STOCK MARKET WATCH, Tuesday February 26

[ozymandius]

Source: du

STOCK MARKET WATCH, Tuesday February 26, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 330
DAYS SINCE DEMOCRACY DIED (12/12/00) 2592 DAYS
WHERE'S OSAMA BIN-LADEN? 2318 DAYS
DAYS SINCE ENRON COLLAPSE = 2609
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

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

AT THE CLOSING BELL ON February 25, 2008

Dow... 12,570.22 +189.20 (+1.53%)
Nasdaq... 2,327.48 +24.13 (+1.05%)
S&P 500... 1,371.80 +18.69 (+1.38%)
Gold future... 940.50 -7.30 (-0.78%)
30-Year Bond 4.66% +0.08 (+1.79%)
10-Yr Bond... 3.90% +0.11 (+2.96%)






GOLD, EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

[ozymandius]

1. Market WrapUp: Negotiating Curves

BY ROB KIRBY

If you feed-at-the-trough of the mainstream financial outlets, seldom does a day go by that you are not confronted with conjecture about whether the Federal Reserve will raise or lower rates.

Most of us simply lap this stuff up.

While it is not my intention to dismiss the importance of absolute (nominal) consumer interest rates (after all, many of us do have mortgages and credit cards), we might be better served by paying a little more attention to relative interest rates, and more specifically, the slope of the interest rate curve.
.....

Given our current financial climate, this might be seen as a clearly orchestrated move on the part of monetary authorities to allow banks to fatten their profits (by raising - borrowing - short term funds to lend longer term ‘risk free’ to the government) at public expense to help the banks repair their battered balance sheets.

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

[Roland99]

11. That's a neat way to publicly bail out the banks w/o anyone really noticing.

[ozymandius]

2. Today's Reports

8:30 AM PPI Jan
Briefing Forecast 0.4%
Market Expects 0.4%
Prior -0.3%

8:30 AM Core PPI Jan
Briefing Forecast 0.2%
Market Expects 0.2%
Prior 0.2%

10:00 AM Consumer Confidence Feb
Briefing Forecast 80.0
Market Expects 82.0
Prior 87.9

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

[UpInArms]

16. U.S. Jan. core PPI rise highest since last Feb.- up 0.4% vs. 0.3% expected

01. U.S. Jan. core intermediate goods up 1.0%
8:30 AM ET, Feb 26, 2008 - 1 minute ago

02. U.S. Jan intermediate goods up 1.4%
8:30 AM ET, Feb 26, 2008 - 1 minute ago

03. U.S. Jan. crude goods PPI up 2.5%
8:30 AM ET, Feb 26, 2008 - 1 minute ago

04. U.S. Jan. PPI energy prices up 1.5%, food up 1.7%
8:30 AM ET, Feb 26, 2008 - 1 minute ago

05. U.S. Jan. core PPI rise highest since last Feb.
8:30 AM ET, Feb 26, 2008 - 1 minute ago

06. U.S. Jan. core PPI up 0.4% vs. 0.3% expected
8:30 AM ET, Feb 26, 2008 - 1 minute ago

07. U.S. Jan. PPI up 1.0% vs. rise 0.4 expected
8:30 AM ET, Feb 26, 2008 - 1 minute ago

[Roland99]

20. Energy, food push January's PPI 1% higher (Year-over-year increase highest since 1981)

http://www.marketwatch.com/news/story/us-jan-ppi-jumps-energy/story.aspx?guid=%7B424344AE%2DEB68%2D4BDA%2DB31F%2D4AFFE5506FA3%7D

Producer prices soared in January, pushed higher by energy prices and the biggest increase in food prices in more than three years, government data showed Tuesday.

The producer price index climbed by 1% last month, the Labor Department reported. The closely followed PPI, which measures the rate of inflation at the wholesale level, had fallen 0.3% in December after having registered a jump of 2.6% in November.

January's core PPI, which excludes food and energy prices, rose 0.4%, driven by higher drug and car prices.

Year over year, the PPI is up 7.4% -- the fastest pace since 1981. Also on an annualized basis, the core PPI is up 2.3%.

[UpInArms]

30. U.S. Feb. consumer confidence 75.0 vs. 87.3 in Jan.

07. U.S. Feb. consumer confidence 75.0 vs. 87.3 in Jan.
10:01 AM ET, Feb 26, 2008 - 54 minutes ago

08. U.S. Feb. consumer confidence below 82.0 expected
10:01 AM ET, Feb 26, 2008 - 54 minutes ago

[Ghost Dog]

53. Confidence plunges, inflation rate soars

NEW YORK (AP) - No good news today on the economic front. Consumer confidence plunged, the wholesale inflation rate soared, the number of homes being foreclosed jumped, home prices fell sharply and a report predicts big increases in health care costs.

Consumer confidence weakened significantly as Americans worry about less-favorable business conditions and job prospects. The New York-based Conference Board says in a report released on Tuesday that its Consumer Confidence Index plunged in February to 75.0 from a revised 87.3 in January.

The reading -- the lowest since the index registered 64.8 in February 2003 -- is far below the 83.0 analysts expected.

The index measures how consumers feel now about the economy. It has been weakening since July, suggesting that wary consumers may retrench financially, which could fatigue the economy further.

Inflation at the wholesale level soared in January, pushed higher by rising costs for food, energy and medicine. The monthly increase carried the annual inflation rate to its fastest jump in a quarter century.

The Labor Department said Tuesday that wholesale prices rose 1 percent last month, more than double the 0.4 percent increase that economists had been expecting.

The January surge left wholesale prices rising by 7.5 percent over the past 12 months, the fastest pace in more than 26 years, since prices had risen at a 7.5 percent pace in the 12 months ending in October 1981.

/... http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=9ae03fd0-e497-45bf-9fb0-3fc47e017160

[OKthatsIT]

77. With friends like Greenspan..who needs enemies

Dropping Gulf dollar peg would ease inflation: Greenspan
By Souhail Karam and Stanley Carvalho
Today

JEDDAH/ABU DHABI (Reuters) - Former Federal Reserve Chairman Alan Greenspan said on Monday near-record Gulf Arab inflation would fall "significantly" were the oil producers to drop their dollar pegs, in contradiction to Saudi policy.

The pegs restrict the Gulf's ability to fight inflation by forcing them to shadow U.S. monetary policy at a time when the Fed is cutting rates to ward off recession and Gulf economies are surging on a near five-fold jump in oil prices since 2002.

Rifts are growing across the world's top oil-exporting region on how to tackle inflation which hit a 27-year peak of 7 percent in Saudi Arabia in January and a 19-year peak of 9.3 percent in the United Arab Emirates in 2006, the most recent figure.

"In the short term free floating ... will not fully dissipate inflationary pressure, although it would significantly do so," Greenspan told an investment conference in Jeddah, Saudi Arabia's second-largest city.

Saudi and UAE central bank chiefs spoke in favor on Monday of retaining dollar pegs, while Qatar's prime minister advocated regional currency reform to avert possible unilateral revaluations designed to curb inflation.

"The economies of the Gulf and the United States are completely out of sync and that is exposing the shortcomings of the dollar peg," said Simon Williams, Middle East economist at HSBC Holdings Plc in Dubai.

"Against a backdrop of inflation, high oil prices and low interest rates the debate over currency reform has to take on greater urgency," he said.

Floating the Saudi riyal would not be appropriate for an economy that relies on oil exports, Saudi Central Bank Governor Hamad Saud al-Sayyari told Arabiya Television in response to Greenspan's suggestion.
more...
http://www.reuters.com/article/ousivMolt/idUSL2515874520080225

[ozymandius]

3. Oil falls below $99 after overnight rise

SINGAPORE - Oil prices fell Tuesday after rising in the previous session in a rally led by oil product futures.

Cold weather across the U.S. Midwest and Northeast have helped push heating oil prices to fresh records, exerting an upward pull on crude markets.

The surging demand is expected to result in a decline in distillate stocks, which include heating oil and diesel, in a closely watched weekly U.S. petroleum supply snapshot to be released Wednesday.
.....

Light, sweet crude for April delivery dropped 38 cents to $98.85 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract gained 42 cents to settle at $99.23 a barrel Monday.

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

[Ghost Dog]

65. Oil surges on weak dollar

Tue 26 Feb 2008, 20:29 GMT
NEW YORK, Feb 26 (Reuters) - Oil surged on Tuesday to a record settlement as investors reacted to weakness in the U.S. dollar following a batch of gloomy economic data.

Strong heating fuel demand in Europe and the United States in the midst of a cold spell and signals from OPEC that the group will not raise production at its meeting next week added support to crude's rally, dealers said.

U.S. crude gained $1.65 to $100.88 a barrel -- a record settlement -- after climbing to within 21 cents of last week's $101.32 all-time intraday high. London Brent crude rose $1.78 to $99.47 after touching a record for the European benchmark of $99.75.

"The weak dollar seems to be the biggest catalyst for this boost," said Mark Waggoner, president of Excel Futures Inc in Huntington Beach, California.

A weak dollar can lead traders to push up nominal prices for commodities denominated in the currency as a way of preserving value in other currencies.

