STOCK MARKET WATCH -- Tuesday, 16 October 2012

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Tuesday, 16 October 2012[font color=black][/font]

SMW for 15 October 2012

AT THE CLOSING BELL ON 15 October 2012
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Dow Jones 13,424.23 +95.38 (0.72%)
S&P 500 1,440.13 +11.54 (0.81%)
Nasdaq 3,064.18 +20.07 (0.66%)


[font color=red]10 Year 1.66% -0.01 (-0.60%)
[font color=black]30 Year 2.85% 0.00 (0.00%) [font color=black]


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[font size=2]Market Conditions During Trading Hours[/font]
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
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The Big Picture
Financial Sense
Calculated Risk
Naked Capitalism
Credit Writedowns
Brad DeLong
Bonddad
Atrios
goldmansachs666
The Stand-Up Economist
The Automatic Earth
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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
Open Government
Earmark Database
USA spending.gov
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[font color=black][font size=2]Handy Links - Videos:[/font][/font]
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Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
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[font color=red]Partial List of Financial Sector Officials Convicted since 1/20/09 [/font][font color=red]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
6/4/12 Matthew Kluger, lawyer, sentenced to 12 years in prison, along with co-conspirator stock trader Garrett Bauer (9 years) and co-conspirator Kenneth Robinson (not yet sentenced) for 17 year insider trading scheme.
6/14/12 Allen Stanford sentenced to 110 years without parole.
6/15/12 Rajat Gupta, former Goldman Sachs director, found guilty of insider trading. Could face a decade in prison when sentenced later this year.
6/22/12 Timothy S. Durham, 49, former CEO of Fair Financial Company, convicted of one count conspiracy to commit wire and securities fraud, 10 counts of wire fraud, and one count of securities fraud.
6/22/12 James F. Cochran, 56, former chairman of the board of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and six counts of wire fraud.
6/22/12 Rick D. Snow, 48, former CFO of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and three counts of wire fraud.
7/13/12 Russell Wassendorf Sr., CEO of collapsed brokerage firm Peregrine Financial Group Inc. arrested and charged with lying to regulators after admitting to authorities he embezzled "millions of dollars" and forged bank statements for "nearly twenty years."
8/22/12 Doug Whitman, Whitman Capital LLC hedge fund founder, convicted of insider trading following a trial in which he spent more than two days on the stand telling jurors he was innocent




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[font size=3][font color=red]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.[/font][/font][/font color=red][font color=black]

[Demeter]

1. Is the Greek Crisis a Harbinger of Our Future?

http://truth-out.org/news/item/11696-is-the-greek-crisis-a-harbinger-of-our-future

Bank-imposed Greek economic collapse and austerity policies have resulted in social and political as well as economic impacts that may foreshadow what the rest of the so-called developed world can expect.

In August 2012, the unemployment rate in Greece was 23.1 percent, with over 1 million people out of work. Fifty-five percent of Greek youth aged 15-24 are out of work. Nikolaos Tsangos, an unemployed student in North Heraklion, says, "Every day is harder and the things the troika are doing are making it worse. People don't have money to buy food or anything, so businesses are out of jobs every day. In my family we've decreased the amount of our weekly supermarket shopping by about 50 percent."

"The first visual sign of the crisis is traffic. There are no cars in the streets. Big avenues and streets in Athens are empty, when two years ago traffic jams were a huge problem," relates Katia, a self-employed woman from Athens (who prefers her real name not be used).

Niki Kerameus, a lawyer in Athens, explains that as one strolls through Athens, "On the most commercial and expensive streets, one-fourth of the stores are closed down." You can sense the crisis on a social level as well; as Kerameus indicates, "People don't go out anymore." Kerameus adds: "Even in the richest neighborhoods, you see people going through garbage. Begging is very common, and it didn't used to be that way. A large section of the middle class with steady jobs and houses are now lining up at soup kitchens. Often you see people dressed for work in suits in line to receive food."

MORE

[Demeter]

2. Can We Make the International Monetary Fund More Democratic?

THIS QUESTION STAGGERS THE MIND...WHAT DIFFERENCE WOULD THAT MAKE?
THE REAL QUESTION IS CAN WE MAKE THE IMF SERVE PEOPLE AND NOT BANKSTERS? MAYBE EVEN FOLLOW THE LAWS, WHILE WE ARE AT IT.

The International Monetary Fund staff and delegates gathered in Tokyo for the Annual Meetings of the Fund and the World Bank have the Eurozone crisis as their biggest headache. But they also have to decide how to proceed with another equally obstinate issue that is even more important for the future of the Fund: the organization's governance model. In April 2012 Brazil, China, India, Russia and South Africa (BRICS) agreed to commit another $75 bn of extra resources for the Fund, via a channel which did not increase their share of the votes. But in return they made it clear that they want substantial changes in Fund governance, including a larger share of votes on the executive board.

The Indian executive at the IMF, Arvind Virmani, wrote in mid June that "unless the power balance in the IMF changes to reflect the changes in the economic power in the world economy, the IMF will inevitably lose credibility as an 'international' institution!" He continued, "rising powers [are] perfectly willing to contribute as much as needed as long as their quota share [which 'buys' votes] is adjusted appropriately [but] in the past year I have heard nothing (in the IMF or G20 setting) that would indicate that there is any recognition by the European powers of the need for formula reform (and vote shares) to maintain credibility."

His sentiments are widely shared among executive directors from developing countries. Discussions at the executive board over the last several years show that there is next to no agreement on how quotas and votes should be changed to reflect demands of the "rising powers". The big emerging market economies favour a formula with heavy weight to GDP. This has the advantage of being simple, and a rough measure of the capacity of an economy to affect others.

