STOCK MARKET WATCH, Monday April 16

[ozymandius]

Source: DU

Monday April 16, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 644 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2297 DAYS
WHERE'S OSAMA BIN-LADEN? 2007 DAYS
DAYS SINCE ENRON COLLAPSE = 1967
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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

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

AT THE CLOSING BELL ON April 13, 2007

Dow... 12,612.13 +59.17 (+0.47%)
Nasdaq... 2,491.94 +11.62 (+0.47%)
S&P 500... 1,452.85 +5.05 (+0.35%)
Gold future... 689.90 +10.20 (+1.50%)
30-Year Bond 4.93% +0.02 (+0.33%)
10-Yr Bond... 4.76% +0.02 (+0.51%)






GOLD, EURO, YEN, Loonie and Silver

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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

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Read more: DU

[ozymandius]

1. Today's Market WrapUp

Jumping the Fire Lines?
BY BRIAN PRETTI

I’ll try to keep this discussion relatively short, as there are more than a good number of charts to wade through that clearly tell a story. I’ve spilled far too much digital ink and have spent far too many hours writing about housing and mortgage credit for some time now. Important if you believe, as I do, that we are running on a credit cycle, not a traditional business cycle. Well, we’re finally starting to see a number of credit market chickens looking for roosting perches, if you will. And what has been a bit of a surprise, even to myself, is the speed with which change has occurred in certain pockets of the credit market over the past few months. It goes without saying that sub prime is essentially a poster child for this abruptness of deterioration phenomenon. But with the announcement by American Home Mortgage last week of a severe earnings shortfall, we have to anticipate that the fire in the world of sub prime lending has now jumped the fire lines and is smoldering in the woods of Alt-A mortgage credit. So much for mortgage credit problems ultimately being “contained” to the world of sub-prime.

Stepping back just a bit, I believe the much larger conceptual issue of importance here is credit availability, plain and simple. How else could private equity deals currently be getting done in what have otherwise been considered very cyclical industries such as semiconductors or possibly one of the largest chemical companies on the planet if not for ease of credit availability? How could hedge funds lever at multiples of equity, and then be levered again inside fund of funds vehicles if not for ease of credit availability? And in this process we see rhyming in terms of how assets are being levered. In the world of mortgages, credits were sliced, diced and sold to investors, generating big fees for those “repackaging” and marketing these credits. In private equity deals, newly created corporate leverage is again often sliced up into collateralized obligations, once again generating big fees for those “repackaging” and marketing these credits. See the pattern? As you know, many financial services providers, to use a characterization, have a huge vested interest in keeping the macro leveraging game going, regardless of market or economic sector it touches at any point in time. Again, without sounding overly simplistic, it’s all about credit availability and the collateral that supports those credits. But now, the collateral in the land of mortgage credit is turning dark, just as will ultimately be the case when levered up private equity deals hit a meaningful economic downturn accompanied by cash flow contraction. But that’s a story for tomorrow. Today, it’s about the changing nature of mortgage credit availability.

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

[Roland99]

15. Anectdotal tales on New York City area real estate (and not good news either)

So, I went to visit a friend of mine in Westport, CT over the weekend (after spending most of the day with my youngest daughter in NYC under great spring weather - pre-deluge :) ).

He and his wife closed on this house back in Nov. but just moved in several weeks ago (they had the place gutted and redone). The contractors were just installing the hood over the stove when I was there and he had a tale to tale of some nearby homes that are sitting unsold for a long time.

One home is about 7,000 sq. ft. and was originally listed at $4.9 million or so. It's been sitting unsold for months. The investors even filled the place up with furniture and made it look like someone was living there (newspapers on the table, etc.) and lowered the price by $500,000 and it's still sitting unsold.

A second home was well over $3 million and the price on it had been dropped by about $500,000, too. It's still sitting unsold.

Yet another has been unsold for months, too.

This developer and the investors have about $11 million tied up in just these three homes. He's losing $15,000/mo. on the 1st home alone.

The people buying these homes aren't going to be the ones who'd be going the sub-prime route. You don't get a 5-figure mortgage if your credit is iffy :) You buy a multi-million dollar home if you're some big corporate exec and have a sizable portfolio. But, if you're a big corporate exec and you do have a sizable portfolio but you're still not buying these homes, why aren't you? Because you're scared sh*tless that the prices are going to tank even further and you'll be stuck with a DEPRECIATING asset.

[AnneD]

26. Good street reporting....

and good observations.

[ozymandius]

2. Today's Reports

8:30 AM Retail Sales Mar
Briefing Forecast 0.5%
Market Expects 0.4%
Prior 0.1%

8:30 AM Retail Sales ex-auto Mar
Briefing Forecast 0.9%
Market Expects 0.7%
Prior -0.1%

8:30 AM NY Empire State Index Apr
Briefing Forecast 10.0
Market Expects 10.0
Prior 1.9

9:00 AM Net Foreign Purchases Feb
Briefing Forecast NA
Market Expects $80.0B
Prior $97.4B

10:00 AM Business Inventories Feb
Briefing Forecast 0.2%
Market Expects 0.2%
Prior 0.2%

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

[UpInArms]

10. 8:30 reports:

02. U.S. March gasoline station sales up 3.1%
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

03. U.S. April Empire State prices paid index 40.5 vs 30.2 March
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

04. U.S. March clothing store sales up 2.4%
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

05. U.S. April Empire State employment index 5.4 vs 11.4 March
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

06. U.S. March motor vehicle sales up 0.4%
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

07. U.S. April Empire State shipments 8.7 vs 18.5 in March
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

08. U.S. Feb. retail sales revised to 0.5% vs. 0.1%
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

09. U.S. April Empire State new orders index 3.9 vs 3.1 March
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

10. U.S.March retail sales ex-gasoline rise 0.4%
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

11. U.S. April Empire State index below consensus 7.6
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

12. U.S. March retail sales ex-autos up 0.8% vs. 1% expected
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

13. U.S. April Empire State index 3.8 vs 1.9 in March
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

14. U.S. March retail sales up 0.7% vs. 0.6% expected
8:30 AM ET, Apr 16, 2007 - 35 seconds ago

[UpInArms]

12. 10:00 reports

13. U.S. Feb. retail auto inventories fall 0.7%
10:00 AM ET, Apr 16, 2007 - 15 minutes ago

14. U.S. Feb. retail inventories up 0.3%
10:00 AM ET, Apr 16, 2007 - 15 minutes ago

15. U.S. Feb. business sales up 0.4%
10:00 AM ET, Apr 16, 2007 - 15 minutes ago

16. U.S. Feb. business inventories up 0.3% as expected
10:00 AM ET, Apr 16, 2007 - 15 minutes ago

17. U.S. Feb. business inventory-sales ratio steady at 1.29
10:00 AM ET, Apr 16, 2007 - 15 minutes ago

[UpInArms]

13. US sees Feb long-term capital inflow of $58.1 bln

http://www.reuters.com/article/bondsNews/idUSN1628681520070416

WASHINGTON, April 16 (Reuters) - International investors bought a net $58.1 billion in long-term U.S. securities in February, down significantly from January, the U.S. Treasury Department said on Monday.

February foreign purchases of long-maturity securities such as equities, notes and bonds fell short of the upwardly revised $98.8 billion in net purchases recorded for January.

Including short-term securities such as Treasury bills, foreigners bought a net $94.5 billion of U.S. securities in February, more than enough to cover that month's $58.4 billion trade deficit and above the upwardly revised January net inflows of $79.6 billion.

[ozymandius]

3. Oil prices inch up in Asian trading

SINGAPORE - Oil prices rose slightly Monday as the market looked for direction ahead of the expected restarts at U.S. refineries and Nigerian presidential elections that some fear could spark violence that may disrupt oil supplies.

Light, sweet crude for May delivery inched up 14 cents to $63.77 a barrel in midafternoon Asian electronic trading on the New York Mercantile Exchange. The contract is likely to experience slow trading because it expires this week.

Brent crude for June was up 14 cents at $68.77 a barrel on London's ICE Futures exchange.

-cut-

Last week, oil prices were lifted by problems at several U.S. refineries and a decrease in U.S. gasoline stockpiles. Some, including the McKee refinery in Texas, are expected to resume gasoline production this week, which should support prices.

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

[ozymandius]

5. OPEC maintains oil demand forecast for 2007

VIENNA (AFP) - The Organisation of Petroleum Exporting Countries (
OPEC) said on Monday it was maintaining its forecast for growth of world oil demand in 2007 unchanged at 1.5 percent.

very short

[AnneD]

16. Nigeria is not too long out of a civil war....

I think trouble is brewing there as the civil war was not totally resolved (per a friend of mine that survived the atrocities). Look for even higher gas. Ours in Houston went up again. The cheapest I could find is 2.63 but most stations range from 2.73-2.85 for reg. unleaded. If Nigeria has violence look for higher prices.

[ozymandius]

4. Stocks point higher before retail sales

NEW YORK - Stocks pointed toward a higher open Monday following financial results from Citigroup that came in stronger than expected, and as investors awaited the government's March retail sales.

Citigroup, the largest U.S. financial institution, said its first-quarter profit fell by 11 percent, but the results included a charge to cover a massive restructuring. Excluding that charge, the profit was higher than analysts expected.

Meanwhile, Wachovia Corp., the nation's fourth-largest bank, reported a rise in profit that surpassed Street expectations — also helping to reassure investors that the large U.S. banks are faring better than anticipated, despite trouble in the subprime lending sector.

With earnings reports now coming out in earnest, nearly half the component companies of the Dow Jones industrial average release earnings this week. Investors anticipate they will indicate that corporate growth slowed in the first three months of 2007 compared to previous quarters. Standard & Poor's recent estimate of first-quarter earnings growth for S&P 500 companies is 3.8 percent.

http://news.yahoo.com/s/ap/20070416/ap_on_bi_st_ma_re/wall_street

[54anickel]

31. U.S. Stocks Rise on Takeovers, Earnings; SLM, Citigroup Advance

http://www.bloomberg.com/apps/news?pid=20601084&sid=a9B6ri8Utarg&refer=stocks

April 16 (Bloomberg) -- U.S. stocks gained, pushing the Standard & Poor's 500 Index to its highest in more than six years, after SLM Corp. agreed to be acquired and earnings from Citigroup Inc. topped analysts' estimates.

SLM rallied the most ever after the student-loan provider, known as Sallie Mae, accepted a $25 billion bid from a group led by a private equity fund. Shares of Wachovia Corp., Eli Lilly & Co. and Mattel Inc. climbed as the companies joined Citigroup Inc. in reporting quarterly profit that exceeded analysts' projections. The Dow Jones Industrial Average erased all of its losses from the Feb. 27 global sell-off.

About $684 billion in deals involving U.S. companies have been announced this year, 46 percent more than the same period last year, according to Bloomberg data. Stocks last week posted their first back-to-back weekly gain since January on higher- than-expected earnings and speculation takeovers will accelerate.

``The Sallie Mae deal is significant -- it shows the continuing buying power of private equity,'' said James Awad, who oversees about $1.3 billion as chairman of Awad Asset Management in New York. ``It's a very heavy earnings week and we got off to a good start. That speaks to a very respectable outlook for the markets.''

The S&P 500 added 9.34, or 0.6 percent, to 1462.19 as of 10:33 a.m. in New York, its highest since September 2000. The Dow industrials rose 69.32, or 0.6 percent, to 12,681.45. The Nasdaq Composite Index increased 14.71, or 0.6 percent, to 2506.65.

more...

[ozymandius]

6. Sallie Mae to be bought for $25 billion

NEW YORK (Reuters) -- Sallie Mae, the largest U.S. student loan company, has agreed to be bought by two private-investment funds along with JPMorgan Chase and Bank of America for $25 billion, it said Monday.

The move comes on the heels of a settlement between Sallie Mae and New York Attorney General Andrew Cuomo for $2 million in which Sallie Mae promised to change its lending practices.

