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STOCK MARKET WATCH -- Monday, 22 October 2012
[font size=3]STOCK MARKET WATCH, Monday, 22 October 2012[font color=black][/font]
SMW for 19 October 2012
AT THE CLOSING BELL ON 19 October 2012
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Dow Jones 13,343.51 -205.43 (-1.52%)
S&P 500 1,433.19 -24.15 (-1.66%)
Nasdaq 3,005.62 -67.25 (-2.19%)
[font color=green]10 Year 1.76% -0.04 (-2.22%)
30 Year 2.93% -0.06 (-2.01%) [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
[/center][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]
48 replies
= new reply since forum marked as read
= new reply since forum marked as read
I went to the local watering hole for lunch on Saturday.
The wife seemed to notice that the Harley-Davidson that I left on was not the same one I came home on,
Uh-Oh.
spank: : 
Your wife shouldn't worry, at least you only have 1 Harley!
Spouse has 4 racing karts now
PapersPlease.org reports on what the State Department is planning for future passport applicants:
The new U.S. passport application forms are back, worse than ever.
Ignoring massive public opposition, and despite having recently admitted that it is already using the “proposed” forms illegally without approval, the State Department is trying again to get approval for a pair of impossible-to-complete new passport application forms that would, in effect, allow the State Department to deny you a passport simply by choosing to send you either or both of the new “long forms”.
Early last year, the State Department proposed a new “Biographical Questionnaire” for passport applicants, which would have required anyone selected to receive the new long-form DS-5513 to answer bizarre and intrusive personal trivia questions about everything from whether you were circumcised (and if so, with what accompanying religious rituals) to the dates of all of your mother’s pre- and post-natal medical appointments, your parents’ addresses one year before you were born, every address at which you have ever resided, and your lifetime employment history including the names and phone numbers of each of your supervisors at every job you have ever held.
Most people would be unable to complete the proposed new form no matter how much time and money they invested in research. Requiring someone to complete Form DS-5513 would amount to de facto denial of their application for a passport — which, as we told the State Department, appeared to be the point of the form.
The State Department’s notice of the proposal in the Federal Register didn’t include the form itself. After we published the proposed Form DS-5513, the story went viral and more than 3,000 public comments objecting to the proposal were filed with the State Department in the final 24 hours of the comment period.
After that fiasco, the State Department went dark for several months, and claimed that they would “revise” the form. But they didn’t give up, and apparently they didn’t listen to (or didn’t care) what they had been told by members of the public in our comments.
The State Department is now seeking approval for a (slightly)revised Form DS-5513 as well as a new Form DS-5520, also for passport applicants, containing many of the same questions.
The State Department no longer wants you to tell the passport examiner about the circumstances of your circumcision, but does still want to know the dates and locations of all of your mother’s pre- and post-natal medical appointments, how long she was hospitalized for your birth, and a complete list of everyone who was in the room when you were born. The revised forms no longer ask for all the addresses at which you have lived, but only for those addresses you are least likely to know: all the places you lived from birth until age 18.
And so on, as you can see for yourself on the proposed Form DS-5513 and Form DS-5520.
Ignoring massive public opposition, and despite having recently admitted that it is already using the “proposed” forms illegally without approval, the State Department is trying again to get approval for a pair of impossible-to-complete new passport application forms that would, in effect, allow the State Department to deny you a passport simply by choosing to send you either or both of the new “long forms”.
Early last year, the State Department proposed a new “Biographical Questionnaire” for passport applicants, which would have required anyone selected to receive the new long-form DS-5513 to answer bizarre and intrusive personal trivia questions about everything from whether you were circumcised (and if so, with what accompanying religious rituals) to the dates of all of your mother’s pre- and post-natal medical appointments, your parents’ addresses one year before you were born, every address at which you have ever resided, and your lifetime employment history including the names and phone numbers of each of your supervisors at every job you have ever held.
Most people would be unable to complete the proposed new form no matter how much time and money they invested in research. Requiring someone to complete Form DS-5513 would amount to de facto denial of their application for a passport — which, as we told the State Department, appeared to be the point of the form.
The State Department’s notice of the proposal in the Federal Register didn’t include the form itself. After we published the proposed Form DS-5513, the story went viral and more than 3,000 public comments objecting to the proposal were filed with the State Department in the final 24 hours of the comment period.
After that fiasco, the State Department went dark for several months, and claimed that they would “revise” the form. But they didn’t give up, and apparently they didn’t listen to (or didn’t care) what they had been told by members of the public in our comments.
The State Department is now seeking approval for a (slightly)revised Form DS-5513 as well as a new Form DS-5520, also for passport applicants, containing many of the same questions.
The State Department no longer wants you to tell the passport examiner about the circumstances of your circumcision, but does still want to know the dates and locations of all of your mother’s pre- and post-natal medical appointments, how long she was hospitalized for your birth, and a complete list of everyone who was in the room when you were born. The revised forms no longer ask for all the addresses at which you have lived, but only for those addresses you are least likely to know: all the places you lived from birth until age 18.
And so on, as you can see for yourself on the proposed Form DS-5513 and Form DS-5520.
http://papersplease.org/wp/2012/09/24/state-dept-admits-passport-form-was-illegal-but-still-wants-it-approved/#more-4874
What if all those gropes and body scanners are to detect "portable wealth" and not bombs? Just sayin...
http://www.businessinsider.com/two-events-this-weekend-cast-major-doubt-on-the-future-of-green-energy-2012-10
?maxX=400&maxY=300
It's one thing for a handful of fly-by-night green energy ventures to go belly up.
It's another when two of the largest industrial companies in the world announce faltering interest in green energy is denting income.
On Friday, GE announced that uncertainty over the federal wind tax credit slowed advanced wind turbine sales, causing a 17 percent drop in Q3 revenues for the company's energy division. Orders fell 69 percent to 241 from 781.
"We’ve said it before, but the impact of wind is huge here," CFO Keith Sherin said on the company's earnings call. He added the company was not expecting the credit to be extended. It expires Dec. 31.
Read more: http://www.businessinsider.com/two-events-this-weekend-cast-major-doubt-on-the-future-of-green-energy-2012-10#ixzz2A2H0LD7S
?maxX=400&maxY=300
It's one thing for a handful of fly-by-night green energy ventures to go belly up.
It's another when two of the largest industrial companies in the world announce faltering interest in green energy is denting income.
On Friday, GE announced that uncertainty over the federal wind tax credit slowed advanced wind turbine sales, causing a 17 percent drop in Q3 revenues for the company's energy division. Orders fell 69 percent to 241 from 781.
"We’ve said it before, but the impact of wind is huge here," CFO Keith Sherin said on the company's earnings call. He added the company was not expecting the credit to be extended. It expires Dec. 31.
Read more: http://www.businessinsider.com/two-events-this-weekend-cast-major-doubt-on-the-future-of-green-energy-2012-10#ixzz2A2H0LD7S
http://www.businessinsider.com/damien-ma-china-us-relations-2012-10
?maxX=400&maxY=300
In an interview with Foreign Policy's Jonathan Tepperman, Eurasia Group's China analyst Damien Ma said China is questioning the sincerity of America's role in stabilizing Asia.
And he said a large-part of this is because of the 'U.S. pivot to Asia' policy. Remember, this was an important first-term foreign policy decision by president Obama's in which he chose to rearrange foreign policy focus on Asia, and included plans to send about 60 percent of the country's naval assets to the Asia-Pacific region by 2020:
"The key takeaway I got was that there was a remarkable deepening of mistrust over U.S. intentions and I think the bottom line implication that I got from the Chinese side was that they felt that we [the U.S.] was a constructive and stabilizing force in Asia for the last decade of so. And with the pivot, with what's happening in Asia now, there's a sense we've become a destabilizing force. And I think they're questioning our sincerity over how to play a constructive role in Asia given what's going on.
What the Chinese would want is for us to lean on the Philippines and Japan harder, just as we ask them to lean on North Korea. That's the analogy that they are looking at. And so it's going to be a fairly tough issue going forward."
Read more: http://www.businessinsider.com/damien-ma-china-us-relations-2012-10#ixzz2A2IGwUbN
?maxX=400&maxY=300
In an interview with Foreign Policy's Jonathan Tepperman, Eurasia Group's China analyst Damien Ma said China is questioning the sincerity of America's role in stabilizing Asia.
And he said a large-part of this is because of the 'U.S. pivot to Asia' policy. Remember, this was an important first-term foreign policy decision by president Obama's in which he chose to rearrange foreign policy focus on Asia, and included plans to send about 60 percent of the country's naval assets to the Asia-Pacific region by 2020:
"The key takeaway I got was that there was a remarkable deepening of mistrust over U.S. intentions and I think the bottom line implication that I got from the Chinese side was that they felt that we [the U.S.] was a constructive and stabilizing force in Asia for the last decade of so. And with the pivot, with what's happening in Asia now, there's a sense we've become a destabilizing force. And I think they're questioning our sincerity over how to play a constructive role in Asia given what's going on.
What the Chinese would want is for us to lean on the Philippines and Japan harder, just as we ask them to lean on North Korea. That's the analogy that they are looking at. And so it's going to be a fairly tough issue going forward."
Read more: http://www.businessinsider.com/damien-ma-china-us-relations-2012-10#ixzz2A2IGwUbN
http://www.businessinsider.com/socgen-boj-should-rip-up-the-debt-of-japan-2012-10
***SNIP
The latest contribution to this discussion is a quick comment from SocGen's Kit Juckes, in regards to Japan.
Of all the central banks, he says, it makes the most sense for the Bank of Japan, given the size of the Japanese debtload and the need to weaken the yen:
But the case for MOF/BOJ to be more aggressive in efforts to undermine their currency grows. S&P muttering abut downgrading Japan's ratings helps at the margin. The best thing they could do of course would be for the BOJ to steal a march on all others and simply cancel QE debt. I have been trying to figure out the pros and cons of cancelling bonds, as opposed to simply waiting for them to mature, and then giving the money back to the Govt (which is what may happen in the UK and US). The 'con' is that such barefaced debasement will spook investors but since that makes you currency go down, the BOJ may welcome such an outcome! The ECB ought to try it too, but the hurdles (or Hurden) may be insurmountable.
Read more: http://www.businessinsider.com/socgen-boj-should-rip-up-the-debt-of-japan-2012-10#ixzz2A2MZu3rb
***SNIP
The latest contribution to this discussion is a quick comment from SocGen's Kit Juckes, in regards to Japan.
Of all the central banks, he says, it makes the most sense for the Bank of Japan, given the size of the Japanese debtload and the need to weaken the yen:
But the case for MOF/BOJ to be more aggressive in efforts to undermine their currency grows. S&P muttering abut downgrading Japan's ratings helps at the margin. The best thing they could do of course would be for the BOJ to steal a march on all others and simply cancel QE debt. I have been trying to figure out the pros and cons of cancelling bonds, as opposed to simply waiting for them to mature, and then giving the money back to the Govt (which is what may happen in the UK and US). The 'con' is that such barefaced debasement will spook investors but since that makes you currency go down, the BOJ may welcome such an outcome! The ECB ought to try it too, but the hurdles (or Hurden) may be insurmountable.
Read more: http://www.businessinsider.com/socgen-boj-should-rip-up-the-debt-of-japan-2012-10#ixzz2A2MZu3rb
http://www.guardian.co.uk/business/2012/oct/22/goldman-sachs-muppets-greg-smith-clients
A trader works at the Goldman Sachs stall on the floor of the New York Stock Exchange. Photograph: Brendan Mcdermid/Reuters
Greg Smith, the former Goldman Sachs employee who infamously quit Wall Street via a New York Times article in March, says the investment bank routinely took advantage of charities and pension funds in order to increase its profits.
In an interview on CBS News' 60 Minutes on Sunday to promote the release of his book called Why I Left Goldman Sachs: A Wall Street Story, Smith said that securing an unsophisticated, or "muppet" client was the top goal of the bank's salespeople. His frustrations with that culture meant he "literally wanted to hit the board of directors over the head".
"Getting an unsophisticated client was the golden prize," he told the programme. "The quickest way to make money on Wall Street is to take the most sophisticated product and try to sell it to the least sophisticated client.
"What Wall Street will do is they will approach one of these philanthropies or endowments or teachers' retirement pension funds in Alabama or Virginia or Oregon and they'll say to them: 'We have this great product that is going to serve your needs'. And it looks very alluring to these investors but what they don't realise is that upfront they are immediately paying the bank $2m (£1.2m) or $3m because of their lack of sophistication."
A trader works at the Goldman Sachs stall on the floor of the New York Stock Exchange. Photograph: Brendan Mcdermid/Reuters
Greg Smith, the former Goldman Sachs employee who infamously quit Wall Street via a New York Times article in March, says the investment bank routinely took advantage of charities and pension funds in order to increase its profits.
In an interview on CBS News' 60 Minutes on Sunday to promote the release of his book called Why I Left Goldman Sachs: A Wall Street Story, Smith said that securing an unsophisticated, or "muppet" client was the top goal of the bank's salespeople. His frustrations with that culture meant he "literally wanted to hit the board of directors over the head".
"Getting an unsophisticated client was the golden prize," he told the programme. "The quickest way to make money on Wall Street is to take the most sophisticated product and try to sell it to the least sophisticated client.
"What Wall Street will do is they will approach one of these philanthropies or endowments or teachers' retirement pension funds in Alabama or Virginia or Oregon and they'll say to them: 'We have this great product that is going to serve your needs'. And it looks very alluring to these investors but what they don't realise is that upfront they are immediately paying the bank $2m (£1.2m) or $3m because of their lack of sophistication."
http://www.guardian.co.uk/commentisfree/2012/oct/21/europe-wage-austerians-greek-export-miracle
Greek shipyard workers protesting against unemployment clash with riot police outside the finance ministry in Athens. Photograph: Pantelis Saitas/EPA
It seems too ridiculous to be true but here at the margins of the EU Summit, European leaders are actually claiming that their strategy is working: never mind the fact that the European economy is back in recession and that unemployment is skyrocketing, the recovery of export dynamics in some member states is seen as a measure of great success by our 'very serious leaders'.
In particular, much is being made of the fact that exports statistics from Greece indicate a substantial increase since 2009. This is supposed to demonstrate the benefits of the 'internal devaluation' policy imposed by the Troika with wages and unit wage costs collapsing. It's therefore interesting to examine Greece export figures in greater detail.
First, when looking at the volume of goods exports and basing ourselves on the AMECO database, there's hardly any sign of this famously strong recovery of Greek exports. In 2008, Greece was exporting some 22 billion worth of goods (in prices of 2005). The volume of goods exports collapsed to 19 billion in the 2009 financial crisis and has recovered slowly to 21 billion in 2012. No export miracle here.
Something does seem to be happening when switching the focus to goods exports in current prices. These increased from 22 billion before the outbreak of the crisis to 26, 5 billion in 2012, representing an expansion of 20%.
Greek shipyard workers protesting against unemployment clash with riot police outside the finance ministry in Athens. Photograph: Pantelis Saitas/EPA
It seems too ridiculous to be true but here at the margins of the EU Summit, European leaders are actually claiming that their strategy is working: never mind the fact that the European economy is back in recession and that unemployment is skyrocketing, the recovery of export dynamics in some member states is seen as a measure of great success by our 'very serious leaders'.
In particular, much is being made of the fact that exports statistics from Greece indicate a substantial increase since 2009. This is supposed to demonstrate the benefits of the 'internal devaluation' policy imposed by the Troika with wages and unit wage costs collapsing. It's therefore interesting to examine Greece export figures in greater detail.
First, when looking at the volume of goods exports and basing ourselves on the AMECO database, there's hardly any sign of this famously strong recovery of Greek exports. In 2008, Greece was exporting some 22 billion worth of goods (in prices of 2005). The volume of goods exports collapsed to 19 billion in the 2009 financial crisis and has recovered slowly to 21 billion in 2012. No export miracle here.
Something does seem to be happening when switching the focus to goods exports in current prices. These increased from 22 billion before the outbreak of the crisis to 26, 5 billion in 2012, representing an expansion of 20%.
http://www.washingtonpost.com/business/caterpillar-cuts-2012-guidance-as-economy-weaker-than-we-had-previously-expected/2012/10/22/1fbc91fa-1c42-11e2-8817-41b9a7aaabc7_story.html
Daniel Acker/BLOOMBERG - Mechanic Brian Reed removes a portion of a final drive, the part which transfers engine power to the tracks of the excavator at rear, while making a repair at the Altorfer CAT dealership in Bettendorf, Iowa on Oct. 19,. Caterpillar, the world's biggest construction and mining equipment maker, cut its profit and revenue guidance for 2012.
MINNEAPOLIS — Caterpillar Inc. cut its profit and revenue guidance on Monday, saying the world’s economic conditions “are weaker than we had previously expected.”
The Peoria, Ill., company is the world’s largest construction and mining equipment maker, so its results are watched closely as a sign of where the broader economy is headed.
Caterpillar said dealers want to reduce inventory, so they’re ordering fewer products than end users want. Caterpillar said it has reduced production, resulting in temporary shutdowns and layoffs. The lower production levels will continue until orders from dealers and inventories line up with deliveries to end customers, Caterpillar said.
The company now expects 2012 revenue of $66 billion, with profit of $9 to $9.25 per share. Analysts surveyed by FactSet had expected revenue of $67.2 billion, with profit of $9.41 per share.
*** it's almost november isn't it?
Daniel Acker/BLOOMBERG - Mechanic Brian Reed removes a portion of a final drive, the part which transfers engine power to the tracks of the excavator at rear, while making a repair at the Altorfer CAT dealership in Bettendorf, Iowa on Oct. 19,. Caterpillar, the world's biggest construction and mining equipment maker, cut its profit and revenue guidance for 2012.
MINNEAPOLIS — Caterpillar Inc. cut its profit and revenue guidance on Monday, saying the world’s economic conditions “are weaker than we had previously expected.”
The Peoria, Ill., company is the world’s largest construction and mining equipment maker, so its results are watched closely as a sign of where the broader economy is headed.
Caterpillar said dealers want to reduce inventory, so they’re ordering fewer products than end users want. Caterpillar said it has reduced production, resulting in temporary shutdowns and layoffs. The lower production levels will continue until orders from dealers and inventories line up with deliveries to end customers, Caterpillar said.
The company now expects 2012 revenue of $66 billion, with profit of $9 to $9.25 per share. Analysts surveyed by FactSet had expected revenue of $67.2 billion, with profit of $9.41 per share.
*** it's almost november isn't it?
http://www.bloomberg.com/news/2012-10-22/how-to-crash-an-economy-and-escape-the-scene.html
Is it time to put the Great Recession behind us?
Not in terms of the economy -- which remains bogged down with high employment, low growth and other aftershocks -- but rather when it comes to demanding a rigorous effort to hold Wall Street bankers, traders and executives accountable for their role in causing the financial crisis.
Should we just chalk it up to such simplified explanations as “animal spirits ran amok” and “these things happen occasionally”? Or should we continue to expend scarce political and law-enforcement resources trying to get to the bottom of what happened, and why, with a goal of holding the right people legally and financially accountable?
It’s a conundrum, especially since many Americans have lost enthusiasm for the fight. But the path we ultimately take will reveal to us and the world much about who we are as a people and what ethics, values and morality we stand for. It will also have serious lasting implications if we hope to avoid a rerun of what happened over the last five years.
Is it time to put the Great Recession behind us?
Not in terms of the economy -- which remains bogged down with high employment, low growth and other aftershocks -- but rather when it comes to demanding a rigorous effort to hold Wall Street bankers, traders and executives accountable for their role in causing the financial crisis.
Should we just chalk it up to such simplified explanations as “animal spirits ran amok” and “these things happen occasionally”? Or should we continue to expend scarce political and law-enforcement resources trying to get to the bottom of what happened, and why, with a goal of holding the right people legally and financially accountable?
It’s a conundrum, especially since many Americans have lost enthusiasm for the fight. But the path we ultimately take will reveal to us and the world much about who we are as a people and what ethics, values and morality we stand for. It will also have serious lasting implications if we hope to avoid a rerun of what happened over the last five years.