/... http://africa.reuters.com/energyandoil/news/usnN26365831.html

[Ghost Dog]

4. MBIA moves to help stability in credit markets

NEW YORK (Reuters) - MBIA Inc (MBI.N), the world's largest bond insurer, said it will stop guaranteeing asset-backed securities for six months and plans to split that business from its municipal bond unit, moves aimed at restoring stability in troubled credit markets.

The decision was announced after Standard & Poor's earlier on Monday said it would not cut the company's top-tier credit ratings, causing MBIA shares to rally 19.7 percent and prompting a broader stock market rally.

S&P said it had grown more confident that MBIA could raise capital after the insurer sold some $2.6 billion of debt and equity this year.

...

S&P said it was no longer reviewing MBIA's "AAA" rating for downgrade, but said the outlook was "negative" because of the size of potential losses relative to the insurer's capital.

Moody's Investors Service and Fitch are both still considering cutting the top ratings for MBIA Insurance Corp, the company's main operating unit.

S&P said the main unit at Ambac Financial Group Inc (ABK.N), MBIA's largest rival, may still lose its top ratings.

A deal to provide that insurer with more capital will not likely be signed until early next week, a person briefed on the matter said.

/... http://news.yahoo.com/s/nm/20080226/bs_nm/mbia_dc;_ylt=AqA9YyPCA7OUx0wC9B0LelG573QA

[Ghost Dog]

10. Asia-Pacific Bond Risk Falls as MBIA Is Removed From S&P Review

Feb. 26 (Bloomberg) -- The cost of protecting debt in the Asia-Pacific region from default fell after Standard & Poor's said MBIA Inc., the world's largest bond insurer, is no longer under review for a credit ratings downgrade.

Credit-default swaps on the Markit iTraxx Australia Series 8 Index declined 13 basis points to a two-week low of 126.5 basis points as of 1:18 p.m. in Sydney, according to prices from Citigroup Inc. The drop in the cost of Australian default protection exceeded declines in contracts linked to Japanese companies and Asian high-risk, high-yield borrowers.

``With S&P's action on MBIA, the credit market will no doubt breathe a large sigh of relief,'' said Ken Hanton, senior credit analyst at National Australia Bank Ltd. in Sydney. ``Out of the U.S., Europe and Asia, our market is going to be the first market that has a full day to digest this.''

S&P also affirmed the top rating of Ambac Financial Group Inc., giving the second-largest bond guarantor more time to avoid a downgrade that would threaten credit rankings on the securities it backs. Ambac and MBIA combined guarantee about half of the $2.4 trillion in securities covered by the industry.

The Markit iTraxx index of 20 contracts tied to Asian high- risk, high-yield borrowers outside Japan fell 8 basis points to 555 basis points, JPMorgan Chase & Co. prices show. The benchmarks decrease as investors' perceptions of credit quality improve. The benchmark measure of default risk for 50 Japanese investment-grade companies declined 1 basis point to 94 basis points, according to Morgan Stanley.

A basis point, or 0.01 percentage point, is worth $1,000 on a swap that protects $10 million of debt.

Problem `Still Exists'

Further declines in credit-default swaps may be tempered by concern that ratings cuts to bond insurers FGIC Corp. and XL Capital Ltd. will still cause enough losses to deter some investors from buying anything but the safest debt.

``Japanese market sentiment has been eroded by the monoline insurance problem,'' said Yasunobu Katsuki, chief credit analyst at Mizuho Securities Co. in Tokyo. ``The monoline problem has not gone away. It still exists.''

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=aedRqrGOxZRU&refer=asia

[Robbien]

34. It is a wonder that Wall Streeters continue to believe in the AAA fairy tale

S&P just wimped out. Nothing has changed except more people are aware that S&P's ratings system sucks.

But I guess Wall Streeters have no choice but to keep playing the pretend game because not to do so means danger for their profits.

[Ghost Dog]

47. It's an object lesson in the (temporary) power of smoke & mirrors,

isn't it.

I wonder how many (of those who can) are cashing out and heading for home (and/or the hills) about now... (*)

Still, if your timing's perfect (and/or your inside info is reliable) you could be picking up several percent per day (in either direction) at this rate.

--
(*) UK retail funds suffer record outflows

LONDON (Reuters) - Nervous retail investors pulled record amounts from British funds in January, on concerns about the financial markets, and the sector's overall assets under management shrunk 7 percent from a month earlier.

Net retail outflows jumped to 550 million pounds, up from 377.4 million in December -- the previous record outflow -- the Investment Management Association (IMA) said in a note on Monday.

This compared to net retail inflows of 912 million pounds in January 2007, IMA said.

January's high outflows were driven by record outflows from equities of 867 million pounds, as investors reacted to more stock market volatility.

But outflows from property funds, which have been hit by a slump in confidence amid falling real estate values, slowed dramatically, down to 274 million pounds from 537 million pounds in December. Some funds have invoked clauses making it harder for investors to withdraw their funds.

Overall funds under management in UK-domiciled funds stood at 433.2 billion pounds in January, down from 468 billion pounds in December 2007.

/... http://uk.reuters.com/article/fundsNews/idUKNOA62940720080226

[ozymandius]

5. US home foreclosures soar in January

LOS ANGELES - The number of homes facing foreclosure jumped 57 percent in January compared to a year ago, with lenders increasingly forced to take possession of homes they couldn't unload at auctions, a mortgage research firm said Monday.

Nationwide, some 233,001 homes received at least one notice from lenders last month related to overdue payments, compared with 148,425 a year earlier, according to Irvine, Calif.-based RealtyTrac Inc. Nearly half of the total involved first-time default notices.

The worsening situation came despite ongoing efforts by lenders to help borrowers manage their payments by modifying loan terms, working out long-term repayment plans and other actions
.....

The U.S. foreclosure rate last month was one filing for every 534 homes.

http://news.yahoo.com/s/ap/20080226/ap_on_bi_ge/foreclosure_rates

[Warpy]

40. January-March seems to be foreclosure season around here

and it's probably timed to the peak home sales time every year, at least back in the good old days when places were still selling.

It's even been getting slow in my area, an area of post WWII starter homes that have been attractive to downsizers who want to be close to work and have a place that's cheap to heat and cool when they come home.

[Ghost Dog]

6. Asian Stocks Rise on Insurers' Ratings; Japan's Retailers Fall

Feb. 26 (Bloomberg) -- Asian stocks advanced, led by financial companies, after the world's largest bond insurers retained top credit ratings, easing concern that global economic growth will slow on new credit losses.

National Australia Bank Ltd. climbed after Standard & Poor's kept MBIA Inc. and Ambac Financial Group Inc.'s AAA debt ratings. Sun Hung Kai Properties Ltd. led gains in Hong Kong on speculation the city's record budget surplus will prompt the government to waive property taxes. Aeon Co. paced declines in Japan after Credit Suisse Group said worsening consumer sentiment will drag on retailers' earnings.

``It's a temporary boost for Asia,'' said Mushtaq Ibrahim, who manages about $1.4 billion at Amanah SSCM Asset Management Bhd. S&P's move ``has prevented a snowballing effect that would have dragged down banks'' globally.

The MSCI Asia Pacific Index added 0.2 percent to 145.86 as of 3:26 p.m. in Tokyo, trimming earlier gains of as much as 1 percent. Advances today helped reduce the benchmark's 2008 loss to 7.6 percent.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=a2PNxfKBchu8&refer=asia

[Ghost Dog]

8. Japanese Stocks Decline, Led by Retailers, Power Producers

Feb. 26 (Bloomberg) -- Japanese shares dropped after Credit Suisse Group said worsening consumer sentiment is dimming the outlook for parts of the retail industry.

Aeon Co., the nation's second-largest retailer, and Isetan Co. declined after a report showed confidence among Japan's small and midsized companies stayed near a five-year low. That reduced the prospect that the employers of most of the country's workers will increase wages and spur consumer spending.

``There were expectations that wage hikes this spring would feed into higher retail sales,'' said Yoshinori Nagano, who helps oversee about $70 billion at Daiwa Asset Management Co. in Tokyo.``That's looking less likely.''

Tokyo Electric Power Co. led a drop by utilities after Nomura Holdings Inc. said companies may not be able to pass on higher raw-materials costs to consumers. KDDI Corp., Japan's second-largest mobile-phone operator, tumbled after Nomura reduced its rating on the shares.

The Nikkei 225 Stock Average slipped 89.85, or 0.7 percent, to 13,824.72 at the close of trading in Tokyo, after earlier rising as much as 1 percent. The broader Topix index lost 8.07, or 0.6 percent, to 1,347.47, reversing a 1.1 percent climb.

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=aQLQ47Pq7nI8&refer=japan

[ozymandius]

7. Five former insurance execs found guilty

HARTFORD, Conn. - Five former insurance company executives were found guilty Monday of a scheme to manipulate the financial statements of the world's largest insurance company, American International Group Inc.

The defendants, including four former executives including a onetime CEO of General Re Corp., and a former executive of AIG, sat stone-faced as they were convicted of conspiracy, securities fraud, mail fraud and making false statements to the Securities and Exchange Commission.

Prosecutors said they participated in a scheme in which AIG paid Gen Re as part of a secret side agreement to take out reinsurance policies with AIG in 2000 and 2001, propping up its stock price and inflating reserves by $500 million.
.....

The defendants were former General Re CEO Ronald Ferguson; former General Re Senior Vice President Christopher P. Garand; former General Re Chief Financial Officer Elizabeth Monrad; and Robert Graham, a General Re senior vice president and assistant general counsel from about 1986 through October 2005.

Also charged was Christian Milton, AIG's vice president of reinsurance from about April 1982 until March 2005.

http://news.yahoo.com/s/ap/20080225/ap_on_bi_ge/gen_re_aig_trial

[ozymandius]

9. Visa IPO could be largest in US history

NEW YORK - Stocks are shaky, credit is tight, the economy may be tipping into a recession. Not the best of times to be going to the markets for what could be the largest initial public offering in U.S. history.

That's the gamble Visa is taking as it gave details Monday about an IPO that could raise up to nearly $19 billion: If it works, it could be an encouraging sign to the stock markets and may even help loosen the credit knot.

While Visa's IPO will have little direct effect on its cardholders, the banks that issue Visa cards are expected to see a total windfall of more than $10 billion — which might keep them from pulling back credit lines further and pushing rates higher.

http://news.yahoo.com/s/ap/20080225/ap_on_bi_ge/visa_ipo

[Robbien]

35. Ha. Not pull credit lines and not push for higher credit card rates?

Actually use profits to run the banks instead of using them to pay executive bonuses and shareholder dividends?

I will believe it when I see it.

[UpInArms]

12. dollar watch

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

Last trade 75.276 Change -0.226 (-0.30%)

Euro Gets The Green Light From IFO -1.50 Next?

http://www.dailyfx.com/story/bio2/Euro_Gets_The_Green_Light_1204023628129.html

The German IFO Survey for business confidence unexpectedly rose for the second consecutive month in February, rallying the EURUSD over 50 points to retest recent resistance at 1.4850. The index increased to 104.1 from 103.4 in January against a forecast of 102.9, suggesting that Europe’s largest economy is be able to grow despite the challenges of a U.S. downturn, higher oil prices and a strong currency.

The news tonight should bolster the hawkish position of the ECB and provide further support for the argument that the European economy has decoupled from the U.S. We stated last week that the IFO could make or break the EURUSD this week and tonight’s news clearly “made” the euro longs position imbuing them with confidence. We noted yesterday that, “We believe that the price action (in EURUSD) is much more indicative of consolidation rather than exhaustion. Just as the NZDUSD spend several months warily circling the 8000 level before finally breaking through on Thursday, so too the EURUSD is likely to continue to churn before making a decisive move higher. “

With the break of the key resistance level of 1.4850 the pair is now on the way to challenge the psychologically important 1.5000 level. Ironically enough the pair’s test of that key barrier is not predicated on additional negative news from the US. In fact if US data, begins to surprise to the upside, indicating that the US economy has only slowed but not actually contracted, risk appetite is likely to return to capital markets providing a conducive environment for further EURUSD gains.

With renewal of risk assumption the EURUSD is likely to benefit from carry trade flows. Tonight’s IFO data should put to rest any fears on an imminent rate cut by the ECB and that in turn should make EURJPY the pre-eminent carry trade in the currency market. Therefore, if during the North American session, the Consumer Confidence data prints better than forecast, leading to further stock market gains the EURUSD could see continuation of today’s early morning rally.

...more...

US Fed: Will Bernanke & Co. Switch Gears To Focus On Inflation?

http://www.dailyfx.com/story/topheadline/US_Fed__Will_Bernanke___1204021450582.html

The minutes from the FOMC’s January meeting reflect a clear concern regarding the downside risks to growth, but what about inflation? The FOMC touched on this by noting that improved prospects for growth could allow them to reverse previous rate cuts in order to “promote price stability.” However, Dallas Fed President Richard Fisher – a consistent inflation hawk – voted against the January 30 rate reduction, citing uncomfortably high CPI figures. Recent commentary suggests that he isn’t the only one worried, and traders aren’t as aggressive in their speculation about the Federal Reserve’s next move, though futures still price in a 90 percent chance of a 50bp cut on March 18. Moreover, with Fed Chairman Ben Bernanke’s testimony to the House Panel on Monetary Policy scheduled for Wednesday, these expectations could shift sharply.

Yield Spread Analysis 02/19 – 02/26

For the second week in a row, price action in the global fixed income markets has been very quiet as volatility in equity indexes has generally cooled down. Some exceptions include UK and Swiss bonds. Short-term yields on government bonds for the UK have jumped as the markets speculate that the Bank of England may not cut rates again in March, especially given the semi-hawkish commentary revealed in the minutes from the MPC’s February meeting.

This week, the release of Durable Goods Orders and Fed Chairman Ben Bernanke’s testimony to the House Panel on Monetary Policy could be a double whammy to Treasury yields, especially if orders plummet in line with expectations and if the markets perceive Bernanke’s commentary as being dovish. On the other hand, the emergence of more inflation-focused commentary could revive yields and the US dollar. Nevertheless, the former scenario is far more likely, and Treasury bulls and US dollar bears may simply be waiting in the wings to take action.

...more...

[Ghost Dog]

23. Euro= USD 1.489, GBP 0.754, CHF 1.617 and JPY 161.2 at this time

[Ghost Dog]

44. Dollar deepens losses after Fed's Kohn comments

Tue Feb 26, 2008 12:36pm EST
NEW YORK, Feb 26 (Reuters) - The dollar extended losses on Tuesday after Federal Reserve Vice Chairman Donald Kohn said risks to U.S. economic growth were a bigger worry than inflation, suggesting further Fed interest rate cuts.

The euro rose to a session high of $1.4914 <EUR=>, versus $1.4902 before Kohn's comments. Against the yen, the dollar fell to 107.60 yen <JPY=>, a decline of 0.4 percent on the day.

/. http://www.reuters.com/article/marketsNews/idINN2646880020080226?rpc=611

[Ghost Dog]

45. Euro= USD 1.494, GBP 0.753, CHF 1.613 and JPY 160.8 at this time

[Ghost Dog]

57. US Dollar Advances To 15-day High Versus Kenyan Shilling

(RTTNews) - The US currency advanced against its Kenyan counterpart during afternoon New York deals on Tuesday. The dollar that closed yesterday's deals at 69.50 against the shilling reached 70.70 by about 2:10 pm ET. This set a 15-day high for the greenback.

/.. http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20080226\ACQRTT200802261418RTTRADERUSEQUITY_1162.htm
&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD&chk=unchecked&lang=&link=
&headlinereturnpage=http://www.international.nasd

[Roland99]

63. Well, what with the Kenyan shilling being the standard-bearer currency and all.....

[Ghost Dog]

66. I thought some really really good news was appropriate...

:evilgrin:

[Ghost Dog]

62. Dollar Falls to Record Low as Home Prices, Confidence Slump

Feb. 26 (Bloomberg) -- The dollar sank to a record low against the euro as U.S. home prices tumbled and consumer confidence sank to a five-year low.

Traders pushed the dollar to the weakest level since the euro began trading in 1999 as producer prices rose more than forecast, fueling speculation the Federal Reserve will have less room to cut interest rates to bolster the economy. The euro began its climb earlier after German business confidence rose a second month.

``Higher inflation coupled with slower growth is not a recipe for a stronger currency,'' said John McCarthy, a director of currency trading at ING Financial Markets LLC in New York.

The dollar weakened to $1.4979 per euro at 2:49 p.m. in New York, from $1.4830 yesterday. It fell past the previous historic low of $1.4967, set on Nov. 23. The dollar fell to 107.27 yen from 108.07. The euro rose to 160.65 yen from 160.27, after reaching a six-week high.

...

The U.S. currency fell to the lowest levels of the day after Fed Vice Chairman Donald Kohn said in a speech in North Carolina that turmoil in credit markets and the possibility of slower economic growth pose a ``greater threat'' than inflation.

``Kohn painted a very bleak assessment of the U.S. economy,'' said Brian Dolan, research director at Forex.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey, which has about $250 million funds under management. ``What he indicated is that the Fed will keep providing lower interest rates regardless of inflation. It's outright dollar- negative.''

The dollar fell against all 16 of the most-active world currencies. Futures on the Chicago Board of Trade show traders see a 92 percent chance the U.S. central bank will reduce the 3 percent target rate for overnight lending between banks by 50 basis points at their March 18 meeting, and a 8 percent likelihood of a quarter-point cut.

The dollar's decline accelerated after it weakened beyond about $1.4910 per euro, a level where traders had pre-set orders to sell the U.S. currency, causing a ``capitulation of those hoping the dollar would rebound,'' Dolan said.

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

[Ghost Dog]

68. Fed Auctions $30 Billion

WASHINGTON (AP) — The Federal Reserve, seeking to combat effects of the credit crisis, said Tuesday it had auctioned another $30 billion in funds to commercial banks, at an interest rate of 3.080 percent. It was the sixth in a series of auctions that so far have pumped $160 billion into the nation's banking system in an effort to provide cash-strapped banks with extra reserves.