JC Flowers & Co. and Friedman Fleischer & Lowe plan to take a 50.2 percent stake in Sallie Mae, while JPMorgan (Charts) and Bank of America (Charts) each would take 24.9 percent stakes.

-cut-

Attorneys General from states including New York, California, and Connecticut are meanwhile looking into the extent to which student loan companies are offering kickbacks to universities and their financial aid employees for steering business.

http://money.cnn.com/2007/04/16/news/companies/sallie_mae.reut/index.htm?postversion=2007041607

[UpInArms]

20. Moody's says may cut SLM (Sallie Mae) to "junk" on buyout

http://www.reuters.com/article/bondsNews/idUSL1614985620070416

LONDON, April 16 (Reuters) - Credit ratings agency Moody's Investors Service on Monday said it might cut the ratings on U.S. student loan company Sallie Mae to "junk" if it is acquired by private equity funds and banks in a $25 billion deal. Sallie Mae, whose formal name is SLM Corp. (SLM.N: Quote, Profile, Research), said on Monday private equity groups J.C. Flowers and Friedman Fleischer & Lowe would own 50.2 percent of the company, while Bank of America (BAC.N: Quote, Profile, Research) and JP Morgan (JPM.N: Quote, Profile, Research) would own 24.9 percent each.

Moody's said in a statement it might cut Sallie Mae's A2 rating by "multiple notches ... potentially to speculative grade" due to the debt that would be added to the company's balance sheet by the buyout. The rating is currently five notches above "junk" status.

"SLM's financial flexibility as well as debt protection measures for unsecured bondholders would be significantly impaired ... Cash flow coverage measures will be weak," the credit ratings agency said in a statement.

Moody's said its review for downgrade would consider the company's expected capitalisation, the extent of support from JP Morgan and Bank of America, and any possible structural protections that might be introduced to insulate SLM from financial stress.

...more...

[AnneD]

51. If it is nothing but junk....

why is BOA and Chase in on the deal? I don't know them to be either stupid or benelovent. I don't need a crystal ball to tell me that this is another way to fleece the middle class families. BOA and Chase are in it for market shares and revenue. If it is a bad deal, they will strip away equity, in the form of debt burden and sell it to a greedy/stupid Wall Street and make a killing.
God I just hate this type of shit.

[54anickel]

46. First Marblehead Plunges on Concern SLM Sale Will Cut Profit

http://www.bloomberg.com/apps/news?pid=20601087&sid=ainIa5aSGvBg&refer=home

April 16 (Bloomberg) -- Shares of First Marblehead Corp. plunged as much as 31 percent on concern that leveraged buyout of rival SLM Corp. will reduce the supply of student loans to securitize and service.

First Marblehead gets about 41 percent of its loans through relationships with JPMorgan Chase & Co. and Bank of America Corp., two members of the group that agreed today to acquire SLM, Thomas Weisel Partners Group Inc. analyst Mark Sproule wrote in a note to investors. The acquisition may prompt the banks to drop First Marblehead in favor of SLM, or they may choose to provide student-loan services in-house, he said.

``The potential SLM transaction highlights the rising concern that both JPMorgan and Bank of America may begin to originate and retain private loan volumes,'' Sproule, who rates Boston-based First Marblehead ``market weight,'' said in today's note.

First Marblehead, the third-largest securitizer of student loans after SLM, known as Sallie Mae, and Citigroup Inc.'s Student Loan Corp., generates revenue by designing and facilitating the loans, and by packaging them into bonds. Sproule estimated that losing JPMorgan alone would cost First Marblehead 27 percent of its earnings.

more...

[ozymandius]

7. G'morning Marketeers.

:donut: :donut: :donut:

I will be away from the computer most of the day. Might be able to check in this afternoon. Have fun watching the roulette wheels turn.

ozy :hi:

[AnneD]

11. Morning Marketeers.....

:donut: and lurkers. Ozy I got a cyber buck I 'll bet for ya. Up or down. My guess is down for the week, maybe this week. We should has an interesting week with all the reports coming out and all. More ups and downs than an episode of Desperate Housewives.:evilgrin:

Today marks a sad day in Texas history (and a warning to British Petroleum). This marks the 60th anniversary of the Texas city disaster. In one day, Texas City lost all their firefighter.The dead totaled 581, but the total number victims were over 8,000. It resulted in one of the first ever class action lawsuits.

One of the thing to come out of the incident was that every refinery has it's own firefighting crew and the have a mutual aid compact.

This is one of the reasons BP will have a hard time in any lawsuit they file. We are too familiar here with refineries here. You can go to this site for more info on it. They will be having a Memorial Service today with survivors.

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


Happy hunting and watch out for the bears.

[UpInArms]

8. dollar watch

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

Last trade 82.010 Change -0.164 (-0.20%)

Running Away From the Dollar

http://www.dailyfx.com/story/strategy_pieces/trade_or_fade/Running_Away_from_the_Dollar_1176701446393.html

EURUSD hit a 2007 high this week as the market continued to run away from the greenback ahead of the G-7 meeting. On a week when the economic calendar carried little news of import, the order flows were driven mainly by political considerations. As we noted on Friday, “Although, the US policy actions up to date have been miniscule in their economic impact, speculators are taking no chances and continue to move capital out of dollars ahead of the G-7 for fear that US rhetoric may only grow more strident. The fact China is not attending this week-end’s meeting has only exacerbated those concerns.”

However, the markets may be overreacting. China and US remain inextricably tied to each other with Chinese needing access to US consumer markets and US in constant demand for Chinese capital. In short, unless the US protectionist rhetoric actually turns into protectionist legislation the danger to the dollar may be overblown. Nevertheless, next week may only bring limited relief to dollar bears. The calendar starts with US Retail Sales on Monday, which may be the sole positive piece of news for the greenback if the report beats consensus. The problem of a consumer slowdown has been dogging the US economy ever since the blow-up in the sub-prime housing sector. Note last week weak U of Michigan data which printed at its lowest level since August of 2006. Yet what consumers say and what they do tends to be quite different. Therefore a boost in Retail Sales would dispel some of the dour sentiments surrounding the prospects of future US growth. Still housing will return to take focus next week as both NAHB and Housing starts data hit the tape and expectations are for further declines. Overall the offers little hope of a dollar rally unless the data surprises to the upside. – BS



...more...

[54anickel]

28. Yen Drops Against Dollar, Euro as G-7 Refrains From Criticism

http://www.bloomberg.com/apps/news?pid=20601083&sid=aH_vY0HAOweY&refer=currency

April 16 (Bloomberg) -- The yen dropped to a record low against the euro and fell to the weakest against the dollar in almost seven weeks after Group of Seven finance officials refrained from saying Japan's currency is too weak.

The Japanese yen also fell to a 17-year low against the New Zealand dollar as investors interpreted the G-7's statement as an incentive to carry out the carry trade, in which they invest in higher-yielding assets funded by loans in Japan. The euro also gained as European officials said exchange rates aren't holding back their economies.

``There is nothing from the G-7 statement to hold back the yen's decline,'' said Robert Fullem, vice president of U.S. corporate currency sales in New York at Bank of Tokyo-Mitsubishi UFJ Ltd. ``The interest-rate backdrop disfavors the yen. You may see some mild correction down the road, but the carry trade will go on.''

snip>

``The yen carry trade will continue to be alive and kicking,'' said Matthew Strauss, senior currency strategist in Toronto at RBC Capital Markets Inc., a unit of Canada's biggest bank by assets. ``The European officials show little concern about the euro's strength at this point, and there was no mention of yen weakness at the G-7. People are going to continue selling the yen against the euro, pound and other currencies.''

snip>

``You are seeing some pressure on the dollar,'' said Mark Meadows, a currency trader in Washington at Tempus Consulting Inc. ``The concern is that if foreign investors purchase less of U.S. assets, the dollar may lose support. But the February number follows a high number in January.''

Total purchases of equities, notes and bonds fell to a net $58.1 billion in February from a revised $98.8 billion the previous month, the Treasury Department said in Washington. The median forecast of 13 economists surveyed by Bloomberg was for foreign investment in U.S. securities to drop to $75 billion.

more...

[54anickel]

39. Perched Precariously on a Precipice (Schiff)

http://www.321gold.com/editorials/schiff/schiff041607.html

The dollar is no longer responding to traditional stimulants. This week, despite the apparently "hawkish" tone in the recently released Fed minutes, and trade deficit figures that were slightly less horrific than expected, the dollar nevertheless declined against just about every currency on the planet. As a result, it now teeters dangerously close to the edge of a very large precipice. Looming large is the 80 level of the U.S. Dollar Index which has stood as long term support for almost thirty years. This week, the Index broke below 82, and is sinking fast. When this critical level is breached, look out below. Without any support beneath it, the dollar could literally fall off a cliff.

The trajectory of the dollar is linked to America's economic status in the world. Last week we learned, thanks in part to the strengthening euro, that the market capitalization of European shares now exceeds the market capitalization of American shares for the first time since before the First World War. At the current rate of appreciation, European shares will have a market cap 50% greater than American shares by the end of the decade. However, should the dollar decline turn into a free fall, this could happen much sooner.

For individual currencies, the British pound warrants particular attention as it approaches the significant two-to-one level against the dollar. The pound currently trades for about $1.99, and has not meaningfully breached $2.00 since the early 1980's. The euro, currently trading above $1.35, is bumping against its all time high of just under $1.37 against the dollar. The Australian dollar has already hit a new 17-year high and is perhaps a harbinger of things to come. The sole laggard among major currencies has been the Japanese yen (and to a lesser extent the Swiss franc), which has been held down by the infamous carry trade. When it unwinds (which would clearly be evidenced by a break below the 110 level), buckle your seat belt as all that will stand between the dollar and oblivion will be the Bank of China.

On that note, yesterday the Bank of China quietly dropped the bombshell that its foreign currency reserves, which had just passed the $1 trillion benchmark a few months ago, had swelled in the first quarter of 2007 to more than $1.2 trillion. At this rate, China will amass more than $2 trillion dollars in reserve sometime next year. I can only imagine how low the dollar would already be were it not for the massive foreign aid provided by the Chinese.

So far the Dollar Index has tested the 80 level five times in the past: 1978, 1990, 1992, 1995, and 2004. On several of those occasions it took massive, coordinated interventions by all the world's central banks to rescue the dollar. However, given the enormity of today's imbalances and the sheer number of dollars in foreign hands, such a bailout seems unlikely.

more...

[54anickel]

40. Brown accused of gold bungle

http://www.news.com.au/heraldsun/story/0,,21560270-663,00.html

BRITISH finance minister Gordon Brown faces claims he ignored Bank of England advice and sold half the country's gold stocks at the bottom of the market.

Senior central bank figures expressed misgivings about the decision to auction 400 tonnes of bullion between 1999 and 2002, according to the Sunday Times.

Officials reportedly warned the Treasury in correspondence that there was a risk of losing money because the price of gold was at a low level.

However, there was no formal consultation and Brown went ahead with the move.

Since the auctions the value of gold has trebled, allegedly leaving the public purse STG2 billion ($A4.8 billion) worse off.

snip>

The Treasury has been engaged in a long-running battle to avoid disclosing details of advice it received about the gold sales under the Freedom of Information Act.

Brown came under heavy fire last month after documents relating to controversial 1997 reforms of pension tax were released. They indicated that the Treasury was warned the move could leave a "big hole" in pension schemes.

He has insisted he still believes the right decision was taken.

Shadow chancellor George Osborne said: "First it was discovered that Gordon Brown ignored advice on pensions; now it is revealed that he ignored advice on gold sales and the taxpayer has lost millions.

more...

[54anickel]

43. U.S. dollar stuck between a rock and a hard place

http://www.theglobeandmail.com/servlet/story/LAC.20070416.RBUSCH16/TPStory/Business

The U.S. dollar remains in the realm of trader hell, with torture being applied from a potential trade war, a possible economic slowdown, and the chance of G7 action on carry trades. How can you tell what's going to affect the currency's movements and when?

Trying to understand what's happening in the currency markets is like watching South Park for the first time and trying to figure out what the plot line is. At first, a viewer feels confusion, then revulsion, then anger, and then maybe some humour as you realize the absurdity of it all.

Currency confusion reigns as a result of the economic cross currents of a massive U.S. current account deficit and interest rates high enough to attract capital. But it gets worse. There are major arguments made among the economic experts over whether the U.S. dollar should have a continuous devaluation to help the country erase its enormous trade/current account deficit. A weaker greenback would improve the competitive footing of U.S. exporters and make imports more expensive.

In their April report, the International Monetary Fund stated this viewpoint.

"The conventional wisdom for the United States, however, is that large exchange rate changes are needed because of the low price elasticity of trade volumes and the partial response of trade prices to changes in nominal exchange rates." Translation, the U.S. dollar needs a big move to the downside to make any impact on the U.S. trade red ink.

snip>

The humour comes in when we have a G7 meeting that is G7-lite with the Chinese and German Finance Ministers not attending.

Of course, this didn't stop the European Central Bank's Yves Mersch from saying that even with a hard landing weakening the U.S. dollar by 10 per cent against the euro, the impact wouldn't be that big. Huh? Further laughter can be extracted from the leaks to the press that have stated that there will be no change in the language of the G7 in regards to currencies.

more...

[54anickel]

44. The U.S. Economy Sneezes (View from Russia)

http://www.kommersant.com/p758972/r_528/economics_currency_/

The U.S. dollar hit its lowest level in two years on the world market last week. Russian citizens, who are always affected by the vagaries of the dollar's fate, should prepare themselves to see their savings in that currency lose even more value. This time, the fall was not caused by currency speculators. It was clearly the result of the weakness of the American economy.
The American problems began at the end of February, when for Federal Reserve Board chairman Alan Greenspan addressed a business conference in Hong Kong by satellite. He said that the U.S. economy has been growing rapidly since 2001, and the period of prosperity had to end some time, probably soon. “When you get this far away from a recession invariably forces build up for the next recession, and indeed we are beginning to see that sign,” Greenspan said. “For example, in the U.S., profit margins... have begun to stabilize, which is an early sign we are in the later stages of a cycle,” adding, “While, yes, it is possible we can get a recession in the latter months of 2007, most forecasters are not making that judgment and indeed are projecting forward into 2008.”

In 1999 and 2000, when the American economy was already growing briskly, Greenspan was concerned by the greater profits made by industry and grandiose stock quotations. He nearly told foreign investors not refrain from investing in American stocks, using the phrase “the soap bubble of the American economy.” Greenspan considered his main enemy inflation, and thought that high stock prices increased inflation. Simple investors, impressed with the value of their shareholdings, cash them in and spend the money on consumer goods, leading to price increases. He also thought that inflation went hand-in-hand with producers' high profits. If they are able to increase their profits, they have, as he said, “Power over the market.”

Now that profits have stopped rising, Greenspan should, in theory, be happy, even if it is no longer he who heads the Federal Reserve and does battle with inflation, but Ben Bernanke. The collapse of the dollar on the world market should bring him no less pleasure, since stockholders are no longer making excessive amounts of money. American stock market analysts noted that Greenspan's statements directly contradict those of Bernanke, who was saying that the U.S. economy was in good shape. On the stock market, they believed Greenspan. “Why does he bother?” one trader joked. “He should be playing golf in Hawaii somewhere.”

The traders' faith in Greenspan is easy to explain. They consider him the founder of this economy. Ravi Batra, a professor of economics at Southern Methodist University in Dallas, Texas, wrote in his 2005 book Greenspan's Fraud: How Two Decades of His Policies Have Undermined the Global Economy that Greenspan changed the concept of balanced foreign trade that had held sway for two centuries before him. He deregulated the American financial system and, since the dollar dominated world trade, other countries accepted the currency in exchange for their goods and services and used extra money to buy American stock. That situation also led to the loss of millions of American jobs.

more...

[54anickel]

45. HSBC reopens BRIC fund

http://www.whatinvestment.co.uk/254784/hsbc-reopens-bric-fund.thtml

HSBC Investments has reopened its BRIC fund, but has warned it will close it again to protect investors’ interests, if required.
The GIF BRIC Freestyle Fund is dedicated to investing in Brazil, Russia, India and China (BRIC) as is part of HSBC’s Luxembourg-domiciled Global Investment Funds (GIF) SICAV. It was last closed in June 2006 to protect performance for existing shareholders, according to HSBC.

Christian Deseglise, global head of emerging markets business at HSBC Investments, said, ‘Over the past eight months, the markets in which this fund invests have grown in size and liquidity, and depth has improved. This has increased capacity to a level whereby it is now appropriate to re-open the fund. We will continue to watch the capacity issues closely and are fully prepared to close the fund again to protect clients’ interests.’

The fund is registered for sale in over 30 countries including the UK and is currently managed by Halbis, the fundamental active asset management arm of HSBC. It benefits from a multi-country team based in Brazil, India and Hong Kong. Halbis also receives advice from Hermitage, a Russian investment specialist. The overall asset allocation is determined by London-based Nick Timberlake, lead Halbis fund manager.

bit more...

[54anickel]

49. Gold hits highest level this year on soft dollar

http://www.ft.com/cms/s/00d20d4a-ec20-11db-a12e-000b5df10621,_i_rssPage=8672feb4-504a-11da-bbd7-0000779e2340.html

Gold hit its highest level this year as the dollar continued its fall on Monday despite the release of stronger-than-expected March retail figures.

The price of gold reached $688.40 a troy ounce by early Monday afternoon, compared with Friday’s closing price of $675.70, as the dollar lost value against most major currencies except the yen and reduced the relative cost of the dollar-denominated asset. The previous trading high for the yellow metal was $687.40 per troy ounce on February 26.

James Steel, an analyst with HSBC Global Research, said the slide of the dollar would continue to lift gold prices as long as the long term fundamentals for the US economy do not deteriorate alongside a decline in the equity markets. In that scenario, Mr Steel said, gold would fall in line with a rapid decline in global risk appetite and global liquidity.

Other precious metals also put in a strong performance on Monday, reacting to both the soft dollar and news that Switzerland’s Zurich Cantonal Bank would launch exchange-traded funds based on platinum, palladium and silver next month.

Platinum was trading at $1,276 per troy ounce by 13:30 GMT, up from Friday’s $1,266. Palladium sold at $372 a troy ounce, up from Friday’s 11-month high of $367. Silver also strengthened from a previous fixing of $13.88 to $14.

more...

[54anickel]

56. Qatar gold holding up five-fold

http://www.tradearabia.com/news/newsdetails.asp?Sn=ECO&artid=121961

Qatar central bank gold holdings rose more than fivefold during January and February, central bank data showed.

Gulf Arab oil and gas producer Qatar, which said last year it wanted to diversify its foreign exchange reserves away from the dollar, held 240 million riyals ($65.97 million) of gold on February 28, compared with 44.3 million riyals at the end of December, the data on the central bank website showed.

The afternoon gold fix in London rose to $664.20 per troy ounce on February 28, from $635.70 on December 31.

The data imply Qatar bought about 80,162 troy ounces of gold, or 2.49 tonnes, during the two-month period.

Like other Gulf Arab oil producers, Qatar pegs its currency to the dollar, which declined about 10 per cent against the euro last year. That helped spur Qatari inflation to 11.83 per cent last year, the highest rate on record.

"The gold purchases are part of a diversification strategy designed to reduce exposure to the USD, the weakness of which is a concern to the QCB and others in the region," said Simon Williams, Middle East economist for HSBC in Dubai.

more...

[UpInArms]

9. Traveler taxes awarded to small airports

http://news.yahoo.com/s/ap/20070415/ap_on_bi_ge/ticket_taxes

SAN FRANCISCO - The federal government has taken billions of dollars from the taxes and fees paid by airline passengers every time they fly and awarded it to small airports used mainly by private pilots and globe-trotting corporate executives.

Some of these "general aviation" facilities used the federal dollars for enhancements such as longer runways and passenger terminals aimed at luring traffic, an Associated Press review has found. And the money comes with little oversight, and at the expense of an increasingly beleaguered air transportation system.

"They're making out like bandits," said Bob Poole, director of transportation studies at Southern California's Reason Foundation and author of several studies on air transportation costs. "It's not only that airline passengers are paying more than their fair share, but they're being overtaxed to give private jets a free ride."

Passengers pay as many as six separate taxes and fees on a single airline ticket, adding up to more than $104 billion since 1997, the AP found. Yet these assessments often are overlooked by the millions who click the "buy" button to purchase tickets online, even though they can exceed 25 percent of the total airfare.

Travelers deal with more hassles than ever. In 2006, more passengers were bumped, their flights delayed or their bags lost than in 2005, according to the annual Airline Quality Rating report released earlier this month.

...more...

[UpInArms]

14. ALERT: Fed's Fisher - bad fiscal policy pressures the Fed

http://www.reuters.com/article/bondsNews/idUSWBT00682720070416

DALLAS, April 16 (Reuters) - Dallas Federal Reserve Bank President Richard Fisher said on Monday the United States faces grave fiscal challenges and unless these are resolved, it will have implications for U.S. central bank policy.

"Congress holds the power of the purse. But the Fed cannot be an indifferent bystander to the overall thrust of fiscal policy," he said in prepared remarks to the Equipment Leasing and Finance Association.

Fisher, who is not a voting member of the fed's policy-setting committee this year, released a copy of the speech to the media in advance.

"Bad fiscal policy creates pressures for bad monetary policy. When fiscal policy gets out of whack, monetary authorities face pressure to monetize the debt, a cardinal sin in my mind," Fisher said.

Congress does not set fiscal policy - that is the responsibility of the office of the President.

http://www.ombwatch.org/article/articleview/3664/1/470

2006 Fiscal Policy Year in Review: Process Failures, Budgetary Gridlock

2006 was a busy year in federal fiscal policy. As in 2005, the regular budget process broke down almost entirely, increasingly urgent issues were neglected, and much time and attention were devoted to consideration of items and priorities seen by many as insignificant and misguided.

As a result, the nation continues to see its overall debt grow at an alarming rate, to the point where interest expense payments on it are the fastest-growing area of spending. Despite this, the President and Congress remained as focused as ever on enacting still more tax cuts, almost all of which strongly favor the wealthy, provide only marginal broader economic benefits, and dig the country into an ever-deeper deficit hole.
Bankrupt Nation
The Daily Opportunity Cost of Interest Expense
Despite Short-Term Gains, CBO Forecasts Grim Long-Term Fiscal Outlook

There were a few bright spots, however: Congress continued to ignore the Program Assessment Rating Tool and enacted a bill to make federal spending more accessible and transparent to the public. Two dangerous budget process proposals were defeated, and OMB Watch launched a new searchable website containing easily accessible information on federal spending. What's more, there is hope for more advances and victories for responsible and equitable fiscal policy in 2007. But before that, we review all that was in 2006 federal fiscal policy.

Budget/Appropriations

A Budget Full of Cuts and Congressional Inaction
In February, the President proposed a FY2007 federal budget of $2.77 trillion, replete with funding reductions for important programs. The budget estimated a deficit of $354 billion by setting a discretionary spending cap of $873 billion and making deep cuts in student loan programs, the Community Development Block Grant, veterans' health funding, and other health care cuts. Months of congressional negotiations followed, but only two appropriations bills passed, and the government is now operating under a long-term continuing resolution.

...more...

[ret5hd]

17. So what's up with silver???

absolutely flat for 4 hours? I don't believe i've ever seen that (except maybe when the traders were trying to force a collapse a year or so ago).

[ret5hd]

19. whoops...spoke too soon...there's the drop.

[54anickel]

18. Rosy Goes Global (Roach)

http://www.morganstanley.com/views/gef/archive/2007/20070413-Fri.html

It was inevitable. Everyone has gone global. And now it’s Rosy Scenario’s turn — that ever-voluptuous step-child of the 1980s who personified the wide-eyed optimism of America’s Reagan Administration. In its bi-annual update on the state of the world economy and its prospects, the International Monetary Fund has come up with a baseline view of the world over 2007-08 that would make even Rosy blush.

The latest IMF prognosis is the single most optimistic official forecast I have ever seen for the global economy. After four years of 4.9% average growth in world GDP over the 2003-06 interval, the IMF is projecting two more years of the same — average gains of 4.9% over the 2007-08 period. At first, I thought the “num lock” was stuck on the IMF computer. Then I pored through the numbers, read most of the accompanying text, and quickly came to the realization they were dead serious.

How optimistic is this forecast? The IMF has calculated its official estimates of world GDP as measured on a purchasing power parity basis back to 1970. Over this 37-year history, there is only one four-year growth spurt that is stronger than that of 2003-06 — the 5.4% average annual growth outcome for 1970-73. Unlike the current IMF forecast, which calls for another two years of boom-like conditions, the four-year growth surge of the early 1970s was followed by a sharp recession in the global economy, with average gains of just 2.3% over the 1974-75 period. In the modern post-1970 history of the global economy, there has never been a six-year run along the lines of the 4.9% surge the IMF is currently forecasting through 2008.

snip>

After 35 years in the forecasting business, I’ve learned not to take the precision of the exercise too seriously. The value of the baseline forecast is less in the detail of the spreadsheet and more in the directional tilt of the expected growth trajectory. On that basis, there is no mistaking the message from the IMF: They are looking for the strongest global boom in 35 years to be followed by yet another two years of comparable boom-like conditions — an unprecedented development for the modern-day global economy. This is the global version of Rosy Scenario.

snip>

Financial markets are currently discounting something quite close to the IMF’s baseline scenario. Should either of the IMF’s concerns come to pass — possibilities that worry me a good deal — most major asset classes could be hit quite hard. In the end, I think the biggest disservice done by the IMF’s global prognosis is in the conclusions on risk assessment. Ironically, after having gone to great lengths to document the major risks and concerns in the global economy, the IMF then dismisses the very analytics it so carefully develops. In their own words, the “Risks to global growth now seem more balanced than six months ago….” The siren song of Rosy Scenario has never seemed more seductive.

more...

[54anickel]

37. Biggest economies target imbalances

http://www.ft.com/cms/s/46ff4728-eb13-11db-b290-000b5df10621.html

The world’s biggest economies on Saturday strengthened their commitment to reducing global imbalances but stopped short of making these pledges binding.

The “multilateral consultations” undertaken by the International Monetary Fund, included plans by China to make its exchange rate more flexible “in a gradual and controlled manner” against a basket of currencies.

For the past year, deputy finance ministers from the US, China, the Eurozone, Japan and Saudi Arabia have met to discuss what they can do to reduce the large trade imbalances that threaten global economic stability.

These include the large US trade deficit, surpluses in China, Japan and oil producing countries, and the need for structural reform in the Eurozone to boost economic growth.

The five participants each listed specific policy measures which were published at the conclusion of the IMF/World Bank spring meetings on Saturday. But no time frame was given for achieving the goals and the IMF has no mechanism to enforce them.

Gordon Brown, UK chancellor of the exchequer and chairman of the IMF’s governing body, described the initiatives as “promises” but the participants stopped short of this, calling them “policy plans”. Mr Brown dismissed concerns about the non-binding nature of the policies, saying it was: “The first time that this has happened in this way…I think the willingness of the five participants to make commitments about the future is important in itself… from the world economy’s point of view, it is a major advance.”

But in a statement after the meeting, Hank Paulson, US Treasury secretary, said: “These consultations were never intended to produce joint policy commitments.”

more....



So here's the plan.......

http://www.imf.org/external/np/sec/pr/2007/pr0772.htm
IMF's International Monetary and Financial Committee Reviews Multilateral Consultation

[54anickel]

21. Greenspan Says Global Growth to Cushion U.S. Economy (Update5)

http://www.bloomberg.com/apps/news?pid=20601103&sid=aUgT_pMx_i0M&refer=us

April 16 (Bloomberg) -- Former Federal Reserve chairman Alan Greenspan played down his earlier concern about a possible U.S. recession, saying the world economy would provide a cushion, according to people attending a forum in Tokyo today.

Greenspan said growth in the rest of the world is creating demand for services from companies such as Microsoft Corp., according to Vaseehar Hassan Abdul Razack, chairman of Kuala Lumpur-based RHB Islamic Bank Bhd, who attended the meeting, hosted by Nomura Research Institute Ltd. Greenspan was speaking via satellite from Washington.

Greenspan in late February and early March predicted that U.S. economic growth might stagnate, a view at odds with those of Ben S. Bernanke, his successor, and other Fed officials. In a March 5 interview, Greenspan said there's a ``one-third probability'' of a recession this year and the current expansion wouldn't have the staying power of its decade-long predecessor.

The former Fed chairman didn't mention recession today, according to Anne Okko, who works in funding administration at the Nordic Investment Bank. Okko said Greenspan said the world economy is on a positive trend.

A government report today reinforced that sentiment about the U.S., showing retail sales rose the most in three months in March. Sales gained 0.7 percent following a revised 0.5 percent increase in February that was larger than previously estimated.

`More Optimistic'

more...

[54anickel]

22. G-7 Confident Global Trade, Growth Gaps Shrinking (Update2)

http://www.bloomberg.com/apps/news?pid=20601091&sid=aOSizBkRg8XM&refer=india

April 14 (Bloomberg) -- Finance ministers and central bankers from the Group of Seven nations said they are confident disparities in global trade and growth are starting to narrow, a trend that will extend the strongest expansion since the 1970s.

The G-7 said in a statement yesterday that world growth is now more even, offsetting a slowdown in the U.S. Asian and European economies picked up in the past year, narrowing the U.S. trade deficit and putting the world economy on course to grow about 5 percent this year, the International Monetary Fund said this week.

The world's richest nations pledged to take steps to protect the expansion by reducing labor regulations and budget deficits. The finance chiefs also intensified a plea for a conclusion to global trade talks and reiterated that Asian nations must make their currencies more flexible.

``The first message is that global imbalances have started to diminish,'' French Finance Minister Thierry Breton said after G-7 officials met in Washington. ``The future will hinge on structural reforms and budget policies to lower imbalances further.''

more...

[54anickel]

23. Angst in affluent America, Part 2

http://www.marketwatch.com/news/story/angst-affluent-america/story.aspx?guid=%7BCE3CB76A%2D388F%2D4E11%2DB6A1%2D14D1C3AA9F2D%7D&siteid=yhoo&dist=yhoo

This is an edited version of a story that ran over the weekend in The Wall Street Journal
SAN DIEGO (MarketWatch) -- You may have seen that LendingTree commercial with a happy-go-lucky guy named Stanley Johnson, who brags about his big house, his new car and how, "I even belong to the local golf club. How do I do it?" he continues with a big, dumb smile, "I'm in debt up to my eyeballs." Lowering his voice, but still smiling, he adds, "I can barely pay my finance charges." The smile doesn't leave his face as he drives a riding lawn mower, saying, "Somebody help me."

Thanks to easy credit, many Americans have been living well beyond their means. But that credit picture is beginning to change. And when you think about where the U.S. economy might be a quarter or two from now, you have to wonder how many Stanley Johnsons are out there. This isn't the stereotypical subprime borrower, with a spotty credit history and low credit score, but instead people perceived by friends and neighbors to be living the good life, some even sporting good credit scores.

With the mortgage markets tightening, especially as certain types of adjustable-rate mortgages face a wave of forced refinancings, we will know soon enough. For a preview, all you really need to do is check with someone like R. Douglas Ley, a certified public accountant and certified financial planner in Macungie, Pa. Many of his clients live in a wealthy part of New Jersey. He was the-then anonymous CPA mentioned here last week, in a story that prompted an avalanche of e-mails and postings on my blog. See blog
"I am shocked," he said at the time, "by the bad and deteriorating financial condition of many of my clients."

snip>

No region is better represented with ready-to-tell stories than Orange County, Calif. That is where, until 2005, Donald Parker owned a large insurance agency. He recalls how low mortgage rates spurred business in late 2001 with refinancings and home-equity lines of credit that required proof of insurance. "It really became excessive by the summer of 2004," he says. "That's when I started noticing that many of my clients had either refinanced or added a second mortgage or home-equity line of credit multiple times within the prior three years often doubling or in some cases tripling their mortgage balances."

more...

[54anickel]

24. Water crisis looms worldwide

Parched nations are offering billions of dollars in contracts to boost supplies. The U.N. says 40% of the population will suffer shortages by 2050.

http://www.latimes.com/business/la-ft-water16apr16,1,2158034.story?coll=la-headlines-business&ctrack=2&cset=true

Opportunities for water companies are flowing around the world because of looming shortages and decades of underinvestment.

China, Saudi Arabia and Algeria, where water shortages have become acute, are placing billions of dollars of contracts out to bid to improve water supplies for their growing populations. The trend is expected to grow, as 40% of the world's population will suffer water shortages by 2050, according to the United Nations Development Program. Global warming is expected to exacerbate the problem.

China plans to contract for water services for an additional 100 cities by 2010.

"The government knows it has a water crisis that is holding back development," said Jean Louis Chaussade, chief executive of Suez, a French utility.

China last year announced a $125-billion investment program to improve water treatment and recycling facilities after a chemical spill forced the city of Harbin, in northeast China, to cut off water supplies to 3.8 million people for five days in November 2005. China has already privatized water services for 155 million people.

Investment in water treatment will allow Beijing to use recycled water to fill its swimming pools during the 2008 Olympic Games.

Saudi Arabia began privatizing water services after shortages sparked riots last November in Jeddah. Loay Ahmed Musallam, the deputy water minister, said the first contract to manage water supplies for Riyadh would be awarded this year. By 2010, private companies will provide water for half the population, he added.

more...

[mojavekid]

35. The New Oil

http://www.canada.com/topics/news/national/story.html?id=ca8b615b-8e00-4dd5-9697-973d27d889ed&k=64092

OTTAWA -- Canadian water is on the table at trilateral talks between politicians, businessmen and academics from Canada, the U.S. and Mexico, CanWest News Service has learned.

A series of closed-door conferences for the North American Future 2025 Project will include the discussion of "water transfers" and diversions.

According to the outline for the project, there will be a trilateral effort to draft a "blueprint" on economic integration for the govern- ments of Canada, the U.S. and Mexico.

The project was launched by the three governments in March 2006 to help guide the ongoing Security and Prosperity Partnership, a wide-ranging effort to further integrate the countries' practices on everything from environmental rules to security protocols and border controls.

A draft report will be submitted to the three heads of state at a partnership summit in Alberta this August.

"It's no secret that the U.S. is going to need water. ... It's no secret that Canada is going to have an overabundance of water.

more...


- Colin Powell, I believe it was the late 90's, when asked what would define the wars of the 21st century, responded "Water" . I paraphrase, but I will try to find the exact quote.

On Edit, it was not Colin Powell, though I do recall that. Here it is:

http://www.counterpunch.org/santina10142004.html

6,300 People Die a Year from Lack of Water
Water, Women and War

"Just as we fought wars over oil, so will we fight wars over water," was the threatening mantra hanging over the Congress. Dr. Shusma Pankule of India did confirm, "We have disputes with Pakistan on one side and with China on the other over water." Israel has stolen the Palestinian water and is selling it back to them at prices they cannot afford," reported Aliyah Strauss of Israel. "The situation is explosive."

plenty more...

[54anickel]

25. Hedge fund traders' pay hits stratosphere (B-b-b-billions!)

http://news.yahoo.com/s/afp/20070415/bs_afp/usmarketspayhedgefund_070415030818;_ylt=AmS_rYqRv2DFOmVRFrCR1BSmOrgF

NEW YORK (AFP) - The ballooning pay packets of the world's top hedge fund traders have hit the stratosphere with some salaries now topping a billion dollars, but fears are mounting about an industry bubble.

Snapping at the heels of the elite are dozens of money managers -- working in New York and London -- who banked hundreds of million of dollars in pay, according to an annual survey by Trader Monthly magazine published last week.

The identities of those who have gained entree to the billion-dollar club through running a hedge fund, in essence a secretive capital pool, are not household names, and many members prefer it that way.

The top five hedge fund managers earned 10-digit packages in 2006 while 93 other traders banked an average of 241 million dollars, the Trader Monthly survey found.

"Compensation for hedge fund managers has exploded as more investors have invested in hedge funds," observed Rea Hederman, an economics expert and senior policy analyst at The Heritage Foundation.

Hederman said investors do not seem to mind the huge salaries taken by managers of funds that perform well, but said some "hedge funds have not delivered the returns that the investors might have wanted." :eyes:

more...

[Roland99]

29. We've heard the phrase, "Well, a million dollars isn't what it used to be." How long until we hear

"Well, a billion dollars isn't what it used to be."

[54anickel]

32. Makes Nardelli look like a pauper

Nardelli Took Home $134M Last Year
The bulk of his compensation from Home Depot, more than $100 million, fell in the category of ''all other compensation'' related to his termination.

http://www.cfo.com/article.cfm/9027559/c_9024377?f=TodayInFinance_Inside

Robert Nardelli, who resigned as chairman, president, and chief executive officer of The Home Depot in January, earned $134.5 million last year. His total severance package has been valued at $210 million.

According to the company's 2006 proxy, filed Friday, last year Nardelli received a $2.3 million salary, a $3 million bonus, and a $3 million long-term incentive plan payout for 2004 through 2006. He received $16.3 million in stock grants, $15.9 million of which is the compensation expense for restricted shares, and $6.4 million in options awards.

snip>

This includes more than $55 million for the equity compensation expense recognized by the company last year for the accelerated vesting of option and stock awards. Another $565,984 in dividend equivalents payable on deferred stock awards will be distributed in July.

Nardelli also received $20 million attributed to a severance payment, plus an additional $18 million severance payable over four years in exchange for his agreement not to compete with the company.

He also received more than $1.3 million in health benefits, which will continue to cover him through January 2010, $648,000 in security, $305,000 in tax reimbursements, $246,000 worth of life insurance, $169,000 attributed to use of the company's airplane, and $50,000 in legal fees.

[Roland99]

47. "received more than $1.3 million in health benefits,"

WTF?!?!??!

:banghead:

[AnneD]

54. Exactly...

did he have a heart/lung transplant or did he buy new brains for the board. Bet it went into one of those new health savings accounts. You could buy a country club membership or yacht for 'health reasons'. You could buy a lot of plastic surgery for that too now that I'm thinking about it. :think:

[Roland99]

58. Damn well better be able to buy an 8-minute Abs body and keep it that way for 200 years!!!

:rofl:

[AnneD]

59. Say...

why waste your time with a inflating penis pump-bet that could by you a nice new penis. A new dick for the old dick. Beats the hell out of an gold watch any day. I hope he gets dementia and forgets what it's there for......:spray:

[Roland99]

61. Heck...

why not buy multiple penises? Turn himself into a sex hydra!

[AnneD]

81. Gives a whole new meaning ....

to the words cluster f**ked. :rofl: When your screwed, you're REALLY screwed.

[TrogL]

27. Loonie Watch

I'm logged in from home and don't have access to my regular template, but thought I'd post anyway.

Somethin's goin' on with the loonie.



http://quotes.ino.com/chart/?s=CME_CD.M07&v=s

The June Canadian Dollar higher in overnight trading as it extends last week's rally above the 50% retracement level of the September-February decline crossing at .8796. Stochastics and the RSI are overbought but are neutral to bullish signaling that sideways to higher prices are possible near- term. If June extends the rally off February's low, the 62% retracement level of the September- February decline crossing at .8877 is the next upside target. Closes below the 10-day moving average crossing at .8741 would signal that a short-term top has been posted. Overnight action sets the stage for a higher opening in early-day session trading.

http://www.x-rates.com/d/USD/CAD/data30.html

2007-03-13 Tuesday, March 13 0.855652 USD
2007-03-14 Wednesday, March 14 0.850702 USD
2007-03-15 Thursday, March 15 0.850557 USD
2007-03-16 Friday, March 16 0.851934 USD
2007-03-19 Monday, March 19 0.851064 USD
2007-03-20 Tuesday, March 20 0.859254 USD
2007-03-21 Wednesday, March 21 0.863707 USD
2007-03-22 Thursday, March 22 0.864006 USD
2007-03-23 Friday, March 23 0.861995 USD
2007-03-26 Monday, March 26 0.860067 USD
2007-03-27 Tuesday, March 27 0.86326 USD
2007-03-28 Wednesday, March 28 0.863632 USD
2007-03-29 Thursday, March 29 0.863782 USD
2007-03-30 Friday, March 30 0.867303 USD
2007-04-02 Monday, April 2 0.865351 USD
2007-04-03 Tuesday, April 3 0.86408 USD
2007-04-04 Wednesday, April 4 0.863334 USD
2007-04-05 Thursday, April 5 0.868885 USD
2007-04-06 Friday, April 6 0.868734 USD
2007-04-09 Monday, April 9 0.867905 USD
2007-04-10 Tuesday, April 10 0.871156 USD
2007-04-11 Wednesday, April 11 0.873439 USD
2007-04-12 Thursday, April 12 0.880127 USD
2007-04-13 Friday, April 13 0.878812 USD

It's quietly been drifting up over the last two weeks. There's nothing specifically going on that I know of other than instability in the Middle East, but that's nothing new either.

[54anickel]

30. Washington Dares to Challenge the Lender It Depends Upon

http://www.nytimes.com/2007/04/14/business/14charts.html?_r=2&adxnnl=1&oref=slogin&ref=business&adxnnlx=1176737565-Gm1Dq2DPZrrWnLT5rg09yw

snip>

Last year, when the Treasury debt increased by $184 billion, almost half of that amount — $87 billion, or 47 percent of the total — was provided by lenders in China, according to federal government statistics.

With other foreigners buying large amounts of Treasury debt and the Federal Reserve buying nearly a fifth of the newly issued bonds, only 4 percent of the money came from American investors and institutions. American banks were net sellers of Treasuries, as were individual Americans.

With variations, the same trends have persisted since 2002, when the United States government again began adding to the national debt, after a brief period of paying debt down.

For the five-year period, foreigners picked up two-thirds of the $1.5 trillion in additional national debt, with China taking about a third of the foreign total. The Federal Reserve, which is part of the government but treated as if it were not, took about a sixth of the debt, and Americans took the rest.

In that way, the Bush administration debt has been very different from that of the Reagan administration, which from 1981 to 1988, added $1.35 trillion. Then the Fed took a smaller share, about 8 percent, and foreigners bought only a sixth of the debt. The rest was purchased by Americans, and when defenders of the national debt told worriers that it was “just money we owe to ourselves,” they had a point.

snip>

A Chinese decision to sell large amounts of Treasuries — or even to stop buying — could drive the dollar down sharply.

Such a move would also be likely to raise interest rates in this country. Higher rates might slow the economy and reduce demand for Chinese products just as the value of the bonds China owns was declining. Few think China will take such risks.

Nonetheless, the Bush administration does find itself dependent on foreigners, most particularly China, to keep financing United States government spending.

more...

[54anickel]

33. Borrowers are caught in backlash over loan defaults

http://www.signonsandiego.com/news/business/20070415-9999-1h15loans.html

Critics say the tough new underwriting standards that were imposed to prop up the sagging subprime mortgage market are harming some creditworthy borrowers by trapping them in high-cost loans.

Reacting to a nationwide spike in subprime loan defaults, lenders recently raised their requirements for loans to borrowers with low credit scores. Some analysts say the industry is overreacting.

“I see it as definitely a bad thing,” said Greg Wickstrand of GMAC Mortgage Corp. in San Diego.

Subprime borrowers whose adjustable loans are about to reset at higher interest rates now have “dramatically fewer opportunities to lock in a longer-term fixed rate, giving them more stable payments,” he said.

The collapse of the subprime market “is something that was waiting to happen, with investors buying any loan originated, regardless of the risk,” Wickstrand said. “You have got people who are good citizens, worthy borrowers, who are being caught in the pinch. They now have a loan they can't afford the payments on and they are not being offered reasonable options” to refinance.

Nicolas Retsinas, director of Harvard University's Joint Center for Housing Studies agrees there is a risk of overcorrection as investors and lenders rush to bring more stability to the subprime market.

snip>

“The trend has been to make loans that satisfy the needs for Wall Street and now it is all coming crashing down, but the ultimate loser is the borrower who can't make their payments,” he said. “San Diego is right in the heart of all of this. There have been a lot of questionable loans sold in San Diego, a lot of nontraditional option-ARM, interest-only loans. We have a whole lot of loans that have been made where people didn't understand and couldn't afford their payments. To me, that is an indictment of the industry.”

more...

[54anickel]

34. U.S. Homebuilders Face Bankruptcy Risk in '08, Lawyers Say

http://www.bloomberg.com/apps/news?pid=20601103&sid=aXqHEXUKrjqY&refer=us

April 14 (Bloomberg) -- The collapse of the subprime mortgage market may push some big U.S. homebuilders toward Chapter 11 beginning next year, according to bankruptcy advisers and lawyers who specialize in the real estate industry.

The weakest publicly held builders are staying out of bankruptcy by relying on the profits they made when sales boomed and on the public debt they sold in those years, said Ronald Greenspan, a lawyer and financial adviser to the creditors of four bankrupt subprime mortgage lenders. Homebuilders issued $3.6 billion in public debt in 2005 and 2006, though only $600 million of that comes due this year, Greenspan said.

``There is no sword over the industry's head yet,'' said Greenspan today at a conference of the American Bankruptcy Institute in Washington. ``That doesn't mean the industry is not wounded. Instead, the breaking point could come in 2008 or 2009.''

The real estate market has been powered the past few years by subprime homebuyers who typically have shaky credit histories. Now that those loans are no longer being made, demand for new homes will plunge, pushed down even further by the more than 1 million homes currently in foreclosure, Greenspan said. At least 30 home lenders halted operations or sought buyers in the past 12 months, including five that went bankrupt since last November, according to Bloomberg data.

Signs of Trouble

None of the major, publicly traded homebuilders have declared bankruptcy, though there are signs many are in financial trouble, Greenspan said, declining to name specific companies. The value of shareholder's equity for some companies equals or exceeds the value of the undeveloped land the companies have under contract, he said. As the housing downturn continues, that land will fall in value.

more....

[AnneD]

52. If these builders wanted to stay in business...

they should have been building affordable housing thea some of these folks could pay for, not talk folks into Mc Mansions. There is an untapped market of folks that want small moderately priced houses in decent areas. We have been looking for some time now. George Bailey wouldn't be in trouble now.

One of the things that happened in Houston's RE shakeout in the 80's is that lenders were so spooked that didn't even loan good folks money. Even credit worthy folks.

It's all about risk and a lot of folks got greedy and took more risk than they should have and now it is coming back to bite them in the ass.

[mojavekid]

36. The Daily Pfennig 4/16/07: U.S. Trade Gap Narrows

http://www.kitcocasey.com/displayArticle.php?id=1330

Good day... As Chuck signed off on Friday, the dollar had dropped to the lowest level in over 2 years vs. the euro on expectations the Trade Deficit was going to show it widened in February. But the predictions were wrong, and the dollar quickly turned around and rose as the report showed the U.S. purchased fewer goods from China and imported less petroleum. The gap in goods and services narrowed to $58.4 billion from $58.9 billion in January. This dollar strength didn't last over the weekend, though, as the lack of action by the G-7 pushed the euro right back up over 1.35 this morning.

Separate reports on Friday showed prices paid to U.S. producers rose more than forecast in March, led by higher energy costs. The core rate, however, was unchanged after rising for four straight months. So the data really didn't change the outlook for inflation in the U.S. The report shows steady pressure on prices at the wholesale level, but core inflation seems to be moderating. So, as long as you don't have to eat and drive, inflation is not a problem!!! That is what is so wrong about reporting inflation without looking at the entire picture. I know what the "economists" say, food and energy are so volatile that they would make the numbers too unpredictable and could scare the bejeebers out of anyone who follows them. Well, the true inflation picture does include food, energy, healthcare and education costs, and any consumer could tell you inflation is running much higher than the "core" numbers show!

An interesting fact I pulled out of the deficit report was that China has now become the largest shipper to the U.S. Up until last month, the U.S. had imported more goods from our neighbor to the north than from any other country. But with $48.7 billion worth of goods sold to the U.S. in February, China has now overtaken Canada as the biggest shipper to the U.S. And unlike Canada, China doesn't seem to be playing fair. No doubt, this data will be used as fodder for more protectionist calls from our buddies Graham and Schumer.

more...

[mojavekid]

41. Jas Jain: "HIDDEN" HOME PRICE DECLINE IN SILICON VALLEY

http://www.financialsense.com/fsu/editorials/jain/2007/0416.html

The home price declines in Silicon Valley are anything but hidden for most people trying to sell their homes, but it doesn’t seem to show up in monthly and weekly reports that show slight YoY gains in the median prices. I have used Santa Clara County as a proxy for Silicon Valley and it is also a good proxy for the SF Bay Area except that Santa Clara County has held up better than most other parts of the Bay Area.

There are two sources of data that I have used – DataQuick, which reports on all home sales, SFHs (single family homes) and condos, new and resales, and sales on MLS, reported by California Association of Realtors (CAR), which reports SFHs and condos separately and most of the detail break down are for SFHs. San Jose Mercury News, the main paper in the area, publishes weekly data from DataQuick with break down by zip codes and that is my source for the DataQuick reports.

more with tables, etc...

[54anickel]

38. Lunchtime check - it don't get much better than this!

12:05

Dow 12,719.48 107.35 (0.85%)
Nasdaq 2,516.15 24.21 (0.97%)
S&P 500 1,467.54 14.69 (1.01%)
10-yr Bond 4.7470% 0.0140
30-yr Bond 4.9020% 0.0240
NYSE Volume 1,310,980,000
Nasdaq Volume 843,023,000

12:00 pm : The indices are trading at the best levels of the session midday as investors continue to rally around solid earnings reports, M&A news, and encouraging economic data. All 10 economic sectors are trading higher.

With the market exhibiting a fair amount of optimism heading into what is still widely expected to be an uninspiring first quarter of earnings, the majority of reports this morning checking in better than expected has offered some validation behind recent market gains. The Dow, S&P 500 and Nasdaq have climbed 2.4% on average over the last two weeks amid heightened expectations the first quarter won't be as bad as initially thought.

Citigroup (C 53.12 +1.52) handily topping Wall Street expectations heads today's list of better-than-expected results, especially with nearly half of the Dow scheduled to report this week and so much nervousness surrounding financial stocks. The sector has been this year's biggest disappointment amid concerns stemming from a liquidity crisis and global recession to fears about subprime lending woes spilling over into the broader economy.

With regard to the latter, Fremont General (FMT 8.86 +1.81) finding a buyer for $2.9 bln in subprime loans has provided additional relief, especially among the beaten-down Thrifts & Mortgage (+3.2%) space. Diversified Banks (+2.0%) have been another bright spot after Wachovia (WB 55.06 +1.06) posted a 33% rise in Q1 profits and reminded shareholders it has a "very low amount" of subprime mortgages.

Also providing a floor of support for the influential Financials sector (+2.2%) has been strength across the board among Investment Banks & Brokers (+2.8%) following confirmation that SLM Corp (SLM 55.00 +8.24) will be taken private for roughly $25 bln, even better than the rumored $20 bln price tag that vaulted SLM shares 15% on Friday. Today's 17.6% surge in SLM shares earmarks Consumer Finance (+4.6%) as today's second best performing S&P industry group.

This morning's economic reports are also acting as sources of support. retail sales report providing some comfort that consumer spending remains on track is providing a floor of support. March retail sales and sales, ex-autos, checked in better than expected while an upward revision to February sales further suggests consumer spending remains on track. The April NY Empire State Index rebounded from its lowest level since May 2005.DJ30 +111.98 NASDAQ +25.33 SP500 +14.77 NASDAQ Dec/Adv/Vol 840/2079/772 mln NYSE Dec/Adv/Vol 762/2343/618 mln

11:30 am : With the S&P 500 finishing Friday above its closing price the day before the global sell-off on February 27, the Dow and Nasdaq have followed suit. Broad-based buying efforts leave 27 of 30 Dow components trading higher while the S&P 500 has gotten an additional boost from a turnaround in Energy.

Despite oil prices still posting a 1% decline, the Energy sector turning positive is providing some notable leadership while strength in transportation stocks continues to provide a floor of support for the economically-sensitive Industrials sector. DJ30 +90.85 DJTA +1.0% NASDAQ +19.69 SP500 +12.58 NASDAQ Dec/Adv/Vol 847/2031/662 mln NYSE Dec/Adv/Vol 784/2303/532 mln

11:00 am : Onward and upward remains the driving mantra this morning as buyers remain in complete control of the action. The broad-based rally in Financials (+2.1%) continues to chip away at the sector's lagging 2.9% year-to-date decline. Asset Management (+2.2%), Regional Banks (+2.0%), and Diversified Banks (+2.0%) have become the latest S&P industry groups to break into today's top ten.

Another key sector helping the S&P 500 approach seven-year highs is Health Care. It is up 0.8% on the day and now up more than 6.5% for the year, getting a boost today after Boston Scientific (BSX 16.00 +0.99) said the FDA has lifted restrictions on its St. Paul plant. DJ30 +89.88 NASDAQ +21.06 SP500 +12.23 NASDAQ Dec/Adv/Vol 812/2018/510 mln NYSE Dec/Adv/Vol 772/2252/410 mln

10:30 am : The major averages are holding onto the bulk of their early gains. In addition to solid earnings, M&A news and encouraging economic data, investors are now getting some reprieve from falling oil prices. After closing out the week relatively unchanged, crude for May delivery is now down 1.3% and back below $63/bbl.

Also noteworthy is the fact that Energy (-0.4%) has not relinquished too much in the way of leadership. Refiners are today's worst performer (-1.8%), but declines among the likes of Drillers and Integrated Oil companies remain modest in scope. DJ30 +66.99 NASDAQ +15.01 SP500 +9.42 NASDAQ Dec/Adv/Vol 796/1973/350 mln NYSE Dec/Adv/Vol 655/2287/270 mln

10:00 am : Equities are extending their reach to the upside as nine out of 10 economic sectors remain positive. The 1.8% surge in Financials really tells the whole story today since it is the S&P 500's most heavily-weighted sector. Consumer Finance (+4.2%) is pacing the way following confirmation of the proposed SLM Corp (SLM 55.45 8.69) takeover; M&A activity is also boosting Investment Banks (+2.5%).

Other Diversified Financial Services (+2.6%) ranks among this morning's top five performing S&P industry groups following Citigroup's (C 52.65 +1.05) strong Q1 report. Specialized Financials (+1.7%) is also among today's top performers, getting a lift from an analyst upgrade on Moody's (MCO 64.34 +1.54), while Fremont General (FMT 9.54 2.49) finding a buyer for $2.9 bln in subprime loans renews enthusiasm for Thrifts & Mortgage (+2.8%), one of this year's worst performing S&P industry groups (-8.8%).DJ30 +62.82 NASDAQ +17.80 SP500 +9.70 NASDAQ Dec/Adv/Vol 604/1990/178 mln NYSE Dec/Adv/Vol 523/2217/102 mln

09:40 am : With the market exhibiting a fair amount of optimism heading into the Q1 earnings season, the bulk of reports this morning checking in better than expected, especially Dow component Citigroup (C 52.64 +1.04), has given the market an early lift. Today's retail sales report providing some comfort that consumer spending remains on track is providing a floor of support. March retail sales and sales, ex-autos, were better than expected while February sales were upwardly revised.

More evidence of ample liquidity to help support the stock market has also provided investors with some early reassurance. SLM Corp. (SLM 55.00 +8.24) confirmed it will be taken private for roughly $25 bln while Google (GOOG 471.52 +5.23) agreed to pay $3.1 bln for DoubleClick. DJ30 +55.99 NASDAQ +13.72 SP500 +7.82 NASDAQ Vol 72 mln NYSE Vol 48 mln

[AnneD]

55. Cake and ponies

for everyone. :party: I wound't get too attatched and name your pony though.

[54anickel]

42. Wal-Mart reclaims top spot on Fortune 500 list

http://www.dnaindia.com/report.asp?NewsID=1091199

NEW YORK: US retailer Wal-Mart Stores has dethroned oil giant ExxonMobil from the top position in the Fortune 500 list of America's biggest companies, the magazine announced on Monday.

The magazine said Wal-Mart saw an 11.2 per cent increase in its 2006 revenues to 351.1 billion dollars, eclipsing the 347.3 billion raked in by ExxonMobil.

However, ExxonMobil's profit was more than triple that of the retailer at 39.5 billion dollars compared to 11.3 billion. The Fortune ranking is based on revenues. Other rankings of the largest companies may be based on profits or stock market capitalization. Fortune also publishes a list of the top global companies.

Despite its struggles, General Motors held onto the number three spot with annual revenues of 207.3 billion dollars, followed by Chevron (200.6 billion dollars), ConocoPhillips (172.5 billion), General Electric (168.3 billion), Ford Motor Co. (160.1 billion), Citigroup (146.8 billion), Bank of America (117 billion) and American International Group (113.2 billion).

The Fortune 500 companies collectively generated profits of 785 billion dollars, a 29 percent increase over 2005.

"Put simply, American companies are enjoying the most sumptuously profitable period in the 500's 53-year history," the magazine said. "These happy numbers are largely due to a sort of harmonious convergence, a perfect economic calm." :puke:

more...

[54anickel]

48. Inventory glut spells doom for techs

Despite what the bulls want you to believe, there are trouble signs galore at Advanced Micro Devices, Intel and Research In Motion.

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/InventoryGlutSpellsDoomForTechs.aspx

When expectations seem to be far out of line with reality, it's a setup for disappointment. That's how I see this week shaping up in the stock market.

For a flavor of the current thinking, let's go back to last Monday. That morning, Advanced Micro Devices (AMD, news, msgs) announced it was cutting revenue expectations for the quarter by about 20% (the second puke this quarter). Also, the company said it was going to freeze hiring and cut capital expenditures.

Pavlov's bull
That news prompted tech bulls to take the "prudent" course -- and buy more AMD. They also piled into Intel (INTC, news, msgs), with the tortured logic being that since AMD had pre-announced twice and Intel hadn't, then Intel's quarter must be going swimmingly.

One dead fish even tried to suggest that Intel-as-a-monopoly was "back," implying that the company would no longer see its margins pressured due to competition with chip-making rival AMD. This wrong-headed deduction couldn't be further from the truth.

Of Intel and inventory purgatory
I expect that Intel did not have a good quarter. I also expect that when the company reports after the close Tuesday, it will be unable to claim the future looks bright. In addition, I imagine that Intel has a large inventory problem due to its excess capacity, which has continued to build for more than a year.

more...

[54anickel]

50. OT - We cannot look from the sides as we are led towards crisis over Iran

Bush and Blair have spent four years preparing an onslaught that is about oil, rather than non-existent nuclear weapons

http://www.guardian.co.uk/commentisfree/story/0,,2056301,00.html

The Israeli journalist Amira Hass describes the moment her mother, Hannah, was marched from a cattle train to the concentration camp at Bergen-Belsen. "They were sick and some were dying," she said. "Then my mother saw these German women looking at the prisoners. This image became very formative in my upbringing, this despicable 'looking from the side'."

It is time we in Britain stopped looking from the side. We are being led towards perhaps the most serious crisis in modern history as the Bush/Cheney/Blair "long war" edges closer to Iran for no reason other than that nation's independence from rapacious America. The safe delivery of the 15 British sailors into the hands of Rupert Murdoch and his rivals (until their masters got the wind up) is both farce and distraction. The Bush administration, in secret connivance with Blair, has spent four years preparing for "Operation Iranian Freedom". Forty-five cruise missiles are primed to strike. According to General Leonid Ivashov, Russia's leading strategic thinker: "Nuclear facilities will be secondary targets, and there are 20 such facilities. Combat nuclear weapons may be used, and this will result in the radioactive contamination of all the Iranian territory, and beyond."

And yet there is a surreal silence in Britain, except for the noise of "news" in which powerful broadcasters gesture cryptically at the obvious, but dare not make sense of it lest the one-way moral screen erected between us and the consequences of an imperial foreign policy collapses, and the truth is revealed.

"The days of Britain having to apologise for the British empire are over," declared Gordon Brown to the Daily Mail. "We should celebrate!" In Late Victorian Holocausts, the historian Mike Davis documents that as many as 21 million Indians died unnecessarily in famines criminally imposed by British policies. And since the formal demise of that glorious imperium, declassified official files make clear that British governments have borne "significant responsibility" for the direct or indirect deaths of between 8.6 million and 13.5 million people throughout the world - from imperial military interventions and at the hands of regimes strongly supported by Britain. The historian Mark Curtis calls these victims "unpeople". "Rejoice!" said Thatcher. "Celebrate!" says the paymaster of Blair's bloodbath. Spot the difference.

We need to look behind the one-way moral screen, urgently. Last October, the Lancet published research led by Johns Hopkins University in the US that calculated the deaths of 655,000 Iraqis as a direct result of the Anglo-American invasion. Downing Street acolytes derided the study as "flawed". They were lying. They knew that the chief scientific adviser to the Ministry of Defence, Sir Roy Anderson, had backed the survey, describing its methods as "robust" and "close to best practice", and that other government officials had secretly approved the "tried and tested way of measuring mortality in conflict zones". The figure of Iraqi deaths is now estimated at close to a million.

"This Labour government, which includes Gordon Brown as much as it does Tony Blair," wrote Richard Horton, the editor of the Lancet, "is party to a war crime of monstrous proportions. Yet our political consensus prevents any judicial or civil society response. Britain is paralysed by its own indifference." Such is the scale of the crime and of our "looking from the side".

more...

[54anickel]

53. 2:39 Turds still shining

Dow 12,704.77 92.64 (0.73%)
Nasdaq 2,512.83 20.89 (0.84%)
S&P 500 1,466.23 13.38 (0.92%)
10-yr Bond 4.7350% 0.0260
30-yr Bond 4.8900% 0.0360
NYSE Volume 2,042,514,000
Nasdaq Volume 1,316,298,000

2:30 pm : The major averages are trading near their lowest levels of the afternoon but are holding on to strong gains across the board. The Dow is trading higher for the 11th time in 12 sessions and is now up nearly 2% for the year. While that is impressive it's not all that surprising since April has been its best month since 1950, according to the Stock Trader's Almanac, turning in an average return of 1.8%.

Knowing that the blue-chip index is already up 2.8% just two weeks into the month alone, though, is likely to raise some concerns about overbought conditions, especially since the old adage "sell in May and go away" could apply again and every key fundamental factor has worsened over the past couple of months. DJ30 +84.38 NASDAQ +19.37 SP500 +12.28 NASDAQ Dec/Adv/Vol 965/2046/1.27 bln NYSE Dec/Adv/Vol 959/2271/1.01 bln

2:00 pm : The market continues to put together a strong advance as positive breadth figures and strong industry leadership to the upside continue to bode well for equities. As reflected in the A/D line, advancers hold a more than 2-to-1 edge over decliners on both the NYSE and the Nasdaq. The number of new 52-week highs on the NYSE stands at a whopping 289 to only 5 new lows; the ratio on the Nasdaq is 141 to 11.

The ratio of up to down volume further underscores the sense of reserve on the part of sellers given more evidence of ample liquidity to help support the stock market and that first quarter earnings may not be as bad as initially forecast.DJ30 +96.14 NASDAQ +20.67 SP500 +13.21 NASDAQ Dec/Adv/Vol 902/2090/1.16 bln NYSE Dec/Adv/Vol 892/2340/932 mln

1:30 pm : More of the same for stocks as the major averages settle into a relatively narrow range. Bonds, though, have caught a bid since the last update and are trading at session highs. The 10-year note is now up 8 ticks to yield 4.72% after a report at the top of the hour showed a decline in confidence of U.S. home builders.

The Wells Fargo/NAHB housing market index fell 3 points to 33 in April, the lowest level since December, suggesting a continued sluggish pace as the Spring home sales season begins. The report's other two components -- future sales and buyer traffic -- also showed declines and present a weaker than expected pace. DJ30 +96.99 NASDAQ +22.03 SP500 +13.81 NASDAQ Dec/Adv/Vol 921/2055/1.07 bln NYSE Dec/Adv/Vol 859/2351/860 mln

1:00 pm : The indices have slipped from their best levels but hardly enough to make a significant change in the standings. Oil's recent turnaround appears to have stalled some of the market's momentum; but for the most part, buyers are still in total control.

Fortunately for the bulls, a 0.6% advance in the Energy sector is acting as somewhat of an offset to crude prices now flirting with $64/bbl. At its lows of the day, crude for May delivery was down as much as 1.7% at $62.55/bbl. DJ30 +94.02 NASDAQ +21.25 SP500 +13.46 NASDAQ Dec/Adv/Vol 882/2078/982 mln NYSE Dec/Adv/Vol 822/2361/790 mln

12:30 pm : No real change in the proceedings as the afternoon session gets underway. All 10 S&P 500 sectors are still in positive territory, paced by a 2.0% surge in Financials. Its 22% weighting on the S&P 500 is a big reason why the broader market is up nearly 1.0% on the day. Telecom and Materials are up at least 1.0% while Consumer Discretionary is off it best levels, as oil prices turn positive, but is still trading sharply higher (+0.9%).

Education Services (+6.3%) is today's best performing S&P industry group following an analyst upgrade on Apollo Group (APOL 46.56 +2.74). Internet Retail is also providing sector support as Amazon.com (AMZN 44.90 +2.49) soars nearly 6% to new 52week high after being upgraded. DJ30 +104.10 NASDAQ +23.09 SP500 +14.17 NASDAQ Dec/Adv/Vol 858/2079/906 mln NYSE Dec/Adv/Vol 814/2352/726 mln

[54anickel]

57. Closing time - everybody goes home a winner today

Dow 12,720.46 108.33 (0.86%)
Nasdaq 2,518.33 26.39 (1.06%)
S&P 500 1,468.47 15.62 (1.08%)
10-yr Bond 4.7350% 0.0260
30-yr Bond 4.8900% 0.0360
NYSE Volume 2,825,738,000
Nasdaq Volume 1,779,413,000

4:20 pm : Stocks rallied Monday as investors applauded a batch of better-than-expected earnings, some M&A activity and encouraging economic data. With the S&P 500 finishing Friday above its closing price the day before the global sell-off on February 27, broad-based gains helped the Dow and Nasdaq follow suit. All 10 economic sectors closed in positive territory.

With the market exhibiting a fair amount of optimism heading into what is still widely expected to be an uninspiring first quarter of earnings, the majority of reports this morning checking in better than expected offered some validation behind recent market gains. The Dow, S&P 500 and Nasdaq had climbed 2.4% on average over the last two weeks amid heightened expectations the first quarter won't be as bad as initially thought. Today's gains now leave all three indices up about 3.4% on average during the month of April alone.

Citigroup (C 52.86 +1.26) beating Wall Street expectations topped today's list of earnings surprises, especially with nearly half of the Dow scheduled to report this week and so much nervousness surrounding financial stocks. The sector remains this year's biggest disappointment amid concerns stemming from a liquidity crisis and global recession to fears about subprime lending woes spilling over into the broader economy; but today's 2.1% advance helped erased most of its 2.9% year-to-date decline.

Fremont General (FMT 8.85 +1.80) finding a buyer for $2.9 bln in subprime loans provided additional relief, especially in the strugglingThrifts & Mortgage (+3.2%) space. Diversified Banks (+2.0%) was another bright spot after Wachovia (WB 55.14 +1.14) posted a 33% rise in Q1 profits and reminded shareholders it has a "very low amount" of subprime

more...link seems to be having issues right now
http://finance.yahoo.com/marketupdate/overview

[AnneD]

60. Can't tell the

shit from the Shinola.

[citizen snips]

62. Seaspan 1Q Profit Rises 66 Percent

NEW YORK (AP) -- Hong Kong-based container ship owner Seaspan Corp. said Monday its first-quarter profit rose 66 percent, aided by a growing fleet and stronger utilization rates.

Quarterly earnings rose to $14.7 million, or 31 cents per share, from $8.9 million, or 25 cents per share, in the prior-year period. Quarterly revenue jumped to $41.2 million from $24.8 million.

Wall Street, on average, expected quarterly earnings of 26 cents per share on $41.9 million in revenue, according to a Thomson Financial analyst survey.

During the quarter, Seaspan said it took delivery of three vessels, bringing its total operating fleet to 26. The company's fleet utilization also improved to 97.9 percent during the quarter, up from 97.1 percent in the prior-year period.

more...
http://biz.yahoo.com/ap/070416/earns_seaspan.html?.v=1

[citizen snips]

63. Innovex 2Q Loss Widens

MAPLE PLAIN, Minn. (AP) -- Innovex Inc., a maker of flexible circuits for electronics, said Monday its loss widened in its fiscal second quarter because of restructuring costs and a drop in revenue.

For the quarter ending March 31, the company posted a loss of $7.4 million, or 38 cents per share, compared with a loss of $535,000, or 3 cents per share, in the year-ago period.

Restructuring charges nearly doubled to $2.7 million, or 14 cents per share. Excluding that charge, the company's loss was $4.8 million, or 25 cents per share.

Revenue fell 58 percent to $21.9 million from $51.5 million in the second quarter of 2006.

more...
http://biz.yahoo.com/ap/070416/earns_innovex.html?.v=1

[citizen snips]

64. Treasury Prices End Higher Ahead of CPI

NEW YORK (AP) -- Treasury bond prices ended higher Monday, with heftier gains in the longer end of the curve, as investors positioned for Tuesday's key inflation report and digested the morning's mixed U.S. economic data.

At 5 p.m. EDT, the 10-year Treasury note was up $2.19 per $1,000 in face value, or 7/32 point, from its level at 5 p.m. Friday. Its yield, which moves in the opposite direction, fell to 4.74 percent from 4.77 percent.

The 30-year bond rose 20/32 point. Its yield fell to 4.89 percent from 4.93 percent.

The 2-year note rose 1/32 point. Its yield fell to 4.75 percent from 4.77 percent.

more...
http://biz.yahoo.com/ap/070416/bonds.html?.v=4

[citizen snips]

65. Sector Glance: Auto Suppliers

NEW YORK (AP) -- Shares of many automotive suppliers got a boost Monday, as the Dow Jones industrials posted steady gains, at times soaring more than 100 points.

Also on Monday, Canadian auto supplier Magna International Inc. was upgraded to "Neutral" by a Goldman Sachs analyst, who cited the benefits the company could reap by acquiring a stake in DaimlerChrysler AG's Chrysler unit.

Here is how some New York Stock Exchange-listed auto suppliers fared Monday:

ArvinMeritor Inc. rose 55 cents, or 3.1 percent, to close at $18.17.

BorgWarner Inc. rose $1.35, or 1.8 percent, to close at $75.42.

more...
http://biz.yahoo.com/ap/070416/sector_glance_auto_suppliers.html?.v=1

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66. Biotechnology Sector to Continue Growth

NEW YORK (AP) -- The biotechnology sector continued growing in 2006 and is expected to garner more attention from Big Pharma suitors looking to fill pipelines and position themselves for future breakthroughs, a report said Monday.

Ernst & Young's "Beyond Borders" annual global biotechnology report shows the number of publicly traded biotechnology companies worldwide rose 5 percent to 710 from 673 while revenue jumped 14 percent to $73.48 billion from $64.21 in 2006. It was the best year for the sector since 2000, said Gautam Jaggi, managing editor of the report.

"It's really just a strong story across the globe," he said, citing both drug development and the flurry of buyout deals.

Several of the larger deals struck included Merck & Co.'s $1.1 billion buyout of RNAi-based drug developer Sirna Therapeutics, Gilead Sciences Inc.'s $2.5 million buyout of Myogen and Abbott Laboratories $3.7 billion buyout of Kos Pharmaceuticals Inc. There was even a bidding war between Genzyme Corp. and Millennium Pharmaceuticals for AnorMed Inc., with Genzyme claiming victory.

more...
http://biz.yahoo.com/ap/070416/sector_focus_biotechnology.html?.v=1

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67. Sector Glance: Airlines

NEW YORK (AP) -- Airline stocks rose Monday, aided by easing fuel-price pressure and a positive trend in the overall market.

A barrel of oil slipped 2 cents to $63.61 per barrel on the New York Mercantile Exchange after earlier falling as low as $62.55. Jet fuel is one of an airline's top costs, and industry stocks tend to trade against crude prices.

Delta Air Lines Inc. also said its creditors voted in favor of its reorganization plan, clearing it for an April 30 emergence from Chapter 11 bankruptcy protection. The airline has remade itself into an internationally focused carrier, as the industry has found strong demand -- and fares -- for international service.

Here is how some key airlines fared Monday:

Continental Airlines Inc. rose 68 cents at $42.58 on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070416/airlines_sector_glance.html?.v=1

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68. Sector Glance: Apparel Sellers

NEW YORK (AP) -- Apparel retailers' stocks rose slightly on Monday, following a rising market, as investors were spurred by strong earnings reports and an increase in consumer spending.

The Commerce Department said consumers spent strongly in March, sending retail sales up by about 0.7 percent.

Here is how some New York Stock Exchange-listed apparel retailers fared Monday:

Gap Stores Inc. shares rose 36 cents to $18.83

AnnTaylor Stores Corp. shares rose 1 cent to $38.95

more...
http://biz.yahoo.com/ap/070416/sector_glance_apparel_sellers.html?.v=1

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69. Sector Glance: Restaurants

NEW YORK (AP) -- A number of restaurant stocks rose Monday after a KeyBanc Capital Markets analyst said quick service restaurants and high-end casual dining chains would outperform the rest of the sector. Lynne Collier wrote in a note to investors that the restaurant companies who will excel in a difficult economic environment where labor and food costs continue to rise are those that offer differentiation and a good value. Collier picked Japanese steakhouse Benihana Inc. as the top pick of the sector.

Here is how some key restaurants stocks did on Monday:

Benihana slipped 7 cents to close at $30.00 on the Nasdaq Stock Market.

Cheesecake Factory Inc. added 41 cents to close at $26.38

more...
http://biz.yahoo.com/ap/070416/sector_glance_restaurants.html?.v=1

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70. Sector Glance: Telecom

NEW YORK (AP) -- Telecom stocks inched higher Monday on a positive day for the broader market.

AT&T Inc., whose stock was up modestly, was said to be pulling out of talks to buy a one-third stake in the Olimpia holding company, which controls Telecom Italia SpA.

Elsewhere in the sector, Motorola Inc. was set to report its first-quarter results on Monday. Motorola had warned in March its earnings and sales would miss expectations

Analysts, who have since lowered their expectations, are forecast earnings of 2 cents per share on sales of $9.29 billion, according to a poll by Thomson Financial.

more...
http://biz.yahoo.com/ap/070416/sector_glance_telecom.html?.v=1

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71. Sector Glance: Newspaper Publishers

NEW YORK (AP) -- Newspaper publishers' stocks were mostly higher Monday as Yahoo Inc. said it was expanding its relationship with the industry.

The Internet company announced the addition of four new publishing companies to a consortium that it works with to sell advertising online. Yahoo is also broadening the scope of the venture to include the integration of its search technology across the sites of the more than 264 newspapers now in the group, which covers 44 states.

The four publishers to join the consortium are McClatchy Co., Media General Inc., Morris Communications Company LLC and Paddock Publications Inc.

Here is how some newspaper publishers performed Monday:

McClatchy Co., down 27 cents to $31.19

more...
http://biz.yahoo.com/ap/070416/sector_glance_newspapers.html?.v=1

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72. Sector Glance: Large Retail Chains

NEW YORK (AP) -- Shares in many of the nation's big-format stores, including department stores and discounters, rose on Monday, as the Commerce Department reported that consumers spent strongly last month, sending retail sales up by about 0.7 percent.

Earnings reports also sent the market up as Citigroup and other reported better-than-expected profits.

Meanwhile, credit-ratings agency Fitch Ratings raised its ratings for department-store operator Dillard's Inc., sending shares up $1.03, or 3 percent, to $35.56 on the New York Stock Exchange. The shares are up more than 7 percent over the past three trading sessions.

Here is how some key big-format stores fared Monday:

Wal-Mart Stores Inc., up 66 cents at $48.07

more...
http://biz.yahoo.com/ap/070416/sector_glance_big_stores.html?.v=1

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73. Sector Glance: Shipping

NEW YORK (AP) -- Product tanker stocks traded modestly higher on Monday, after an analyst started coverage of Omega Navigation Enterprises Inc. on a positive note.

Omar Nokta at Dahlman Rose began coverage of the company at "Buy," calling its stock an attractively priced opportunity for investors in a growing corner of the shipping industry. The analyst noted that about 9 million barrels of refinery throughput is scheduled for completion between now and 2011 and mostly in regions far way from North America, such as the Middle East and Asia.

Here is how some product tanker stocks did Monday:

Omega Navigation, up $1.10, or 6.8 percent, to $17.24

more...
http://biz.yahoo.com/ap/070416/sector_glance_shipping.html?.v=1

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74. Sector Glance: Semiconductors

NEW YORK (AP) -- Some semiconductor stocks edged up in Monday's trading, ahead of first-quarter earnings results from Intel Corp. and Advanced Micro Devices Inc., which are scheduled for Tuesday and Thursday, respectively.

American Technology Research analyst Doug Freedman said it's still unclear how much AMD's earnings and cash flow will be hurt by price cuts. Last week AMD warned on first-quarter sales.

Freedman also cut his earnings expectations for Intel due to sluggish computer sales growth and aggressive pricing.

Below are the closing prices for some key semiconductor stocks on Monday:

AMD closed down 5 cents at $13.52.

more...
http://biz.yahoo.com/ap/070416/semiconductors_sector_glance.html?.v=1

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75. Sector Glance: Premium Soda

NEW YORK (AP) -- Speculation on possible consolidation in the beverage industry helped shares of premium soda makers climb Monday.

The stocks began their climb Friday after private-label soda maker Cott Corp. confirmed it was considering a merger with the beverage arm of Cadbury Schweppes PLC. Cadbury has said it plans to break apart its beverage business from its core confectionary division.

Here is how some key beverage stocks did on Monday:

Natural Beverage Corp., up 43 cents, or 2.5 percent, to $17.57

Cott Corp., up 83 cents, or 5.2 percent, to $16.93

more...
http://biz.yahoo.com/ap/070416/sector_glance_premium_soda.html?.v=1

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76. S&P 500 Leaders & Laggards: SLM, APOL

NEW YORK (AP) -- The $25 billion buyout of SLM Corp. lifted shares of the student lender known as "Sallie Mae" to the biggest increase on the Standard & Poor's 500 Index Monday.

The S&P 500 rose 15.62 to finish at 1,468.47.

An investment group agreed to buy Reston, Va.-based Sallie Mae for $60 per share. The news lifted shares $8.59, or 18.4 percent, to end at $55.35 on the New York Stock Exchange. Earlier, shares set a new 52-week high of $55.50.

Another leader on the S&P 500 was Apollo Group Inc., which rose $3.69, or 8.4 percent, to finish at $47.51. A Banc of America Securities analyst upgraded the stock, citing positive enrollment trends.

more...
http://biz.yahoo.com/ap/070416/s_p_500_laggards.html?.v=1

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77. DJIA Leaders & Laggards: C, AXP, BA, AA

NEW YORK (AP) -- Citigroup Inc., the nation's largest financial institution, recorded the largest Monday gain on the Dow Jones industrial average after reporting better-than-expected profit and sales.

The 30-stock index climbed 108.33 to 12,720.46.

Citigroup reported an 11 percent decline in profit, but still beat analysts' expectations. The stock rose $1.33, or 2.6 percent, to close at $52.93 on the New York Stock Exchange.

Meanwhile, shares of credit card issuer American Express Co. rose $1.20, or 2.1 percent, to $58.56 on the Big Board ahead of the company's first-quarter report.

more...
http://biz.yahoo.com/ap/070416/djia_laggards.html?.v=1

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78. Nasdaq 100 Leaders & Laggards: APOL XMSR

NEW YORK (AP) -- The Nasdaq 100 finished higher on Monday, with for-profit education provider Apollo Group Inc. leading the way on a Banc of America Securities upgrade.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq Stock Market, added 17.11 points to 1,833.96. The broader Nasdaq composite rose 26.39 to finish at 2,518.33.

Apollo Group Inc. shares rose $3.69, or 8.4 percent, to close at $47.51 after a Banc of America Securities analyst upgraded the stock, citing positive enrollment trends.

Shares of Amazon.com Inc. added $2.79, or 6.6 percent, to end at $45.20 after a Deutsche Bank Securities analyst upgraded the online retailer and said investments in technology over the past few years are about to pay off.

more...
http://biz.yahoo.com/ap/070416/nasdaq_100_laggards.html?.v=1

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79. Lawsuit Filed Against Lehman Brothers

NEW YORK (AP) -- A Pennsylvania shareholder sued Lehman Brothers Holdings Inc. and its top executives and directors on Friday, alleging they backdated stock-option grants in order "to secure a huge financial windfall for themselves."

The derivative lawsuit, filed in federal court in Manhattan by Robert L. Garber, alleges the company's stock option grant dates were "intentionally manipulated" between 1998 and 2001 to benefit its top executives and directors, including Chairman and Chief Executive Richard S. Fuld Jr., Chief Financial Officer Christopher O'Meara and others.

New York-based Lehman is a nominal defendant in the lawsuit, which seeks the option grants be invalidated and the proceeds of the alleged improper grants be returned to the company.

"These key executives caused the stock option grants to be backdated in order to have the stock options issued at an exercise or 'strike' price below the closing price of the shares at the true time of the grant, thus pocketing more compensation than they otherwise are entitled to receive," the lawsuit said.

more...
http://biz.yahoo.com/ap/070416/lehman_lawsuit.html?.v=1

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80. Eli Lilly Profits Down

INDIANAPOLIS (AP) -- Drug maker Eli Lilly and Co. started 2007 strong by beating Wall Street estimates and raising its own expectations, despite reporting net income that sank 39 percent compared to last year's first quarter.

The Indianapolis company reported on Monday earnings totaling $508.7 million, or 47 cents per share, for the first three months of the year. That was down from $834.8 million, or 77 cents per share, in same period last year.

The company said its first-quarter performance was impacted by charges related to restructuring and an acquisition. The restructuring charge of 8 cents per share stemmed mostly from job cuts at a Lafayette, Ind., site and the company's decision to halt construction of Virginia insulin manufacturing plant.

It also included an expense of 29 cents per share related to Lilly's $2.3 billion purchase of ICOS Corp., a deal that closed in January.

more...
http://biz.yahoo.com/ap/070416/earns_lilly.html?.v=10