But a formula based largely on shares in world GDP would be a mistake. To see why, start with the existing voting system, in which a fairly small number of North American and European states have a large majority of the votes. This reflects the fact that, until recently, these economies produced the biggest GDPs and also the highest average incomes (with some exceptions at the margins). By 2040, however, it is likely that six of the seven biggest economies by GDP will be relatively poor by average GDP; including China, India, Indonesia, and Brazil. Under an IMF quota-vote formula which gives heavy weight to GDP share, these states would constitute the dominant states in the Fund, together with the US.

The rest of the world would be unlikely to accept such a result...

[Demeter]

3. Biotech Scientist: It’s ‘Awesome’ that GMOs Cause Infertility, Death By Anthony Gucciardi

THERE'S A SUCKER BORN EVERY MINUTE, AND 5 PSYCHOPATHS....

http://www.nationofchange.org/biotech-scientist-it-s-awesome-gmos-cause-infertility-death-1350048164

The debate as to whether or not genetically modified organisms (GMOs) are causing serious health issues like infertility and even death is proclaimed as ‘heated’ and ‘inconclusive’ by the mainstream media, but even the very scientists working behind the scenes appear to acknowledge the very reality of their effects. In one such communication I received from a very angry biotech scientist who proclaimed it was ‘awesome’ if GMOs were causing mass infertility and death, it becomes tragically clear that even many of the scientists working in the biotech field know full well that GMOs are causing significant bouts of disease across the globe.

Independently verified by both our team and a separate team of experts, this biotech scientist who works for a well-known firm was either apathetic or ignorant to ways in which you can conceal your identity through more advanced methods than what he utilized. Using profanity and a few words in all capital letters, it’s easy to see just how outraged this scientist is that in my article I deemed those who create GMOs and unleash them on the public without proper warning to be ‘traitors to humanity’. It appears he must have also read the comment section, where readers voiced their own (oftentimes stronger) opinions on these scientists.

In the email, the biotech scientist known as ‘Ed’ explains how he thinks it’s absolutely ‘awesome’ that GMOs are contributing to infertility, as he believes the world is overpopulated. He also attacks me personally for my work on warning the public over the dangers of GMOs (particularly the latest news over the research linking GMOs to organ failure and tumor development). As of right now we have not released the full name of ‘Ed’ nor his organization, but we may in the future after considering the legal concerns.
Here is the Full Email:

I am no traitor against humanity. If this **** causes infertility… Awesome!!

The world is over-populated, and people need to stop having children. This is one of earth’s largest problems.

If the earth wasn’t overpopulated, things like growth hormones wouldn’t EXIST.

The reason they do, is that the earth cannot produce enough food on its own to feed us all.

This is why GMO is actually saving the planet.

So **** you and your ********. I am doing humanity a ******* FAVOR!!!

Sincerely,

A REAL ‘traitor to humanity’

– Ed

VIDEO AND MORE AT LINK

[siligut]

4. Ed is a real cynic, he must be to rationalize his work this way

If less people were the only result, he might have a case. However, the suffering and destruction that lead to less people is not a favor.

If we ate differently, there could be enough food. Actually, it would seem that the love of money is the true traitor to humanity.

[Tansy_Gold]

5. Welcome to SMW, siligut!

Hope you'll make this a regular stopping place.


(We're all a bit cynical now and then, in these. . . . interesting. . . . times.)

[siligut]

53. Thank you, Tansy_Gold

SMW is already on my daily rounds, it saved me a load of grief and money back in 2008. I just don't post. I am mostly full of questions with few answers.

Yes, if I had a choice I would rather not live in interesting times, but here we are.

[Demeter]

7. When it Comes to Hunger, Zero is the Only Acceptable Number By Sabina Zaccaro

http://www.nationofchange.org/when-it-comes-hunger-zero-only-acceptable-number-1349877703

New data from the United Nations reveals that there has been progress in reducing the number of hungry people worldwide. But an estimate that nearly 870 million people, one in eight, suffered from chronic undernourishment over the last two years is “unacceptable”, experts say.

The number of chronically hungry people has declined by 130 million since 1990, falling from around one billion people to 868 million. The vast majority of these people, 852 million, live in developing countries, which means that 15 percent of the developing world suffers from hunger, while 16 million people are undernourished in developed countries.

Meanwhile, the proportion of the global population that is classified as ‘undernourished’ dropped from 18.6 percent in 1990 to the current level of 12.5 percent, and from 23.2 percent to 14.9 percent in developing countries.

The State of Food Insecurity in the World 2012 (SOFI), jointly released by the U.N. Food and Agriculture Organization (FAO), the International Fund for Agricultural Development (IFAD) and the World Food Program (WFP), “presents better estimates of chronic undernourishment based on an improved methodology and data for the last two decades.”

MORE AT LINK

[Demeter]

13. World Bank Refuses Call to Halt Land Deals By Carey L. Biron

http://www.nationofchange.org/world-bank-refuses-call-halt-land-deals-1349620014

The World Bank has rejected a call to suspend its involvement in large scale agricultural land acquisition following the release of a major report by the international aid agency Oxfam on the negative impact of international land speculation in developing countries.

“We share the concerns Oxfam raised in their report,” the bank stated in an unusually lengthy public rebuttal to the Oxfam Report. “However, we disagree with Oxfam’s call for a moratorium on World Bank Group…investments in land intensive large-scale agricultural enterprises, especially during a time of rapidly rising global food prices.”

“A moratorium focused on the Bank Group targets precisely those stakeholders doing the most to improve practices – progressive governments, investors, and us. Taking such a step would do nothing to help reduce the instances of abusive practices and would likely deter responsible investors willing to apply our high standards,” the rebuttal said.

Over the past year, aid agencies, local non-governmental organizations (NGOs) and development watchdogs have warned that international investors are increasingly engaging in massive and sometimes predatory land deals in the developing world, particularly in Africa. These acquisitions are partly to blame for rising food insecurity....Ironically, multinational companies interested in growing food crops to address this need have been doing much of the recent investing. According to Oxfam, however, two-thirds of the investments made between 2000 and 2010 were exclusively for export-oriented crops, while other lands are being used to meet the increasing international demand for biofuels....

“The world is facing an unbridled land rush that is exposing poor people to hunger, violence and the threat of a lifetime in poverty. The World Bank is in a unique position to stop this,” Jeremy Hobbs, Oxfam’s executive director, said Thursday, noting that the bank both invests in land and advises developing countries.

MORE AT LINK

[Demeter]

6. How January’s Fiscal Cliff Turns Into a Gentle Hill by Feb. (or March) By Robert Reich

http://www.nationofchange.org/how-january-s-fiscal-cliff-turns-gentle-hill-february-or-march-1350096153

These are awkward days for deficit hawks who believe the American economy can get back to health only if the nation gets its fiscal house in order. If they get their wish, the economy goes over a cliff. Regardless of what happens Election Day, at the beginning of next year more than $600 billion in tax increases and spending cuts automatically go into effect. That’s equivalent to about 5 percent of the entire U.S. economy, more than the projected growth of the whole gross domestic product next year. The problem is, if we fall off this fiscal cliff we plunge into recession. That’s because the cliff withdraws too much demand from the economy too quickly, at a time when unemployment is still likely to be high. The Congressional Budget Office projects real economic growth will drop at an annual rate of 2.9 percent in the first half of 2013, and unemployment will rise to 9.1 percent by the end of next year.

As Spain and Great Britain have demonstrated, launching fiscal austerity at a time when a nation’s economic capacity is substantially underutilized causes the economy to contract. This makes the debt even larger in proportion to the size of the economy. Rather than reassure global lenders and investors, it spooks them more. America is about to fall off the fiscal cliff because Democrats and Republicans in Congress haven’t been able to agree on a plan for long-term deficit reduction – and this failure will trigger automatic spending cuts in January. Meanwhile, the temporary tax cuts enacted by former President George W. Bush in 2001 and 2003, and extended for two years by President Obama, will run out December 31st, as will the President’s temporary jobs measures – a payroll-tax holiday and extended unemployment benefits.

In a rational world, deficit reduction on this scale wouldn’t happen until the economy is once again healthy – when unemployment has dropped to below 6 percent and economic growth is back to at least 3 percent. These would be sensible triggers. But hyper-polarized Washington hasn’t shown itself capable of rational behavior. Democrats and Republicans have been so much at each others’ throats that whenever one side senses the other wants (or fears) something more, the party that doesn’t want or fear it as much has a bargaining advantage in an ongoing game of chicken. This is why the nation is heading over the cliff – or, more accurately, appears to be heading that way. Congressional Democrats have concluded Republicans are more afraid than they are of going over it because the pending tax increases will fall most heavily on America’s wealthy, and half the spending cuts would come out of the defense budget. (Republicans, you may have noticed, are particularly solicitous of the wealthy and of defense contractors.)

So most Democrats have decided to wait it out in order to maximize their bargaining power in negotiations over how to reduce the long-term deficit. They want a deal that raises taxes only on America’s wealthy and doesn’t substantially alter Medicare, and Social Security — which is the opposite of what Republicans want. Democrats also reason that, once the Bush tax cut has been terminated, Republicans won’t be able to resist an offer to reduce taxes on the middle class (those earning $250,000 or less). After all, Republicans have pledged to vote for any and all tax cuts. Once Democrats get the best deal they can, they’ll make it retroactive to January 1. As a practical matter, then, negotiations over America’s budget deficit will drag on into the new year, right over and beyond the fiscal cliff. A deal might not be struck until February, or even March. But because everyone will know that the final compromise won’t be nearly as draconian – and is going to be retroactive to the start of the year — the cliff won’t feel like much of a cliff. In actual effect it will be more like a hill whose slope remains uncertain but will almost surely be gradual.

With any luck, by the time significant tax increases and spending cuts take permanent effect, unemployment will already have dropped and growth accelerated. In other words, the irrational and irascible American political process may come up with a timetable for reducing the budget deficit that’s surprisingly sensible.

BUT I WOULDN'T BET ON ANY OF THIS, MYSELF

[Demeter]

8. Billionaire CEO Threatens to Fire Employees if Obama Wins By Scott Keyes

http://www.nationofchange.org/billionaire-ceo-threatens-fire-employees-if-obama-wins-1349876452

The CEO of a massive timeshare company sent an email about the upcoming election to his employees yesterday, threatening to fire some of them if President Obama wins re-election.

David Siegel, who owns Florida-based Westgate Resorts, sent an email to all his employees yesterday to discuss the upcoming election. “The economy doesn’t currently pose a threat to your job,” Siegel wrote, noting that the company is “the most profitable [it's] ever been.” “What does threaten your job however, is another 4 years of the same Presidential administration.” He went on to say that although he “can’t tell you whom to vote for,” if Obama is re-elected, it would mean “fewer jobs, less benefits and certainly less opportunity for everyone.”

Here are a few select paragraphs from the email:

Subject: Message from David Siegel
Date:Mon, 08 Oct 2012 13:58:05 -0400 (EDT)
From: [David Siegel]
To: [All employees]

To All My Valued Employees,

As most of you know our company, Westgate Resorts, has continued to succeed in spite of a very dismal economy. There is no question that the economy has changed for the worse and we have not seen any improvement over the past four years. In spite of all of the challenges we have faced, the good news is this: The economy doesn’t currently pose a threat to your job. What does threaten your job however, is another 4 years of the same Presidential administration. Of course, as your employer, I can’t tell you whom to vote for, and I certainly wouldn’t interfere with your right to vote for whomever you choose. In fact, I encourage you to vote for whomever you think will serve your interests the best.

However, let me share a few facts that might help you decide what is in your best interest.



So where am I going with all this? It’s quite simple. If any new taxes are levied on me, or my company, as our current President plans, I will have no choice but to reduce the size of this company. Rather than grow this company I will be forced to cut back. This means fewer jobs, less benefits and certainly less opportunity for everyone.

So, when you make your decision to vote, ask yourself, which candidate understands the economics of business ownership and who doesn’t? Whose policies will endanger your job? Answer those questions and you should know who might be the one capable of protecting and saving your job. While the media wants to tell you to believe the “1 percenters” are bad, I’m telling you they are not. They create most of the jobs. If you lose your job, it won’t be at the hands of the “1%”; it will be at the hands of a political hurricane that swept through this country.

You can view the email in full: http://gawker.com/5950189/the-ceo-who-built-himself-americas-largest-house-just-threatened-to-fire-his-employees-if-obamas-elected?utm_campaign=socialflow_gawker_twitter&utm_source=gawker_twitter&utm_medium=socialflow

Siegel earned national notoriety this year for his quest to build the biggest house in America, “a sprawling, 90,000-square-foot mansion inspired by Versailles.”

In a bizarre twist, Siegel’s email was modeled after a fake letter that made the rounds on the internet during the last presidential election. He confirmed his own email’s authenticity in a phone call to Gawker, saying that “it speaks the truth” and gives employees “something to think about when they go to the polls.”

[Demeter]

9. Fort Wayne Makes a Revolutionary Transformation By Marian Kisch

http://www.nationofchange.org/fort-wayne-makes-revolutionary-transformation-1349883996

When Robin Peterman came to Merle J. Abbett Elementary School in Fort Wayne, Ind., three years ago, the school had a 22 percent pass rate for state reading and math tests. Abbett was in the bottom five of the state. In addition, morale was low and “people felt beaten up and in survival mode.” But the school, as well as the rest of the Fort Wayne Community Schools (FWCS), has made tremendous progress since then—“a revolutionary transformation” according to Laura Cain, the district’s program manager. In 2010 and 2011 the district made Adequate Yearly Progress (AYP) and, in addition, earned an A rating from the Indiana Department of Education, according to its accountability grading system for districts. Also, the graduation rate has continued to surpass the state’s rate for the last four years; in 2011 it was 88.1 percent as compared to the state’s average of 85.7 percent.

FWCS’ 31,000 students are some of the most diverse and disadvantaged in the state, speaking 80 different languages and dialects, with 70 percent qualifying for free or reduced-price lunch. In Abbett, almost all of its 320 students are African American and Hispanic; it also has the district’s highest percent of English Language Learners (ELL).

How did this turnaround occur? A variety of forces came into play including support from Superintendent Wendy Robinson, the board of trustees, the Wallace Foundation and the HOPE Foundation. Ten years ago the Wallace Foundation worked on leadership improvement with Fort Wayne’s principals. HOPE has been working in Fort Wayne for the past four years, first as a pilot project, bringing its Courageous Leadership Academies (CLAs) to help develop and refine professional learning communities for better teaming, curriculum development, data analysis and culture building. CLAs have also helped bring a common language to all the schools in the district and promoted sharing within and between schools. According to Pam Anderson, HOPE’s project leader, HOPE customized its curriculum to meet the needs of Fort Wayne.

MORE AT LINK, BUT NOT TERRIBLY INFORMATIVE...THIS READS LIKE A PRESS RELEASE, NOT AN INFORMATION RELEASE

[Demeter]

10. Who Should Ensure Families Only Take on College Debt They can Afford?

EXCUSE ME? WHY SHOULD FAMILIES BE FORCED TO TAKE ON COLLEGE DEBT IN THE FIRST PLACE? IT'S A SOCIAL INVESTMENT IN THE NATION, FOR CRISSAKES!

AND SECONDLY, WHY SHOULD IT BE ANYONE'S BUSINESS WHAT THE FAMILIES DO? REGULATE THE PREDATORY LENDERS, AND THIS PROBLEM GOES AWAY...

http://www.nationofchange.org/who-should-ensure-families-only-take-college-debt-they-can-afford-1349882783

You know that college students often graduate with massive amounts of debt. The lesser-told side of the story: overburdened parents.

As ProPublica’s Marian Wang and The Chronicle of Higher Education’s Beckie Supiano and Andrea Fuller reported last week, many parents are now taking out what are known as Parent Plus loans – a type of federal loan – to plug the gap between student aid and the soaring cost of attending college. Last year the government disbursed $10.6 billion in Parent Plus loans to just under a million families. That’s $6.3 billion more than in 2000, adjusted for inflation, and to nearly twice as many borrowers.

But no checks are in place to ensure parents only take on debt they can afford. The government doesn’t check applicants’ income, employment status or other debt. Though a bad credit history is grounds for denial, someone could still get a loan with no credit history at all. And there’s no set cap on borrowing.

Which brings up an interesting question: Who should be responsible for ensuring families only take on debt they can handle? The Education Department says that it wants to make sure that college choice isn’t just for the wealthy. That’s why they make the loans easy to get. WHAT??!! Some schools list the Parent Plus loans in financial aid award letters, along with scholarships and student loans, to show how a student might come up with the money for tuition and other costs. Sometimes colleges suggest Parent Plus loans that add up to tens of thousands of dollars – without regard to whether families can afford it. Others simply provide information about the option.

Families often risk the financial strain, hoping the debt burden will be outweighed by the benefit to their children’s lives and futures. Some parents might also bank on the education boosting their children into a high-paying job, which could help pay off the loans...

THIS IS NO WAY TO RUN ANYTHING. THIS IS GAMBLING IN A RIGGED CASINO.

[Demeter]

11. The Politics of the Jobs Report By Robert Reich

http://www.nationofchange.org/politics-jobs-report-1349530042

...According to the separate payroll survey undertaken by the BLS, just 114,000 new jobs were added in September. At least 125,000 are needed per month just to keep up with population growth. Yet August’s job number was revised upward to 142,000, and July’s to 181,000. In other words, we’re still crawling out of the deep crater we fell into in 2008 and 2009. The percent of the working-age population now working or actively looking for work is higher than it was, but still near a thirty-year low. But at least we’re crawling out.

Romney says we’re not doing well enough, and he’s right. But the prescriptions he’s offering – more tax cuts for the rich and for big companies – won’t do anything except enlarge the budget deficit. And the cuts he proposes in public investments like education and infrastructure, and safety nets like Medicare and Medicaid, will take money out of the pockets of people who not only desperately need it but whose spending is necessary to keep the tepid recovery going.

Romney promises if elected the economy will create 12 million new jobs in his first term. If we were back in a normal economy, that number wouldn’t be hard to reach. Bill Clinton presided over an economy that generated 22 million new jobs in eight years – and that was more than a decade ago when the economy and working-age population were smaller than now.

Both Obama and Romney assume the recovery will continue, even at a slow pace, and that we’ll be back to normal at some point. But I’m not at all sure. “Normal” is what got us into this mess in the first place. The concentration of income and wealth at the top has robbed the vast middle class of the purchasing power it needs to generate a full recovery – something that was masked by borrowing against rising home values, but can no longer be denied. Unless or until this structural problem is dealt with, we won’t be back to normal.

[Demeter]

12. Obama wins? So what? By Allan Goldstein

http://www.nationofchange.org/obama-wins-so-what-1349623870

...I think Mitt Romney has about as much chance of becoming president as Pussy Riot does of headlining the opening ceremonies at Sochi. With the election seemingly in the bag, Obama was tempted to run out the clock. He thought all he had to do in the debates was take a knee three times while Romney twisted himself into knots running away from all the extreme positions he was forced to take to get the nomination, and never really believed in anyway, insofar as that political polygamist believes in anything other than Mitt Romney. But playing defense isn’t working. Obama needs to make this election about something. The next month is his opportunity. I still believe the American people will say no to the thugs and extremists who have seized control of the Grand Old Party...

But what are they saying yes to?

...the big brains in Obama’s war room, but if they’re serious about winning, they need to spare a little bandwidth to come up with a few progressive ideas they intend to implement when they do. I’m no wonk, but here are a couple of thoughts to get that conversation started. Mitt Romney said, in an unguarded moment, that 47% of the people are basically less than full citizens because they pay no federal taxes. It’s a cruel thought, but he has a point. Half the people pay no income tax because they have microscopic incomes. Therefore I propose:

Raise the minimum wage to ten dollars an hour. Once we do that, tax all income from the first dollar at five percent. Every working citizen a taxpayer, every working person makes a somewhat less than miserable wage. And everyone has a financial stake in the government.

Social Security needs fixing, the conservatives aren’t wrong about that. But killing it by privatizing it is not the answer. The right way to secure Social Security is to remove the ridiculous cap on the Social Security tax. That tax should apply to all incomes, from the first dollar to the billionth and beyond. That one, simple fix nearly cures all that ails our national old age pension.

Obamacare has been a huge bone of contention. The conservatives don’t know what it is, but they hate it. The progressives know what it’s not, and they hate it. Here’s the way out of that box. Half-socialized medicine. I say half because we’ll always have two-tiered health care. The rich will always get all the health care they can buy. Obama can call it the public option or Medicare for all or socialized medicine; he can call it what he likes. It’s not important what he calls it, it’s important that he calls for it. It’s yet another chance to make his victory about something.

Obama can’t afford to spend the next month playing defense while Mitt drools all over himself trying to speak out of both sides of his mouth with a forked tongue. If he wants to move the country forward in his second term, he has to do more than win. He has to make it crystal clear to the Republicans, you lost. The GOP didn’t get that message in 2008. They were so sure a miscarriage of justice had deprived them of the power that is theirs by divine right, they refused to recognize the results of that election. They treated Obama like a hostile foreign power, unworthy even of diplomatic relations. The Republicans are in such deep denial that they actually believe a majority of the nation agrees with them. They have repeatedly and explicitly called this election “a referendum on Obama.” Well we’re going to have that referendum, and Obama is probably going to win. Again. I believe the Republican party is going to receive an anti-mandate from the American people on November 6th.

I still believe Obama is going to win; it’s all over but the counting. But when he wins, will it count?

BEST POCKET SUMMARY I'VE EVER READ

[Demeter]

14. Sic Transit Gloria Mundi

[Roland99]

15. US Futures - Golden due to Goldman

S&P 500 +0.5%
DOW +0.4%
NASDAQ +0.5%

[Roland99]

16. Today's Reports

[Roland99]

17. US Sept CPI

U.S. SEPT CPI YEAR-OVER-YEAR +2.0 PCT (CONS +1.9 PCT), EXFOOD/ENERGY +2.0 PCT (CONS +2.0 PCT)

U.S. SEPT CPI +0.6 PCT (+0.5702; CONSENSUS +0.5 PCT), EXFOOD/ENERGY +0.1 PCT (+0.1459; CONS +0.2 PCT)

LABOR DEPT- RISE IN U.S. SEPT CPI MOSTLY THE RESULT OF INCREASE IN GASOLINE PRICES

[Roland99]

18. US Sept Real Earnings

U.S. SEPT REAL EARNINGS ALL PRIVATE WORKERS 0.0 PCT (CONS +0.2 PCT) VS AUG -0.6 PCT (PREV -0.6 PCT)

[Roland99]

31. US September Manufacturing Output

U.S. SEPT MANUFACTURING OUTPUT +0.2 PCT VS AUG -0.9 PCT, CAP USE 76.8 PCT VS AUG 76.8 PCT

U.S. SEPT CAPACITY USE RATE 78.3 PCT (CONS 78.3 PCT) VS AUG 78.0 PCT (PREV 78.2 PCT)

U.S. SEPT INDUSTRIAL OUTPUT +0.4 PCT (CONSENSUS +0.2 PCT) VS AUG -1.4 PCT (PREV -1.2 PCT)

[xchrom]

19. i'm ready for tuesday

[Demeter]

24. You are the only one

[xchrom]

26. that's my expression everyday when i wake up.

[Tansy_Gold]

42. That's about what I looked like for my 25 year hs reunion

except the hair was jet black.

seriously.

[xchrom]

44. Fabulous! nt

[Demeter]

20. I'm with Snoopy on this

http://assets.amuniversal.com/4c95f640e3d4012fec28001dd8b71c47?width=900.0

[kickysnana]

43. Awww, this weened we had little tiny birds, smaller than sparrows

coming through dining on the pine cone seeds in the tree outside our window.

Unfortunately the dry spell left our holding pond for the business parking lots next door too toxic for birds so they are not flying in or at least not staying long enough for us to see them A lot of the bigger birds would rest on the warm flat roof of the garage just below our windows to the delight Mama Kitty. There are ponds within a block so they can get water before they travel on just not out our window this year. But perhaps the bigger birds are coming through later. We have had a little rain the last week but not enough to dilute the holding pond.

[xchrom]

21. Consumer Prices in U.S. Rose in September as Fuel Costs Jumped

http://www.bloomberg.com/news/2012-10-16/consumer-prices-in-u-s-rose-in-september-as-fuel-costs-jumped.html

The cost of living in the U.S. rose in September for a second month, reflecting a jump in energy expenses that failed to trickle through to other goods and services.

The consumer-price index increased 0.6 percent for a second month, the Labor Department reported today in Washington. Economists surveyed by Bloomberg had forecast a 0.5 percent advance. The so-called core measure, which excludes more volatile food and energy costs, climbed 0.1 percent, less than projected.

Companies such as Abercrombie & Fitch Co. (ANF) and Safeway Inc. (SWY) are among those saying price increases are difficult to achieve as 12.1 million Americans remain unemployed and rising fuel bills eat into workers’ paychecks. The lack of pricing power is one reason the Federal Reserve eased policy further to focus on jump-starting employment.

“Prices are still pretty benign,” Sam Bullard, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, said before the report. “We’re not seeing a lot of bleed-through from food and energy into other prices. All in all, inflation is just not an issue that is concerning the Fed, and it’s still giving them the flexibility to do what they need to do.”

[Demeter]

23. BENIGN?!!

Prices cannot rise, because people will not pay--they can't. Even gas collapsed to $3.50 here over the weekend. Everything is cheaper because gas is so costly.

Talk about lying with statistics.

What part of "16% real unemployment, wages declining since 1972" do the bean counters not understand?

[xchrom]

25. ...

[xchrom]

22. China Credit Card Romney Assails Gives Way to Japan

http://www.bloomberg.com/news/2012-10-15/romney-can-invoke-japan-overtaking-china-as-u-s-lender.html

China is poised to lose its place as the U.S.’s biggest creditor for the first time since the height of the financial crisis, blunting one of Mitt Romney’s favored attacks in the presidential campaign.

Chinese holdings of Treasuries fell 0.2 percent this year through July to $1.15 trillion, the latest government data show. Japan, a stronger ally of the U.S., raised its stake by 5.6 percent to $1.12 trillion, on pace to top the list of foreign creditors by November. The Treasury Department will release its tally of international capital flows for August today.

While Romney promises to label China a currency manipulator if he wins the election and says President Barack Obama has been too lenient in trade disputes, foreign demand is a reason Treasury yields remain close to record lows, reducing the cost of credit for the government, companies and individuals. Whoever wins Nov. 6 will depend on both nations to finance a budget deficit that surpassed $1 trillion for a fourth year in fiscal 2012. The candidates hold their second debate today.

“We would still have a great need for overseas money,” Dominic Konstam, head of interest-rate strategy in New York at Deutsche Bank AG, one of the 21 primary dealers that trade with the Federal Reserve, said in an Oct. 11 telephone interview. “Whatever deficit we’re running, we’re going to supply a lot of Treasuries and someone’s going to buy them, and if it’s not China it will be someone else.”

[xchrom]

27. Germany Open to Precautionary Credit for Spain, Lawmakers Say

http://www.bloomberg.com/news/2012-10-16/germany-open-to-precautionary-credit-for-spain-lawmakers-say.html

Germany is open to Spain seeking a precautionary credit line from Europe’s rescue fund, two senior coalition lawmakers said, signaling a reversal of Finance Minister Wolfgang Schaeuble’s public position.

The comments by Michael Meister, a deputy caucus leader of Chancellor Angela Merkel’s Christian Democratic bloc, and Norbert Barthle, her party’s budget spokesman, indicate a rolling back of German resistance to a full sovereign bailout for Spain. Schaeuble cautioned Spain against seeking aid on top of its bank bailout as recently as last month.

For Spain, where Prime Minister Mariano Rajoy’s government has said it won’t request aid until the terms are clearer, a precautionary credit line “would be a possible move,” Barthle said today in a text message. The 500 billion-euro ($650 billion) permanent rescue fund, the European Stability Mechanism, which came into force on Oct. 8, “envisages help for sectors in the economy with limited conditionality.”

The views of German lawmakers are critical because they would have to ratify any aid request under parliamentary rules. Spain has cited concern of German rejection for its reluctance so far to seek bailout funds, a condition for triggering European Central Bank help to lower borrowing costs.

[Demeter]

28. Ah! Another Miracle Day

When fairies fly out of the Fed Reserve and Treasury and pump up the Stock Market...

[xchrom]

29. Meet Michael Corbat, The Former NFL Prospect Who Just Became The CEO Of Citi

http://www.businessinsider.com/michael-corbat-new-ceo-of-citi-2012-10

?maxX=219&maxY=269

The shock news today: Vikram Pandit has steped down as CEO of Citi.
The new CEO? Michael Corbat, who had been the head of the company's Europe, MIddle East, Africa business.
He was widely seen as a contender for the job post-Pandit, although this comes as a bit of a surprise, in terms of timing.
WSJ reported back in August :
A lead contender is Mike Corbat, the head of Citigroup's operations in Europe, the Middle East and Africa, according to people close to the company. These people said that other executives who have won high marks from the board include Jamie Forese, the chief executive of securities and banking; and Jane Fraser, who runs Citigroup's private bank. They cautioned, however, that the list of executives under consideration is likely longer.


Read more: http://www.businessinsider.com/michael-corbat-new-ceo-of-citi-2012-10#ixzz29T8KEyWu

[xchrom]

30. UPDATE: Here's The Spain Story That's Causing The Market To Surge

http://www.businessinsider.com/ft-report-spain-bailout-2012-10

?maxX=311&maxY=233

***SNIP

UPDATE: Bloomberg is now reporting that Germany is open to some kind of conditional credit line. It seems like this is the direction things are going. Spain doesn't actually borrow money, but merely opens up a credit line.
This seems to be causing a nice market pop in the US, and Spain itself is now up 2.2%, with financials leading the way.


Read more: http://www.businessinsider.com/ft-report-spain-bailout-2012-10#ixzz29T8vf8Bh

[Roland99]

33. Buy the rumour, sell on reality

[DemReadingDU]

34. Hot rumors, DOW up +77. n/t

[Demeter]

48. Reality will get its turn in 5...4...3...2...

[Roland99]

49. The Spanish rescue is already being walked back >>>>

SENIOR GERMAN LAWMAKER SAYS MEDIA REPORT ON SPAIN APPLYING FOR PRECAUTIONARY CREDIT LINE "OVER-INTERPRETED" HIS COMMENTS
SENIOR GERMAN LAWMAKER SAYS WAS NOT REFERRING TO SPAIN IN HIS COMMENTS TO BLOOMBERG

[xchrom]

32. Europe Has Another Big Crisis, And It's MUCH Bigger Than Sovereign Debt

http://www.businessinsider.com/europes-next-big-crisis-democracy-2012-10



Europe is in crisis, and it's not just about occasional flare-ups in peripheral sovereign debt markets anymore.
In fact, it's really never been about that.

The European continent has for decades since the end of the Second World War struggled to create a transnational identity, the fulfillment of a dream to end military conflict between continental superpowers like France and Germany that has plagued it for centuries.

However, that identity – and the institutions like the EU and the ECB that embody it – has come at a great price. Voters in euro area member states have found that they are able to exercise less and less control over their own governance at the ballot box. In short, democracy is in crisis.

Now, Europe is at a historic crossroads, brought about by the disastrous implementation of the euro – it must either cede even more power to the supranational level, where voters aren't represented by elected officials, or face the fallout in financial markets.


Read more: http://www.businessinsider.com/europes-next-big-crisis-democracy-2012-10?op=1#ixzz29TASiD49

[xchrom]

35. Germany's Schäuble Presents Master Plan for Euro

http://www.spiegel.de/international/europe/schaeuble-presents-euro-reforms-and-broad-new-powers-for-eu-a-861529.html

Wolfgang Schäuble knows that the quiet on the markets over the past few weeks has been deceptive and that the euro crisis could erupt again soon. After all, doubts remain about whether Greece can remain in the currency union in the long term. If it triggers a chain reaction, the entire euro project could collapse. In addition, the willingness of many euro-zone member states to eliminate the design defects of the common currency appears to be diminishing.

Cash-strapped Greeks, fatigued Europeans -- Germany now wants to solve both problems for the long term. "There will be no state bankruptcy in Greece," Schäuble said in a speech in Singapore on Sunday. He also wants to give a new boost to the reform impetus for restructuring the euro zone. "We now need to go a major step in the direction of a fiscal union that will go beyond the proposals made so far," Schäuble said on Monday night during his flight back to Berlin.
The finance minister, a passionate advocate of deeper European integration, has said he wants to concentrate on a small number of far-reaching reforms:

The European commissioner for economic and currency affairs is to become equally powerful as the commissioner for competition. The competition commissioner is entitled to make decisions independently and does not require the agreement of the other commissioners in making those decisions. If the currency affairs commissioner were truly independent when it came to decision-making, it would depoliticize that office holder's position. That would enable the commissioner to make decisions based on content rather than interests.

In order to strengthen the position of the currency affairs commissioner, individual member states would have to hand over part of their budget sovereignty to Brussels. Under Schäuble's proposal, the currency affairs commissioner, by now one of the most powerful positions in the EU, would be equipped with veto power over national budgets. The procedure might look like this: If a euro-zone member state sent its budget proposal to Brussels and the commissioner felt the deficit in the draft was too high, then the country's parliament would be asked to prepare a new draft. Member states would retain the power to decide which revenues to increase and which spending to to cut. But the proposed change still represents an improvement over the status quo. Under current rules, the European Commission's power is limited to making recommendations to member states on improvements to budgets.

[Demeter]

45. I'm really beginnning to be annoyed by him

[xchrom]

36. Starbucks paid no tax in UK

http://www.irishtimes.com/newspaper/breaking/2012/1016/breaking40.html


Coffee giant Starbucks has reportedly paid just #8.6 million in corporation tax in 14 years of trading in Britain, and nothing in the last three years.

The American coffee firm, valued at #25 billion, has generated more than #3 billion of sales in the UK since 1998 but has paid less than 1 per cent in corporation tax.

Its nearest UK rival, Costa, owned by Whitbread, recorded #377 million sales last year, compared to Starbucks? #398 million, but its tax bill came to #15 million, or 31 per cent of its profits.

Starbucks, which has more than 700 outlets in the UK, said it has paid its ?fair share of taxes? in full compliance with UK law and no authority had suggested otherwise.

[xchrom]

37. Budget in Portugal includes special 4% levy on earnings

http://www.irishtimes.com/newspaper/finance/2012/1016/1224325297315.html

LISBON HAS unveiled an uncompromisingly tough budget for 2013 involving the biggest direct tax increases in living memory as the government struggles to keep Portugal’s €78 billion bailout programme on track.

Finance minister Vítor Gaspar said yesterday that income tax increases would include a special 4 per cent levy on earnings. The average tax rate would increase from 9.8 per cent of earnings to 13.2 per cent.

The minister said he understood public pressure for Portugal to be given more time to reach budget deficit goals, but critics had failed to explain how this could be financed. “We have to stay on course,” he said, because taking the “easy route” would lead to a loss of international credibility, a “vicious circle” of indebtedness and low growth.

More than 80 per cent of a planned reduction in the budget deficit next year is expected to come from a projected €4.3 billion increase in government revenue, representing 2.6 per cent of national output, of which income and corporate tax rises will account for about €3 billion.

[xchrom]

38. Global engine room chugging along

http://www.irishtimes.com/newspaper/finance/2012/1016/1224325293116.html


ASIA WILL REMAIN the engine of global economic growth, despite the slowdown in China, the International Monetary Fund (IMF) said last week, and policymakers in the region have room to ease monetary policy to support their economies if necessary.

However, risks remain if the crisis in the freshly announced Nobel Laureate, the European Union, should worsen and if the US fails to deal with the “fiscal cliff” of tax rises and federal spending cuts.

Despite “less buoyant” growth in the near and medium term in the region, China’s economy, which is the world’s second biggest, is expected to have a “soft landing”, expanding by 7.8 per cent this year and 8.2 per cent next year, with interest rate cuts expected in June and July.

The government’s official target is for growth of 7.5 per cent this year.

[Hugin]

39. XPOST: Citigroup CEO Vikram Pandit Resigns.

Source: Wall Street Journal

Citigroup Inc. Chief Executive Vikram Pandit is stepping down, effective immediately, and will be succeeded by Michael Corbat.

...snip...

Mr. Pandit became CEO at Citigroup in December 2007 and spent the earlier part of his career at Morgan Stanley .

...snip...

Mr. Pandit is resigning as a board member as well.

President and Chief Operating Officer John P. Havens also resigned.


Read more: http://online.wsj.com/article/SB10000872396390443854204578060280201488530.html


XPOST FROM BROOKLYNITE: http://www.democraticunderground.com/1014268349

[DemReadingDU]

40. What does Pandit know?

Why is he getting out and taking his money now?

Markets going to crash big?

He has legal issues?

Big change coming with the election?

[Demeter]

46. Maybe he has 6 months to live

and figures he has enough dough to retire....

[Demeter]

47. Sounds like a coup, though

...His resignation comes after long-simmering tensions with the bank’s board. In particular, the board’s chairman, Michael E. O’Neill, had been increasingly critical of Mr. Pandit’s management of the sprawling global bank, according to several people close to the bank.

Mr. Pandit was seen by some board members as not being able to quickly and effectively execute strategy, lurching from crisis to crisis, these people said. There were concerns that the executive lacked the breadth of vision needed to turn the bank around. “He was considered more technically skilled,” one Citi executive said.

John P. Havens, the bank’s president and a longtime associate of Mr. Pandit’s, has also resigned.

Some at the bank said on Tuesday they believed that Brian Leach, the bank’s chief risk officer, could depart soon as well, especially because he was extremely close to Mr. Pandit....

http://dealbook.nytimes.com/2012/10/16/pandit-steps-down-as-citis-chief/

Pandit Steps Down as Chief of Citigroup

[xchrom]

41. SFO ends Kaupthing collapse investigation

http://www.bbc.com/news/business-19950147


The SFO dropped its case against Vincent Tchenguiz in June

The Serious Fraud Office has ended its investigation into the collapse of Icelandic bank Kaupthing, over which it has been heavily criticised.

Property tycoons the Tchenguiz brothers were arrested in 2011 - but in June the SFO dropped its investigation into Vincent Tchenguiz.

The ending of the inquiry into Kaupthing means it has also ended its investigation into Robert Tchenguiz.

The SFO has apologised to the brothers and admitted mishandling the case.

[jtuck004]

50. Federal Reserve Future Unemployment Rate Calculator

Want the unemployment rate to be 7% next year, or to see how many jobs it would take to drop the unemployment rate next month? This shows what it would take, and you can change the variables for population growth and work force - there are links to historical charts for those trends as well.

Here

Found Here

[Demeter]

51. A more useful toy

How many legislators must be removed from office to get a credible jobs plan going and a return to the rule of law for the 1%ers and their corpse-erations.

[tclambert]

52. A123 Systems files for bankruptcy

Big news for those who like political spats over energy policy: A123 Systems, an electric-car-battery manufacturer that received $249 million in federal grants as part of the stimulus bill, filed for Chapter 11 bankruptcy protection Tuesday. . . .

The company isn’t vanishing entirely. It’s selling $125 million of its auto assets to U.S. manufacturer Johnson Controls, which will provide financing to the company in bankruptcy. So far, A123 had drawn on just half of its federal grant money, $129 million, to build a factory in Michigan — a factory that will stay open for the time being.

Since A123 received stimulus funds, this is likely to become political fodder. Mitt Romney has already weighed in: “A123?s bankruptcy is yet another failure for the president’s disastrous strategy of gambling away billions of taxpayer dollars on a strategy of government-led growth that simply does not work.”


http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/10/16/a123-systems-files-for-bankruptcy-heres-what-you-need-to-know/

_________________________


Me haz a sad.

They had good technology which now belongs to Johnson Controls, a large cap company (~$17B market capitalization) that does a lot more than just make the batteries of the future. They filed Chapter 11 so they will continue to exist. But doing what, I don't know. A123's stock went down to $0.06 per share. It was once $28 per share shortly after an IPO that started at $13 per share.

At least it wasn't bought out by a Chinese company.