6,000 points for the first time since mid-August.

London's FTSE 100 index of leading shares was down 1.30 percent at 5,947.00 points shortly after the open. Frankfurt's DAX 30 lost 1.00 percent to 7,491.07 points and in Paris the CAC 40 dropped 1.24 percent to 5,185.67.

The DJ Euro Stoxx 50 index of eurozone shares decreased 1.00 percent in value to stand at 4,099.56 points.
......

European stock markets had suffered a major sell-off Tuesday -- with London closing down more than three percent -- in
the face of gathering fears of recession in the United States and depressing corporate news, dealers said.

http://news.yahoo.com/s/afp/20080116/bs_afp/stockseuropeopen

[ozymandius]

7. Recession fears spark global equity sell-off

Fears that a US recession is on the way led to a sell-off in global equity markets on Wednesday, as rattled investors await the latest earnings report from a Wall Street bank.

The Dow Jones Industrial Average fell 2.2 per cent overnight as weak retail sales data added to fears of further writedowns in the banking sector. Meanwhile, weak earnings from US chipmaker Intel after the Wall Street close also helped set the tone for Wednesday's losses.

Hong Kong's Hang Seng index fell 5.4 per cent - its worst day since September 2001 - as the territory's banking sector slumped following damage to US rivals from subprime and credit market-related writedowns.
......

Meanwhile, investors were fearing the worst ahead of JPMorgan's earning's report later in Wednesday's session. Analysts cut their earnings forecast for the investment bank following Citigroup's results on Tuesday.

http://news.yahoo.com/s/ft/20080116/bs_ft/fto011620080547470375

[Ghost Dog]

19. Yup. Global shares dive on US recession fears

LONDON (AFP) - Fears of a US recession rattled world equities Wednesday, as the Tokyo market slumped to the lowest level in more than two years and London's leading share index hit a six-month nadir.

...

European shares tumbled more than one percent shortly after the start of trading on Wednesday in the wake of heavy falls across Asia and a plunge on Wall Street overnight.

London's FTSE 100 index later recovered slightly to stand down 0.79 percent at 5,978.20 points. This was the first fall below 6,000 points since mid-August.

Frankfurt's DAX 30 lost 0.90 percent to 7,498.14 points and in Paris the CAC 40 dropped 0.59 percent to stand at 5,219.95 at about 1000 GMT.

Some smaller European markts fared worse, with the leading index on Austria's stock exchange showing a loss of 3.48 percent after closing 2.9 percent lower on Tuesday.

...

On Wednesday the Tokyo Stock Exchange's benchmark Nikkei-225 index tumbled 3.35 percent to a level not seen since October 2005.

Hong Kong closed down a sharp 5.4 percent. Shanghai, which has been seen as relatively insulated from US economic trouble, dropped 2.81 percent.

Seoul closed down 2.4 percent, Sydney fell 2.5 percent and Taipei slid nearly three percent. Jakarta was down nearly five percent.

In Japan, Prime Minister Yasuo Fukuda warned that the hefty losses at Citigroup "may affect not only the US economy, but also the world economy."

Referring to the fall in share prices, Fukuda said: "We will analyse it in a calm manner and take measures if necessary."

But Finance Minister Fukushiro Nukaga urged the market not to overstate the impact of the trouble in the United States.

"I think the steady undertone of the world economy remains unchanged," Nukaga told reporters.

/... http://news.yahoo.com/s/afp/20080116/ts_afp/stocksworld_080116104128

And, look at the Swiss Franc (1.613 to the Euro at the moment):

[Ghost Dog]

21. Yen and Swiss franc soar against dollar

The dollar dropped to a record low against the Swiss franc and its weakest level in two and a half years against the yen on Wednesday as tumbling stock markets drove investors to the safety of low-yielding currencies.

Equities lost ground after weak US retail sales figures on Tuesday sparked fresh fears that a slowdown in the US would spill over into the global economy.

Analysts said rising risk aversion had prompted investors to abandon carry trades, in which low-yielding currencies such as the yen and Swiss franc are sold to finance the purchase of riskier, higher-yielding assets elsewhere.

"Risk aversion is the only story in town, perhaps combined with a bit of dollar weakness," said Adam Cole at RBC Capital Markets.

"So the dollar is the perfect currency to sell against the yen in this environment."

The dollar fell 0.6 per cent to Y106.10 against the yen, its weakest level since May 2005, and dropped 0.4 per cent to an an all-time low of SF1.0884 against the Swiss franc.

The dollar was flat against the euro at $1.4810, however, as the single currency also suffered against the rampant yen.

/... http://news.yahoo.com/s/ft/20080116/bs_ft/fto011620080602320378;_ylt=AkT4Q6QOfTkAgIjXsjEgOSr2ULEF

[Ghost Dog]

20. German inflation at 2.2 percent in 2007: Destatis

BERLIN (AFP) - Inflation averaged 2.2 percent in Germany last year, its highest level in 13 years, data released Wednesday by the national statistics office showed.

The biggest European economy posted inflation of 1.7 percent in 2006, 2.0 percent in 2005 and 1.6 percent in 2004.

...

VAT increased from 16 to 19 percent.

Energy prices leapt by 3.9 percent from their average level in 2006, Destatis added, with the cost of electricity gaining 6.8 percent on the year.

Food prices also pushed inflation higher, climbing by an average 3.1 percent on a 12-month basis, with spikes of 19.1 percent for butter and 15.4 percent for flour.

In December, overall inflation reached an annualised 2.8 percent, slightly lower than the 3.1 percent level in November, Destatis said.

The European Central Bank has begun to ratchet up its tone on rising prices in the 15-nation eurozone, for which the ECB has set an inflation target of just under 2.0 percent.

/... http://news.yahoo.com/s/afp/20080116/bs_afp/germanyeconomyinflation_080116094809;_ylt=AiXjpSDCDTgSdNwamXfpQO6mOrgF

[Ghost Dog]

78. European stocks lower on growth fears

European equity markets closed off session lows on Wednesday, but small gains in the US during morning trade were not enough to take them higher.

The FTSE Eurofirst 300 closed down 0.9 per cent at 1,383.2. At its worst level of the session, the pan-European benchmark had been down 1.7 per cent at 1,372.15.

Frankfurt's Xetra Dax fell 1.3 per cent to 7,471.6, the CAC 40 in Paris was 0.5 per cent weaker at 5,225.4 and London's FTSE 100 was down 1.4 per cent at 5,942.9.

Reports carried by Bloomberg that the European Central Bank was considering a downward revision to eurozone growth estimates for 2008 added to the gloom.

Yves Merch, a member of the central bank's governing council, was quoted by the news agency as saying there could be "a moderation of growth inside Europe" adding that the bank should remain flexible on interest rates.

/... http://news.yahoo.com/s/ft/20080116/bs_ft/fto011620081247490424;_ylt=AgOWsI3vUQ09_8UsweWWvjz2ULEF

[ozymandius]

8. IndyMac laying off 2,403 employees

LOS ANGELES—Mortgage lender IndyMac Bancorp Inc. said Tuesday it will slash its work force by 24 percent, laying off 2,403 employees in a bid to cut costs as it tries to weather the worsening housing slump and problems selling home loans to investors.

The job cuts include a significant reduction in temporary vendor staffs, mainly in India, the Pasadena-based company said.

Around 1,000 of the employees targeted by the company were being cut immediately with one to three months of severance pay. Others leaving the company include some who accepted early buyout packages, voluntarily resigned or are expected to resign by the end of March, the company said.

http://origin.mercurynews.com/business/ci_7978567?nclick_check=1

[Roland99]

14. youch.

[ozymandius]

9. High Court curbs investor lawsuits

WASHINGTON (CNN) -- The Supreme Court dealt a blow Tuesday to investors seeking to recover damages from alleged corporate fraud, a potentially huge liability case being closely watched by owners of stock, the business community and government regulators.

The 5-3 ruling curbs the ability of shareholders to recover damages from "secondary" parties - such as investment banks, vendors, and accountants - accused of hiding corporate wrongdoing.

The outcome of this appeal could have a swift impact on a separate lawsuit filed against onetime energy giant Enron. Company investors want $30 billion from accounting firms and banks accused of helping that company deceive shareholders over hidden debts.

The case before the justices centered on an investor lawsuit seeking shared liability against suppliers of one of the largest cable TV operators. Equipment vendors Scientific-Atlanta and Motorola (MOT, Fortune 500) were accused of engaging in efforts to help Charter Communications artificially inflate financial statements in order to bolster its stock's price. The deal involved an alleged "sham" transaction that generated some $17 million in phony revenues from the supposed sale of TV set-top boxes.

In the majority opinion, Justice Anthony Kennedy said Charter investors could not "rely" on any deceptive statements made by Charter's suppliers to link liability to them.

http://money.cnn.com/2008/01/15/news/companies/bc.scotus.securitiesfrau/index.htm?postversion=2008011511

[Nimrod2005]

11. Good morning, and good luck to all.......nt

[ozymandius]

12. Wall St. can't shake the blues

LONDON (CNNMoney.com) -- U.S. stocks looked set to slide at Wednesday's start after disappointing results from Intel further fanned fears that the U.S. economy would fall into a recession.

Intel (INTC, Fortune 500), the world's largest chipmaker, reported quarterly sales that missed Wall Street's estimates late Tuesday. Even more worrisome for investors was the weak outlook the company gave, which raised concerns that Intel faces a slowdown in demand as the economy weakens.
.....

The financial sector is back in focus with JP Morgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) both due to report their quarterly results before the market open Wednesday.

http://money.cnn.com/2008/01/16/markets/stockswatch/index.htm?postversion=2008011605

[Roland99]

15. Stock futures down

S&P 500 -12.70 1375.30
NASDAQ -30.00 1882.00
DJIA -115 12449

[ozymandius]

13. Good morning!

:donut: :donut: :donut:

It's time for me to tend my students. Be cool for today's rough ride.

:hi:

[AnneD]

41. Morning Marketeers....

:donut: and lurkers. I guess the sarcasm faerie visited me last night-or maybe this diet is making me cranky but here are some things I learned from the TV last night.

Michigan has an unemployment rate of 7%-the highest in the nation. Oh my God-which smiley do I choose...:sarcasm:, :eyes:, :hide:, :tinfoilhat:, or :rofl:. If you believe THAT, well there is no hope for you-just go back to your Enquirer and FOX SNEWS. The last time there was a deep recession (and before they tweaked the numbers), Detroit's unemployment numbers were 17-19%. I remember because we had an influx of folks from Michigan that moved here to Houston and Texas in general looking for jobs. My guess is that the numbers are at least 19% and soon to go higher.

You can be in the top 3 candidates in the GOP and get coverage. The M$M seems to think the DEM'S have 2 candidates. The only way Edwards gets a break is when something happens to a member of his family. I am beginning to think Elizabeth will have to die before he gets the coverage Clinton and Obama receive.

The M$M want to have the DEM candidates hash out the race card issue and were unhappy when the debates didn't erupt in a fist de cuffs.

I finally got sick and tired of all that news and learned some real news...Blue Duck was a mean mofo practically from birth. Men in the Old West had some strange ideas about what 'spoilt' a woman. McMurtry didn't portray women as tough as they were or had to be. That old saying Texas is hell on women and horses has merit. Consequently, those women that survived are not the fainting southern belle types (I could tell you a few stories from my Mom's side of the family that would curl your chest hairs-they tended to be like Peach-from the original Lonesome Dove Series).

But mainly, I am reminded of something I already knew. Our ancestors were tough, and they had to be. We have comforts now because folks before us sacrificed. What most politicians say isn't worth 2 cents. But what we do to help each other is worthwhile. Some folks, like those on this thread knew in advance what was about to happen and were prepared. Some folks missed the signs, or were not in a position to prepare, and are now suffering. It is up to us to help as much as we can materially and by example. Think seriously about your candidate....can and will they take the steps needed to turn thing around. We will need bold new ideas-we will need someone like a Roosevelt to inspire us and be fearless to undo what has been done.

Happy hunting and watch out for the bears....

[Hugin]

42. Morning AnneD...

:hangover:

Since it seems the 'For Sale' signs are now up in front of the Banks and Investment Houses (Like many of the
other Houses in the US) there's not much left for me to say...

What have we learned from this? I'd guess not much after a conversation with an associate of mine yesterday.

He was still blathering along with the same-old same-old trained reflex responses, "Up-from-the-bootstraps!
Sales Taxes! Trickle-down! Pay-for-performance! Cheap-labor! The American Market is Invincible! Usage Fees!
Privatize EVERYTHING! Kill the Unions! The Dollar is king!"

So, it would seem the supply-side mentality is alive and well... Meanwhile, the supply-siders have quietly
sold out to the 'Commies' they were always railing against. Ironic.

I could go on and on about how all of the above could never help the economy and only serve to keep the
shreds of the middle-class in it's place, but, you know what... I'm tired. All this yelling and warning
I've been doing all my life hasn't changed anything. It still happened and everyone's still surprised.

[AnneD]

63. Funny thing about that.....

My 'spin' on this...yes there is a supply side, but there is a demand side too. It is a delicately balanced scale. It's you basic law of physics (Newton I believe-though it has been a while).

I first saw and felt the false logic of supply side logic throughout the Nursing Shortage. This shortage had been going on years into the Clinton Admin-and yet Nursing wages were stagnant. In fact, Nursing grad for several classes after I graduated couldn't find jobs. Many were laid off. Now-despite the deepening shortage-Nursing Schools are closing. Would you close medical schools in the middle of a Doctor Shortage? Doctor and Nurses are not hatched or fall from the skies fully formed.

Now, if there is a demand (shortage), logic would tell you that they would fetch a higher price in the market place and more folks would gear up to be Nurses, thus restoring equilibrium.

Yes, there is an unseen hand in the markets these days it's thumb is on the scale. What we are experiencing now is not the result of 'supply and demand', but the result of a thumb on the scale as it were. We have gone to the market to buy a pound of cheese, paid for our pound of cheese only to discover that we have come home with 1/2 a pound. Where we are now is the result of the continual fudging of the scales. The butcher has gotten fatter and we walk away with less.

People are and have been sensing that something is wrong (I think those question pollsters ask-Is the country moving in the right direction reflects this). A full fledge depression may wake folks up and they will eventually hit the streets. I mean-if you are out of work and there are no jobs-what better way is there to spend your time. Folks are expressing their feeling via the vote, but unless that produces real result-folks may eventually riot. People will be heard one way or the other.

I think part of this bitter divisivenesses and polarization is to keep us divided. I think most politicians have nightmares about the day the rank and file figure this one out.

[Pale Blue Dot]

16. Forgive me for being anecdotal, but

I'm hearing bad news EVERYWHERE now. Yesterday a co-worker told me that she is likely to lose her house. My wife's ex just lost his house. Even in the Lounge yesterday evening, I saw two threads about people losing their homes and another about a layoff.

As I expected, the bad news is coming much faster and deeper now, and I wonder how much longer until it all spirals completely out of control.

Or maybe it already has?

[NMDemDist2]

17. yeah it's pretty scary out there and getting worse

the grocery prices keep going up

I was listening to the debate last night and mentioned to Hubby how grateful I am that we saw the signs (thanks to DU SMW and the Economy forum) and sold our house in PHX in 6/06 and bought this place CASH

no mortgage, no CC bills, no debt.

and hubby was lucky to get a great job here so we're OK.

I shudder to think the shape we'd be in if we'd stayed in Arizona.

:scared:

[wordpix]

102. yes, I too, thank Duers on this forum for alerting me to this crisis before the big storm hit

[Warpy]

18. It's spiraling faster some places than others

There are parts of this city where one house in three is sitting empty and not being maintained at all, the owners either speculators or marginal borrowers using iffy loans and having just walked away when the payments got jacked up to the stratosphere. I'm seeing nicer and nicer cars at the thrift shop when I take in a load of donations, folks needing to be clothed but not being able to afford new ones now that they're being squeezed to death by inflation in everything else.

Yeah, the news is coming faster and worse and the major media aren't going to be able to cover it up for much longer by chirping about corporate profits increased by slave labor in China. Their customers are disappearing fast. You can stay in business if you're running low on stock. You can't stay in business if you're out of customers.

I'll believe it's being taken seriously by the power brokers the first time a Democratic politician says the words "demand side economics."

[Hugin]

50. Hear! Hear!

"I'll believe it's being taken seriously by the power brokers the first time a Democratic politician says the words 'demand side economics.'"

:thumbsup: Warpy!

[AnneD]

104. Hope you have ...

oxygen handy, 'cause if you are holding your breath, you'll need it.

[Maeve]

26. Anecdotes are how we perceive the big picture

During the holiday shopping, I saw the most buyers at the discount places--Kohl's, Walmart, TJMaxx--and the least at the middle-market stores--Sears, Penneys, Macys. Boutique stores had clerks lounging around. So it came as no surprise that sales were down in December. And my Mom says there are pages of foreclosures in her rural newspaper every week.

When these are the stories people are seeing and telling, you KNOW there is more than much of MSM is reporting.

[earthside]

28. Indeed. Gloomy Stories

I heard on the CBS radio news this morning the report about confidence in the economy being very gloomy among more and more citizens. They played a sound clip from a woman who has a gourmet food shop in New Jersey. She said sales for her have been half what they used to be -- she doesn't not have a 401K to fall back on, no savings, no safety net of any kind; she said that if business doesn't pick up now, she will be out on the street in six weeks.

Well, sorry for her but she's going to be out on the street. Most Americans are just like her! They do not have any savings! If they do have a 401K it is full of stocks that are going to be nearly worthless.

So, we are in for a depression-type economic crisis. One of these days, it is going to dawn on the stock market speculators that the whole U.S. economy is a house of cards built on the shifting sand of massive debt. On that day they are all going to bail and ... actually we'll be lucky if the DOW only drops a thousand points.

[Hugin]

37. A collection of anecdotal evidence is called statistics...

Yeah, it's not pretty, but, unfortunately the prospect of the fixes which might be put into place scare the heck
out of me... There's no FDR lurking about and with the ideologues in charge they just keep trying to jump start the
old discredited Ronnie Raygun supply-side 'Trickle-down' up-from-the-bootstraps BS.

[Ghost Dog]

64. Purely anecdotally, I think I'm seeing more 'cash-in-hand, off-the record'

(ed. and, yes, bartering and 'mutual aid') activity going on around here (Canary Islands) - although the 'submerged economy' has always been, they reckon, a good 20% or so of the Spanish economy (like Italy).

There's also a lot of new immigration from South America - mostly, eventually, legal (with papers and the right to work). This has been taking up a lot of slack, helping to keep the wheels turning.

But the construction industry (which in Spain has been huge, and hugely overbuilding but at soaring prices, somehow) is clearly already on its uppers, with many workers laid off and companies either going bankrupt or simply folding up and disappearing overnight leaving unfinished jobs, screwed workers and debt behind.

But, generally, although everyone here seems to be aware that we're in for 'hard times' this year, I don't think most realise just how hard yet.

The Islands depend largely on the tourist trade from all over Europe, based on cheap flights and package deals and the wonderful climate. This declined a few percent last year (but not on this island, Fuerteventura, which has been growing (and building) very rapidly, destroying a lot of the original magic of the place). I'm still waiting to hear projections based on bookings for this year, but I expect this to be a sensitive indicator related to the European economy as a whole. Isn't a holiday one of the first things people forego when backs are against walls? But on the other hand, the islands could maybe pick up some extra business from people deciding against more expensive destinations like Thailand, the Caribbean, even Florida (or so they say).

[wordpix]

100. a house near NYC for $415K a week ago has just dropped to $394K & dropping

This on the "Gold Coast" of CT. But why would I pay even $375K for a fixer upper that needs another $100K put into it?

[UpInArms]

23. dollar watch

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

Last trade 75.687 Change -0.051 (-0.07%)

Retail Sales and PPI Turn Negative, Triggering Sharp Moves in the Currency Market

http://www.dailyfx.com/story/bio1/Retail_Sales_and_PPI_Turn_1200438095175.html

Retail sales and producer prices both contracted in the month of December, leading many traders to wonder whether the US economy will fall into recession. Spending on cars, electronics, furniture, gas station receipts, building materials, clothing and sporting goods all declined, reflecting a broad based slowdown in consumer demand. According to Bloomberg News, this is the worst year for US retailers since 2002. Interestingly enough, despite the softer numbers, the dollar did not weaken across the board today. In fact, it strengthened against the Euro, Australian and New Zealand dollars while selling off only against the Japanese Yen, British Pound and Canadian Dollars. The main reason for this divergent price action is because the weak data has caused a sharp rise in risk aversion. The Dow dropped as much as 275 points, triggering massive carry trade liquidation. Does this mean that the US economy will fall into a recession? Not as long as the Fed steps up to the plate. The futures market has completely priced in a 50bp rate cut, but this may only be a band-aid for a growing problem. Long term yields have remained stubbornly high and even though they will fall on a half point rate cut, the relief to borrowers may be minimal. The Federal Reserve really needs to act aggressively to restore confidence in the financial markets and to stabilize the economy. This means either an interest rates cut now (yes, that would be an inter-meeting rate cut) or 75bp of easing at the end of the month. The goal is to send let the markets know that the Fed is not playing around and will do everything in their power to prevent a recession from happening. With producer prices falling, the Federal Reserve actually has the flexibility to make a larger move. Tomorrow we are expecting another laundry list of US economic data that includes consumer prices, the Treasury International Capital flow report, Industrial production NAHB housing market index and the Fed’s Beige Book report. Most of the data should be dollar bearish, which would trigger more losses for the US dollar.

...more...

Is the US Headed for Recession, If So Where Should I Park My Dollars?

http://www.dailyfx.com/story/topheadline/Is_the_US_Headed_for_1200430829356.html

Retail sales and producer prices both contracted in the month of December, leading many traders to wonder whether the US economy will fall into recession. Spending on cars, electronics, furniture, gas station receipts, building materials, clothing and sporting goods all declined, reflecting a broad based slowdown in consumer demand. According to Bloomberg News, this is the worst year for US retailers since 2002. With the growth in the labor market already slowing, will the drop in consumer spending push the US economy into a recession and if so, what does this mean for the US dollar?

Is the US Dollar Headed for More Losses?

Before discussing whether the US economy will fall into a recession or how much the Federal Reserve will lower interest rates, it is important to talk about what is in store for the US dollar. Despite weak retail sales and producer prices, the dollar did not weaken across the board today. In fact, it strengthened against the Euro, Australian and New Zealand dollars while selling off only against the Japanese Yen, British Pound and Canadian Dollars. The main reason for this price action is because the weak data has caused a sharp rise in risk aversion. The Dow dropped as much as 275 points today, triggering massive carry trade liquidation. Over the past few years, the AUD/USD, NZD/USD and to some degree also the EUR/USD all were bought for carry trades. However the latest wave of weakness in the high yielders may actually provide good buying opportunities if the dollar continues to weaken. As the Federal Reserve lowers interest rates, stability should be restored in the financial markets, allowing the currencies of countries with strong fundamentals and inflation pressures to appreciate once again. One great example is the Australian dollar. A tight labor market, rising consumer demand, higher inflation pressures and $900 gold prices all point to medium term gains for the currency. The only reason why it sold off today is because of carry trade liquidation. USD/JPY could also extend its fall because Japan will not able to raise interest rates if US growth slows materially.

<snip>

Recession or No recession?

As for the US economy, although some economists will argue that the US economy is already in a recession, we do not agree. The definition of a recession is two consecutive quarters of negative GDP growth and in the last two quarters, GDP growth was strong. Even if the economy contracted in the fourth quarter, that would be one quarter of negative growth, not two. The first quarter has just started so it is too early to tell how the US economy will fare. Also, retail sales were bad but spending has been very volatile. Back in June and January of 2007, spending also contracted after a month of solid growth. Retail sales in November increased 1.0 percent which means that part of the decline in December was payback for the strong numbers. The Federal Reserve has the power to determine whether the US economy falls into a recession. If they step up to the plate now they can still prevent the slowdown from worsening.

...more...

[DemReadingDU]

24. Roubini: serious and painful recession

1/15/08 Europe Will Be Hard Hit by the Recessionary Storm Now Sweeping the U.S. by Nouriel Roubini

The United States has now effectively entered into a serious and painful recession. The debate is not anymore on whether the economy will experience a soft landing or a hard landing; it is rather on how hard the hard landing recession will be. The factors that make the recession inevitable include the nation's worst-ever housing recession, which is still getting worse; a severe liquidity and credit crunch in financial markets that is getting worse than when it started last summer; high oil and gasoline prices; falling capital spending by the corporate sector; a slackening labor market where few jobs are being created and the unemployment rate is sharply up; and shopped-out, savings-less and debt-burdened American consumers who — thanks to falling home prices — can no longer use their homes as ATM machines to allow them to spend more than their income. Indeed holiday sales in the US were much lower in real terms than in 2006. As private consumption in the US is over 70% of GDP the US consumer now retrenching and cutting spending ensures that a recession is now underway.

Let us discuss next why, the detailed channels of transmission from the US to Europe and the other internal vulnerabilities of the European economies...

lots more...
http://www.rgemonitor.com/blog/roubini/237855

[Karenina]

84. Oh POOH! No reggie, no readie...

:grr:

[Roland99]

25. 8:30 Futures moderate the losses but still a sharp drop set for the open

DJIA INDEX 12,473.00 -91.00 08:32
S&P 500 1,376.20 -11.80 08:32
NASDAQ 100 1,885.50 -26.50 08:32

[Hugin]

29. From the OP the Futures (Most notably the S&P) look like porcupines...

:shurg:

[TalkingDog]

27. Milk and Money

Exit Commentary for today:

There is a very old Porky Pig cartoon that is one of my favorites. It's before they decided to portray Porky as an adult character. In "Milk and Money" Porky and his Poppa are trying to make it through the tough times of the Depression on their farm.

Mr. Viper, the evil landlord, come to collect the rent, which the Pig family does not have. Porky tries to help by selling milk, with predictable results.

A gleeful Viper tells the quivering pair that the must pay the rent or:

"I'll sell the Farm!!!"

Porky looks up at an anxious Poppa who declares:

"Things are lookin' mighty dark son, mighty dark."



mighty dark



My Favorite Master Artist: Karen Parker GhostWoman Studios

[UpInArms]

30. JPMorgan takes $1.3 billion writedown

http://news.yahoo.com/s/nm/20080116/bs_nm/jpmorgan_dc

a worse-than-expected 24 percent as the No. 3 U.S. bank lost $1.3 billion on risky mortgages and set aside more money for rising losses on home-equity loans.

The bank quadrupled to $1.1 billion the provision it needs to cover continued problems on home equity and subprime mortgage loans.

"We remain extremely cautious as we enter 2008," JPMorgan Chief Executive Jamie Dimon said in a statement. He said a worsening U.S. economy would boost consumer credit losses beyond current levels.

JPMorgan reported fourth-quarter income from continuing operations of $2.97 billion, or 86 cents a share, down from $3.91 billion, or $1.09 a share, in the year-earlier quarter.

...more...

[UpInArms]

33. 9:36 EST opening with barely a papercut

Dow 12,496.56 4.55 (0.04%)
Nasdaq 2,399.36 18.23 (0.75%)
S&P 500 1,377.48 3.47 (0.25%)
10-Yr Bond 3.699% 0.002

NYSE Volume 178,470,828.125
Nasdaq Volume 193,263,218.75

[Roland99]

35. Rate cut euphoria! Sucker rallies for everyone!

[Roland99]

34. Meager opening considering where the futures were. Thoughts of a rate cut perking up traders?

Dow 12,489.65 -11.46
Nasdaq 2,399.36 -18.23
S&P 500 1,380.99 +0.04
10 YR 3.70% 0.00
Oil $91.45 $-0.45
Gold $890.80 $-11.80

[Roland99]

36. "Just a little pinprick. [ping] There'll be no more...aaaaaahhhhh!"

Dow 12,538.26 37.15
S&P 500 1,383.58 2.63
Nasdaq 2,407.58 -10.01
10 YR 3.71% 0.01
Oil $91.45 $-0.45
Gold $894.50 $-8.10


They're all comfortably numb.

[AnneD]

43. I'm still game....

In honour of Bush's last year-I'd like to start a pool here on the SWT......

What month and day do you think the DJIA will hit 10,578.24 (what it was the date Bush too office) or below...

I think I need to set the cut off date for guesses but I am not sure. I think a cut off in Nov. would be good, before the Santa Rally. Maybe right after election day.

You can make as many guesses as you want before the cut off date.

I'll kick it off. I'm a sentimental historian and say black friday October 24 (which will actually fall on Fri this year).

[Hugin]

44. Although, I don't think it's going to fall quite so far...

I'll take a date just after the GOPpers convention. (They have to keep it up at least that long).

[Hugin]

56. Sept. 5...

Also, a Friday.

http://en.wikipedia.org/wiki/September_5

[AnneD]

65. Ahhhhh...

The start of the French Revolution...you sentimental speculator, you.

[Hugin]

67. Just call me, D'Artagnan!

All for one and one for all... :D

[Roland99]

45. Hmm....I'm tossing out an initial date but reserve the right to change it after further thought.

;)



July 28.

[Ghost Dog]

60. So I'm more pessimistic. I'd say by the end of the second quarter,

if not sooner.

[Birthmark]

76. October 10

[progressive_realist]

86. I'll up the cynicism ante

And guess April 17, 2008. This puts it at 1Q reporting season and also toward the end of Cheney's last window of opportunity to start a war with Iran.

Although in truth I think they'll do a reshuffle of the Dow components before it falls that far, as whatever companies are still managing to do well suddenly become "more representative" of the market than the current components.

:tinfoilhat:

[AnneD]

101. Oh...

hadn't thought of that....that can disqualify the pool. Kinda like looking forward to a Cowboy Packers Super bowl and discover that at the last minute they did a schedule change and pulled the Cowboys and gave you the Giants.:evilfrown: Hey who spilled beer on my nachos?

[MsLeopard]

93. October 31st - Halloween and a Friday

I wish I could base it on my knowledge of the market, but my natural instinct will have to do.

[AnneD]

103. Ewwwww.

witchy woman-like that style.

[antigop]

38. How Wall Street broke the free market

http://www.salon.com/tech/htww/2008/01/15/sovereign_wealth_funds/index.html

Globalization, thy name is Wall Street bailout. There is no better demonstration of the new global financial order than the cavalcade of "sovereign wealth fund" white knights riding to the rescue of the world's name-brand investment banks all winter long. On Tuesday, Citigroup and Merrill Lynch both announced huge additional sales of stock to foreign buyers. Some observers are alarmed, fearing a parade of boogeymen out to do the West harm under cover of their aid drops. But they should take heart -- the new players will be hard-pressed to do more damage than the old.

Here's a partial tally so far:

* Citigroup: $7.5 billion from Abu Dhabi Investment Authority and $6.88 billion from Government Investment Corp. of Singapore.

* Morgan Stanley: $5 billion from China Investment Corp.

* Merrill-Lynch: $5 billion from Singapore's Temasek Holdings, $6.5 from Kuwait Investment Authority, $2 billion from Korean Investment Corp.

* Bear Stearns: $1 billion from China Investment Corp.

* UBS: $10 billion from the Government Investment Corp. of Singapore.

A sovereign wealth fund is defined as an investment fund controlled by a national government. While not exactly new on the world scene, such funds have been proliferating of late, a consequence of the high price of oil and the growing strength of East Asian economies. Sovereign wealth funds are currently believed to control around $2.2 trillion worth of assets, and some predict that number could shoot up to $12 trillion or more in less than a decade. But the numbers hardly tell the whole story. Less than two decades after the collapse of the Soviet Union and the West's gleeful jig dancing on the grave of communism, state capitalism is suddenly threatening the autonomy of the global "free" market. Wall Street's elite banks, longtime freedom fighters for deregulation and scorners of all government intervention in the marketplace, are now begging, cup in hand, for aid from a gallery of regimes that includes some of the most authoritarian and undemocratic governments on the planet.

[Roland99]

39. I think an apt term here would be: Corporate Whore.

[Hugin]

40. Looks like the US is outsourcing it's final label...

Do I need to quote that famous saying (adapted for the current times)...
"First they came for the Manufacturing Jobs, Not being in Manufacturing, I didn't fight it. Then they came for the
Technical Jobs, Not being an Engineer, I didn't fight it... Then they came for the Clerks, Not being a Clerk I didn't
fight it... Now, they're coming for the Banks... and there's no one left to fight with me."

[Roland99]

46. 11:01am - Intel woes smack markets back to reality

Dow 12,413.00 -88.11
Nasdaq 2,370.22 -47.37
S&P 500 1,367.92 -13.03
10 YR 3.67% -0.03
Oil $90.00 $-1.90
Gold $888.00 $-14.60

[Hugin]

48. Are you calling it, Roland99?

Seems like a bottom for today... After all, my mandatory stock market invested retirement fund bought on Monday and
that's already been shipped off shore.

[Roland99]

53. I'll keep things up to date as much as I can. As for a bottom...

the way the markets have been lately? I'd have better luck predicting this year's Ky Derby winner!

[Hugin]

57. Umm... It'll probably be a horse.

;)

[Roland99]

58. *Thwap!*

[Pale Blue Dot]

47. Never mind. nt

[Hugin]

49. The stock tickers generally only update every 15 minutes...

It's one of the rules.

Don't panic... Yet. ;)

[spotbird]

51. What is only updated every 15 min? nt

[Hugin]

52. The news site stock tickers...

Finnfan changed the post, which was a valid question. Which is asked frequently in this thread. :)

[spotbird]

54. Thanks,

it was a good question, you're right.

[Roland99]

59. 12:08pm - I'll have what they're having!

Dow 12,542.98 +41.87
Nasdaq 2,404.18 -13.41
S&P 500 1,382.12 +1.17
10 YR 3.71% +0.01
Oil $89.79 $-2.11
Gold $879.50 $-23.10


Profits from gold heading back to stocks?

[AnneD]

66. I'll keep my gold....

thank you very much, and I might buy more if it drops more.

[kineneb]

77. keeping my canned goods

and lead

on Hubby's disability, that is about all we can afford. Oh, and if we have more than $3000 cash assets, he loses Medi-Cal.

[AnneD]

81. A full pantry is ...

one way to 'hide' your assets. The infamous Will Work For Food-canned goods preferred. I have a healthy dose of that lying around too.

[AnneD]

68. Those with common stock learn they'll receive $6.79 per share

More than six years after filing their lawsuit, Enron investors are learning this week that they will receive an average $6.79 per share, for which they may have paid up to $90.

That's for those with common stock.

Those with preferred shares will get $168.50 a share.

And in the wake of Tuesday's U.S. Supreme Court ruling against investors in an unrelated case that raised similar issues, it seems unlikely shareholders will get more.

more....
http://www.chron.com/disp/story.mpl/business/5458537.html

That is if they haven't used it for toilet paper yet.....

[Roland99]

70. They can all retire happily now.

:eyes:

[AnneD]

71. There are so many anecdotal stories here in Houston....

Folks that worked hard, save in their 401's (mostly company stock). They thought they would retire comfortably...and now greeters at Walmart. I hate to think that many of us will work hard, save , and still wind up with nothing.

[AnneD]

69. Third parties can't be targeted in securities fraud

WASHINGTON — The Supreme Court dealt a blow Tuesday to Enron Corp. investors suing some of the fallen energy company's former bankers, ruling that stockholders can't go after third parties that participate in a securities fraud scheme.

he high court, in a case pitting Stoneridge Investment Partners against Scientific-Atlanta and Motorola, ruled 5-3 that suppliers, banks, law firms and other third parties are too far removed from investors' decision-making to be subject to shareholder lawsuits - even if those outside parties joined in fraudulent activity.

"The investors cannot be said to have relied upon any of (the third party's) deceptive acts in the decision to purchase or sell securities," Justice Anthony Kennedy wrote for the majority.

Tuesday's decision could have a devastating impact on Enron investors' $40 billion suit against three banks - Merrill Lynch & Co., Credit Suisse and Barclays - a case that has been on hold pending a decision in the Stoneridge case.

"It's a pretty anti-investor decision,"said Patrick Coughlin, an attorney for the Enron investors. "We think it could have a severe impact" on the investors' case.

http://www.chron.com/disp/story.mpl/business/5458578.html

They rigged the shell game and now you can't sue them or their friends that cooked the books for damages. What a crock. I guess that about does it for me...

[antigop]

74. The Private Securities Litigation Act passed in 1995 over Clinton's veto....

http://en.wikipedia.org/wiki/Private_Securities_Litigation_Reform_Act

<edit to add> Is this coming back to bite us?

[Ghost Dog]

75. This refers to third parties who can be proven to have *knowingly*

participated in fraudulent activity?

If so, what a crock indeed. Fire those judges. Change the way they get appointed. :mad:

[AnneD]

72. Investor advocates fear tide turning against shareholders

WASHINGTON — Investors are heading into 2008 stung by a series of legal and regulatory setbacks, analysts say, with the latest the Supreme Court's ruling protecting businesses from securities-fraud lawsuits.

Tuesday's ruling follows a decision late last year by regulators allowing companies to deny shareholders access to annual director-election ballots and comes amid share dilution and dividend cuts at big banks hobbled by the mortgage crisis.

"It's not a good time," lamented Barbara Roper, director of investor protection at Consumer Federation of America.

As the stunning corporate scandals of 2001 and 2002 recede from memory, Roper and other investor advocates say that recent developments in courtrooms, federal agencies and corporate boardrooms have eroded the interests and protection of Main Street shareholders.

"It's like Enron and WorldCom never happened," Roper said.

more....

http://www.chron.com/disp/story.mpl/business/5458155.html

It's true that the ocean levels are rising....just look at the great whites on WS. No really, that's not a fair statement. Sharks only eat what they need to survive.:sarcasm:

[Hugin]

79. I bet in a year or so they'll all be wondering why nobody is buying their crooked stocks?

Don't sellers need buyers?

Oh, WAIT! They're planning on dumping the Social Security into the Stock Market. :eyes:

[AnneD]

83. That's....

the plan...now you're catching on.

[spotbird]

91. Why keep money in stock?

Cash is safer, at least the police will arrest the guy who steals it from you.

[AnneD]

106. Some folks...

rob you with a gun, some folks use a pen. I think you have a better point.

[AnneD]

73. China tightens controls on food prices

BEIJING — China took its most drastic step yet on Wednesday to slow a rapid rise in politically sensitive food prices, ordering producers to obtain government approval for any further increases.

Beijing has imposed a series of measures in recent months to cool inflation but so far with little effect. Food prices soared by 18.2 percent in November, pushing overall consumer inflation to 6.9 percent, its highest monthly rate in 11 years.

Under the new controls, large food producers must obtain government permission to raise prices, while merchants must report increases in retail prices, the country's planning agency, the National Development and Reform Commission, announced. It said authorities can roll back any price increases that are deemed "unreasonable."

Rising consumer prices are especially sensitive for the communist government because they hit China's poor majority hardest. Local officials have been ordered to ensure adequate food supplies ahead of the Lunar New Year in early February, the most important family holiday of the year.

more...

http://www.chron.com/disp/story.mpl/ap/business/5458994.html

This couls be us in a few years.....

[Roland99]

85. 3:45pm - an easy plateau

Dow 12,490.55 -10.56
Nasdaq 2,399.63 -17.96
S&P 500 1,375.62 -5.33
10 YR 3.71% 0.01
Oil $90.84 $-1.00
Gold $882.00 $-19.40



Let's take a ride to the easy plateau
Where the cold don't come and the wind don't blow
Moonlight flickers on the water below
The orange grove blossoms
In the orange grove
Bad nights lead to better days
It doesn't matter but I think about it anyway

I want an easy plateau
Some place to rest my head
I want an easy plateau
Some place to rest my head
For awhile, for awhile, for awhile
For a little while

[citizen snips]

87. Treasurys Fall As Stocks Hold Up

NEW YORK (AP) -- Treasury prices fell Wednesday after the stock market showed strength in some sectors.

Treasurys came under pressure after a broad-based heavy sell-off for equities failed to materialize a day after the Dow Jones industrials tumbled nearly 280 points. In general, the stock and bond markets have traded in opposite directions this year as investors struggle to understand whether the economy is sliding into a recession.

There were heavy losses for many technology stocks Wednesday after a dismal earnings report from Intel Corp., but the overall selling was far less intense than feared. And some stocks moved higher as investors reacted positively to earnings from JP Morgan Chase & Co., the nation's third largest bank by market capitalization.

"The better-than-expected performance for stocks has stalled Treasurys a bit," said Tom di Galoma, head of Treasurys trading at Jefferies & Co.

more...
http://biz.yahoo.com/ap/080116/bonds.html?.v=5

[citizen snips]

88. Metals at a Glance

NEW YORK (AP) -- The following are key metals settlement prices Wednesday, compared with late Tuesday, on the New York Mercantile Exchange:

February gold $882, down $20.60 an ounce

March silver $15.895, down 40.5 cents an ounce

March copper $3.1725, down 6.9 cents a pound

http://biz.yahoo.com/ap/080116/metals_glance.html?.v=1

[citizen snips]

89. Sector Snap: Semiconductors Rise

NEW YORK (AP) -- A steep decline in Intel Corp. shares didn't spread to the rest of the microchip sector Wednesay as analysts saw some positive signals for the sector in its fourth-quarter results.

Intel shares plunged more than 11 percent in midday trading, and some experts saw more trouble ahead.

Pacific Crest analyst Michael McConnell said in a note to investors that there is clear evidence of excess desktop component inventory at major Intel customer Dell Inc. He said this increased the risk of a negative revision of estimates for Intel in the 2008 first half.

Citi analyst Glen Yeung said in his note to investors he also expected a downward revision to Intel's 2008 revenue outlook as the broader economy is having a worse impact than the market expected.

more...
http://biz.yahoo.com/ap/080116/semiconductors_sector_snap.html?.v=1

[citizen snips]

90. Countrywide Takeover May Help Banks

NEW YORK (AP) -- As many as 20 banks may benefit from Bank of America Corp.'s planned buyout of troubled mortgage lender Countrywide Financial Corp., a Friedman Billings Ramsey analyst wrote Wednesday.

While it's best known for loaning money to consumers to buy and refinance homes, Calabasas, Calif.-based Countrywide also serves as a thrift taking in deposits and offering products such as savings and money market accounts and certificates of deposit.

Consumers who have banked with Countrywide have enjoyed better rates than found at many other financial institutions. Countrywide pays 0.5 percentage point to 1 percentage point above its competitors on some products, according to Friedman Billings analyst James Abbott. Countrywide's rates beat those of competitors Washington Mutual Inc. and E-Trade Financial Corp., he said.

"For the last few years, many banks we have spoken to have complained that Countrywide and a couple of other suspects were causing havoc on CD pricing, aka the 'Countrywide Effect,'" Abbott wrote in a note to clients. Countrywide is the 13th largest player in the CD market, and the company held 1 percent of total CDs in the U.S. as of September, according to Abbott.

more...
http://biz.yahoo.com/ap/080116/countrywide_analyst_note.html?.v=1

[PassingFair]

99. So this is working out very well for them.

[Old_Growth]

94. Volume almost hit 500 mil

:crazy:

First SMW post evah!

[AnneD]

96. Encore Encore....

:hi: Welcome to our little corner of the DU world.

[UpInArms]

97. welcome to the SMW, Old_Growth!

glad to have you amongst us!

:grouphug:

[Roland99]

95. Closing numbers: Couldn't get over the Hump Day

Dow 12,466.16 -34.95
Nasdaq 2,394.59 -23.00
S&P 500 1,373.20 -7.75
10 YR 3.71% 0.01
Oil $90.84 $-1.00
Gold $882.00 $-19.40


And when the Fray Boy took office:


Dow - 10,578.24 ......... +17.8%
Nasdaq - 2,757.91 ....... -13.2%
S&P 500 - 1,342.90 ...... +2.2%
Oil - $27.69/bbl ........ +228.1%
Gold - $266.70/oz. ...... +230.7%

[AnneD]

98. Wanna bet....

we'll be testing the psycological barrier of 12,200-12000 by Friday. Loser buys some adult beverages?

[Demeter]

109. It Seems Suppported at 12500

They aren't giving up that easily.

[UpInArms]

110. I recall

when the dollar was supported at 90
then it was 85 - that one was a biggie
now the goal is to keep it above 75

wonder how long the levee will hold...

here's a link for a look-see

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

[Demeter]

111. I Just Figure It Will Take Longer Than This Week to Yield to Gravity

[AnneD]

113. You're on

how low can it go.....

[RuleOfNah]

112. 12,201+ at close Friday?

I wouldn't be surprised if 11,000 was tested but I doubt the DOW will be allowed to remain there when Friday closes if for no other reason than the attack on Iran has encountered headwinds.

[AnneD]

114. I was...

guessing on the conservative side......

[RuleOfNah]

115. I was too...

All it would take is a 100+ close tomorrow and I would be on target. :)

If they let the week close lower, the weekend gossip might become too common to counter.

[RuleOfNah]

116. Guessing?

You nailed it! And I was wrong (that prop rally didn't hold), bonus points for you. Nice call!

[UpInArms]

105. a side of "look over there!" blather

4:30 pm : The stock market covered a lot of ground Wednesday, riding a roller coaster that was put into motion by the earnings reports from Intel (INTC 19.88, -2.81) and JPMorgan Chase (JPM 41.43, +2.26). The former report was deemed disappointing by the market whereas the latter report was deemed better than feared since it contained a write-down of "just $1.3 billion."

The end result was that the technology sector got hit with selling interest while the financial sector received a guarded bargain hunting bid that was aided in part by a Bear Stearns upgrade of the U.S. Financials sector to Market Weight from Underweight.

Intel, though, was the real story stock of the day as it plummeted 12% despite reporting a 51% increase in fourth quarter earnings. It was done in by a tempered outlook for the first quarter that was blamed on U.S. economic indicators and a continued weak NAND pricing environment. Specifically, Intel said it expects first quarter revenues in the range of $9.4 billion to $10 billion, the midpoint of which is below the $9.9 billion consensus estimate and marks a larger than usual 9.4% sequential decline.

The harsh treatment Intel received carried over to many of its technology peers, including Apple (AAPL 159.64, -9.40), Dell (DELL 20.68, -0.22), Microsoft (MSFT 33.23, -0.77) and Cisco (CSCO 25.15, -0.70) whose combined losses helped drive a 1.2% decline in the Nasdaq 100. Oracle (ORCL 21.92, +0.61) bucked the trend after announcing the purchase of BEA Systems (BEAS 18.46, +2.88) that is expected to be accretive to earnings.

It was the energy and basic materials sectors, though, that suffered the biggest hit on Wednesday, falling 3.1% and 3.2%, respectively, as economic slowdown concerns got the better of investors. In addition, a report of a larger than expected build in crude stockpiles in the latest week applied added pressure to the energy stocks which followed crude prices lower (-$1.27 to $90.46).

Commodity prices, in general, were weak on Wednesday as evidenced by the 2.5% decline in the CRB Index. A flat reading for Industrial Production in December contributed to the selling interest as it fed prevailing slowdown arguments. Separately, December core CPI came in as expected, up 0.2%, and offered a welcome reminder that the core inflation trend remains steady.

Financial stocks were mostly higher, along with many of the consumer discretionary stocks that benefited from the drop in oil prices and the belief that many have gotten oversold in recent weeks. The financial and consumer discretionary sectors were Wednesday's winning standouts, with each sector gaining 1.3%.

Despite their winning performance, the major indices ended the day in poor fashion as a wave of selling interest left them all in negative territory on very heavy volume when the closing bell rang.

The Treasury market also succumbed to selling interest. The 10-year note shed 12 ticks, bumping its yield up to 3.72%. DJ30 -34.95 NASDAQ -23.00 NQ100 -1.2% R2K +0.4% SP400 -0.5% SP500 -7.75 NASDAQ Dec/Adv/Vol 1382/1650/3.51 bln NYSE Dec/Adv/Vol 1573/1603/2.11 bln

3:30 pm : The stock market is trading in the green with modest gains, slightly below its best level of the session. The Nasdaq is trading with a slight loss, as Intel (INTC 19.88, -2.81) continues to weigh on tech as the stock has failed to stir up any buying interest. Meanwhile, the recent strength in stocks has weighed on Treasuries. The 10-year note is down 16 ticks, sending its yield up to 3.73%.

Looking toward tomorrow, Dec. housing starts, weekly initial claims, and the Jan Philadelphia Fed are set for release. There are 18 companies set to report earnings before the open, with Merrill Lynch (MER 55.54, +2.53) expected to be the focal point. Merrill is expected to report a large write-down.DJ30 +55.44 NASDAQ -1.58 SP500 +3.75 NASDAQ Dec/Adv/Vol 1242/1781/2.85 bln NYSE Dec/Adv/Vol 1330/1819/1.53 bln

3:00 pm : The major indices break through their afternoon trading ranges, and the Nasdaq briefly made it to positive territory for the first time this session. The indices have pulled back a bit, but continue to trade near their recently reached session highs. The gains are broad-based, but once again financials (+3.2%) are pacing the advance.

Specifically, Freddie Mac (33.66, +2.93) and Fannie Mae (FRE 38.31, +2.01) have seen a steep increase in buying interest. The thrifts & mortgages group (+6.4%) is providing leadership.

Gains in homebuilders (+6.7%) and retailers (+3.6%) is helping to lift the consumer discretionary sector (+2.4%)

In currency trading, the dollar is up 0.98% against the euro after European Central Bank (ECB) council member Mersch emphasized downside risks to Europe's economy, according to Bloomberg.com. The comments increased the expectation of a ECB rate cut, which is giving the U.S. dollar support. DJ30 +60.08 NASDAQ -2.85 SP500 +4.89 NASDAQ Dec/Adv/Vol 1171/1831/2.61 bln NYSE Dec/Adv/Vol 1361/1771/1.38 bln

[Robbien]

107. Mortgage Rates Are Low - So Where are the Home Buyers?

RISMEDIA, Jan. 17, 2008-(MCT)-Interest rates on the conventional 30-year fixed rate mortgage are at their lowest in more than two years despite a constricting mortgage market that has made it tougher for some borrowers to get the home loans they want. But so far, the super-low fixed rate hasn’t sparked a shopping stampede.

Investors reportedly are showing renewed interest in repossessed homes and pre-foreclosures, and many homeowners are calling about refinancing existing home loans, local real estate agents say. But would-be buyers in the Twin Cities are skittish about falling values and are sitting on their hands until the market strikes rock bottom, they say. Then there’s the holiday hangover that, one Realtor noted, can drag down January sales.

In other words, declining rates haven’t been enough to kick buyers off the fence yet. That’s a key frustration for Realtors who see opportunity in falling prices and very low rates and want to burn off the excess inventory clogging the market.

“I met with a loan officer yesterday, and he said, ‘Where is everybody?’ ”
http://rismedia.com/wp/2008-01-16/mortgage-rates-are-low-so-where-are-the-home-buyers/


Hard to believe this is a serious article in a Real Estate Magazine.

[Hugin]

108. I can't figure it out...

I'm guessing people just can't stomach 'PAYING' to get rid of their previous house.

:sarcasm: