STOCK MARKET WATCH, Wednesday 23 March

[ozymandius]

Wednesday March 23, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 303 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 100 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 156 DAYS
DAYS SINCE ENRON COLLAPSE = 1214
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54


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




AT THE CLOSING BELL ON March 22, 2005

Dow... 10,470.51 -94.88 (-0.90%)
Nasdaq... 1,989.34 -18.17 (-0.91%)
S&P 500... 1,171.71 -12.07 (-1.02%)
10-Yr Bond... 4.61% +0.09 (+1.88%)
Gold future... 431.60 +0.20 (+0.05%)





GOLD, EURO, YEN, Dollars and Loonie




PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

[punpirate]

1. Great `toon, Ozy...

... Toles nails it again. :)

[Media_Lies_Daily]

2. At the end of February, the Dow Jones closed at close to 11,000...

...since that time the DJ has lost approximately 550 points. If this had been any other previous period of time, the talking heads would have discussed our economic situation at length.

But, no.

Instead, we are "treated" to the individual and combined spectacles of Terri Schiavo, Michael Jackson, Robert Blake, Scott Peterson, the war in Iraq, shootings around the country, the break-up of Jennifer Anniston and Brad Pitt, the Academy Awards, etc.

And while Rome burns, Herr Busch struggles to form complete sentences.

[spooked911]

28. yes-- what the hell is going on???

[UpInArms]

3. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 83.63 Change +0.27 (+0.32%)

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=7983444&src=rss/businessNews

Dollar Gains on Outlook for Higher Rates

LONDON (Reuters) - The dollar rose to one-month highs against the euro and yen on Wednesday, extending gains after the U.S. central bank signaled it may step up the pace of interest rate rises to counter inflation.

The Federal Reserve raised rates for a seventh consecutive time on Tuesday, saying inflation pressures had picked up and price stability would only be balanced with appropriate policy action.

"The Fed statement reflected the growing unease with price pressures so they gave a slightly more hawkish assessment. The market reacted with a rally in the dollar," said Kristjan Kasikov, foreign exchange strategist at Calyon.

The Fed's upbeat assessment of the U.S. growth prospects contrasted with a survey by Germany's Ifo institute showing business confidence fell for a second consecutive month in March.

<snip>

"The Ifo survey is contributing to the fall in euro/dollar, but the prime driver remains the repercussions from yesterday's FOMC statement," said Niels From, senior FX strategist at Danske Bank in Copenhagen. He added that upcoming U.S. consumer price data could be crucial to the dollar's next move, with a strong number putting more pressure on the Fed to raise interest rates.

...more...

Great 'toon again, Ozy!

Have a Great Day Marketeers!

[Tace]

9. Will A Stronger Or Sideways Dollar Pressure Stocks?

I don't have a link, as this is just a question to thread readers, although I believe I've read analysis that suggests this is so. Any ideas?

[UpInArms]

10. there are probably lots of ways to look at this

but one is that as the dollar gains other currencies fall - if the investors in the stocks are from other countries, they will have fewer dollars to invest in US stocks.

It all depends on where the buyers of stocks are located.

Hope that helped.

[spotbird]

17. Do you think a strong dollar is making a come back?

The fundamental issue which caused its decline hasn't been addressed, the debt and deficit. In fact rising interest rates will exacerbate the problem.

There is talk of China starting a partial float of its currency which strengthened the dollar, but is that a long term solution?

[UpInArms]

18. I think I'll give a rather non-answer on that one

right now - let's wait and see what happens after March 31 (the end of Japan's fiscal year)

go to this chart to see the annual rise and fall

http://quotes.ino.com/chart/?s=NYBOT_DXY0&v=dmax

:thumbsup:

[ret5hd]

38. can you supply a link to long term (last 5 yr ??) DJIA chart?

[UpInArms]

42. see if this link works for you

http://futures.tradingcharts.com/chart/US/M

[Tace]

36. Nobody's Talking About Newsweek?!

Here's a piece from yesty's 321gold. It got me thinking about an intermediate dollar pause, or bear-market upleg. One of the questions about our present situation is whether we can avoid a catastrophic dollar crash and have it unwind over a period of years, even decades instead, thus giving the markets a better chance to adjust without failure.

(snip)

To review, here's why such cover stories aren't just interesting, anecdotally, but are in fact noteworthy: Newsweek isn't stupid, it just happens that the well-known phenomenon of major news publications helping to mark the end of important market moves takes place simply because of their very nature-they publish stories about what has already occurred, and a story like the Dollar's fall only becomes news when it has happened in the extreme.

While news magazines print what has already taken place, the market, on the other hand, discounts future outcomes.

So, where does that leave us with regard to the Dollar? First, know that after having been a long-time Dollar bear, I am on the uncomfortable side of the argument that says the surprise of 2005 will be U.S. Dollar strength.

(snip)

http://www.321gold.com/editorials/hanlon/hanlon032205.html

[Tace]

40. Thanks -- Another Angle: The Real Value Of The Stocks

A falling dollar and rising inflation have the effect of masking a relative decline in the real value of equities. As in the past few years, the stock indexes may go up, but the value of the dollars vs. other currencies, combined with inflation not shown in our bogus gov't economic numbers, has the effect of veiling a decline in the real value of the equities.

So if the dollar ain't going down, this masking effect won't occur as strongly. I'm just trying to grasp this, not to make any proclaimations. I'm trying to separate out the perceptions of market participants vs. the reality of things. Obviously, our markets are being held up, not by fundamentals, but by the faulty perceptions of market particpants.

Of course, the safest way to view the market from a trading perspective is, as the guy who runs the futures brokerage where I've traded in the past says, "The market's always right." It's futile to try to second-guess the market.

[54anickel]

19. Fed's `Mixed' Message Suggests In-House Debate, Economists Say

How much do you wanna bet the dollar will be on its way back down and the hawkish Fed speak will be toned down after Japan's fiscal year ends at the end of March? Just a feeling I have - there's some wheelin' and dealing going on between the Fed and the BoJ. :shrug: Whatever is going on, they are walking a fine line these days.

http://www.bloomberg.com/apps/news?pid=10000103&sid=aKaCPfW6rVEQ&refer=us

March 23 (Bloomberg) -- The Federal Reserve's two-edged message -- that while inflation risks are rising, it needn't yet step up the pace of interest-rate increases -- may reflect disagreements among policy makers that will be clarified in coming weeks, economists and former Fed officials said.

``The language is mixed,'' Lou Crandall, chief economist at Wrightson ICAP LLC in Jersey City, New Jersey, said in an interview. ``They have told us that their margin for error on inflation has gone down; we don't know by how much.''

The Federal Open Market Committee raised its benchmark rate a quarter-point to 2.75 percent yesterday, the seventh increase in a row. The accompanying policy statement said that while the FOMC still expects ``measured'' rate increases, inflation pressures have picked up. The statement said the committee ``should be'' able to balance economic risks through ``appropriate'' changes in monetary policy.

snip>

Policy Strategy

Since August 2003, the U.S. central bank has engaged in a self-described ``non-conventional'' policy of using language to set expectations by traders and investors about the path of interest rates. The strategy has supporters among the board of governors, including Fed Chairman Alan Greenspan and Governor Ben Bernanke, while some regional Fed bank presidents remain critical.

Among those opposing the language is William Poole, the St. Louis Fed Bank president, who said in a speech last October that unexpected changes in the economy could cause the Fed to move against the very expectations it was trying to create.

[UpInArms]

20. good morning 54anickel!

glad to see you here! :hi:

I see we're doing "twin thinking" regarding Japan's fiscal year end on March 31 :D

[cthrumatrix]

23. what does Japan's year end have to do with the dollar?

"window dressing" for their dollar holdings?

help me...?

[UpInArms]

25. dollar asset repatriation as of March 31

http://www.gftforex.com/resources/currency/japan.asp

Bank of Japan intervention practices

The BoJ and MoF are very active participants in the FX markets. That is, they have a lengthy history of entering the FX markets if they are dissatisfied with the current JPY level. Periodically they receive information on large hedge fund positions from banks and like to intervene when speculators are on the other side of the market, allowing them to get the most "bang for the bucks." There are typically three main factors behind BoJ and MoF intervention:

1. Amount of appreciation/depreciation in JPY
2. Current USD/JPY rate
3. Direction of speculative positions

JPY movements are sensitive to time; Fiscal year end, Japanese trading hours

JPY crosses can become very active towards the end of the Japanese fiscal year (March 31), as exporters repatriate their dollar denominated assets. This is particularly important for Japanese banks because they need to rebuild their balance sheets to meet FSA guidelines, which require the banks to mark to market their security holdings.

Japanese traders tend to take hour-long lunches between 10pm-11pm EST, leaving only a junior trader in the office. Therefore, the Japanese lunchtime can be volatile, as the market gets very illiquid. During Japanese and London hours, the JPY tends to move fairly orderly unless breaking announcements or government official comments are made or surprising economic data is released. During U.S. hours however, the JPY tends to have higher volatility.

...more...

[cthrumatrix]

49. thank you very much

[54anickel]

24. Morning UIA and all. Thought I'd stop by for a few minutes to check up

on what's going on (I have to leave shortly for the funeral).

All this jaw-boning is getting rather interesting these past few days. But I feel that is all it is - jaw-boning. Greenspan has always only been concerned about wage inflation and THAT is no where in the cards.

Couple of interesting articles I came across this AM.

Fed Isn't Saying 3.25% Rate Is a Must in May

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_berry&sid=a1AAFSwwNwBc

March 23 (Bloomberg) -- It would be a mistake to interpret the new language used by the Federal Open Market Committee yesterday in raising its benchmark interest rate another quarter point as an indication that the committee is necessarily headed for a 50-basis-point increase at its next meeting May 3.

Such a move could happen, of course, if the threat of higher inflation seems much more imminent than it does now. If officials had been reasonably sure stronger action would be called for at their next meeting, they likely would have moved more aggressively yesterday. The quarter-point-per-meeting is still the operative baseline.

snip>

To Fed Chairman Alan Greenspan and most of his colleagues, the most important inflation variable isn't a measure of prices. It's labor costs, and there's no sign at all that they are about to take off.

Productivity gains have slowed, so that unit labor costs are no longer falling. On the other hand, compensation is rising slowly enough that labor costs so far are putting little pressure either on business profits or inflation.

Pig and Python

And note that yesterday's committee statement said ``labor market conditions continue to improve gradually.'' There hasn't been, nor is there likely to be, a rapid tightening of labor market conditions that might put strong pressure on businesses to increase wages and salaries.

As for higher oil prices, a year ago Greenspan and company put much more emphasis on rising energy costs' potential impact on economic growth than on their impact on inflation.

more...



Why China Is Playing The North Korea Card
http://www.prudentbear.com/internationalperspective.asp

snip>

Although China’s passage of the anti-secession law has probably stalled progress in the short term between Taiwan and the Mainland, one cannot consider this action in isolation. In particular, it is important to consider the manner in which both Washington and Tokyo have played a role in fomenting tensions across the Taiwan Straits, consequently inducing a less co-operative diplomatic tack on the part of Beijing in respect to Pyongyang. The Bush administration has particularly angered China by urging Japan to rearm and by implicitly suggesting to Taiwan that, should China use force to prevent a Taiwanese declaration of independence, the U.S. will go to war on its behalf (and employ the assistance of the Japanese). This in turn has emboldened Taiwan’s independence advocates, who blithely assume that the consequences of their actions will be underwritten by Washington and Tokyo.

snip>

The Bush administration has begun to respond: At the Pentagon and the Central Intelligence Agency and in Congress there is renewed talk of China as a threat and a strategic competitor, just as there was in the campaign leading up to the President’s first election victory in 2000. More significant have been the attempts to envelope Japan in an emerging pro-Taiwan alliance. Both the U.S. and Japan retain strong economic links with Taiwan and both regard Beijing’s increasing emergence as the new economic and political regional power of Asia with less than wholehearted enthusiasm. And on February 19, 2005 in Washington, for the first time, Japan joined the administration in identifying security in the Taiwan Strait as a "common strategic objective." Given the history of Tokyo’s brutal occupation of China, few events could have been more disturbing to Beijing than the revelation that Japan had decisively ended six decades of official pacifism by claiming a right to intervene in the Taiwan Strait. Not surprisingly, Beijing has since proved less than cooperative on the issue of North Korea’s nukes.

Under the encouragement of the US, Japan is beginning to adopt a more assertive stance throughout the region, very much in contravention of its “Pacifist Constitution”. In addition to deploying ground troops in Iraq, the LDP government of Prime Minister Junichiro Koizumi has continued to push for a revision to the 57-year-old document that ostensibly precludes Japan from participating in such missions so as to garner further US support for a permanent seat on the UN Security Council.

Koizumi’s term of office will likely end later on this year, but his hawkish policies will probably continue to feature. Shinzo Abe, a senior member of the ruling Liberal Democratic Party, has emerged as one of the front-runners to become Japan's next prime minister. And the key to his success is his relentless campaign of sharp words and tough actions against North Korea, now widely viewed in Japan the biggest threat to the nation’s security. Mr. Abe, the grandson of a former prime minister, has made his career by bashing North Korea at every opportunity. His rise to prominence is a sign of the nationalist mood that is gaining stronger influence in Japanese politics as the country becomes increasingly disenchanted with the pacifism of the past 60 years. Other members of the latest Koizumi Cabinet, notes Chalmers Johnson, include the Defense Agency chief Yoshinori Ono, and the foreign minister Nobutaka Machimura, both staunch militarists; while Foreign Minister Machimura is a member of the right-wing faction of former Prime Minister Yoshiro Mori, which supports an independent Taiwan and maintains extensive covert ties with Taiwanese leaders and businessmen.

In some ways, Tokyo's actions in the region have been more hawkish than anything proposed by the United States. Despite the Bush proclamation that North Korea is one of the countries that make up the “axis of evil,” Washington has asked Japan to refrain from imposing an embargo. But Tokyo has recently banned most of North Korea's ships from Japanese waters, dealing a blow to its neighbour's already imploding economy.

more...

[UpInArms]

4. Today's Reports:

Mar 23 8:30 AM
Core CPI Feb
report -
briefing.com 0.2%
market 0.2%
last report 0.2%
revised -

Mar 23 8:30 AM
CPI Feb
report -
briefing.com 0.3%
market 0.3%
last report 0.1%
revised -

Mar 23 10:00 AM
Existing Home Sales Feb
report -
briefing.com 6.65M
market 6.70M
last report 6.8M
revised -

[UpInArms]

13. U.S. Feb. CPI up 0.4%, core up 0.3%

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38434.3541594792-833503779&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - The U.S. consumer price index increased a seasonally adjusted 0.4 percent in February, led by soaring energy costs and higher prices for housing, medical care and air fares, the Labor Department reported Wednesday. Excluding food and energy prices, the core rate of inflation increased 0.3 percent in February. The increases in the CPI and core CPI were each 0.1 percentage point stronger than expected. The CPI is up 3 percent in the past year, while the core rate has risen 2.4 percent, the biggest gain since August 2002.

8:29am 03/23/05 U.S. FEB. REAL EARNINGS FALL 0.4%

8:29am 03/23/05 U.S. FEB. CPI HOUSING COSTS UP 0.4%

8:29am 03/23/05 U.S. FEB. CPI MEDICAL CARE PRICES UP 0.6%

8:29am 03/23/05 U.S. FEB. CPI ENERGY PRICES UP 2%

8:29am 03/23/05 U.S. CORE CPI UP 2.4% Y-O-Y, MOST SINCE AUG. 2002

8:29am 03/23/05 U.S. CPI UP 3% YEAR-OVER-YEAR

8:29am 03/23/05 U.S. FEB. CORE CPI UP 0.3% VS. 0.2% EXPECTED

8:29am 03/23/05 U.S. FEB. CONSUMER PRICE INDEX UP 0.4% VS 0.3% EXPECTED

[UpInArms]

39. Feb exist home sales down 0.4%

10:01am 03/23/05 JAN. EXISTING HOME SALES UP REV. 0.1% VS FALL 0.1% PREV

10:00am 03/23/05 U.S. FEB. EXISTING HOME SALES DOWN 0.4% TO 6.79 MLN

[UpInArms]

5. GM May Sell Stake in GMAC Mortgage Unit

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=7982195&src=rss/businessNews

NEW YORK (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) is in talks with private equity and other financial firms over selling a stake in its GMAC Commercial Mortgage subsidiary, The Wall Street Journal reported on Wednesday.

The deal could raise as much as $1 billion for the carmaker, the Journal reported, citing people familiar with the matter.

<snip>

GM's commercial mortgage business collects payments on mortgages valued at more than $247 billion and originates loans in sectors ranging from health care to golf courses, the paper said.

...a bit more at link...

[UpInArms]

6. Higher interest rates dampen refinancing activity: MBA

(and this is before the rate hike yesterday)

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38434.2919666088-833499805&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- Higher interest rates helped reduce volumes of mortgage applications by 9.5 percent in the week ended March 18 compared to the prior week, the Mortgage Bankers Association said. On a seasonally adjusted basis, applications to purchase homes dropped by 3.5 percent, while refinancings fell 16.5 percent. Compared to this time last year, refinancing applications are running more than 60 percent lower, MBA senior director Michael Fratantoni said. Refinancings accounted for 39.5 percent last week's total applications, down from 42.9 percent a week earlier, while adjustable-rate mortgages rose to 33.5 percent from 32.4 percent. Week to week, average contract interest rates rose to 5.95 percent from 5.91 percent for 30-year mortgages and to 5.49 percent from 5.47 percent for 15-year mortgages. The rate on one-year ARMs dropped to 4.12 percent from 4.19 percent, the MBA's data showed.

[Zynx]

7. AIG Update(Hint: Crooks)

Uncooperative AIG execs fired amid probes:
http://www.msnbc.msn.com/id/7264159/
AIG had stake in reinsurer:
http://www.thestreet.com/_tscfoc/markets/matthewgoldstein/10214387.html

Basically, in case anyone has missed it, AIG has been doing some really bad stuff. They have misreported at least $500 million in insurance reserves with the General Re deal and now these offshore insurance pools in Bermuda, Barbados, and elsewhere show up that are likely places where AIG and other insurers dump bad insurance claims that they don't want on their books. No wonder AIG has gone from $73 a share to $56 in just a few weeks.

[UpInArms]

8. wonder if there's another "Enron" in their accounting?

http://www.news-record.com/money/indepth/99top50/aig.shtml

American International Group continued its steady climb, from 15th to 13th and now to 10th, up the News and Record's list of top 50 companies with operations in the Piedmont Triad. AIG, whose companies offer almost every type of insurance, rose in 1998 on the strength of $30.8 billion in revenues and a 102 percent two-year return to shareholders.

"Some competitors have an obsession with increasing the volume of their business, and they underprice for the risk they take," said Charles Reid, president and chief executive officer at AIG subsidiary United Guaranty Corp. in Greensboro. "AIG will not chase after them. They're not going to square off with the radical price-cutters."

Still, New York-based AIG did add to its 300 subsidiaries in 130 countries with the purchase of SunAmerica Inc., announced in August. AIG hopes to sell the U.S. company's retirement savings products through AIG's overseas agents, capitalizing for instance on Japanese baby-boomers' concerns about retirement and the decreasing solvency of many countries' state-run pension plans. The $18 billion deal for SunAmerica was signed Jan. 1, 1999.

Although Asian economies floundered in 1998, AIG, which got its start in China in 1919, appeared to do well. A "flight to quality" drew customers to the group's Triple A-rated life insurance operations, AIG's chairman and chief executive officer, M.R. Greenberg, and its president and chief operating officer, Evan Greenberg, said in their year-end letter to shareholders. AIG subsidiary American Life Insurance Co. saw double-digit premium growth in Japan.

...more...

[UpInArms]

11. Lord Black under investigation for looting Hollinger

http://www.finfacts.com/irelandbusinessnews/publish/article_10001008.shtml

US Federal prosecutors at the United States Attorney's Office for the Northern District of Illinois, confirmed Tuesday that Lord Conrad Black (a Canadian who became a member of the UK House of Lords) and his associate David Radler in Hollinger International - owner of the Chicago Sun-Times and former owner of the UK's Daily Telegraph, are the subjects of criminal investigations into looting Hollinger.

<snip>

Last August, a scathing report detailing allegations of 'self-righteous, and aggressive looting' by Lord Conrad Black and his associates who controlled Hollinger International, was presented to the SEC.

Lord Black and his associates were accused of looting the company's money on a grand scale when Black, was chairman of Hollinger International. The company was 'victimised' by its controlling shareholders, who took millions in payments that should have gone to the company, according to the report.

The report said the company was 'systematically manipulated . . . in a manner that violated every fiduciary duty.’ A summary of the report was given the title ‘A Corporate Kleptocracy.’

‘Not once or twice, but on dozens of occasions Hollinger was victimised by its controlling shareholders as they transferred to themselves and their affiliates more than $400 million in the last seven years,’’ according to the report commissioned by a special board committee of the newspaper publisher.

...more...

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1111581073031_30/?hub=World

Black, associates facing U.S. criminal probe

For the first time, U.S. prosecutors are confirming that they are conducting a criminal investigation in Conrad Black's embattled Hollinger International Inc. empire.

The criminal probe includes newspaper tycoon Conrad Black and Hollinger's former president and chief operating officer David Radler, The Globe and Mail reported.

The investigation is seeking to find out whether Black and others "fraudulently diverted corporate assets and opportunities owned by Hollinger International to themselves and to companies that they controlled."

According to media reports, the investigation was revealed in documents filed in a Chicago court by the U.S. Attorney for the Northern District of Illinois.

The government is seeking an order to temporarily deny Black and others access to unidentified evidence from a civil suit until Aug. 1, a move some U.S. legal experts say means the investigation is coming to an end.

...more...

http://www.bloomberg.com/apps/news?pid=10000103&sid=aY248MKyPfdM&refer=us

Perle, Ex-Pentagon Aide, May Face SEC Suit Over Hollinger Role

March 23 (Bloomberg) -- The U.S. Securities and Exchange Commission has warned former Pentagon adviser Richard Perle that it may sue him for his role in the alleged looting of Hollinger International Inc., the Chicago-based media company once controlled by Conrad Black.

Perle, 63, a Hollinger director, said in a telephone interview that he received and responded to a so-called Wells notice, a formal warning that the agency's enforcement staff has determined that evidence of wrongdoing is sufficient to bring a civil lawsuit.

The SEC staff, which has reviewed Perle's response, plans to urge the regulatory body's commissioners to authorize a suit against him, according to people familiar with the matter.

Hollinger International officials, shareholders and the SEC allege that Black and former Hollinger President David Radler wrongfully diverted proceeds from the sale of some of the chain's newspapers for their personal use. Perle was a member of Hollinger International's three-member executive committee, with Black and Radler, from 1996 to 2003.

<snip>

Perle said he didn't recall the specific allegations in the SEC's notice, and he referred questions about them to his lawyer, Dennis Block. Block, a partner at Cadwalader, Wickersham & Taft in New York, didn't respond to phone and e-mail messages seeking comment.

...more...

[salin]

12. So it has moved into criminal mode...

beyond the SEC. It would be too good to hope for that the criminal case would snare Perle... going to guess that as a board member he would be seen as a step or two removed...

[UpInArms]

14. he signed off on "below the audit radar" transactions

http://www.independent-media.tv/item.cfm?fmedia_id=9048&fcategory_desc=Richard%20Perle

The special committee also said that director Richard Perle, a former Pentagon adviser who was a member of the board's executive committee, "repeatedly" signed off on transactions that were beneath the radar of the audit committee.

The panel said Perle, who remains on the board, should be required to repay the more than $3 million in bonuses.

Perle could not be immediately reached for comment.

The panel, however, absolved Hollinger's independent directors of wrong-doing, saying they were deliberately fed misleading information. Those directors include former Secretary of State Henry Kissinger, former Illinois Gov. James Thompson and former U.S. Ambassador to Germany Richard Burt.

...more...

adding more info on edit:

http://www.washingtonpost.com/wp-dyn/articles/A57895-2004Sep2.html

Among the directors singled out was Washington superhawk Richard Perle. For all his worldly sophistication, Perle apparently didn't realize that as a member of the three-member executive committee, he was supposed to read and understand all those documents he signed approving service contracts with, and loans and asset sales to, the two other members of the committee, Black and sidekick F. David Radler. But then again, Hollinger would prove very, very good to Perle, paying him $5.4 million over the past six years, including an undisclosed $3.1 million "performance bonus" for running an in-house venture fund with an annualized return of negative 24 percent.

After the fund fizzled, Perle tried to persuade Black to invest in another investment group, which he proposed to start up with his pal, Gerald Hillman, a fellow traveler in defense policy circles. As he outlined the deal, Trireme Partners would pay Perle an annual salary of $500,000, while Black and Henry Kissinger, another Hollinger director, would be entitled to a small share of the fund's profits in return for lending their names and stature to the venture. It was the sort of hustle an admiring Black could spot a mile away:

"My instinct told me that were trying to smoke one past us," Black wrote in an e-mail to a skeptical Hollinger exec. "They should treat us as insiders with our hands cupped as the money flows down, and not as outsiders pouring the money in."

In the end, Hollinger agreed to put in the first $2.5 million of what was advertised to other investors as a $25 million commitment, ignoring the legal requirement that such insider dealings be approved by the outside directors on Hollinger's audit committee.

...more...

[salin]

21. bang - there it is

didn't before see so clearly his "payoff" - it seems to get to the point of legal action against him there would need to be seen some kind of financial gain - otherwise he would be likely to play dumb - as other corp board members in other scandals have done recently.

but a 3.1 million "Performance Bonus" for an in house investment fund with an annualized return of negative 24%. Whoop, there it is!

[UpInArms]

22. just following the money

flowing into these crooks pockets can be a full-time job.

[ret5hd]

29. any chance of kissinger being indicted?

[UpInArms]

30. unfortunately, it appears that he was one of the directors

(not one of the 3 committee members - Black, Radner, Perle) that have been "absolved"

http://www.independent-media.tv/item.cfm?fmedia_id=9048&fcategory_desc=Richard%20Perle

The panel, however, absolved Hollinger's independent directors of wrong-doing, saying they were deliberately fed misleading information. Those directors include former Secretary of State Henry Kissinger, former Illinois Gov. James Thompson and former U.S. Ambassador to Germany Richard Burt.

[UpInArms]

15. 10-year yield spikes to 4.69% after CPI

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38434.3584615393-833504228&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Treasurys tumbled and yields jumped to their highest level in nine months after the release of a higher-than-expected February consumer inflation report. The yield on the benchmark 10-year Treasury was last quoted at 4.69 percent, its highest level since June 30. The move came after the Labor Department said the consumer price index rose a seasonally adjusted 0.4 percent in February led by soaring energy costs and higher prices for housing, medical care and air fares. Excluding food and energy prices, the core rate of inflation increased 0.3 percent in February. The increases in the CPI and core CPI were each 0.1 percentage point stronger than expected by Wall Street economists surveyed by MarketWatch

[UpInArms]

16. Futures down after CPI surprise (surprise???? wtf!)

http://cbs.marketwatch.com/news/story.asp?guid=%7B316938C8%2DC757%2D4F1B%2DB760%2D3E36B61C5771%7D&siteid=mktw

LONDON (MarketWatch) -- Stock futures turned lower Wednesday after a stronger-than-expected core CPI in February fed into an outlook for a faster pace to rising interest rates in the U.S.

The U.S. consumer price index increased a seasonally adjusted 0.4 percent in February, led by soaring energy costs and higher prices for housing, medical care and air fares, the Labor Department reported.

Excluding food and energy prices, the core rate of inflation increased 0.3 percent in February. The increases in the CPI and core CPI were each 0.1 percentage point stronger than expected.

On Tuesday, an interest rate hike from the Federal Reserve, which commented on inflation prompted a sell-off in the stock markets, which carried over the Tokyo and European markets overnight.

...more...

wonder how high the freakin' numbers would be if they would count food and energy prices - how in the world can you exclude the most common items for every household and then calculate inflation? :shakeshead:

[ozymandius]

26. WrapUp by Ike Iossif (many dour words)

WEEKLY REPORT

A couple of weeks ago we said: "The scenarios we outlined last week are still valid; notice that the indices have broken neither above resistance nor below support, thus, from a technical point of view, nothing has changed since last week. The indices remained stuck in the same trading range, but since they were unable to take out resistance, the odds favor a re-test of support, which is what we expect for next week. In the case of the Dow and the SP, we expect further decline to the first downside targets."

-cut-

Why do we believe that there is more work to the downside? First of all, all of our technical indicators are in negative territory and declining, which means the internals are not in a position to support strength. Second, take a look directly at the internal action over the past few months as illustrated by the number of stocks trading above their 200 DMA in the NYSE, in the Dow, in the SP500, in the NDX, and in the SP600-Small Caps Index (see charts on the bottom of this page). Thru-out the entire advance, which started last August--eight months ago--the number of stocks participating has gotten smaller and smaller, even in the leading indices such as the NYSE and the Dow. We see the exact same picture by looking at the McClellan AD and Volume Summation Indexes for the entire U.S. market (see last two charts from the bottom). In other words, internally, the entire market has been getting progressively weaker, while externally energy prices have been rising, and as of late, bond yields have been rising as well.

If we were looking at the same set of data 3-4 years ago, we would not hesitate to suggest that the market was on the brink of collapse, because if you examine market history over the previous 100 years, you would observe that market collapses have come about from a combination of profound internal weakness coupled with external shocks. However, having observed the price action of the past two years, and having seen the U.S. equity markets miraculously defying all odds, we must confess to you that although we are very cognizant of the market's precarious position, we would not be surprised at all if somehow the market's "guardian angels" managed to save it once again! History tells us that inevitably at some point, even this market will run out of "lives." Have we arrived at that point now? We do not pretend to know, but it sure does look like it.

more... many charts

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

[UpInArms]

27. pre-opening blather

briefing.com

9:15AM: S&P futures vs fair value: -2.2. Nasdaq futures vs fair value: -3.5. Stage remains set for the cash market to open on a downbeat note as futures trade remains below fair value... While falling oil prices have typically provided a floor of buying support for stocks, this morning's 1.6% decline to $55.15/bbl (-$0.88) has so far been unable to offset the larger than expected gains in consumer prices...

Meanwhile, Oracle (ORCL) should be in focus after beating estimates and raising FY05 guidance last night while reports suggest General Motors (GM) is in talks to sell a stake in its GMAC subsidiary for as much as $1 bln

9:00AM: S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -3.5. Futures indications bounce off their lows but still denote a negative bias, suggesting a lower start for the cash market... Treasurys, while still underwater, have also rebounded somewhat, as the 10-yr note is now only off 2 ticks yielding 4.64%... Potential for a reversal in bonds could arguably cushion the blow to stocks and, should Treasurys find ample buying interest, stocks could likely follow suit

8:34AM: S&P futures vs fair value: -4.5. Nasdaq futures vs fair value: -9.5. Futures trade pulls back following worse than expected CPI data, and now suggests a lower open for the indices... CPI report checks in above consensus, with a total CPI of 0.4% and core CPI up 0.3%...

ino.com

The June NASDAQ 100 was lower overnight as it extends last week's breakout below January's low crossing at 1496.50. Stochastics and the RSI are oversold but remain bearish signaling that additional weakness is possible near-term. If June extends last week's breakout below January's low, weekly support crossing at 1433.06 is the next downside target. Closes above the 10-day moving average crossing at 1501.10 would signal that a short-term low has likely been posted. The June NASDAQ 100 was down 2.50 pt. at 1472 as of 5:37 AM ET. Overnight action sets the stage for a steady to lower opening by the NASDAQ composite index later this morning.

The June S&P 500 index was lower overnight as it extends this month's decline. Stochastics and the RSI are oversold but remain bearish signaling that additional weakness is possible near-term. If June extends this month's decline, January's low crossing at 1170 is possible later this week. Closes above the 10-day moving crossing at 1194.46 would signal that a short-term low has been posted. The June S&P 500 Index was down 1.10 pts. at 1173.10 as of 5:40 AM ET. Overnight action sets the stage for a steady to lower opening when the day session begins later this morning.

[UpInArms]

31. 9:37 EST markets are open

Dow 10,465.70 -4.81 (-0.05%)
Nasdaq 1,986.72 -2.62 (-0.13%)
S&P 500 1,170.40 -1.31 (-0.11%)
10-Yr Bond 4.667 +0.57 (+1.24%)

NYSE Volume 68,456,000
Nasdaq Volume 87,939,000

[ozymandius]

32. 9:40 numbers

DJIA 10,454.25 -16.26 -0.16%
Nasdaq 1,985.67 -3.67 -0.18%
S&P 500 1,169.15 -2.56 -0.22%
Gold future 428.00 -3.60 -0.83%
30-Year Bond 4.90% +0.01 +0.14%
10-Year Bond 4.65% +0.04 +0.95%

Look at the difference in yield between the 10-year and the 30-year!

[RawMaterials]

35. 945 Blather

9:40AM: Stocks open lower as disappointing CPI data heightens inflation concerns... Both the Feb CPI (+0.4%) and core CPI (+0.3%) figures have checked in 0.1% larger than expected, augmenting concerns that the Fed may have to hasten the pace of rate hikes to keep inflation under control...

While core CPI was expected to check in at 0.2% for the fifth straight month, the uptick in consumer prices has lifted the core rate to 2.4% - the highest since Aug 2002 - and amplified a sense of nervousness already in the market after the Fed noted evidence of firming inflationary pressures in the wording of its policy statement yesterday... Separately, Feb existing home sales (consensus 6.7 mln) will be out at the top of the hour...

[UpInArms]

33. WaMu's Killinger took home $12.2M in 2004

http://cbs.marketwatch.com/help/default.asp?page=support/help/reprint.asp&dist=reprints&siteid=mktw

NEW YORK (MarketWatch) -- Washington Mutual (WM) Chairman and chief executive Kerry Killinger earned $12.2 million in compensation in 2004, more than double the $4.84 million he took home the previous year, according to a regulatory filing made Wednesday. The bulk of Killinger's 2004 package was an $8.9 million payout from the company's long-term incentive plan. Killinger also was paid a $1 million salary and $1.9 million bonus. Shares of Washington Mutual fell 21 cents to $39.50 after the opening bell.

how many WaMu employees were laid off last year?

and, gee, isn't it a great think that the minimum wage of $5.15 didn't get a hike from Congress this year - it might have affected this pukes salary and perks. :argh:

[UpInArms]

45. Three depart WaMu board

http://cbs.marketwatch.com/news/story.asp?guid=%7B953B660B%2D5256%2D4365%2D916C%2D7635561F6639%7D&siteid=mktw

NEW YORK (MarketWatch) - Three directors, citing age requirements and personal reasons, will step down from the Washington Mutual board, the company said in a regulatory filing made Wednesday.

Directors Douglas Beighle and William Schulte will retire Aug. 31 because they have reached the mandatory retirement age of 72, WaMu (WM: news, chart, profile) said in its annual proxy statement filed with the Securities and Exchange Commission.

Elizabeth Sanders, 59, said she will resign effective April 20 for personal reasons. Sanders is principal of The Sanders Partnership, an executive management and consulting firm. She has served on the WaMu board since 1998. Her term expires in 2006.

...more...

hmmmm....

[Maeve]

34. Calling in sick

Hey, folks! Thought I'd get back to y'all after St Pat's, but I took a bad fall and broke my wrist Monday and typing one-handed really sucks. (right wrist, so there goes the mouse, too! Glad I'm left-handed, but still...)

Keep up the good work! :hi:

[UpInArms]

37. Hi Maeve!

Gack! a broken wrist is not good :wince: :cringe:

Well, hopefully we'll just have good stuff for you to read :)

Take care and come back to the keyboard soon :hi:

[Tace]

41. Ouch!

I'm a lefty too, and I recently swapped to using my mouse on the left for ergonomic purposes. I reversed the right/click, left/click buttons too, in settings/control panel/mouse. My right shoulder feels a lot better now and has stopped making popping sounds. Chrs

[ozymandius]

55. Goodness, Maeve. I'm sorry.

How awful. I send my wishes for a speedy recovery and my hopes that the break was only a small one.

Thank you for checking in despite this.

Ozy :hi:

[UpInArms]

43. petroleum inventories report

10:31am 03/23/05 DOE: GASOLINE DOWN 4.1 MILLION BARRELS

10:32am 03/23/05 DOE: DISTILLATE SUPPLIES DOWN 2.8 MILLION BARRELS

10:31am 03/23/05 DOE: CRUDE SUPPLIES UP 4.1 MILLION BARRELS

[UpInArms]

46. seems there are some conflicting reports here

10:51am 03/23/05 API: CRUDE SUPPLIES UP 8.8 MILLION BARRELS

10:51am 03/23/05 API: GASOLINE SUPPLIES DOWN 4.7 MILLION BARRELS

10:52am 03/23/05 API: DISTILLATE SUPPLIES DOWN 4.7 MILLION BARRELS

hmmm...

these numbers are bothering me a bit:

DOE says crude up 4.1 million barrels/gas down 4.1 million barrels

distillates down 2.8 million barrels

net down - 2.8 million barrels

American Petroleum Institute says crude up 8.8 million barrels/gas down 4.7 million barrels/distillate down 4.7 million barrels

net down .6 million barrels

now what are the odds of gas and distillate being down the exact same amount (per API) and what are the odds of crude and gas being the exact same number (per DOE)

need more data and need to see actual reports :hmmm:

[UpInArms]

50. May crude begins to recover after data

http://cbs.marketwatch.com/news/story.asp?guid=%7B257D12AD%2DBCB4%2D4A4F%2D93CD%2DF30E8A385694%7D&siteid=mktw

DALLAS (MarketWatch) - May crude futures began to recover Wednesday morning after the Energy Department and the American Petroleum Institute reported large increases in crude supplies but steep drops in gasoline and distillate inventories.

<snip>

Crude supplies rose by 4.1 million barrels for the week ended March 18, the Energy Department said. Total gasoline inventories dropped by 4.1 million barrels last week, and distillate fuel inventories fell by 2.8 million barrels.

The API said crude supplies rose by 8.8 million barrels, but gasoline and distillate inventories both fell by 4.7 million barrels.

<snip>

The Energy Department also reported that refinery utilization dropped 0.5 percent from the previous week. Both gasoline and distillate fuel production dropped slightly from the week before.

...more...

no explanation for that very large variance in reports :shrug:

[UpInArms]

44. 10:40 EST numbers and blather

Dow 10,442.94 -27.57 (-0.26%)
Nasdaq 1,989.79 +0.45 (+0.02%)
S&P 500 1,169.63 -2.08 (-0.18%)
10-Yr Bond 4.651 +0.41 (+0.89%)

NYSE Volume 596,644,000
Nasdaq Volume 525,002,000

10:30AM: Little changed since the last update as major indices still struggle to gain much traction despite oil futures opening sharply lower and hovering below $55/bbl... Separately, Feb existing home sales have declined a less than expected 0.4%, checking in at a 6.79 mln annual rate from a revised 6.82 mln rate in January, but slightly higher than consensus estimates of 6.7 mln... While sales appear to be flattening out, housing demand continues to run at high levels... Homebuilding (-0.7%), however, has barely budged on the news as Treasurys remain under modest selling pressure...NYSE Adv/Dec 642/2314, Nasdaq Adv/Dec 1019/1685

[UpInArms]

48. 11:10 EST numbers and blather (all good again 'cept treasuries)

Dow 10,472.65 +2.14 (+0.02%)
Nasdaq 1,995.42 +6.08 (+0.31%)
S&P 500 1,173.09 +1.38 (+0.12%)
10-Yr Bond 4.623 +0.13 (+0.28%)

NYSE Volume 777,431,000
Nasdaq Volume 651,745,000

11:00AM: Choppy trading persists as oil prices remain volatile following a mixed oil report... While crude oil futures recently rebounded to session highs around $55.30/bbl, they have just as quickly fallen back below $55/bbl... Crude oil inventories rose 4.1 mln barrels, more than double what analysts expected, initially knocking the commodity to session lows...

But larger than expected declines in both distillates and gasoline inventories, which fell 2.8 mln barrels and 4.1 mln barrels, respectively, have underpinned a sense of caution, as gas inventories have arguably moved into the spotlight as the U.S. embarks on its busiest driving season (i.e. Summer) and high gas prices prompt concerns about pressure on discretionary spending...NYSE Adv/Dec 619/2487, Nasdaq Adv/Dec 956/1864

[UpInArms]

47. NASD fines 3 firms total $21.3M for mutual fund sales

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38434.458155-833509840&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- The National Association of Securities Dealers said Wednesday that it has fined Citigroup Global Markets (C) , American Express Financial Advisors (AXP) and Chase Investment Services (JPM) a total of $21.3 million related to mutual fund sales practices between January 2002 and July 2003. NASD said the Citigroup and Chase cases involve the recommendation and sales of Class B and Class C shares of mutual funds, while the American Express case relates only to Class B shares. The NASD said each firm didn't adequately consider or disclose to customers that an equal investment in Class A shares would generally have been more economically advantageous by providing a higher overall rate of return. Each company settled its case without admitting or denying the allegations, said NASD.

Doesn't this make you just want to put all your Social Security TRUST FUND money into the stock market casino wheel of fortune crap game?

[UpInArms]

51. Bush appoints Tim Adams as Treasury UnderSecretary

11:32am 03/23/05 ADAMS TAPPED TO BE TREASURY UNDER SEC FOR INTL AFFAIRS

11:31am 03/23/05 BUSH TAPS ADAMS TO BE NEW POINT MAN ON CURRENCIES

background on Adams:

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=7973751

excerpt:

McClellan did not say who the replacement would be but Tim Adams, a senior Bush campaign adviser and former Treasury official, was expected to take over as under secretary for international affairs from Taylor.

Adams was chief of staff to former Treasury Secretary Paul O'Neill until O'Neill resigned in in December, 2002. He continued as chief of staff to O'Neill's successor, John Snow, until moving over to President George W. Bush's 2004 reelection campaign.

As Taylor's replacement, Adams' portfolio would include a hand in U.S. dollar policy as well as oversight of the International Monetary Fund and the World Bank.

Taylor, a world renowned economist, was expected to return to teaching at Stanford University in California. His resignation becomes effective April 22, after spring meetings of the IMF and World Bank.

...more at link...

[UpInArms]

52. here's a timely propaganda release meant to frighten the sheep

into the casino pen:

11:45am 03/23/05 SOCIAL SECURITY IMBALANCE 1.92% OF PAYROLLS

11:44am 03/23/05 SOCIAL SECURITY SHORTFALL ADVANCED BY 1 YEAR

11:45am 03/23/05 SOCIAL SECURITY FACES $4 TRILLION SHORTFALL OVER 75 YRS

11:44am 03/23/05 SOCIAL SECURITY TRUST FUND FACES EXHAUSTION IN 2041

[UpInArms]

53. seems that SnowJob the Blowjob was spewing the right-wing talking points

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38434.4932599306-833511624&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- The Social Security trust funds will be exahusted by 2041, according to a new report by the system's trustees released Wednesday. Last year, the exhaustion date was put at 2042. In the next 75 years, the system faces a $4 trillion deficit, up from $3.7 trillion estimated last year. The deficit amounts to 1.92 percent of taxable payrolls, up from 1.89 percent last year. "The numbers published today leave no question that Social Security reform is needed, and it is needed soon," said Treasury Secretary John Snow, one of three Cabinet officials on the board of trustees.

http://www.mynippon.com/social-security-privatization/2005/01/bush-uses-propaganda-to-mislead.html

excerpt:

Officers of the National Social Security Council, which represents workers of the Social Security Administration (SSA), have testified before the Democratic Senate Policy Committee regarding reports in the media that employees have been instructed to hype negative projections for Social Security and to promote privatizing Social Security. (Related article: Why did Social Security privatization become a priority for Bush)

Union testimony exposed ways in which SSA employees were instructed to promote the idea that Social Security is in a crisis and that private investment accounts are the solution to this financial situation. The testimony suggests that SSA may have violated federal law prohibiting agencies from using funds for propaganda purposes unless those funds are specifically designated for such use by act of Congress. Additionally, the testimony refuted recent White House assertions and a statement that SSA employees are now required to read, on behalf of Social Security Commissioner Jo Anne B. Barnhart, in the event that they are questioned about the recent media reports.

"Previously, our employees had shared information with the public about Social Security's financial condition, but had never been encouraged to support any particular 'reform' proposal. In fact, they were always expected to remain neutral on political and legislative matters," testified Steve Kofahl, regional vice president of the Council and president of AFGE Local 3937.

...more...

[ozymandius]

56. From another thread:

Snippy says that Bush will order the trustees to lie. Apparently this is the case. What is also so completely astonishing is that SS reform is irrevocably tied to the stock market. More-than-expected numbers of concerned citizens have taken the time to educate themselves on the present and future state of Social Security. This may attribute to the reason why this Bush plan is going down in flames.

Now if people were to learn a little history they would know that Social Security has been targeted for dismantling for over twenty years by these Republican thugs.

[punpirate]

67. Sounds pretty dire...

... according to Snow Job.

But, break it down into a yearly cost ($4 trillion over 75 years), and it's $53 billion per year. With the latest appropriations for Afghanistan and Iraq, we've already frittered away almost six years' worth of hedging against that eventuality.

Make a reasonable re-indexing of the cap for inflation and the problem goes away.

Just one problem with the problem--that's not the real problem. It's the money that's been borrowed from the SS trust that they don't want to pay back. That borrowing has been going on for almost twenty-five years, and combined with the on-the-books deficits in that period of time, it's a ballbuster of a problem for a president whose base looks a lot like Herbert Hoover's.

[UpInArms]

69. I run the risk of repeating myself

from that other thread:

Baby Boomers Have Already Paid for Their Social Security Benefits

7/8ths down the page

http://www.allenwsmith.com/2004.10.01_arch.html

In 1982 Alan Greenspan chaired a Presidential Commission on Social Security that was given the task of “fixing” the baby boomer problem in advance of their retirement, when a larger than normal number of workers would hit retirement age at around the same time, significantly stretching the Social Security rolls. Greenspan and the other commission members decided that the baby boomers needed to pay higher payroll taxes, beginning in 1983, and continuing until they retired to meet future needs. This money was supposed to be used to build up a large reserve to supplement payroll tax revenue when the boomers retired.

In 1983, the commission’s recommendations were enacted into law, and the baby boomers, along with all other workers, have been paying the higher taxes ever since. By the time they retire, the baby boomers will have paid enough into the Social Security trust fund to cover the payment of full benefits to all members of their generation until the year 2042. By that time the youngest of the baby boomers will be 78 years old. Only after 2042 would there be an actuarial problem with the fund. That would have been the end of the story if the government had kept its hands out of the Social Security cookie jar. However, politicians from both political parties have been using the Social Security surplus money for non-Social Security purposes ever since the surpluses first began to show up in the 1980s.

As a result, the government has “borrowed” every dollar of the $1.5 trillion surplus revenue generated by the 1983 payroll tax increase, and used it to fund tax cuts and programs not related to Social Security. Furthermore, the government continues to loot the fund to the tune of more than $400 million per day. The Social Security surplus money was supposed to be invested in already existing marketable Treasury securities that were held by the public. This would have resulted in a reduction in the publicly-held debt, and the Social Security surplus would have been invested in real marketable assets that could be redeemed by the Social Security Trustees without any action by Congress or the president.

...more...

The whole freaking act is bullshit - the boomers pre-paid for their retirement. The IOUs are Treasury Notes - if those are not redeemable, then the entire country is busted flat - and no treasury note is worth the paper it is printed upon.

I declare my contempt for this maladministration and all of its thieving henchmen.

:argh:

[UpInArms]

54. 12:05 EST numbers and blather

Dow 10,461.71 -8.80 (-0.08%)
Nasdaq 1,993.35 +4.01 (+0.20%)
S&P 500 1,171.86 +0.15 (+0.01%)
10-Yr Bond 4.640 +0.30 (+0.65%)

NYSE Volume 1,039,635,000
Nasdaq Volume 845,650,000

12:00PM: Market continues to trade with a tinge of caution midday as increased inflation woes and a mixed oil report weigh on sentiment... As if the wording in yesterday's FOMC policy statement noting evidence of firming inflationary pressures wasn't enough, worse than expected CPI data has heightened inflation concerns and the possibility that the Fed may have to accelerate the pace of future interest rate hikes... Feb CPI rose 0.4% (consensus +0.3%) while core CPI, which excludes food and energy costs, rose 0.3% (consensus +0.2%)...

While crude oil prices ($54.57/bbl -$1.46) opened down nearly a dollar and were pushed even lower following the largest build in crude oil supplies since July 2002, investors have been tentative to own stocks amid concerns about high gas prices curbing discretionary spending... Crude oil inventories rose 4.1 mln barrels (consensus +2.0 mln), but gasoline inventories fell 4.1 mln barrels (consensus -1.5 mln) and distillates declined 2.8 mln barrels (consensus -1.2 mln)... While a more than 2.5% decline in oil has failed to incite broad-based buying, falling oil prices have invited selling interest in Energy (-1.4%)...

Also under pressure have been interest-rate sensitive areas like Utility (-0.9%) and Homebuilding (-0.8%), as bonds struggle to recoup earlier losses, but Financial (+0.2%) has benefited from modest gains in Banking and Insurance... While the 10-year note has rebounded somewhat, up 2 ticks at 4.63%, yields still remain at high levels not seen since last July... That said, the dollar has strengthened to a 5-week high against the euro (1.2996), adding pressure to the Materials sector...

[ozymandius]

57. 12:56 - each index has a toe in the black

But the 10-year is not doing so great.


DJIA 10,474.64 +4.13 +0.04%
Nasdaq 1,996.28 +6.94 +0.35%
S&P 500 1,174.33 +2.62 +0.22%
10-Year Bond 4.62% +0.01 +0.24%

[loudsue]

58. This market up/down thingy is giving me whiplash!

Is the Plunge Protection Team money printer running out of ink cartridges?

:hi: Thanks for keeping us informed, Marketeers! :hi:

:kick::kick::kick:

[ozymandius]

59. 3pm and barely breaking even

Dow
10,471.76
+1.25
(+0.01%)

Nasdaq
1,993.68
+4.27
(+0.21%)

S&P 500
1,173.61
+1.90
(+0.16%)

10-Yr Bond
4.625%
+0.02

NYSE Volume
1,721,804,000

Nasdaq Volume
1,364,244,000

[ozymandius]

60. blather

2:30PM: More of the same for the averages as blue chips continue to lag their Nasdaq counterparts... Providing a base of buying support continues to be Semiconductor, following upbeat guidance from Lattice Semiconductor (LSCC 5.26 +0.17) which now expects Q1 revenue to range from $50-51 mln versus prior guidance of $46-49 mln... Applied Materials' (AMAT 16.26 +0.45) recent declaration of a $0.03 quarterly dividend and increased share repurchase program to $4.0 bln has also provided a level of support for technology...

[UpInArms]

61. 3:01 EST numbers and some old blather

Dow 10,471.91 +1.40 (+0.01%)
Nasdaq 1,993.51 +4.17 (+0.21%)
S&P 500 1,173.68 +1.97 (+0.17%)
10-Yr Bond 4.623 +0.13 (+0.28%)

NYSE Volume 1,733,947,000
Nasdaq Volume 1,370,871,000

2:30PM: More of the same for the averages as blue chips continue to lag their Nasdaq counterparts... Providing a base of buying support continues to be Semiconductor, following upbeat guidance from Lattice Semiconductor (LSCC 5.26 +0.17) which now expects Q1 revenue to range from $50-51 mln versus prior guidance of $46-49 mln... Applied Materials' (AMAT 16.26 +0.45) recent declaration of a $0.03 quarterly dividend and increased share repurchase program to $4.0 bln has also provided a level of support for technology...

Other notable movers have been XLNX (+2.6%), AMD (+2.1%), NSM (+1.9%) and INTC (+1.8%) while STMicroelectronics (STM 16.80 -0.02) has been the only component in the SOX (+1.8%) trading lower... NYSE Adv/Dec 912/2379, Nasdaq Adv/Dec 1212/1819

2:00PM: Indices inch to new session highs, amid ongoing profit taking in oil futures, but overall sentiment remains quite bearish...One area bucking the overall negative tone has been Airline (+2.9%), fueled primarily by a 4.2% drubbing in oil prices... Transportation, however, has remained weak amid inflation worries and selling pressure on trucking stocks due to a warning from Covenant Transport (CVTI 16.92 -2.31), which said Q1 results will be worse than expected due to customer resistance to rate hikes...

Notable trucking companies under pressure include CNF (-1.9%), JBHT (-1.3%), EXPD (-1.3%), R (-1.3%) and YELL (-0.4%)...DJTA -0.3, NYSE Adv/Dec 827/2446, Nasdaq Adv/Dec 1127/1872

1:30PM: Broader market action still leaves little to be desired as stocks remain mired in relatively tight trading ranges...

[ozymandius]

65. blather without enthusiasm

but the writers do seem grateful tha the markets will be taking a holiday

3:30PM: Indices still fluctuate around the flat line, showing little direction going into the close, as investors continue to weigh a sell off in oil futures against rising consumer prices... While tomorrow's economic data does not carry the weight to alter the recent FOMC statement and inflationary measures from today's CPI data, investors will have little else to focus on before closing out the holiday shortened week... At 8:30 ET, Feb durable orders (consensus +0.8%) and initial claims (consensus 315K) will be released while Feb new home sales (consensus 1150K) will be out at 10:00 ET...NYSE Adv/Dec 731/2577, Nasdaq Adv/Dec 1046/2020

[MARALE]

62. explosion at Texas Refinary

They said we should expect to see gasoline prices increase because refinery production will be cut back for awhile. (Shit!)

http://www.click2houston.com/news/4311459/detail.html

TEXAS CITY, Texas -- A plant exploded in Texas City Wednesday afternoon, sending a plume of thick black smoke into the air, officials told Local 2.

The blast happened shortly after 1:20 p.m.

Witnesses said the blast happened at the BP Amoco chemical plant, located at 2800 F.M. 519 E.

There's no word yet on what chemicals are involved or if there are any injuries.

Residents called Local 2 to say that the explosion rattled windows.

SNIP

This is from Ilsa
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=1335609&mesg_id=1335622&page=

[JNelson6563]

63. 3:36 Update

Well the refinery explosion will serve as cover for this next exodus.

3:36 and here's where we are:

Dow 10,470.06 -0.45 (-0.00%)
Nasdaq 1,993.83 +4.49 (+0.23%)
S&P 500 1,173.62 +1.91 (+0.16%)
10-Yr Bond 4.607% -0.00

I have to say I have been astonished by the moves in Treasuries lately. Zowie!!

Julie

[MARALE]

64. This as well from marketwatch

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7BF21B5D95-6991-4E56-B978-BA8DA440D787%7D&

3:30pm 03/23/05

Crude futures jump after hours on news of refinery fire By Lisa Sanders
DALLAS (MarketWatch) -- Crude futures, which lost 4 percent at the close of trading on the New York Mercantile Exchange Wednesday, jumped almost 1 percent in after-hours dealings after television stations reported a refinery fire at BP's (BP) Texas City, Texas refinery -- the third largest in the U.S. "The news spread like wildfire across the trading floor near the end of the NYMEX session and I suspect that when 'after hours' trading begins, there will be a lot of fireworks in futures," said Tom Kloza, chief oil analyst at the Oil Price Information Service. The May contract last stood at $54.30, up 49 cents.

Gotta love the language he uses

[ozymandius]

66. It's clearly having an effect.

just before the close...

Dow
10,457.50
-13.01
(-0.12%)

Nasdaq
1,990.50
+1.16
(+0.06%)

S&P 500
1,172.64
+0.93
(+0.08%)

10-Yr Bond
4.607
-0.03
(-0.07%)

NYSE Volume
2,132,686,000

Nasdaq Volume
1,698,583,000

[UpInArms]

68. BP Texas refinery explosion kills 4, injures 10

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38434.6477248843-833517955&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- An explosion at a BP Plc (BP) refinery Wednesday in Texas City, Texas, has killed four people and injured at least 10, according to a local TV station. A large explosion and fire broke out at the plant in Texas City around 1:20 p.m CT, KHOU-TV reported on its Web site. BP's Texas City refinery, located just south of Houston, produces 30 percent of BP's North American supply and 3 percent of the entire United Stated supply, according to BP's Web site. Its daily output of crude oil stands at 435,000 barrels. The facility employs about 1,725 employees and contract personnel who operate its 30 process units. It was unclear which facilities at the plant were damaged.

[UpInArms]

71. gas on "fire" in afterhours trading

4:09pm 03/23/05 APRIL GASOLINE LAST AT $1.6015, UP 1.7 PERCENT

4:09pm 03/23/05 GASOLINE HITS A RECORD $1.608 IN AFTER-HOURS TRADING

I guess that trader meant to say "gasfire" not "grassfire" :eyes:

[UpInArms]

70. Hi Julie!

:hi:

Good to see you here!

Treasuries are roaring up there, huh?

[ozymandius]

72. final numbers and blather forthcoming

DJIA
10,456.02
 -14.49  
 -0.14%


Nasdaq
1,990.22
 +0.88  
 +0.04%


S&P 500
1,172.53
 +0.82  
 +0.07%


10-Year Bond
4.61%
 -0.00  
 -0.07%

NYSE Volume
2,249,327,000

Nasdaq Volume
1,744,188,000

[JNelson6563]

73. Hi Again All!

I think things look grim. Sure, sure, we've all said it before but really. GM practically at junk bond status (is this earth?) and the cheerleaders workin' it harder and harder to spin things positively.....Lookin' grimmer all the time and I am really worried. This GM stuff was the thing that pushed me over the edge.

I sure feel sorry for all those poor, silly optimists who took out ARMs during the high times. Especially if they also bought great big, expensive SUVs that get 10 miles to a gallon.....

Sorry for the doom and gloom friends, I'll be trying hard to watch closely with you in the near future. This bears close watching. Glad you'll all be here to keep us up to date.

Catch you all in the AM--
Julie

[fedsron2us]

74. GM had $ 301 billion of consolidated debt at the end of 2004

If they go down then they will take the bond and stock markets with them. I agree with you. This is could be really bad.

http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050323/RGMBONDS23/TPBusiness/MoneyMarkets

[JNelson6563]

76. Alarming article

Thanks for posting that.

Nothing through these past few years has given me the knot in the stomach like this GM situation. Even a couple of summers ago when the DOW dropped hundreds of pts in a day didn't have this effect on me.

I wish more would stop and look at this. Of course with MSM doing their bit to cover it up with distractions like Shiavo and Michael Jackson, many have no clue what's happening. Poor lemmings won't see it coming.

Julie

[RawMaterials]

77. didn't the saying go

with gm goes the economy, i think they employ 1out of every 8 workers, or something like that.

[RawMaterials]

75. Blather

just got back from picking the wife up from the airport :hi:
This is getting interesting,I'm glad we didn't buy a house yet still debating taking out a 30 fixed but i don't know if its the right thing to do at the current time.


Close: The market showed resilience in the face of heightened inflation fears but a collapse in oil prices and falling bond yields were only enough to close the indices in mixed fashion... The wording in yesterday's FOMC policy statement, which noted signs of inflation for the first time in more than four years, was one issue of concern...

But when rising consumer prices in the form a disappointing CPI report this morning merely reiterated the Fed's statement of a pick up in inflationary pressures, overall sentiment was more than cautious all day as the possibility of more aggressive Fed tightening loomed... Feb CPI rose 0.4% (consensus +0.3%), the most in four months, while core CPI, which excludes food and energy costs, rose 0.3% (consensus +0.2%)... However, while bearish breadth figures and split industry leadership underpinned market action, a 4.0% decline in oil prices provided a respectable level of support for buyers looking for bargains in an arguably oversold market... Crude oil prices recorded their largest one-day decline in 2005, falling $2.22 to $53.81/bbl following the largest build in crude oil supplies since July 2002...

Crude oil inventories rose 4.1 mln barrels (consensus +2.0 mln), as refineries increased imports in preparation for meeting summer gasoline demand, but gasoline inventories fell 4.1 mln barrels (consensus -1.5 mln) and distillates declined 2.8 mln barrels (consensus -1.2 mln)... To wit, investors tiptoed through equities amid concerns that high gas prices could restrain discretionary spending... Energy (-1.7%) paced the way lower while interest-rate sensitive areas like Utility (-0.8%) and Homebuilding (-1.2%) were also some of the hardest hit, as yields flirted with 8-month lows following the disappointing CPI data...