/... http://ap.google.com/article/ALeqM5jC0Js_XMSCt-GDAijc3qIbjuVZIAD8V24KO00

[Ghost Dog]

70. Euro= USD 1.499, GBP 0.754, CHF 1.611 and JPY 161.3 at this time

:yoiks:

... in fact:

(RTTNews) - Euro spikes against majors, now worth 1.5036 against dollar
http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20080226\ACQRTT200802261721RTTRADERUSEQUITY_1446.htm
&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD
&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.nasd

[UpInArms]

13. Two Hedge Funds Raise Their Stake in the New York Times Company to 19%

http://www.nytimes.com/2008/02/26/business/media/26times.html?ex=1361682000&en=2883375db2769472&ei=5088&partner=rssnyt&emc=rss

Two hedge funds trying to elect a dissident slate to the board of The New York Times Company amassed 19.03 percent of the company’s common stock before last week’s deadline for gaining voting power at the annual meeting, according to a report filed Monday.

That rivals the holdings of the Times Company’s chairman, Arthur Sulzberger Jr., and his family, who have effectively controlled the selection of directors. A two-tiered stock structure gives the family unfettered control of 9 of the 13 board seats; what the hedge funds are fighting for is control of the other four.

The funds, Harbinger Capital Partners and Firebrand Partners, contend that the company is not taking full advantage of its potential value. They take the position that the Times Company should sell assets; focus on the flagship newspaper, The New York Times; and invest more in Internet operations. But the funds have also said that they do not intend to challenge the two-tiered stock structure or the control of the company by the Sulzbergers.

The company’s assets include About.com, The International Herald Tribune, The Boston Globe, a string of smaller newspapers, majority ownership of a new high-rise headquarters building in Manhattan, and a minority stake in the Boston Red Sox.

The company can try to strike a deal with the hedge funds and split the four seats, or face a full-fledged proxy fight for all four — a fight that it might lose.

...more...

[Demeter]

17. NYTimes Is in Such Trouble--New Ideas Couldn't Hurt

as long as it isn't from the Rupert Murdock school of journalism...

[UpInArms]

14. Selling Gold at I.M.F. to Rebuild Its Finances

http://www.nytimes.com/2008/02/26/business/worldbusiness/26imf.html?ex=1361682000&en=5d8a3337d325da97&ei=5088&partner=rssnyt&emc=rss

WASHINGTON — For decades, the International Monetary Fund has played a pivotal role in rescuing insolvent countries and stabilizing the world economy. But after years of budget problems, the fund received approval on Monday from the Bush administration to sell gold bullion to stabilize its own shaky finances.

The sale, which Congress also must approve, must be accompanied by cuts in the fund’s budget and changes in its governance to give more influence to emerging countries and perhaps less to Europe, said David H. McCormick, under secretary of the Treasury for international affairs.

“The I.M.F. must reform to remain relevant,” Mr. McCormick said in a speech at the Peterson Institute for International Economics in Washington. “The world economy is constantly changing, and the I.M.F. must now change with it, as it has successfully done in the past.”

Mr. McCormick called for the fund to reduce the number of executive board members to 20, from 24, and to make room within the 20 for developing countries. The emerging economic powers, including China, Brazil, Russia, India and Mexico, have agitated for more such board seats in recent years. The fund took a step in that direction in 2006 but now needs to do more, he said.

<snip>

According to the treaty setting up the I.M.F. after the war, the United States must obtain Congressional approval for a sale of gold.

...more...

[Demeter]

18. Shut Down the IMF!

With its track record of proven failure, corruption, and waste, there is no need to throw good gold after bad money.

[InkAddict]

33. What form would the fund from the proceeds of the gold sale take?

http://www.iht.com/articles/2006/03/28/bloomberg/sxmuk.php

Commentary: An IMF hedge fund would benefit the world's poor
By Andy MukherjeePublished: TUESDAY, MARCH 28, 2006

Lawrence Summers has a radical idea.

The way I interpret it, the former U.S. Treasury secretary and outgoing president of Harvard University is suggesting that the International Monetary Fund should stop being just a lender of last resort and become the world's biggest hedge fund administrator.

What if, as Summers asked in a speech in Mumbai last week, they could turn over a part of this surplus - he used a figure of $500 billion - to a "facility" managed by the monetary fund and the World Bank?

...China's State Administration of Foreign Exchange said it wanted "to actively explore ways of investing foreign exchange more efficiently." In general, however, when it comes to central banks investing their reserves, liquidity and safety considerations trump returns. Thus the central banks lose money on "safe and liquid" investments in U.S. Treasuries, even as private investors make a killing in equities.




Hmmm...this sounds like another sneaky way to pawn off those "unworthy" tranches???
One day, the music's going to stop and there will be one less chair.

[54anickel]

36. Ewww, are TPTB finally running out of cards to play? This IS getting

chilling to watch these days...so far they've been able to pull plays outta their arses to keep things afloat

bit more from that article....

In the 1990s, the I.M.F. played a central role in the bailout of countries in Asia and Latin America, engendering bitterness among their citizens because of the austerity programs imposed as a condition of the rescue. Since then, most of those countries have gotten back on their feet and prospered from their exports, accumulating vast reserves.

Many of them have repaid the I.M.F. and are now talking about setting up their own monetary funds and reducing the I.M.F.’s influence. The I.M.F. has lost income as its lending activities have shrunk, and it faces $100 million in cuts from a $900 million budget. It also plans to sell some of its 103 million ounces in gold bullion to set up an investment fund to generate revenue.

According to the treaty setting up the I.M.F. after the war, the United States must obtain Congressional approval for a sale of gold. Many of the countries that belong to the I.M.F. are resisting sales because they regard the gold as belonging to them. Mr. McCormick said in an interview that the fund contemplated selling about 13 million ounces, to raise about $12 billion. Mr. McCormick said that such a sale would probably not disrupt gold prices, which are at record levels of about $940 an ounce.

I've been forced to fire up my old laptop and have been looking at some of the old bookmarks I set on it back in the early stages of what was sure to be doomsday...makes me wonder if they're finally out of tricks or not. Can currency zones be far behind? There was lots of :tinfoilhat: talk of New World Order and monetary zones back then.

So, what's the status on the Petrodollar these days and how's the buck holding up as the world's reserve currency? (I've got a bet riding on that one!)

Here's an oldie but goodie....

http://www.prosperityuk.com/prosperity/articles/yandol.html
WORKING FOR THE YANKEE DOLLAR
by James Gibb Stuart

Prosperity, January 2002

In the aftermath of 9-11, an American friend of mine said to me, "It seems we have become the 21st century's most hated nation, and we owe it to ourselves, as much as anyone else -- if not to forgive -- at least to understand."

So how can Prosperity contribute to this understanding? Perhaps by retracing history! Particularly financial history!

And for the purposes of this exercise we need only go back some thirty years to 1971, when President Nixon closed "the gold window".

snip>

The American people are not an unkindly people. In times past they have been feted for their generosity. But they need to understand the grievous injustices which are being perpetrated in their name.

Broadly, the US needs to be brought back to earth. If you have something to buy then you need something to sell. You should exchange to the same value.

Today the US gets something for nothing. Real assets are being exchanged for American paper money. America is growing wealthy on the paper money it creates out of nothing, and some day the bubble might burst.

In the meantime, the debt-slaves are getting restless.

[Ghost Dog]

48. Gold bounces back, but likely IMF sales to weigh

Tue Feb 26, 2008 4:20pm GMT
LONDON, Feb 26 (Reuters) - Gold bounced back in Europe on Tuesday on a weaker dollar after falling more than 1 percent on possible gold sales by the International Monetary Fund.

Silver hit a 27-year high as investors considered the metal relatively cheap against other precious metals, analysts said.

The United States said on Monday it supported the sale of a limited portion of the IMF's gold stocks and was confident Congress would support the move. The U.S. Treasury had earlier resisted seeking Congressional approval.

"The market is capped because of this IMF sales news. It would be healthy for the market if it dropped back to low $900s. Then it has a better chance to make an assault on $1,000," said Peter Hillyard, head of metals sales at ANZ Investment Bank.

"The dollar would have to get a lot weaker for the market to ignore that and just push through," he said, but added that any price dip or dollar weakness might attract some buying.

Spot gold <XAU=> fell as low as $926.40 an ounce before rising to a high of $943.80. It was quoted at $941.40/942.30 at 1612 GMT, against $937.80/938.60 in New York on Monday and off last week's record high of $953.60.

The IMF is the world's third-largest gold holder, with 3,217 tonnes of reserves. Any sale of IMF gold might be done in accordance with a European Central Bank gold accord, which limits total gold sales to 500 tonnes a year, analysts said. Continued...

/... http://uk.reuters.com/article/goldMktRpt/idUKL2625997220080226

[AnneD]

51. That little tid bit caused gold to drop the other day....

Check this thread out too....There is some funny business afoot

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=114&topic_id=34942&mesg_id=34946



Edited to add that if I were Shakespear, I'd be writing Julius Ceasar I think it is Act III the Ides of March and assorted premonitions.

[UpInArms]

15. Fed's credibility "rock solid"-US Treasury official (the world disagrees)

http://www.reuters.com/article/bondsNews/idUSL269248220080226?sp=true

LONDON, Feb 26 (Reuters) - The U.S. Federal Reserve's credibility on inflation remains untarnished by its aggressive easing of monetary policy in the face of rising price pressures across many global commodity markets, a senior U.S. Treasury Department official said on Tuesday.

"The Fed's credibility on inflation is rock solid," said Phillip Swagel, Treasury Assistant Secretary for Economic Policy, adding: "overall, inflationary expectations remain contained." The Fed has slashed interest rates in recent months in a bid to rev up an economy many analysts say is on the brink of or actually in recession as a result of the credit crisis.

The Fed's action, together with a weak dollar and soaring commodity, energy and food prices have fuelled fears inflation is taking hold just as growth is slowing.

In a show of hands, however, the packed hall of delegates at the Euromoney Bond Investors Conference in London overwhelmingly disagreed with both Swagel's assessments.

They reflected the view that the U.S. economy is either in recession or about to slip into one and that the Fed has let the inflation genie out of the bottle.

...more...

[Demeter]

19. See Cartoon Above!

That cartoon is worth the price of admission, alone. Unless and until the official attitude toward encouraging debt changes, we are lost.

[Ghost Dog]

26. The Specter of Stagflation

"Stagflation" is back in the headlines—but the term is being misused, and that's an important story. We're told by eminent newspapers and commentators that stagflation is the messy mixture of both high inflation and high unemployment. It isn't. Stagflation, at least as the concept was initially understood in the 1970s, meant something different. Yes, it signified the simultaneous occurrence of high inflation, high unemployment and slow economic growth; but its defining feature was the persistence of this poisonous combination over long periods of time. Although we're drifting in that direction, we're not there yet.

Let's see why this is a distinction with a difference. The coexistence of high (or rising) inflation with high (or rising) unemployment is not an abnormal event. But it's usually temporary, because the higher unemployment—stemming from an economic slowdown or recession—helps control inflation. Companies can't pass along price increases; they're stingier with wage increases. It's only when this restraining process is not allowed to work that inflationary psychology and practices take root, creating a self-fulfilling wage-price spiral. Higher wages push up prices, which then push up wages. Then we get stagflation: a semipermanent fusion of high joblessness and inflation.

Naturally, no leading politician is willing to acknowledge the self-evident implication: that recessions, though unwanted and hurtful to many, are not just inevitable; sometimes they're also necessary to prevent the larger and longer-lasting harm that would result from resurgent inflation. Interestingly, many economists (even those in academia and private industry who, presumably, have more freedom to speak their minds) suffer the same deficiency. They treat every potential recession as a policy failure when it is often simply part of the business cycle. They thus contribute to a political and intellectual climate that, focused on avoiding or minimizing any recession, may have the perverse result of aggravating inflation and leading to much harsher recessions later. The stagflation that began in the late 1960s and resulted from this attitude was indeed dreadful: from 1969 to 1982, inflation averaged 7.5 percent annually and unemployment 6.4 percent.

/... http://www.newsweek.com/id/114803?from=rss

[DemReadingDU]

21. Whitney: The Subprime Hangover

2/25/08 The Subprime Hangover
Here Comes The $739 Billion Taxpayer Bailout By Mike Whitney

some snippets...

there should be no doubt about who is really responsible for the subprime woes. The investment banks employ some of the country's “best and brightest”. These are sharp guys who have studied at some of our finest colleges and universities. Does anyone really believe that a Harvard MBA---who understands all the fine-points of high-finance--really thought that ignoring all of the standard criteria for prudent lending, and issuing trillions of dollars in loans to applicants who had no job, no collateral, bad credit, and were unable to come up with a few thousand dollars for a down-payment---was a great idea?

Of course not. It was a swindle from the get-go. The reason the banks looked the other way and issued these shaky mortgages was because they didn't really think there was any risk involved. After all, it wasn't their money. They simply repackaged the loans into bonds and sold them off to someone else. No worries. But, does that make them any less guilty?

Consider this: If the banks didn't know that the mortgages were bogus, than why are all the various types of mortgages; including Alt-As, piggybacks, home equity loans, ARMs, prime, and "interest only"---defaulting at the same time? It is not just subprime mortgages that are failing; it runs the gamut.


Bank of America's proposed $739 billion bailout is just the first of many hyper-inflationary, economy-busting trial-balloons we can expect to see in the near future. The banking system is in terminal distress; collapsing from hundreds of billions in worthless assets, bad bets, and poor decision-making. Their capital impairment problems were all brought on by themselves. And they should be forced to pay the consequences, whatever that may be. They managed to take a simple, revenue-generating activity like mortgage lending, and turn it into a textbook case of grand larceny. It's pathetic.

In their present condition, many of the banks will be back for another handout in a matter of months. Next will be commercial real estate (CRE) which is already slumping and on its way down. Then it'll be the $160 billion in private equity deals and leveraged buyouts (LBOs) which need refinancing. Then it'll be the maxed-out credit cards, and delinquent student loans and defaulting car loans all of which are failing at a faster and faster pace. It is not just the “structured investment” market that's unraveling now; it's the whole speculative paradigm of hyper-inflated assets, toxic bonds, over-priced equities and bizarre-sounding derivatives which are crashing down in one great debt waterfall. The investment banks are at the very center of the problems. They've played it fast and loose from the very beginning and now they've come up snake-eyes. Tough luck. Only they shouldn't count on a $700 billion freebie from Uncle Sam to make up for their own bad judgment.

more...
http://www.informationclearinghouse.info/article19414.htm

[Demeter]

27. But Who's Going to Lower the Boom?

Who is going to be the anti-Claus that tells BOA and the like that they aren't too big to fail?

We can't afford a parasitical criminal class in this country any more. Perhaps in the early 1900's, there was still enough profit in the system, but not any more.

[Ghost Dog]

28. Consider this?

... A third reason for focusing on foreclosures is that we've seen this film before. During the Great Depression, President Franklin Roosevelt and Congress dealt with huge impending foreclosures by creating the Home Owners' Loan Corp. Now, a small but growing group of academics and public figures, including Sen. Chris Dodd, D-Conn., is calling for the federal government to bring back something like the HOLC. Count me in.

The HOLC was established in June 1933 to help distressed families avert foreclosures by replacing mortgages in or near default with new ones homeowners could afford. It did so by buying old mortgages from banks -- most of which were delighted to trade them in for safe government bonds -- and issuing new loans to homeowners. The HOLC financed itself by borrowing from capital markets and the Treasury.

The scale of the operation was impressive. Within two years, the HOLC received about 1.9 million applications from distressed homeowners and granted just over 1 million new mortgages. (Adjusting only for population growth, the corresponding mortgage figure today would be almost 2.5 million.)

Nearly one of every five mortgages in America became owned by the HOLC. Its total lending over its lifetime was to $3.5 billion -- a colossal sum equal to 5 percent of a year's gross domestic product at the time. (The corresponding figure today would be about $750 billion.)

As a public corporation chartered for a public purpose, the Home Owners' Loan Corp. was a patient and even lenient lender. It tried to keep delinquent borrowers on track with debt counseling, budgeting help and even family meetings. But times were tough in the 1930s, and nearly 20 percent of the HOLC's borrowers defaulted anyway. So the corporation eventually acquired ownership of about 200,000 houses, nearly all of which were sold by 1944. The HOLC closed its books in 1951 with a small profit. It was a heavy lift, but the incredible HOLC lifted it.

/continues... http://www1.pressdemocrat.com/article/20080224/WIRE/802240389/1036/BUSINESS01

And cf. U.S. Home Foreclosures Jump 90% as Mortgages Reset: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3198374

[DemReadingDU]

22. Healthcare fraud trial in Columbus, Ohio - Update

2/25/08 Defense questions witness' alcohol, prescription drug use

After the government closed its questioning of Gibson Monday morning, defense attorney Javier Armengau began his cross-examination by asking Gibson about a joking presentation about National Century's finances she gave at a company holiday party, where she suggested the company's initials stood for 'No Cash Flow Ever.'

"Just how drunk were you?" Armengau asked.

Gibson replied that she wasn't drunk.

"But alcohol issues plagued you throughout your (National Century) employment, no?" Armengau asked.

Again, Gibson denied she had a problem with alcohol.


Gibson had been indicted with the executives but pleaded guilty in 2003 to a count of conspiracy to commit securities fraud. She spent three years in a federal penitentiary in Lexington, Ky., liquidated her holdings valued at about $420,000 to repay the government, and agreed to cooperate with the Justice Department's investigation.

Before defense questioning began, Gibson told jurors Monday morning that National Century executives took pride in their deception. She recalled how she and Dierker laughed at Ivy League-educated National Century investors who thought they were smarter than the executives, many of whom went to Ohio colleges and universities.

"(Investors) weren't asking questions and they weren't getting answers," Gibson said.

more...
http://www.bizjournals.com/columbus/stories/2008/02/25/daily5.html


2/25/08 Witness says National Century CEO threatened to blame her

The woman at the center of the government's case against several executives of the defunct National Century Financial Enterprises Inc. testified Monday that the company's CEO told her she would be thrown under the bus if fraud at the company ever came public.

Sherry Gibson, the Dublin company's executive vice president of compliance, said under cross-examination Monday afternoon that National Century chief Lance Poulsen told her he would not accept responsibility if the company was accused of fraud and would shift blame to her. Poulsen's attitude was especially hurtful, Gibson said, because she had always been loyal to her boss.

Gibson previously testified the company kept two sets of books, one accurate and another for investors that had been ginned to show National Century in better financial shape. Gibson said Monday it was primarily she and Poulsen who falsified company documents and investor reports.

Gibson said shortly after that conversation with Poulsen she began keeping copies of documents at her home in an effort to protect herself in case the company unraveled.

National Century was a financier of last resort for health-care providers. The firm specialized in buying receivables from medical businesses at a discount, giving them cash up front so they could pay their bills. It then packaged the receivables as asset-backed bonds and sold them to investors.

more...
http://www.bizjournals.com/columbus/stories/2008/02/25/daily9.html


edit to add link to previous articles...
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3192774&mesg_id=3193207

[NMDemDist2]

24. this can't be good for the opening bell "Prices Up More Than Forecast in January"

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3198384

U.S. Producer Prices Up More Than Forecast in January

Source: Bloomberg

Feb. 26 (Bloomberg) -- Prices paid to U.S. producers rose more than twice as much as forecast in January, pushed up by higher fuel, food and drug costs, signaling inflation may keep accelerating even as growth slows.

The 1 percent increase followed a 0.3 percent drop in December, the Labor Department said today in Washington. The median forecast in a Bloomberg News survey of economists projected a 0.4 percent rise. Excluding food and energy, so- called core wholesale prices climbed 0.4 percent, the most in almost a year.

Combined with figures showing consumer prices also rose more than forecast, today's report may prompt the Federal Reserve to consider raising interest rates as soon as the economy stabilizes. Fed officials, including Governor Frederic Mishkin yesterday, have warned that higher prices may stoke inflation expectations.

Policy makers will be ``looking over their shoulders,'' Michael Gregory, a senior economist at BMO Capital Markets in Toronto, said before the report. ``The Fed is providing two messages: `We are going to be reacting to the growth risks, but once those risks are mitigated, we're going to focus in the other direction.'''

[Ghost Dog]

25. Insurers help boost European bourses

European equity markets were higher on Tuesday after financial stocks enjoyed further gains, backed up by a solid session in the US overnight.

Financial services groups led the way after troubled US bond insurers rallied strongly. Ratings agency Standard and Poor's backed away from downgrading its AAA rating on MBIA, lifting the stock nearly 20 per cent. Meanwhile, rising hopes of a solution to shore up Ambac's balance sheet drove the monoline group nearly 16 per cent higher.

Dutch insurer Aegon climbed 3 per cent to EU10.42, French rival Axa added 3.4 per cent to EU23.82 and ING (NYSE:ING), the Dutch banking and insurance group, rose 2.8 per cent to EU23.92.

By midday, the FTSE Eurofirst 300 rose 1.1 per cent to 1,357.42, the CAC 40 in Paris gained 0.9 per cent to 4,964.21 and London's FTSE 100 added 1.1 per cent to 6,063.7.

Frankfurt's Xetra Dax outperformed, climbing 1.4 per cent to 6,976.47, after an unexcpected rise in German business confidence, reported by economic research group Ifo.

/... http://news.yahoo.com/s/ft/20080226/bs_ft/fto022620080715450104;_ylt=ApCc8mczyO7PDR_XX7J4nuf2ULEF

[Ghost Dog]

42. Banks fuel rally in Europe shares, US worries remain

LONDON, Feb 26 (Reuters) - Financial stocks drove European shares up on Tuesday after Standard Chartered (STAN.L: Quote, Profile, Research) delivered upbeat results, but the outlook for the U.S. economy remained a concern.

Asia-focused Standard Chartered hit a three-week high, rising nearly 8 percent to top gainers on the broader European market.

European insurers including Axa (AXAF.PA: Quote, Profile, Research) and Allianz (ALVG.DE: Quote, Profile, Research) also featured among stocks on the rise as conviction grew in the investment community that a rescue package for the top U.S. bond insurers may be imminent.

The FTSEurofirst 300 index ended up 1.41 percent at 1,361.18 points, close to its day's high. Advancing issues outnumbered decliners by about 4.4 to one.

But U.S. data showed a sharp drop in consumer confidence this month, while producer price inflation picked up by more than expected in January, which did not augur well for future consumer spending -- the engine of U.S. economic growth.

"In general, the fundamental picture is still not that encouraging so we must place a big question mark on the durability of the current upswing," said UniCredit analyst Gerhard Schwarz.

/... http://www.reuters.com/article/marketsNews/idCAL2691978420080226?rpc=611

[Ghost Dog]

50. World economy 'facing its biggest test in more than 10 years', says (UK) chancellor

Chancellor Alistair Darling today warned that the world economy was facing its biggest test in more than ten years amid growing fears of a US recession.

The comments came as a survey from the CBI employers' organisation showed a gloomy picture on the high street, with retail sales unexpectedly declining in February for the first time in more than a year while prices shot up.

Darling said: "We all recognise that the global economy is facing its biggest test in more than a decade... These are uncertain times. We do not yet know the full extent of the slowdown affecting the United States."

However, he said the UK economy had proved "more resilient than any of the major advanced nations to the shocks of the past decade", adding "I believe we will get through this turbulence."

Speaking separately, Bank of England deputy governor Rachel Lomax said that the ongoing financial and banking crisis "must surely be the largest ever peacetime liquidity crisis".

...

City economists said the gloom on the high street was intensifying. James Knightley at ING and Howard Archer at Global Insight said they expect interest rates to be cut to 4.5% by the end of the year, but growing inflationary pressures mean the Bank of England will take its time before reducing rates again.

In her speech, Lomax said policymakers need to balance the risk of demand slowing sharply against a temporary rise in inflation becoming entrenched if people start expecting further price rises.

/... http://www.guardian.co.uk/business/2008/feb/26/economics.retail

[Hugin]

29. ~10:40 ET:

Index Last Change % change
• DJIA 12523.24 -46.98 -0.37%
• NASDAQ 2313.02 -14.46 -0.62%
• S&P 500 1364.11 -7.69 -0.56%

:|

[UpInArms]

31. Q4 U.S. bank profits lowest since 1991:FDIC

02. Q4 U.S. bank profits lowest since 1991:FDIC
10:18 AM ET, Feb 26, 2008 - 37 minutes ago

03. Higher loss provisions, falling trading revs hit banks:FDIC
10:17 AM ET, Feb 26, 2008 - 38 minutes ago

04. U.S. banks' '07 reported net income off 27.4% vs '06:FDIC
10:16 AM ET, Feb 26, 2008 - 39 minutes ago

[Hugin]

32. ~11:00 ET: Up.

Index Last Change % change
• DJIA 12589.75 +19.53 +0.16%
• NASDAQ 2330.02 +2.54 +0.11%
• S&P 500 1372.17 +0.37 +0.03%

Looks like the markets chose "The Blue Pill".

[Demeter]

37. They Keep Bringing Out the Defibrillator Earlier and Earlier

Not even 11 am this time!

Taking lessons from Cheney's Dr. Frankenstein?

[Hugin]

55. It must have a pacemaker by now.

Set on 'hummingbird'.

[antigop]

38. Alphabet soup could burn Wall Street again (VIEs)

http://dailybriefing.blogs.fortune.cnn.com/

Wall Street could be in for another nasty-tasting serving of alphabet soup. In the wake of the debt market messes tied to collateralized debt obligations, or CDOs, and structured investment vehicles, or SIVs, Bloomberg reports that big banks could now face losses on another obscure asset class: variable interest entities, or VIEs.

The industry has already taken tens of billions of dollars of writedowns on CDOs and other mortgage-related securities. Now, Bloomberg reports, troubles in financing VIEs - another type of financial structure that lets firms keep risky assets off their balance sheets - could add new losses to the toll. Estimates of possible losses range from $30 billion at Moody’s to $88 billion at CreditSights, Bloomberg reports. Firms could have to recognize losses tied to the VIEs if they are forced to provide financing to the entities, as they did in the case of the SIVs that ran into financing trouble this fall. Beyond the usual suspects, such as Citi (C) and Merrill (MER), Bloomberg says the VIE mess could even touch two firms that have largely steered clear of the subprime swamp - Goldman Sachs (GS) and Lehman Brothers (LEH).

[Birthmark]

39. Okay, what am I missing here?

Consumer confidence is abysmal. Foreclosures for January were up 90%. Inflation is at it's highest since 1981.

The DJ is up over 100.

Either I'm missing an important piece of financial news or Wall St. has become Enchanted Fairy Land.

[Ghost Dog]

43. Buy fairies, sell on ghouls? Reuters's take:

U.S. stocks rise on IBM, Fed growth comments

NEW YORK, Feb 26 (Reuters) - U.S. stocks rose on Tuesday on news of a $15 billion buyback plan from IBM and on remarks by a Federal Reserve top official that the weak economy is a bigger worry than inflation, while upbeat bank results drove European shares higher.

Crude oil surged past $100 a barrel in the U.S. and set a record price in London, lifting the shares of oil companies and helping push all three major U.S. stock indexes up more than 1 percent.

Oil drew support from cold weather in Europe and the United States, as well as the view from the president of the Organization of Petroleum Exporting Countries that the group will not raise output at its meeting next week.

The vice chairman of the Federal Reserve, Donald Kohn, speaking in North Carolina, said the danger the U.S. economy will weaken further is a bigger worry than higher inflation. His comments suggested the Fed will cut interest rates further, pushing the dollar to extend losses.

U.S. stocks moved higher after International Business Machines Corp (IBM.N: Quote, Profile, Research) announced its buyback program, offsetting dire U.S. economic data that pointed to a sharp jump in inflation, a plunge in consumer confidence and more bad news from the beleaguered housing market.

/... http://www.reuters.com/article/marketsNews/idINN2634448020080226?rpc=611

(And, note plunging dollar).

[specimenfred1984]

49. Bad for Americans = good for stocks

Americans can't afford fuel = more profit for price gougers.
Americans can't afford houses = more gov't bailouts for corrupt banks.
Americans can't afford food = more reason to export to China.
Americans can't afford workers = more reason to outsource.
Americans can't afford health care = more reason to hike insurance rates.

America is a fascist system now, 100% corrupt.

[Hugin]

52. They've overfished...

That's exactly what the market's (The CONSUMER market) like right now... Their catches are smaller
in number and smaller fish.

Over doing everything is a way of life for the Corporations.

(Tomorrow's observation is that this is like 'overgrazing' and the day after that will be a tirade on
'dilution is NOT the solution to pollution.')

[AnneD]

54. A sure sign of ....

endangered species....smaller catches:(

[Hugin]

56. Sad, but, true AnneD...

;(

The Corporations have won the War-On-The-Middle-Class. But, what have they won? Empty nets.

They have 'Empty Net Syndrome'... *chuckle* couldn't resist.

[AnneD]

59. Prag...

ROFLOLPMP...
:rofl::rofl::rofl::rofl:
That is a classic. You need a DUzy for that.

[Ghost Dog]

58. I'd like to see a graph of Wall Street stocks

measured in terms of the USD Index.

[Hugin]

61. That would be interesting, Ghost Dog. nt

[Birthmark]

60. "Americans can't afford food = more reason to export to China"

I think you've put your finger on the issue that will severely harm corporatism in the US. When Americans begin to have to pay more for food than they can afford...and that we are *exporting* to China, thus driving up the price here at home, that a true backlash will begin.

I can only hope that it's peaceful and rational. Unfortunately, backlashes seldomly are.

[UpInArms]

69. they're doing the "Interest Rate Cut Boogie"

and yes, it is insane.

:hi:

[54anickel]

41. 1:24 with happy blather

Dow 12,700.55 +130.33 (1.04%)
Nasdaq 2,351.95 +24.47 (1.05%)
S&P 500 1,382.48 +10.68 (0.78%)
10-Yr Bond 3.8930% -0.0090
NYSE Volume 2,174,254,500
Nasdaq Volume 1,343,721,750


1:05 pm : Financials (+1.0%) spiked suddenly on news that Moody's has confirmed MBIA's (MBI 15.16, +0.58) AAA rating. The sector traded in choppy manner on word that the bond insurer's outlook is negative, but financials currently remain at their best levels. In the most likely scenario, Moody's believes the company will incur lifetime losses of nearly $4 billion.

The S&P 500 and Dow are now posting slight gains for the month, both up 0.4%. Although this may not seem like much, when considering how far they were down it is more significant. From their monthly lows, the S&P is up 4.2% and the Dow is up 5.7%.DJ30 +144.74 NASDAQ +26.36 SP500 +12.97 NASDAQ Dec/Adv/Vol 838/1955/1.22 bln NYSE Dec/Adv/Vol 768/2259/733.4 mln

12:30 pm : The market pauses a bit and then spikes to new highs as Fed Vice Chairman Kohn's comments hit the news wires. All ten economic sectors are now in the green, and the Dow and Nasdaq are now posting a gain in excess of 1%. The Nasdaq's advance is notable, as the composite was a laggard in the early going, down as much as 0.7%.

Kohn said he does not expect elevated inflation rates to last, noting that growth risks are a bigger threat, according to Reuters. This is common to what the Fed has been saying lately, which indicates further rate cuts are to come. Fed funds futures price a 88% chance of a 50 basis point cut, with the rest of the bets on a 25 basis point cut. The fed funds rate currently stands at 3.00%.DJ30 +130.50 NASDAQ +24.62 SP500 +11.74 NASDAQ Dec/Adv/Vol 846/1956/1.09 bln NYSE Dec/Adv/Vol 763/2249/644 mln

12:00 pm : Tuesday is shaping up to be another busy day for market participants. The stock market opened modestly lower on higher than expected inflation reading, although there are some indications the market was not surprised by the number. Stocks then caught a bid on news a tech industry bellwether substantially increased its share buybacks. At the East Coast lunch hour, stocks are trading at their best levels, with decent-sized gains.

IBM (IBM 113.82, +3.74) lifted the market into positive territory after its press release stated the company has authorized an additional $15 billion in funds to buyback shares. This brings IBM's repurchase program to roughly $15.4 billion. The company also raised its full year earnings per share expectation to at least $8.25, marking 16% year-over-year growth. It previously expected earnings per share of $8.20 to $8.30. Of note, the increased earnings per share outlook is due to the buyback program, and not a forecast for increased growth. IBM shares spiked to their highest level since November, and gave the tech sector (+0.8%) a boost.

In regard to the inflation data, the January Producer Price Index (PPI) rose 1.0% month-over-month, compared to the expected rise of 0.4%. Excluding food and energy, PPI rose 0.4% month-over-month, higher than the consensus estimate that called for a rise of 0.2%. That leaves PPI up 7.4% year-over-year (highest level since Oct '81) and PPI ex-food and energy up 2.3%.

This reading is not good, but the market was not too surprised by the numbers as January CPI was already released. This was demonstrated by treasuries trading higher and gold trading with a slight loss shortly after the report. If the market was shocked by the inflation numbers, gold would have been higher and Treasuries would have sold off on the release. Of note, gold (+0.3%) is now trading slightly higher, but it rose in conjunction with the stock market's recovery and not on the data. The 10-year note continues to post a gain.

In other economic news, the Conference Board said February consumer confidence fell to 75.0 from the prior reading of 87.3. Economists expected a reading of 82.0. The market tends to overreact to these readings, as they are only surveys. Briefing.com puts more weight into the personal consumption data that comprise 72% of the GDP, which will be released later this week.

There were a number of earnings reports released, with retailers catching the most attention. The S&P Retailing Index (+1.5%) is handily outperforming after Auto Zone (AZO 123.73, +6.36), Macy's (M 25.93, +1.17), Nordstrom (JWN 38.53, +1.55) and Target (TGT 55.14, +1.89) all topped estimates. Home Depot (HD 28.97, +0.15) missed estimates, yet its stock is still posting a slight gain. Some of these companies provided somewhat poor outlooks, however the market shrugged off the news as much of the negativity is already priced into the stocks.

As a result, the consumer discretionary sector (+1.1%) is outperforming. Nine of the ten sectors are higher. Energy (1.2%) is posting the largest gain as crude is on the rise, hitting as high as $100.59 per barrel. Financials stand alone in the red, with a slight 0.1% decline.DJ30 +91.99 NASDAQ +16.59 NQ100 +0.3% R2K +1.3% SP400 +1.0% SP500 +6.88 NASDAQ Dec/Adv/Vol 871/1872/842 mln NYSE Dec/Adv/Vol 898/2083/556 mln

[AnneD]

46. Morning Marketeers....

:donut: Jimmeny Cricket what a day. The only folks that haven't been in my office are the DEM candidates. And that doesn't even count the sick kids.:eyes:

Go figure this...for some reason-the school will not be a polling place for the GOP this time. This just came up yesterday. I noticed we had fewer voting machines here this time but we are just know hearing why. We are all disappointed (my guess is they can't look these little kids in the face anymore and vote down SCHIP without having a guilty conscious). Anyway our DEM poll worker came in to put up a few signs to tell GOP voters. She said that this wasn't her job (GOP rep does that)but she said she knows she will have folks coming in. I think that is bad because I always do my flu shot clinic that day. I get a lot of elderly folks vaccinated on election day.

My politically active parent was talking about the deep pockets that the Obama folks have and some of the questionable tactics being used. She was an Edwards DEM so she is a bit more detached as I am. The Clintons are really working hard but as I said-they are a week to late on some things. I think they are closing the gap from last week but it is hard to tell. It will be a squeaker. One thing she did do right was cancel the rally after the policeman escorting the motorcade was killed. She went to the family home and paid her condolences. Although it happened in Dallas-the man and his wife were from Houston originally. It got a lot of press here. Calling off the rally and visiting the family was the right thing to do and it meant a lot to their extended family here. Sometimes nice matters.

I have a funny story that you guys on SWT will enjoy. Saturday-I invested in some more portable wealth. I had thought of rolling my silver into gold but decided not to. Daughter went with me and got her first lesson in real currency. She left to go to work and I headed off to do some grocery shopping. I was going to buy a bite to eat first. I placed my order and when I went to pay-I couldn't find the $20 bill I had. I found my laundry money....finally, and paid my tab. As I sat down I couldn't help think, I have a handsome bit of silver and gold in my purse, and yet I bet those folks thought I was an almost penniless bag lady scrounging a meal. All that wealth, and I can't get a meal. :rofl: The lesson here... It never hurts to diversify. I heard that some stores will take Euros-since Hubby comes home after a road trip with all kinds of change-I think I will take the Euros on a shopping trip.

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

[Roland99]

64. Crude surpasses $101 as cold weather lingers. Closes at new record high - $100.88.

http://www.marketwatch.com/News/Story/Story.aspx?column=Futures+Movers

[Hugin]

67. Today's market art by the PPT is...

"Alfred Hitchcock's Profile".

[ozymandius]

71. I would've posted the close earlier if blather-induced nausea didn't get in the way.

Dow 12,684.92 Up 114.70 (0.91%)
Nasdaq 2,344.99 Up 17.51 (0.75%)
S&P 500 1,381.29 Up 9.49 (0.69%)
10-Yr Bond 3.8600% Down 0.0420
NYSE Volume 4,096,055,750
Nasdaq Volume 2,331,014,500

4:30 pm : The stock market was provided several excuses to sell off on Tuesday, yet it soldiered on and added to Monday's gains.

Dow component IBM (IBM 114.38, +4.30) led the troops in the battle as it sparked a broad-based rally with its announcement that the company's board of directors authorized an additional $15 billion for its stock repurchase program.

IBM said it expects to spend $12 billion in 2008 on stock repurchases that it will fund from cash from operations. Given the expected buyback activity, IBM bumped up its 2008 EPS forecast by $0.05, noting it should earn at least $8.25 per share versus prior guidance of $8.20 to $8.30.

The technology sector drafted off IBM's encouraging news and carried the broader market higher along with the retailers, many of which rallied following a mixed batch of earnings results from the likes of Home Depot (HD 28.83, +0.01), Target (TGT 54.89, +1.64), Macy's (M 26.52, +1.76), Nordstrom (JWN 38.46, +1.48), AutoZone (AZO 124.93, +7.56) and RadioShack (RSH 19.13, +3.39).

On balance, the retail rally was driven by a sense that bad news had already been priced in and a measure of relief that the results weren't worse than feared. Home Depot typified this response as it ended the day little changed despite missing analysts' consensus fourth quarter EPS estimate by three cents and warning that it anticipates earnings from continuing operations to decline 19% to 24% on a per share basis in 2008.

The disappointing report from Home Depot was one of the excuses the market could have used to sell off. Tuesday's economic releases provided plenty of excuses too.

The Producer Price Index offered the most stirring excuse since it piqued inflation concerns with a 1.0% reading in total PPI that took the year-over-year gain to 7.4%, the highest rate of increase since October 1981. Core-PPI, which excludes food and energy, jumped 0.4%, leaving the year-over-year increase at 2.3%.

Fittingly, commodity prices continued to move higher Tuesday, as evidenced by the 1.1% gain in the CRB Index. Wheat prices, which surged 8.0% to $12.14 per bushel, led the advance. Oil prices increased 1.9% to $101.09 per barrel, marking a new, non-inflation adjusted closing high.

Strikingly, neither the PPI data nor the commodity inflation caused much fallout in either the stock or bond markets. Participants had already digested the CPI data for January, so it wasn't entirely surprising that the PPI data were worse than expected. Fed Vice Chairman Donald Kohn, meanwhile, gave a speech in which he said he doesn't expect elevated inflation rates to last and that credit market turmoil and growth risks are the greater threat.

On that note, the Conference Board reported that consumer confidence fell to a 5-year low in February while the S&P/Case-Shiller home price index for 20 U.S. metropolitan areas declined 9.1% in December.

The disappointing economic data notwithstanding, all ten economic sectors closed higher Tuesday. Energy, up 1.4%, was the best-performer, followed by consumer discretionary and technology, which gained 1.2% and 1.0%, respectively. The financial sector tacked on 0.2% with Moody's following on the heels of Standard & Poor's and affirming MBIA's (MBI 15.28, +0.70) 'AAA' rating.DJ30 +114.70 NASDAQ +17.51 NQ100 +0.3% R2K +1.0% SP400 +1.0% SP500 +9.49 NASDAQ Dec/Adv/Vol 1075/1907/2.30 bln NYSE Dec/Adv/Vol 980/2160/1.53 bln

[Hugin]

72. So, the bottom line excuse for the gain is IBM is buying it's shares back?

I would've thought one of the Big Acronym Companies (BAC) running for the hills would be interpreted as a
bad sign... Or is it just an excuse for an otherwise irrational increase in the indexes?

Oh, yeah... They'll never admit they went up because: 1. One of the new Indexees is an Oil Company and
2. Oil Prices surged today. No, never that! :eyes:

[ozymandius]

73. But Prag - the people who write this crap don't know anything about economics.

They certainly don't know anything about the politicization of economics. To them, going up when all seems black is just part of the *:*:*:magic:*:*:* (of the marketplace).

Plunge Protection Team to these guys is just another name for swimming pool lifeguards.

[Ghost Dog]

74. Denial vs. Panic: Fork in the Road

Queue for the soup kitchen may start here

Hefty interest rate cuts do not seem to be arresting slide towards recession

o Larry Elliott, economics editor
o The Guardian,
o Monday February 25 2008

This article appeared in the Guardian on Monday February 25 2008 on p26 of the Financial section. It was last updated at 00:03 on February 25 2008.

Economic crises go through four distinct stages. First, there is the bubble-induced mania when markets rocket skywards and the word on the street is that the good times will last for ever.

That was where the world was a year ago, when the private equity boom was in full swing and Ben Bernanke was taking a tough line on US interest rates for fear of being the poor man's Alan Greenspan.

After bubble comes denial. This is the period when it is obvious to any independent-minded observer that the party is over but policymakers and the financial markets can't bring themselves to admit it. We hit this phase in spring 2007, when the received wisdom was that the crisis in the US sub-prime mortgage sector was a little localised difficulty that would be comfortably contained. There were no wider implications for the rest of the US economy, let alone the stability of the financial markets or the global economy as a whole.

Denial is followed by panic when it becomes clear that nothing has really changed since Dutch tulips in the 17th century and that the latest period of speculative excess will end in tears, just like all the others. At this point there is a fork in the road. Policymakers act to allay the panic by cutting interest rates and throwing money at the financial system. If the measures work, it is back pretty much to business as usual within a few months. Lenders start lending again; borrowers start borrowing; economic activity recovers.

All the experience of the past 25 years mirrors this sort of pattern. The US recessions of the early 1990s and 2001 lasted for only eight months; there was barely a pause for breath when the Federal Reserve took pre-emptive action to prevent recession in 1987 and 1998.

Sometimes, and only rarely, markets discover that what they had believed to be a miracle cure was, in fact, a placebo. The crisis is so serious that there is little or no response to the easing of policy; in these circumstances panic is followed by capitulation. Seven months into the credit crunch, we have now arrived at the fork in the road.

As ever, the assumption is that the world economy will take the road to rapid recovery. History suggests that this is a reasonable assumption, since few slowdowns end in recession, and recessions that turn into slumps are once in a lifetime occurrences. It is a sign of how serious the current situation is that those who argue that there is a risk of a 1930s-style slump are no longer treated as stark, staring mad. Indeed, the argument in the US is not over whether there is going to be a recession, but how long and deep the recession will be.

...

Roubini says that the Fed is, belatedly, alive to the danger. "To understand the Fed actions one has to realise that there is now a rising probability of a 'catastrophic' financial and economic outcome, ie, a vicious circle where a deep recession makes the financial losses more severe and where, in turn, large and growing financial losses and a financial meltdown make the recession even more severe. The Fed is seriously worried about this vicious circle and about the risks of a systemic financial meltdown.

"That is the reason the Fed had thrown all caution to the wind - after a year in which it was behind the curve and under-playing the economic and financial risks - and has taken a very aggressive approach to risk management; this is a much more aggressive approach than the Greenspan one in spite of the initial views that the Bernanke-led Fed would be more cautious than Greenspan's in reacting to economic and financial vulnerabilities."

Bernanke clearly feels that the clock has turned back 78 years to the early months of 1930. He is slashing interest rates because he fears that the Great Depression is just around the corner.

Yet having got just about every judgment wrong over the past five years - and that's being generous - there is a risk that the Fed has got it wrong again.

...

What we are now seeing is the break-up of Bretton Woods mark 2. The linchpin of this looser and less comprehensive system was the fixed exchange rate between the dollar and the Chinese yuan. By keeping its currency low, Beijing flooded the world with cheap goods and kept US inflation muted. That pushed down interest rates, but led to a massive US trade deficit with China and pushed up asset prices.

Politicians in Washington demanded that Beijing allow its currency to rise. And over the past two and a half years this is what the Chinese have done, in small and gradual steps. It's not really surprising that they have done so, since the flipside of lower inflationary pressure in the west has been a build-up of inflationary pressure in China.

As a result, the writing is on the wall for Bretton Woods 2. Bernanke has sent out the signal that he cares far more about boosting growth than he does about fighting inflation, which is why the dollar has fallen and gold has gone up. So a return to soup kitchens and dustbowl economics should not be ruled out.

/... http://www.guardian.co.uk/business/2008/feb/25/economics

[54anickel]

75. Always the bearer of good tidings, aren't cha? n/t

[Ghost Dog]

76. Sorry. Guess I'm a bad penny turning up.

:-(

Just wait until I get steam up on my project to seriously work on writing about the relationship between all this economics stuff and what's happening (fast) to the natural environment and the life it so far sustains...

[54anickel]

78. Can't wait to read it. Will there be a sequel or is this how it ends?

:hi: