STOCK MARKET WATCH, Wednesday July 16

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday July 16, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 189
DAYS SINCE DEMOCRACY DIED (12/12/00) 2733 DAYS
WHERE'S OSAMA BIN-LADEN? 2458 DAYS
DAYS SINCE ENRON COLLAPSE = 2749
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.
$1 USD = EUR 1.06678
$1 USD = JPY 116.6200

AT THE CLOSING BELL ON July 15, 2008

Dow... 10,962.54 -92.65 (-0.84%)
Nasdaq... 2,215.71 +2.84 (+0.13%)
S&P 500... 1,214.91 -13.39 (-1.09%)
Gold future... 978.70 +5.00 (+0.51%)
30-Year Bond 4.47% +0.01 (+0.11%)
10-Yr Bond... 3.84% -0.04 (-0.93%)






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

[Eugene]

1. IMF sticks by $1 trillion U.S. subprime fallout

Source: Reuters

IMF sticks by $1 trillion U.S. subprime fallout
Wed Jul 16, 2008 5:06am EDT

BRUSSELS (Reuters) - The International Monetary Fund
is sticking to its estimate that losses on U.S. assets
from the subprime crisis and its wider fallout would be
about $1 trillion despite fresh U.S. banking problems
recently, a senior IMF official said on Wednesday.

"Basically, we think this is a reasonable figure and we
are not revising the figure every day," Jaime Caruana,
director of the IMF's monetary and capital markets
department, told reporters in Brussels.

Earlier he told the European Parliament that the financial
system, still suffering from a near year-long credit
crisis, may have more difficulty in extending credit
needed for the economy to grow.

(Reporting by Huw Jones; Editing by William Schomberg)

Link: http://www.reuters.com/article/topNews/idUSBRU00666320080716

[ozymandius]

4. I seem to recall the figure attached to the dot-com bust was $1 trillion.

So in eight years we've seen $2 trillion removed from the economy that could have been put to work in areas other than speculation. Jeebus - what would the world look like if the safeguards erected after the Great Depression had not been dismantled by our Republican congress?

[Tansy_Gold]

53. This is one thing that I don't get angry about

I don't think the money has really been "removed" from the economy. It was never there to begin with. So much of it is leveraged, so much of it is fudged, so much of it is just plain imaginary and/or arbitrary, that it's meaningless.

What HAS been taken out of the economy, however, is the money and lives wasted on Iraq.

Even if you look at the housing "crisis," the houses are still there and the people are still there. All that's being turned into a crisis is how to find the money to pay back the banks. It's all a matter of shifting money around.

But you're absolutely correct that the safeguards put in place in the 1930s could have, would have, and SHOULD HAVE prevented the current crises. The removal of those safeguards done to facilitate the shift of "money" that now has to be undone.

This time, however, let's do it with real money. That means real jobs, not money-laundering speculation and leveraging. ;-)


Tansy Gold, still not in a good mood

[ozymandius]

2. Market WrapUp: Numerous Difficulties & Monetary Insurance

BY FRANK BARBERA, CMT

“The fragile economy is being confronted by ‘numerous difficulties’ including persistent strains in the financial markets, rising joblessness, and housing problems – despite the Fed’s aggressive interest rate reductions and other fortifying steps over the past year.”

‘Numerous difficulties’ -- that’s one way to put it. Yet somehow the current Fed Chairmen seems to have acquired his predecessors ‘ivory tower’ gift for understatement. I am sure most of the people lined up in front of Indymac Bank for hours in the hot sun worried about the return of their money might have characterized the situation as something more serious than a ‘difficulty.’ I sometimes run into ‘difficulties’ changing web pages on the net, or sometimes have ‘difficulties’ when my morning newspaper fails to arrive. With a growing list of major banks and other institutions joining the prospective casualty list, huge institutions like Freddie Mac, Fannie Mae, Wachovia, Washington Mutual, Lehman Brothers, AIG, Barclays, Suntrust, Merrill Lynch, General Motors, Ford and Citicorp – all in boiling hot water -- one might think that the current ‘situation’ could be better characterized as a seizure, a convulsion, a trauma or an emergency – or a banking “crisis” which is what regrettably, the world financial system is now facing.

Ah, I suppose we shouldn’t be too harsh on the Fed Chair as his must be the calm voice of reason at all times, and to that end, it is also only fair to point out that nearly all of these problems were inherited from his predecessor, the real king of babble, Dr. Greenspan. Yet, we can only hope that behind the scenes, a greater sense of urgency is at work, as the market action over the last few days strongly hints at a Federal Reserve that is losing control.

....

However, as the Banking Crisis faces further “difficulties” to use Dr. Bernanke’s phrase, it is hard to see how the US Government will not be called upon to intervene in other financial fiasco’s. Indeed, the very fact that Uncle Sam has already opened the monetary doorway suggests that in the unfortunate instance that things continue to deteriorate, a broad scale government bail out will be necessary. To this end, the logical outgrowth of a banking crisis remains two fold. First off, sick banks will have to paired off with strong banks, and short term interest rates, monetary policy will have to remain quite loose. More Fed rate cuts are very likely as the Fed has fallen into a serious liquidity trap. This means that the Fed is being forced virtually each and every day to choose between combating inflation (where wholesale prices jumped 1.80% in June the fastest past in 25 years), or saving the banks with ultra low rates and by setting up an IV -- risk free yield curve “bond carry trade.”

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

[ozymandius]

3. Today's Reports

08:30 Core CPI Jun
Briefing 0.2%
Consensus 0.2%
Prior 0.2%

08:30 CPI Jun
Briefing 0.7%
Consensus 0.7%
Prior 0.6%

09:00 Net Foreign Purchases May
Briefing NA
Consensus $65.0B
Prior $115.1B

09:15 Capacity Utilization Jun
Briefing 79.4%
Consensus 79.4%
Prior 79.4%

09:15 Industrial Production Jun
Briefing 0.2%
Consensus 0.0%
Prior -0.2%

10:35 Crude Inventories 07/12
Briefing NA
Consensus NA
Prior -5840K

14:00 FOMC Minutes Jun 25

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

[UpInArms]

26. Consumer prices jump 1.1% in June - most in 26 years

01. U.S. June core CPI up 0.3%, vs. 0.2% expected
8:32 AM ET, Jul 16, 2008

02. U.S. June CPI up the most in 26 years
8:32 AM ET, Jul 16, 2008

03. U.S. June CPI soars 1.1%, biggest gain in 26 years
8:32 AM ET, Jul 16, 2008 - By Rex Nutting

08. U.S. June CPI rises 1.1%
8:31 AM ET, Jul 16, 2008

http://www.marketwatch.com/news/story/consumer-prices-jump-11-june/story.aspx?guid=%7B2AA81273%2D13E7%2D49DD%2D9B4C%2DE4BF42190CE8%7D&dist=msr_7

WASHINGTON (MarketWatch) - Double-digit increases in gasoline prices helped push up the consumer price index by 1.1%, in June, the biggest increase in 26 years, the Labor Department reported Wednesday.

The unexpectedly large increase in CPI was led by a 6.6% increase in energy prices and a 0.8% increase in food prices.

Excluding food and energy prices, the core CPI rose 0.3%, the biggest increase since January.

The figures were worse than expected. Economists surveyed by MarketWatch were forecasting a 0.8% rise in the CPI and a 0.2% gain in the core CPI.

Excluding energy prices alone, the CPI rose 0.4% in June.

With prices rising so fast, real (inflation-adjusted) weekly earnings fell 0.9%
in June, the biggest decline in 22 years. Real earnings are down 2.4% in the past year, showing that the average worker is falling behind as prices rise and the weekly workweek contracts.

The awful CPI figures will keep pressure on the Federal Reserve to do something about inflation. But Fed officials' hands are tied, with considerable economic weakness and extremely fragile financial markets limiting their ability to raise interest rates significantly.

...more...

[UpInArms]

27. Energy prices were up 6.6% in June - Food prices are up 5.3% in the past year

Energy prices were up 6.6% in June after seasonal adjustments, the largest increase since September 2005. Energy prices are up 24.7% in the past year. Gasoline prices rose 10.1% in June and fuel oil prices rose 10.4%. Natural gas prices increased 4.9%.

Food prices increased 0.8% in June and are up 5.3% in the past year. Vegetable prices jumped 6.1%, the biggest increase in seven years. Beef prices rose 1.7%, and dairy prices gained 1.6%.

[Ghost Dog]

41. U.S. Consumer Prices Climb by the Most Since 2005 (Correct)

By Shobhana Chandra

(Corrects headline and first paragraph after Labor Department corrected historical reference for monthly increase.)

July 16 (Bloomberg) -- Prices paid by U.S. consumers jumped in June by the most since 2005 on spiraling costs for fuel and food, intensifying the pressure on households struggling with falling home prices and the credit crunch.

The cost of living soared 1.1 percent, more than forecast, after a 0.6 percent gain the prior month, the Labor Department said today in Washington. Excluding food and energy, so-called core prices climbed 0.3 percent, also more than anticipated.

The figures underscore why Federal Reserve Chairman Ben S. Bernanke yesterday said inflation risks had ``intensified.'' The surge in energy costs has also trimmed consumer and business spending, hurting growth and making it less likely policy makers will boost interest rates to stem even bigger price increases.

``Inflation has galloped,'' Michael Feroli, an economist at JPMorgan Chase & Co. in New York, said before the report. ``It puts the Fed in a really tricky position. I don't see how they can change rates this year.''

Treasuries dropped after the report, with yields on benchmark 10-year notes rising to 3.87 percent at 8:37 a.m. in New York, from 3.82 percent late yesterday.

Consumer prices were forecast to rise 0.7 percent, according to the median forecast of 79 economists in a Bloomberg News survey. Estimates ranged from gains of 0.2 percent to 1.1 percent. Costs excluding food and energy were forecast to rise 0.2 percent, the survey showed.

17-Year High

Prices increased 5 percent in the 12 months to June, the most since May 1991. They were forecast to climb 4.5 percent from a year earlier, according to the survey median.

The core rate increased 2.4 percent from June 2007, also more than forecast.

Energy expenses jumped 6.6 percent, the biggest gain since the aftermath of Hurricane Katrina in September 2005. Gasoline prices soared 10.1 and fuel oil jumped 10.4 percent.

/... http://www.bloomberg.com/apps/news?pid=20601068&sid=awi7vRLYDAY4&refer=economy

[Ghost Dog]

European stocks sag on high U.S. inflation data

PARIS, July 16 (Reuters) - European stocks extended their losses on Wednesday afternoon after data showed U.S. consumer prices in June rose by the biggest amount since 1982 on a continued surge in gasoline prices. At 1235 GMT, the FTSEurofirst 300 index of top European shares was down 1 percent at 1,099.14 points in a choppy session.

The Consumer Price Index, the U.S. government's key measure of inflation, advanced 1.1 percent during the month, the biggest monthly rise since June 1982. That was well above the 0.7 percent increase economists polled ahead of the report were expecting.

/.. http://www.reuters.com/article/marketsNews/idCAL1611627320080716?rpc=44

[Pale Blue Dot]

42. Industrial output rises 0.5 percent

WASHINGTON - Industrial output rose in June at the fastest pace in 11 months.

The strength came from the end to an automotive production strike rather than any underlying boost to the economy.

The Federal Reserve reported Wednesday that industrial production increased by 0.5 percent last month, the best showing since a 0.6 percent increase in July of last year.

http://www.msnbc.msn.com/id/25702507/

[UpInArms]

56. TABLE-US May net capital outflows $2.5 bln (US $$$ hot potato game in progress?)

http://www.reuters.com/article/bondsNews/idUSWAT00979920080716

 WASHINGTON, July 16 (Reuters) - Treasury Department
international capital (TIC) data release, in billions of
dollars except where noted. Figures are not seasonally
adjusted.
                      May      April   March
Monthly Net
TIC Flows              $ -2.5      61.6   -51.2
  Private              $-16.5      32.5   -60.9
  Official             $ 14.0      29.1     9.7
Net foreign buys of
long-term securities   $ 44.4      99.7    56.4
  Stock swaps, other   $-22.6     -12.3   -20.1
Long-term securities
  transactions         $ 67.0     111.9    76.6
Domestic Securities,
purchased net          $ 92.4     101.5    76.6
  Private              $ 75.7      60.3    28.2
  Official             $ 16.7      41.3    48.4
Total net foreign buys of:
Treasuries                7.70    76.96    51.77
Agencies                 24.23    15.27    18.74
Equities                  5.07   -15.71    10.82
Corporates               55.40    25.00    -4.69
Holdings of major foreign
 holders of Treasuries:
Japan                   578.7     592.2    600.7
China                   506.5     502.0    490.6
United Kingdom          272.5     247.8    201.1
Oil exporters           164.3     153.9    150.8
Brazil                  151.4     149.5    149.1

[UpInArms]

61. US Petroleum Inventories:

04. U.S. crude inventories up 3 mln brls latest week
10:36 AM ET, Jul 16, 2008

05. U.S. gasoline supply up 2.4 mln brls last week: Energy Dept.
10:36 AM ET, Jul 16, 2008

06. U.S. distillate stocks up 3.2 mln brls last week
10:36 AM ET, Jul 16, 2008

[UpInArms]

104. U.S. July home builders index falls to record low 16

03. All 3 components of home builders index hit record lows
1:00 PM ET, Jul 16, 2008

04. U.S. July home builders index falls to record low 16
1:00 PM ET, Jul 16, 2008

[UpInArms]

108. Home builders index hits another record low

http://www.marketwatch.com/news/story/home-builders-index-hits-another/story.aspx?guid=%7B77342D09%2D15DC%2D4D58%2D8886%2D114022526E39%7D

WASHINGTON (MarketWatch) - The home builders' sentiment index fell two points in July to record-low 16, with all three components of the survey also dropping to historic lows, the National Association of Home Builders reported Wednesday.
At 16, the NAHB/Wells Fargo housing market index shows that only one-in-six home builders has a positive view of the market. Read the full report.

New subdivisions have become ghost towns, with current sales dropping off and with the traffic of prospective buyers drying up in recent months. Few builders anticipate any improvement in sales in the next six months.

The index for current sales fell from 17 to 16; the index for anticipated sales plunged from 27 to 23; and the index for traffic of prospective buyers tumbled from 16 to 12.

Economists surveyed by MarketWatch were expecting the index to remain at 18 in July. See Economic Calendar.

"Many prospective buyers have simply returned to the sidelines until conditions improve," said David Seiders, chief economist for the builders' trade group, which has been surveying its members every month since 1985.

Builders again pleaded with Congress to approve pending housing legislation to stimulate the housing and mortgage industries. The legislation would include a tax credit for first-time home buyers, and would provide $300 billion for mortgages backed by the Federal Housing Administration.

...more...

[ozymandius]

5. Oil steady after plunging more than $6

SINGAPORE - Oil prices were steady Wednesday in Asia after plummeting more than $6 a barrel in the previous session on expectations a weakening U.S. economy will undermine crude demand.

Concern that quickening inflation and slowing economic growth will cut consumer demand in the U.S. for gasoline and other oil products may slow a bullish trend that's seen crude prices roughly double in the past year, said Tetsu Emori, a commodity markets fund manager at ASTMAX Futures Co. in Tokyo.

.....

In late afternoon trading in Singapore, light, sweet crude for August delivery was up 11 cents at $138.85 a barrel in electronic trading on the New York Mercantile Exchange.

Crude plunged $6.44, or 4.4 percent, Tuesday in New York to settle at $138.74 a barrel in an extremely volatile session. Over the course of the session, the contract rose as high as $146.73 and fell as low as $135.92.

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

[ozymandius]

6. Oil steadies, focus on U.S. oil demand

LONDON (Reuters) - Oil steadied on Wednesday, after a sharp fall the previous session on expectations that a faltering economy in top energy consumer the United States would hit demand growth.

Prices had plunged more than $6 in the previous session, the steepest in dollar terms in 17 years.

.....

U.S. Federal Reserve Chairman Ben Bernanke said the weak housing market and high energy and food prices were putting additional stress on a U.S. economy already under considerable strain from the credit crisis fallout..

...

OPEC on Tuesday cut its global demand forecast for 2008 for the fourth time this year, adding that consumption would continue to slow in 2009.

http://news.yahoo.com/s/nm/20080716/bs_nm/markets_oil_dc_9

[Roland99]

59. Oil down over $6/bbl. Crude inventories up 3 million barrels. Gas inventories up, too.

RBOB Gas down to $3.33 (which means gas here is pushing $0.80/gal over wholesale...madness...it used to average about $0.40-0.50)

[Pale Blue Dot]

60. Gas was down a penny a gallon here yesterday.

Looks like my cross-country driving vacation is back on!!

[Roland99]

62. We were up about 4-5 cents yesterday. Odds of it coming down today?

Slim to none.

[ozymandius]

7. Inflation numbers due; Stocks, oil hold steady

WASHINGTON - Investors get another reading on inflation today, this time for consumers, and the Federal Reserve reports on industrial production. Meanwhile, Federal Reserve Chairman Ben Bernanke testifies for a second day before Congress amid a backdrop of fading confidence in the U.S. economy. Stocks are headed for a moderately lower open, and oil prices are steady this morning.

The U.S. economic downturn gained steam yesterday, with a report of the highest inflation since the early 1980s, more bad news for banks and automakers and a suggestion by the Federal Reserve chief that worse days are ahead.

The Labor Department releases the June Consumer Price Index at 8:30 a.m. EDT. Wholesale inflation, driven by skyrocketing gas and food costs, rose by 9.2 percent for the 12 months ending in June — the fastest pace since the summer of 1981, during another energy crunch.

At the same time, consumers hit the brakes hard despite a massive infusion of government stimulus checks. Retail sales turned in their poorest showing in four months.

http://news.yahoo.com/s/ap/20080716/ap_on_bi_ge/economy

---

Here's a snapshot of yesterday's data:

Wholesale prices for goods +1.8 percent in June from the same period last year and +9.2 percent for the year.

Core inflation (minus food and energy) +0.2 percent in June

Food +1.5 percent (largest jump since January)

Wholesale energy +6 percent.

Unleaded regular gas +9 percent in June (similar increase in May).

Looks to me like we have something to whine about.

[ozymandius]

8. Wall St set to open lower; CPI data in focus

LONDON (Reuters) Stock futures slipped on Wednesday, suggesting indexes may extend the heavy losses posted on Wall Street the day before. The Dow Jones industrial average closed down 0.8 percent on Tuesday, below 11,000 for the first time in two years.

* At 1003 GMT, futures for the Dow Jones industrial average were down 0.13 percent, while S&P 500 futures were down 0.25 percent and Nasdaq 100 futures were flat. Elsewhere, Europe's FTSEurofirst 300 index was down 0.95 percent.

* Investors will be focused on U.S. CPI data, due at 1230 GMT, as well as industrial output for June data, at 1315 GMT. On the corporate agenda, companies due to report results include eBay Inc, Northern Trust Corp, Abbott Laboratories, Washington Mutual Inc and Wells Fargo & Co.

http://news.yahoo.com/s/nm/20080716/bs_nm/markets_stocks_dc_29

[ozymandius]

9. AOL talks with Microsoft, Yahoo heat up: source

NEW YORK (Reuters) - Time Warner Inc's discussions to merge or sell its AOL Internet division with Microsoft Corp or Yahoo Inc have taken on new urgency ahead of Yahoo's Aug 1 shareholders meeting, a source familiar with the discussions told Reuters on Tuesday.

The structure of any deal is not immediately clear, though a combination of any of the parties is expected to redraw the landscape for advertising on the Internet.

Sources had said earlier that a deal with Yahoo would likely involve merging AOL with the Web pioneer, with Time Warner taking a minority stake in the combined company. A deal with Microsoft would likely be a sale of AOL, the sources said.

Time Warner and Microsoft declined comment. A representatives of Yahoo was not immediately available.

http://news.yahoo.com/s/nm/20080716/bs_nm/timewarner_yahoo_dc

[ozymandius]

10. Short sellers have best month in more than 7 years

SAN FRANCISCO (MarketWatch) -- Short sellers had their best month in more than seven years in June as the stock market slumped.

The Strunk Short Index, which tracks a handful of managers that specialize in short selling, jumped 10.47% last month. That was the best performance since March 2001, when the index surged 12.45% during the dot-com bust.

The Index, compiled by Harry Strunk of Treflie Capital Management, climbed 19.34% during the first half of 2008.

The best years for the index were in 2002, at the height of the technology stock sell-off, and 1990, in the midst of the last major U.S. banking crisis. During those years, the index gained 30% and 43% respectively.

http://www.marketwatch.com/news/story/short-sellers-have-best-month/story.aspx?guid=%7B4D0D8608-1267-4072-9434-59873D6BAA99%7D&dist=msr_13

---

John Maynard Keynes and J.K. Galbraith are throwing fits in their graves.

[Robbien]

45. The great minds over at CNBC

have finally come to the same conclusion SMWers discussed here yesterday concerning the effect of the new SEC short selling rules. CNBC pundits gleefully announce new rules are all show and no action. Their short selling orgy will be unaffected.

[ozymandius]

11. Fannie Mae, Freddie Mac: Investors Flee

It's not often that Federal Reserve Chairman Ben Bernanke plays second fiddle when he makes his twice-yearly trip to Capitol Hill to outline his current outlook on monetary policy and the economy.

But with all eyes on the extensive proposals put forth on July 13 by U.S. Treasury Secretary Henry Paulson and the Fed to restore confidence in Fannie Mae (FNM) and Freddie Mac (FRE), the struggling mortgage giants at the heart of the escalating credit crunch, much of the focus when the Senate Banking Committee met for Bernanke's testimony on July 15 came in the second act.

Bernanke testified for 90 minutes on everything from the risks facing the economy (he warned of "significant downside risks to the outlook for growth" even as the threat of inflation is growing) to his views on oil speculation (he doesn't think speculative activity or manipulation is a big cause of the recent runup in oil prices).

...

Bernanke was joined at the Banking Committee hearings by Paulson and Securities and Exchange Commission Chairman Christopher Cox to argue for the package of recent proposals regulators have put forth to provide explicit Federal support to the troubled government sponsored enterprises (GSEs).

....

At the core of those proposals, as outlined by Paulson, is a request that Congress grant Treasury a temporary increase in the credit line it can extend to the GSEs, as well as the ability to purchase equity in the firms should that prove necessary. The moves are designed to reassure bond and stock investors that Fannie and Freddie will have both the liquidity and the capital needed to weather the current crisis, key to getting the markets, and ultimately the economy, back on track. With the Treasury proposal in the works, the Fed also agreed to temporarily grant the GSEs access to the Fed's discount window, should they need emergency liquidity before Congress can authorize the Treasury moves.

...

But the proposals have already proven controversial. While backers hope the moves will end fears that losses on mortgage and mortgage-related securities will overwhelm the two critical firms—which together own or guarantee roughly half the mortgages in the U.S.—critics fear such action will open the door to a government-financed bailout that could ultimately cost U.S. taxpayers tens if not hundreds of billions of dollars.

http://www.businessweek.com/bwdaily/dnflash/content/jul2008/db20080715_178267.htm?chan=top+news_top+news+index_top+story

[ozymandius]

14. Paulson Pounded by Investors as He Seeks to Halt Market Crisis

This is a kind of human interest story that describes the obvious pain the man must be suffering from having left a position of invincible credibility to one of spittle-puffing weakness.

July 16 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson, who arrived in Washington two years ago from the summit of American capitalism, is being pummeled by the markets that nurtured him.

Investors are rebuffing Paulson's plan to rescue the nation's two largest mortgage-finance companies. Shares of Fannie Mae have slid 31 percent, Freddie Mac has lost 32 percent and the Standard & Poor's 500 Financial Index has fallen 8 percent since his July 13 pledge of government support. Yesterday the skepticism spread to his own Republican Party, signaling what may be a tough fight ahead for his proposal.

Paulson, who came from Goldman Sachs Group Inc. expecting his biggest tasks to be forging a compromise on Social Security and fostering an economic dialogue with China, today faces a deepening housing crisis and a stock market lower than the day he started.

http://www.bloomberg.com/apps/news?pid=20601068&sid=aWssvqlta37Q&refer=economy

[radfringe]

33. just thinkin'.....

if we're bailing out indymac, fannie/freddie mac, etc with OUR tax money - doesn't that make every taxpayer also a shareholder in those companies?

[ozymandius]

38. De-facto shareholders.

Purchase of these companies must be coerced. Because no one wants to buy into a company that pays no dividend and is almost certain to lose money.

Even if they make money we, the taxpayers, will never see anything tangible from it.

[skoalyman]

39. there should be over 100 million or more people with pitchforks and torches marching on the capital

over sticking us with the bills from all this crap.:evilgrin:

[Ghost Dog]

50. Energy, media, and other (profitable) vital infrastructure corps. should be nationalised first n/t

[Robbien]

52. What you are talking about is nationalization of private assets

Not something this Bush Admin would ever allow to happen. So instead we are going to freely gave the money away and get nothing in return.

The way I see it is that the people holding Fannie/Freddie debt are going to be bailed out. The stockholders of Fannie/Freddie will be getting the short end of the stick. Debt holders are mainly foreign and domestic banks. Stockholders are mainly pension plans.

[radfringe]

96. hey way I see it

i it's my money going to clean up their house - I now own a piece of their house

yeah, I know it's privatize the profits and socialize the losses

[UpInArms]

12. dollar watch

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

Last trade 71.648 Change -0.055 (-0.08%)

Little Chance Of A Fed Hike This Year As The Market Crisis Deepens

http://www.dailyfx.com/story/topheadline/Little_Chance_Of_A_Fed_1216205443557.html

Only a month ago, the market was fully pricing in at least one rate hike from the Fed by the end of this year (with a significant 77 percent chance of a quarter-point tightening by August 5th). Things have certainly changed since then. According to Fed Fund futures, trader are now pricing in a 50 percent probability of only a 25 bp hike by year’s end with a 92.8 percent chance that the policy group will stay pat through August. Such a dramatic turn in speculation has accompanied the evolution of what may be the next leg of the US-borne financial crisis. Falling victim to last summer’s subprime meltdown, Freddie Mac and Fannie Mae are on the verge of collapse; and all suggested forms of rescue are saddled with adverse side effects.

<snip>

U.S. CONSUMER: HOW ARE THEY DOING?
In an ironic contradiction to the recent health of the financial markets, the leading U. of M. consumer confidence report actually improved for its June reading. However, the report’s details revealed the outlook for the economy was its most pessimistic since 1980. This is perhaps a more accurate gauge of what is to be expected from consumers’ contributions to economic expansion through the rest of the year. Despite the dismal state of sentiment in the consumer and business sector, though the Fed retains its optimism that conditions will improve. In his Testimony before Congress, Fed Chairman Ben Bernanke noted downside risks to growth have “diminished somewhat,” with the board’s projections for 2008 expansion being raised to 1.0-1.6 percent from 0.3-1.2 percent. However, such a buoyant outlook will likely depend on the US consumer; and with joblessness expected to rise, doubt is certainly high.



...more...

US Dollar Hits Record Lows: What Could Stop the Bleeding?

http://www.dailyfx.com/story/bio1/US_Dollar_Hits_Record_Lows__1216158568054.html

The US dollar hit a record low against the Euro as risk aversion continues to seep through the global markets. Stock markets have sold off around the world on the fear that another financial market crisis could be right around the corner. Despite the Federal Reserve and US Treasury’s attempts to assuage the markets, traders are skeptical about whether the proposals they have offered and the measures that they have taken thus far are enough. The primary theme across the markets is a reduction of risk. The sharp intraday reversal in oil prices was due entirely to one bank taking risk off the table as most commodity market bets have been to the long side. The CBOE’s Volatility Index (VIX) also continues to climb, confirming that traders are nervous. In his testimony on the economy and monetary policy, Bernanke grew more concerned about growth but remained critical of inflationary pressures. He expects growth in the second half of the year to be “appreciably below trend” as weakness continues to hit various sectors of the US economy. Retail sales last month was much weaker than the market expected, with spending rising by only 0.1 percent. Stripping out gasoline receipts, retail sales actually dropped 0.5 percent. Discretionary spending has been seriously hurt by higher gasoline prices and a weak labor market, forcing consumers to cut back on purchases of cars, electronics, furniture and even food. However underscoring the Fed’s difficulties continues to be strong inflationary pressures. Last month, producer prices grew by the fastest pace on an annualized basis since 1981. The troubles in the financial sector have extended beyond Fannie Mae and Freddie Mac – the bigger fear right now is a repeat of IndyMac and Bear Stearns. Given current market conditions, forget about a rate hike this year. It is time for Bernanke to shift his focus from inflation back to supporting the financial markets and growth. What could stop the bleeding in the US dollar? A big surprise from the US government. At the end of the day, the Bush Administration will come up with something. It is clear that the government’s priority is to return stability to the financial markets. President Bush said this morning that the government has the power to expedite a recovery. Bernanke added that additional stimulus must be timely, albeit temporary. What the Administration needs to do is to restore confidence in the US financial markets and banking sector. Viable long term solutions include nationalization of the GSEs, give debt holders a haircut on rates, or a managed bailout in which stockholders, creditors, taxpayers jointly share the bill (these proposals are from Nouriel Roubini’s RGE Monitor). Meanwhile expect more potentially market moving US data tomorrow including consumer prices, industrial production, and the minutes from the last Fed meeting.

...more...

Dollar Off Lows But Nervousness Persists - Will Oil Help?

http://www.dailyfx.com/story/bio2/Dollar_Off_Lows_But_Nervousness_1216199923019.html

A relatively quiet night of consolidation in currency markets tonight as both euro and sterling spent most of the early European session basing about the 1.5900 and 2.0000 levels respectively. After making new record highs the EURUSD dropped sharply in yesterday’s North American trade mainly on the collapse in oil and better tone in equities as investors became more comfortable with the GSE rescue plan.

Nevertheless, nervousness persists in the FX market as traders worry about further systemic damage to US financial sector should any other major institutions fail in the near future. Analysts were quick to point out that the rescue of Indy Mac took more than 10% of FDIC capital leaving little room for error if other banks follow suit into insolvency as their mortgage assets depreciate.

The dollar therefore remains in a precarious position as the markets adopt a state of siege mentality. The greatest fear amongst dollar bulls is that the massive snake lines that greeted the failure of Indy Mac will be repeated not only in California, but nationwide if more regional bank go under. The run on the bank dynamic is one of the most damaging developments for a country’s currency as it demonstrates total lack of confidence in the system.

The market will get a glimpse of one measure of confidence today when the TICS data is released at 13:00 GMT. The TICS report is two months back so the data is relatively backward looking and does not reflect the current turmoil in the GSEs but it may still offer a clue as to the appetite of foreign investors for US capital assets. One of the key drivers behind the GSE rescue plan was the fact that Japan and China were major holders of those assets and any markdown in their value would curtail future foreign investment flows into the US which have been critical to the financing of the US trade deficit. Therefore any sharp drop off in the TICs figure could add fuel fire and push the greenback lower toady.

The one positive countervailing force for the dollar has been oil. Yesterday’s collapse was one of the major reasons for the buck’s recovery and should crude decline further today it may provide a much needed counterbalance to all of the negative news over the past 48 hours. Nevertheless the positive impact of lower crude may have a limited impact. Concern over systemic risk remains the dominant theme of trade in FX and could push the EURUSD higher if angst over the state of the US economy reaches panic levels once again.

...more...

[ozymandius]

20. What a sad state: the $US cannot look to a fall in oil prices for strength.

And now we have a Federal government that is openly hostile to its own currency with half-baked bailout schemes.

[radfringe]

24. yeah but...

psychologically - don't you feel better? :sarcasm:

[ozymandius]

34. There is some comfort in being 'whiney'.

My whining does serve at least one good cause. It makes Phil Gramm unhappy.

[radfringe]

36. ya mean soft-porn Gramm?

Phil Gramm attempted to invest $15,000 in "Truck Stop Women." His money ultimately helped produce a film portraying Richard Nixon wandering nude around the White House.
http://news.yahoo.com/s/huffpost/20080715/cm_huffpost/112781

While the destruction Gramm has caused is felt across the country, little is known about the seedy business schemes that preceded his political career. Before Gramm joined the Christian Coalition's Ralph Reed to call for the defunding of the NEA, before he attacked an opponent for taking money from a gay rights group, and before he was interviewed by the white supremacist Southern Partisan magazine, Gramm was an avidly active investor in soft-core pornography movies.

Gramm's journey into porn began in 1973, when his brother-in-law, George Caton, rushed to tell him about an exciting low-budget soft-core production called "Truck Stop Women." A promo poster for the film boasted of its buxom stars: "No Rig Was Too Big For Them To Handle." Caton, who was in charge of fundraising for the production, asked Gramm to become an investor. To entice his brother-in-law, Caton showed him scenes of Playboy Playmate of the year Claudia Jennings displaying her bare essentials (she is naked throughout much of the film).

These scenes "really got Phil titillated," Caton told journalist John Judis in 1995. Gramm enthusiastically cut Caton a check for $15,000. Because the film was oversold, however, Caton returned his brother-in-law's money, offering him an investment opportunity in an upcoming feature.

The following year, Gramm sent Caton a check for $15,000, this time to finance the production of "Beauty Queens," a soft-core flick about pageant judges having sex with contestants. But at the last moment, the director of "Beauty Queens," Mark Lester, decided to shelve his production to make the sequel to his "Tricia's Wedding," a comedy starring the drag queen troupe, The Cockettes.

Gramm contributed at least $7500 towards the sequel, a satire of the Nixon White House called "White House Madness" that featured the crazed president wandering around the White House in the nude. Gramm never saw that money again. Shot in ten days on a soundstage crudely modeled after the Oval Office, "White House Madness" tanked at the box office.

[UpInArms]

63. gramm is a nasty pos

http://www.famoustexans.com/philgramm.htm

During that 1984 campaign, the Federal Election Commission (FEC) began investigating Gramm's campaign finances. He had paid Jerry Stiles, a Texas builder, $63,000 to complete his waterfront house in rural Maryland. The builder also ran three troubled savings and loans. The cost of the work he did on the house was $117,000. FBI agents who later investigated Stiles on S&L-related charges found this discrepancy suspicious. Gramm was involved with the owners of at least three Texas S&Ls that later failed at a cost to taxpayers estimated at $160 million, and had previously contacted federal regulators on behalf of Stiles and his savings and loan.

When the Gramm learned of the probe, he quickly sent the builder $50,000 to cover the difference, then took back the check when the Senate Ethics Committee noticed. Gramm, who later advocated full disclosure of embarrassing records by President Clinton, sued the FEC and waged a costly fight to seal his own records. In 1987, the Senator was fined $30,000, one of the largest ever handed down by the FEC. Stiles' corrupt S&L deals collapsed in 1989, costing taxpayers an estimated $200 million. Stiles was sentenced in Texas to 55-years on 11 counts of conspiracy and fraud. The investigation originally began as the result of a complaint filed by Donna Mobley of Austin, a crusader for economic justice, civil liberties and good government who met an untimely death ten years later.

In 1985, Gramm was linked to a campaign contribution shakedown run out of a Small Business Administration (SBA) office in El Paso. He was never subjected to a complete investigation or negative press coverage, however, because on February 19, 1988, a leased Rockwell Aero Commander 680 crashed and exploded shortly after taking off from El Paso International Airport. All aboard, the pilot, his wife and son, were killed. The pilot was local businessman Don McCoy who, a day earlier, had agreed to give testimony in an FBI investigation that had threatened both Senator Gramm's protégé at the SBA, and some of the city's most prominent business leaders.

...more...

[Ghost Dog]

66. Uh huh. I'd like to see other shruggers' bios written up like that... n/t

[UpInArms]

73. lots of those are listed at that site

http://famoustexans.com/

Karl Rove

George Bush

George W. Bush

T. Boone Pickens, Jr.

Kay Bailey Hutchison

and many more - there are also some great Texans there and their bios are equally as colorful (but in a good way)

[DemReadingDU]

13. video - Customers grow furious outside Encino IndyMac branch

Hope you can watch this video link, if not, click on the link in the article.

7/15/08 video - customers grow furious outside Encino IndyMac branch
http://www.latimes.com/video/?slug=la-fi-indymac16-2008jul16-ktla


7/15/08 Police show up at IndyMac Branches in Encino, Northridge as waiting customers clash
http://www.latimes.com/business/la-fi-indymac16-2008jul16,1,2521386.story

[skoalyman]

19. morning all when I saw the words( Crude Inventories)

a shiver went up my spine let me guess inventories will be down more then expected and oil will shoot back to 145+:crazy: meanwhile back at the whitehouse with a soon to be century 21 for sale sign bush :nopity: :nopity: :nopity: while rome burns

[ozymandius]

23. Two threadbare adages apply here.

Expect the unexpected. Get used to disappointment.

The entire federal government apparatus has been sold.

[TwixVoy]

95. On the first video

the first customer they interviewed sounds like an idiot. I seriously doubt she has over 100K, yet she risks having a heart attack getting upset like a 10 year old. Rarely do I see an adult behave like a child like that.

[Demeter]

133. You Should Live In My Co-op

Actually, Ann Arbor has a high proportion of whiners--people with no legitimate beef about anything but great expertise in complaint.

Is it OCD or narcissism? I don't know, but it's damned annoying.

[Tansy_Gold]

135. It's probably no different anywhere.

There are people in upscale Gold Canyon who whine whine whine about all kinds of stupid crap, and there are people at the other end of the socio-economic spectrum in Apache Junction who whine whine whine about equally stupid crap. ("Why can't I have a rusting rotten hulk of a cargo container in my front yard? I need it to keep my precious mementoes in? It's my propitty!")


Tansy Gold, who lives in between the two


P.S. Three LTTEs in this week's local paper, all astroturf, complaining that one of the GOP candidates for county supervisor is, horror of horrors, accepting campaign donations from developers, Realtors, and lawyers. All three "writers" are just shocked that a Republican (sic) would do such a thing. Yes, this is in ARIZONA, poster state for wildcat developers, land swindles, S&L collapses, senators who befriend S&L swindlers, etc., etc., etc.

[ozymandius]

15. Fannie Mae, Freddie Mac May Halt Dividends on Losses (Update2)

July 16 (Bloomberg) -- Fannie Mae and Freddie Mac, the beleaguered U.S. mortgage-finance companies, may cut common stock dividends to preserve capital after their shares fell 80 percent this year, data compiled by Bloomberg show.

Freddie Mac will probably halt its 25-cents-a-share quarterly payment and Fannie Mae will likely eliminate dividends after more than $11 billion in combined losses since last year, according to Bloomberg dividend forecasts. Washington-based Fannie Mae has paid shareholders for three decades, while Freddie Mac, located in McLean, Virginia, increased its payout every year since 1990 before lowering the awards in November.

The government-sponsored companies tumbled yesterday in New York Stock Exchange composite trading as investors lost confidence in Treasury Secretary Henry Paulson's plan to shore up their finances. Moody's Investors Service reduced the lenders' financial strength ratings, saying credit losses may jeopardize dividend payments on preferred shares.

.....

Fannie Mae and Freddie Mac would be barred from paying dividends under restrictions proposed by Representative Barney Frank should the mortgage companies tap an increased line of credit with the Treasury. Frank's comments yesterday reflected efforts by lawmakers to introduce conditions on Paulson's request for unlimited power to provide capital for the two companies.

http://www.bloomberg.com/apps/news?pid=20601084&sid=aE6sPa.pbW9Y&refer=stocks

[UpInArms]

16. Goldman Is Queried About Bear's Fall

http://online.wsj.com/article/SB121617167587756521.html?mod=mktw

Goldman Sachs Group Inc. is the envy of Wall Street, navigating the credit crisis relatively deftly as many of its peers have been battered.

Now, the big securities firm has come under suspicion, at least from the chiefs of two rivals who have questioned in recent months whether Goldman, even indirectly, might have put pressure on their firms' stocks.

Alan Schwartz, who headed Bear Stearns Cos. when it collapsed in March, has pointedly asked Goldman Chief Executive Officer Lloyd Blankfein whether there was any truth to talk that in the days preceding Bear Stearns's fall, traders in Goldman's London office manipulated the struggling firm's stock, according to a person with knowledge of the conversation.

Lehman Brothers Holdings Inc. CEO Richard Fuld Jr., whose firm's shares also have been battered, also has contacted Mr. Blankfein. "You're not going to like this conversation," Mr. Fuld told Mr. Blankfein, according to people familiar with their talk, but he was hearing "a lot of noise" about Goldman traders who allegedly spread negative rumors about Lehman. In recent months, Mr. Fuld has contacted traders he felt may have been bad-mouthing his stock, according to someone familiar with the matter. Spreading rumors one knows to be false with the intention of manipulating a public company's price is illegal.

...more...

[DemReadingDU]

17. National Century trial Columbus Ohio - Sentencing delayed

7/15/08 Sentencing pushed back for National Century execs

The sentencing of executives convicted of taking part in an alleged multibillion-dollar securities fraud at National Century Financial Enterprises Inc. has been pushed back to early August.

U.S. District Court Judge Algenon Marbley rescheduled the sentencings of Donald Ayers, Roger Faulkenberry, Randolph Speer and James Dierker for Aug. 6-7 instead of July 21-22. His order cited a modification in the court's schedule as a reason for the change.

Jon Beacham, another former executive from Dublin-based National Century, is scheduled for sentencing July 23.

National Century was a health-care financing company that specialized in buying receivables from health-care providers at a discount for quick cash. It then packaged the receivables as asset-backed bonds and sold them to investors. The company fell into bankruptcy in 2002, taking down other companies with it. Since then, the government has successfully convicted former executives at the company of essentially running a massive Ponzi scheme that hurt investors.

http://www.bizjournals.com/columbus/stories/2008/07/14/daily15.html


link backwards to previous articles...
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3395937&mesg_id=3396006

[UpInArms]

18. Delta swings to Q2 loss as fuel costs more than double

http://www.marketwatch.com/news/story/delta-swings-q2-loss-fuel/story.aspx?guid=%7BC2374DEB%2D29C6%2D4CEE%2D8D87%2DCBB98C85836E%7D&dist=hplatest

NEW YORK (MarketWatch) -- Delta Air Lines (DAL) said Wednesday swung to a second-quarter loss of $1.04 billion, or $2.64 a share, from a gain of $164 million, or 42 cents a share in the year-ago period. Total operating revenue rose nearly 60% to $5.5 billion from $3.45 billion. Excluding one-time charges, Delta said it earned $137 million, or 35 cents a share. Analysts polled by FactSet Research expected, on average, a gain of 11 cents a share on revenue of $5.45 billion. Atlanta-based Delta, along with the wider industry, has struggled to raise enough revenue to offset record-high jet fuel prices. In the second quarter, fuel costs more than doubled to $1.68 billion from $790 million last year.

[skoalyman]

21. I wonder when they'll convert the jets to

pedal power were every seat will be outfitted with a set of pedals lol:+

[radfringe]

29. they'll sell them to FEMA

as multi-family housing

[skoalyman]

31. I wouldn't be surprised

:hi:

[Tansy_Gold]

70. conversions

I first saw this in, I think, Mother Earth News.



http://www.darkroastedblend.com/2007/03/mystery-photo-jet-in-your-backyard.html

<>

This Boeing 727 is a work-in-progress home conversion, built by Bruce Campbell from Hillsboro, Oregon. He maintains that anybody can do it, given desire, luck (acquiring decommissioned plane) and determination. As he points out, this house gives
"A feeling of strength, security, capability and ergonomics that eclipses any other, almost as if you were in a home designed 50 years in the future. Imagine removing all the clutter, such as the seats, the overhead compartments... What's left is an open, ultra high tech home". Besides, he says, it's a great toy.

[RawMaterials]

111. Visable from google Maps

http://maps.google.com/maps?q=hillsboro+oregon&z=19&ll=45.4079,-123.007758&t=h

[ozymandius]

22. Bankruptcies loom for airlines - report

NEW YORK (CNNMoney.com) -- Thousands of layoffs, hundreds of grounded planes and 21 price increases may not have been enough to save the embattled airline industry from the damaging effects of high fuel prices.

According to a report on the nation's top airlines released by Fitch Ratings Tuesday, record fuel costs and weak cash flow may lead to "multiple bankruptcies and liquidation" for major U.S. airlines in 2009.

"The industry's current structure is unsustainable in the current fuel environment," said William Warlick, a senior director at Fitch and author of the report.

Airlines have attempted to cut costs by reducing capacity, downsizing, and hiking fares and fees, but the moves may not be able to improve their cash flow.

...

Crash could come after Labor Day

So far, most of the recent bankruptcies in the industry have been limited to smaller carriers like Aloha Airlines, ATA and Skybus that lacked ample capital to cover losses from fuel costs.

But in the fall, when air travel typically grows lighter, Fitch says the larger airlines may begin to suffer the same fate.

http://money.cnn.com/2008/07/15/news/economy/airlines/?postversion=2008071518

[UpInArms]

25. Swiss Re says has $9.6 bln exposure to Freddie, Fannie

http://www.reuters.com/article/bondsNews/idUSL1675983020080716?sp=true

ZURICH (Reuters) - Swiss Re said it had $9.6 billion exposure to the debt of U.S. mortgage financers Freddie Mac and Fannie Mae, renewing fears over its vulnerability to the credit crunch and sending its shares down.

Shares in the world's largest reinsurer fell about 8 percent, hitting their lowest level in over five years after the group's latest unwelcome admission to ownership of troubled U.S. assets.

The U.S. government was last week forced to pledge help to Freddie and Fannie, which command just under half of the United States' $12 trillion in outstanding mortgage debt, amid concerns they might run out of capital as house prices tumble.

Swiss Re has been one of the biggest insurance victims of the credit crunch, because of its strategy of operating in both the investment banking and insurance markets. It has already written down more than 2 billion Swiss francs ($2 billion) on credit default swaps.

But analysts said investors had overreacted to the reinsurer's latest announcement of its exposure to risky U.S. assets, because the agencies' debt is insured by the U.S. government.

"If that is the reaction to the announcement of exposure to Freddie Mac and Fannie Mae then it is very overdone," said Julius Baer analyst Roger Degen. "We are not talking about the shares of Freddie Mac and Fannie Mae here, but the bonds."

...more...

[Pale Blue Dot]

28. Layoffs 7/16

Good morning everyone. All of these days are beginning to feel the same. Will we see more statements from Paulson, Barnanke, and Bush today?

Spansion, Inc - Sunnyvale, CA - 500 jobs lost

Spansion Inc. said its second-quarter net loss widened and that it will cut more than 500 jobs as it works to improve its cost structure.

Shares of the Sunnyvale, Calif., flash-memory-services provider, which announced the results and job cuts after the close of regular trading, fell 3.5% after hours to $2.88.

Spansion said it will focus on aligning and restructuring the company to improve operating efficiencies and cost structure by transferring some positions to more cost-effective regions, such as China and Malaysia. Spansion said on its Web site that it has about 8,900 employees world-wide.

The company posted a net loss of $100.6 million, or 63 cents a share, compared with a loss of $66.9 million, or 50 cents a share, a year earlier. Results from the latest period included a $10 million restructuring charge. Net sales rose 0.6% to $612.7 million.
http://online.wsj.com/article/SB121615529573155881.html?mod=googlenews_wsj

Home interiors & Gifts - Carrollton, TX - 15 jobs lost (on top of 107 already announced)

Home decor retailer Home Interior’s & Gifts said a third round of job cuts is on the way.

The company said it will eliminate another 15 positions at its Carrollton location, effective Sept. 15. The new job cuts are in addition to two mass layoffs announced at the same facility earlier in the year. The first two rounds of staff reductions impacted 107 positions, with the first layoffs taking effect July 31.

The latest staff reduction includes several senior level positions in the creative, human resources, sales and merchandising areas, as well as positions in the areas of finance and administration.

Other job cuts previously announced included 83 jobs at the company's warehouse at 1649 Frankford Road West. Those employees, who were mostly production workers and fork lift operators, were offered an opportunity to move to a different shift.
http://www.bizjournals.com/dallas/stories/2008/07/14/daily22.html

Pfizer - Portage, MI - 275 jobs lost

KALAMAZOO -- Job cuts at Pfizer's manufacturing operation in Portage will leave the company with 275 fewer workers but just as much work to do, a company spokesman says.

"We believe that between the investments being made and the restructuring that we're announcing today, we're in the best position to contribute to Pfizer's business for the foreseeable future," said Rick Chambers, director of corporate media relations for Pfizer Inc.

He said there are no plans to downsize the company's largest manufacturing plant and that production that was scheduled to start there this year and next is still on the books.

The better-known products made here include Solu-Medrol, an injectible anti-infamatory; Depo-Provera, a contraceptive, and Slentrol, a treatment for obesity in dogs.
http://blog.mlive.com/kzgazette/2008/07/pfizer_job_cuts_dont_equal_a_r.html

Cummins Inc. - Columbus, IN - 50 jobs lost (on top of 163 previous

COLUMBUS, Ind. -- Diesel engine maker Cummins Inc. has temporarily laid off another 50 employees due to declining demand for large pickup trucks.

A Cummins spokesman says another 80 employees have been shifted from the Midrange Engine Plant near Columbus to other Cummins plants as part of Monday's layoffs.
Advertisement

Cummins laid off 163 workers from plant in June.

The company spokesman says all workers are expected to return in mid-August when production will begin on engines for the 2009 model year.
http://www.indystar.com/apps/pbcs.dll/article?AID=/20080716/NEWS/807160437

Americas For Trico - Brownsville, TX - 45 US jobs lost (39 previously announced)

BROWNSVILLE, Texas — For the second time in 10 months, hundreds of employees of a windshield wiper manufacturer on the Texas-Mexico border are being laid off, a Trico official said.

Over the last several days, the company has laid off 45 of its employees in Brownsville and about 200 in Matamoros, Mexico. That brings to more than 500 the number of workers the company has let go since October of last year.

Martin Kennedy, vice president and managing director of the Americas for Trico, told The Brownsville Herald for its Wednesday editions that "gas prices have gone up $1.50 in the last 90 days, Ford and GM are shutting down assembly plants. You can imagine what that does to the OE (original equipment) market."

Trico supplies 70 auto assembly plants a week, including Ford Motor Co., General Motors Corp. and Chrysler LLC, the newspaper reports.
http://www.chron.com/disp/story.mpl/ap/business/5890023.html

[Pale Blue Dot]

30. Something odd has happened with Bloomberg's site

www.bloomberg.com

I'm being redirected to another site "Crunchgear". Is this happening to anyone else? Was it hacked? Sold? Have I got a virus?

On edit: I hit refresh and now it's back. Weird.

[MUAD_DIB]

35. I was viewing it last night. One moment it was there then

it went white. I had to wait about a half a hour before it came back.

Overloaded site perhaps?

[radfringe]

32. no surprise, but bush blew another opportunity yesterday

while he was blathering about oil drilling and the economy, instead of making a flippant comment about waving a magic wand, he could have had a "presidential moment" by saying the energy/economic problems effect all of us and that we all need to do what we can to help each other through it.

instead he's telling us to put on a happy face, and it's all psychological

[skoalyman]

37. I still wonder how he got elected the 2nd term

:tinfoilhat:

[SpiralHawk]

43. Commander AWOL did not get elected to a 2nd term

He and his republicon cronies stole it, just as they stole the first one...

[skoalyman]

47. I remembered the first one but I didn't follow the second term elections

that closely to know thanks for setting me straight:-)

[Dr.Phool]

48. Just turn off your air conditioning and quit whining!

Go sit in the pool with a margarita if it gets too hot.

[Tansy_Gold]

109. When do the savings kick in?

Seriously -- by hypothetically --

It's 108 outside. My a/c is set at 80. If I shut the a/c off while I go out to run errands for a couple of hours, the inside temp will rise to about 90 by the time I get back. So I turn the a/c on again and it runs continuously for about 25 minutes until it gets back down to 80.

Had I not turned it off before I left, it would have come on thermostatically for about 5 minutes every half hour to maintain 80 degrees. Net running time for the two hours I was gone plus the half-hour cool down period = 25 minutes.

Now, I know that these are manipulated and convenient running times for purposes of illustration. But if I remember correctly from the energy crises of the 1970s, there is in fact a point at which turning off the heat in winter or a/c in summer accomplishes nothing, because the energy used to return the space to the desired temperature after being off is the same amount of energy that would have been used to maintain it.

Furthermore, I think there's a similar formula that some people use to say that it's just as cheap to keep an a/c'ed house at 72 as it is to keep it at 80 because once you hit the maintenance temperature it doesn't take any more energy, but I think this is fallacious.

I know NOTHING about physics. I mean, I know LOTS LESS about physics than I do about economics, which you all know is not very much. So please, smart people, help out on this one!


Tansy Gold, who knows boooooosh is full of shit but wants evidence to refute his stupidity (because BF will demand it even as he tries to turn thermostat down to 75.......)

[Dr.Phool]

115. I've got mine set at 77.

But, I think the chimp means for us to turn it off completely and die of heatstroke. But, the pool is at 86 degrees. Just right.

[Pale Blue Dot]

40. Look at the futures chart. It's insanity.

How many more times can the bulls be tricked into going on a buying spree before they get tired of losing their shirts?

[skoalyman]

44. oh boy I'm getting dizzy the Dow's down 25 one sec then up -10 the next

talk about crazy swings:crazy:

[Roland99]

46. Can someone pass the Dramamine??

[skoalyman]

51. woe nelly the PPT just toked a case of red bull and speed

11,033.13 70.59 0.64%
as of 09:59 AM EDT on 07/16/2008

[Dr.Phool]

49. I know a good whiplash lawyer.

[Hugin]

55. They're not playing the game with their own money.

Like shooting fireworks, they'll never get tired of it... Just run out of them.

[Hugin]

54. The FDIC is a product of the New Deal and FDR.

This fact hasn't been emphasized enough by the Supply-siders who hadn't gotten around to destroying that part yet
and are now relying on it to save their collective ass.

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

[UpInArms]

57. Wisconsin's Largest Bank - Marshall & Ilsley - has big loss as more loans sour

http://www.reuters.com/article/bondsNews/idUSN1631718820080716

NEW YORK (Reuters) - Marshall & Ilsley Corp (MI.N: Quote, Profile, Research, Stock Buzz), Wisconsin's largest bank, posted a second-quarter loss of $393.8 million on Wednesday as it set aside more to cover bad loans and leases amid the deterioration of the nation's housing market.

The net loss for the Milwaukee-based lender totaled $1.52 per share, within the range of $1.50 to $1.60 that the bank forecast on July 3. A year earlier, Marshall & Ilsley posted a profit of $220.3 million, or 83 cents per share.

Analysts on average had forecast a loss of $1.57 per share, according to Reuters Estimates.

Marshall & Ilsley set aside $886 million for bad loans, up from just $26 million a year earlier, while net charge-offs soared to $400.7 million from $23.6 million. Nonperforming loans and leases rose to $1.04 billion from $384 million.

The bank has attributed the credit weakness in part to its exposure to residential construction and land development loans in Arizona and Florida, two of the states hardest hit by the housing downturn.

Marshall & Ilsley has more than 360 banking offices in several states, including 193 in Wisconsin, and $64.3 billion of assets.

...more...

[UpInArms]

58. Loss Provisions Hit U.S. Bancorp

http://online.wsj.com/article/SB121612474563954327.html

Profit that was smaller than expected at U.S. Bancorp and a quarterly loss at First Horizon National Corp., both struggling with a growing pile of troubled loans, did little to ease worries about the problems gripping the U.S. banking industry.

Minneapolis-based U.S. Bancorp said second-quarter profit fell 18%. The results were hurt by nearly tripling the provision for loan losses to $596 million, compared with ...

that was all the preview you get...

[Pale Blue Dot]

64. Someone passed out the smiley-face pills again

Dow +118
NASDAQ +29
S&P +12

[radfringe]

65. they are passing out something

100+ up doesn't make sense unless the PPT is working hard behind the scenes...

between the bank problems, inflation, oil, layoffs, earning reports etc, at any other time just one of these signs would have been enough to send the market into a 100pt drop...

someone is passing out more than happy pills

[Hugin]

67. How's the volume doing?

Light Heavy... Have all the insiders left the building?

[radfringe]

75. Vol: 102.52M as of 11:23AM EDT

DOW JONES INDUSTRIAL AVERAGE INDEX - Add to Portfolio - Discuss .DJI

11,057.55
+95.01 (0.87%)
Real-time: 11:23AM EDT Open: 10,961.89 Mkt Cap: - P/E: - Dividend: -
High: 11,103.15 52Wk High: 14,280.00 F P/E: - Yield: -
Low: 10,918.33 52Wk Low: 10,827.71 Beta: - Shares: -
Vol: 102.52M Avg Vol: 253.22M

[Hugin]

77. Thanks.

:hi:

[Dr.Phool]

69. And they used to drug test me at work?

:rofl: :crazy: :crazy: :silly: :crazy: :crazy: :silly:

[UpInArms]

68. Chopper Ben has a case of the DTs

01. Bernanke: Mortgage market is 'moribund'
11:13 AM ET, Jul 16, 2008

03. June trimmed CPI rises 0.4%, most in 18 years: Cleveland Fed
11:06 AM ET, Jul 16, 2008

04. Bernanke: 'Inflation is too high'
11:03 AM ET, Jul 16, 2008

05. Bernanke: Currency intervention should only rarely be done
10:53 AM ET, Jul 16, 2008

06. Bernanke: Fed's dollar policy is to have a strong economy
10:53 AM ET, Jul 16, 2008
0
7. Bernanke: Currency market intervention can be justified
10:52 AM ET, Jul 16, 2008

[Hugin]

71. I'd say #6 is a no brainer, man.

06. Bernanke: Fed's dollar policy is to have a strong economy
10:53 AM ET, Jul 16, 2008

Certainly hope so.

[Dr.Phool]

72. Bernanke should open a tap-dance show on Broadway.

He knows he's full of shit, and so does everyone else in the room.

[Tansy_Gold]

74. "Fed's dollar policy is to have a strong economy"

Question is, WHERE is that strong economy going to be, 'cause current economic policies have done everything to WEAKEN the U.S. economy.



But nationalism is unimportant to the corporate fascists. . . . . As long as there's a strong economy SOMEWHERE and they've got their investments in that SOMEWHERE, they be happy as fucking clams!


Tansy Gold, author of Tansy Gold's Theory of Corporations :evilgrin:

[Hugin]

76. Could you send me an autographed copy?

I'm running out of readage.

Thanx. :)

[UpInArms]

78. It appears the rest of the country is beginning to doubt that

the fools in charge have a clue

Confidence drops in U.S. economic policy: Reuters poll

WASHINGTON (Reuters) - Public confidence in U.S. economic policy dipped this month as unstable markets and shaky financial institutions left Americans uneasy about the future, according to a Reuters/Zogby poll released on Wednesday.

The Reuters/Zogby Index, which measures the mood of the country, dropped to 88.7 from 90.4 in June as five of the 10 measures of public opinion used in the index fell at least slightly and three remained steady.

The index fell to near its record low of 87.7, recorded in March, as optimism about personal finances waned and approval ratings for the Bush administration's economic and foreign policies dropped.

The rating for economic policy suffered the sharpest fall, earning positive marks from just 10 percent of Americans -- down 4 percentage points from June.

The drop came amid a continuing housing crisis, pledges of government help for the top two mortgage finance agencies and the collapse last week of IndyMac Bancorp -- the third-largest bank failure in U.S. history.

"Public confidence took a dip all around as Americans have settled into a recession mentality here," said pollster John Zogby. "That only serves to make the real recession fester -- people are much less likely to buy anything or do anything."

...more...

[Hugin]

79. "recession mentality "

Oh, Zogby... You card. :eyes:

[radfringe]

83. hard for the bushies to see what is happening

when they have their heads up their a$$es

[grasswire]

89. remember all that hoopla in 2000 about how...

....supposedly Gore had "talked the economy down" prior to the election? Wasn't he accused of that by Republicans?

[UpInArms]

92. December 4, 2000 - White House blasts Cheney for recession remark

http://archives.cnn.com/2000/ALLPOLITICS/stories/12/04/whitehouse.cheney/index.html

WASHINGTON (CNN) -- The White House lashed out Monday at GOP vice presidential nominee Dick Cheney's suggestion that the nation was moving toward an economic recession.

"Mr. Cheney was part of the 'Whip Inflation Now' team and he was part of a Bush administration that had a pretty anemic growth record, but that doesn't mean he's qualified to talk about the state of the economy today," said White House Press Secretary Jake Siewert. The anti-inflation team served in the Ford administration.

Siewert said the Clinton administration found large deficits, unemployment and debt when it arrived, and has since turned all three around while increasing productivity and lowering interest rates. The U.S. economy remains fundamentally sound, he said, adding that the nation's top private sector economists in November projected economic growth for the coming year at a minimum of 2.5 percent.

Economists declare a recession when the U.S. economy registers two consecutive quarters of negative economic growth.

"That's what the private sector, the smart people, the smart money, are saying about the future, and I don't think any spin coming out of that political campaign should be seen as much more than just spin," Siewert said.

On Sunday, Cheney said there was "growing evidence" that the economy was slowing.

"We're seeing it in automobile sales and a lot of other areas, earnings falling off for corporations. And we may well be on the front edge of a recession here," he said on NBC's "Meet The Press."

...more...

[grasswire]

97. but I think they blamed it on Gore

that was the weird part.

[UpInArms]

80. Dog and Pony Show continues with stale lines

01. Bernanke: U.S. should grow in '09 as housing, banks recover
11:33 AM ET, Jul 16, 2008

02. Fitch cuts Bank of America to 'A+' and upgrades Countrywide
11:33 AM ET, Jul 16, 2008

03. Bernanke: Fed sees weak, but positive growth through '08
11:31 AM ET, Jul 16, 2008

04. Bernanke: 'Don't know' if U.S. is in recession
11:30 AM ET, Jul 16, 2008

I had NPR on yesterday and heard the dimson muttering with his smirky icky voice that there was no recession 'cuz the numbers were positive and all those whiners needed to STFU

so here's the dog out there on a tight leash mumbling into his goatee and showing his ignorance 'cuz he knows those numbers are cooked up to order.

[Hugin]

81. Why exactly are they upgrading Countrywide?

Seriously. :wtf:

[UpInArms]

82. here's the poop

http://www.marketwatch.com/news/story/fitch-cuts-bank-america-upgrades/story.aspx?guid=%7BC5EF5267%2D0F0A%2D4758%2D8EFD%2DC14CE085DFDC%7D&dist=hplatest

SAN FRANCISCO (MarketWatch) -- Fitch on Wednesday downgraded the issuer default rating of Bank of America Corp. (BAC: 19.78, +1.26, +6.8%) to A+ from AA and Bank of America N.A. (BANA) to AA from AA+. At the same time, Fitch upgraded the IDR of Countrywide Bank FSB and its affiliates recently acquired by Bank of America to A+. "Fitch's rating actions reflect continuing headwinds from mark-to-market valuations on various asset classes in BANA's capital market units as well as headwinds facing its consumer and potentially its commercial credit portfolio. Fitch expects the headwinds from asset valuations to decline going forward since these positions have been substantially reduced through writedowns and other mitigation efforts," said the ratings agency in a statement.

[Hugin]

86. So, essentially the rating is the average of BoA and Countrywide.

Nice trick for Countrywide.

Gee, why am I still hearing the name Countrywide? Ooo.. If I were Pharaoh of this mess there'd be some chiseling of
names off of monuments going on right about now.

Thanks for the scoop UpInArms. :)

[Tansy_Gold]

85. Because they can!

Oh, you wanted a RATIONAL answer?


Never mind......

[UpInArms]

84. "no silver bullet to turn the economy around"

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B87B9560A%2DDF05%2D4AA1%2D8BFE%2D56CE31E4BDC6%7D

<snip>

Bernanke said there was no silver bullet to turn the economy around.

"There is no single solution. If there were, of course, we would have used it by now," he said.

"What we need to do is have a sensible, coordinated, and proactive approach that is going allow us to get through this difficult period that is going to allow us to get through this difficult period," he said.

Economists said Bernanke signaled that the Fed will hold interest rates steady at 2% until the end of the year at least.

Josh Shapiro, chief economist at MFR Inc., said Fed monetary policy was "frozen" given the competing concerns about a possible recession or runaway prices.

...more...

Why do we need to turn around such a "robust" economy, Bennie? You and your cronies built it to destroy everyone else in this country and loot our treasury with your flagrant lies and not even half-baked rotted theories that should have been debunked on day one.

It's working just like you planned all along.

[Hugin]

87. Already he's jonesn' for a beer...

It's still early Bennie. *tsk*

[radfringe]

88. 01. Bernanke: Mortgage market is 'moribund'

Main Entry: mor·i·bund
Pronunciation: \ˈmȯr-ə-(ˌ)bənd, ˈmär-\
Function: adjective
Etymology: Latin moribundus, from mori to die — more at murder
Date: circa 1721

1 : being in the state of dying : approaching death
2 : being in a state of inactivity or obsolescence

— mor·i·bun·di·ty \ˌmȯr-ə-ˈbən-də-tē, ˌmär-\ noun

[UpInArms]

91. but... but...

11:33 a.m.
Bernanke: U.S. should grow in '09 as housing, banks recover

How can something "being in the state of dying : approaching death" recover next year?

Won't it truly be "dead dead dead" and a doorknob by then?

[Hugin]

93. Their credit rating service will resurrect it...

Oh, wait! We're dealing with a bunch of religious freaks along with everything else.

Maybe they actually believe that! :hide:


Oh, jeeze okay that's the end of my free association exercise for today. :scared:

[Neshanic]

90. Everyone is guilty for this mess, Republicans and Democrats alike,

so we have Franks up there blabling about another "stimulus" check so we can send whatever we have left to China or the oil companies.

There is no resolutiuon to this mess, because both parties had their big fat fingers in it, and now they are doing the fish eye dance with each other, as they go as far as they can to the line of actually calling someone out. But they don't cross that line. They both know that the first one to say it's the others fault opens the big old can of election year commercials and blame, so we have them playing patty-cake with each other with some moments of tension for drama effect. The result is still the same.

We will pay for everything. The economy will be propped up by every means possible to keep it from total collapes before the election. After that all bets are off.

This is what "centrist Democrats" can achieve with craven corrupt Republicans; a twenty year long slide into economic oblivion.

[radfringe]

94. take a break - watch JIB JAB's latest... rofl

http://link.brightcove.com/services/link/bcpid1620628564/bclid1659850440/bctid1668060695
Jib Jab latest video project—getting millions to dance onscreen next to McCain and Obama.

[tismyself]

98. I needed that

Thanks!

:hi:

[Dr.Phool]

102. That was good!

You should put it on a separate post in GD and GD-P

[TrogL]

99. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

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

2008-06-04 Wednesday, June 4 0.985707 USD
2008-06-05 Thursday, June 5 0.980873 USD
2008-06-06 Friday, June 6 0.981643 USD
2008-06-09 Monday, June 9 0.978186 USD
2008-06-10 Tuesday, June 10 0.976467 USD
2008-06-11 Wednesday, June 11 0.983284 USD
2008-06-12 Thursday, June 12 0.977517 USD
2008-06-13 Friday, June 13 0.972573 USD
2008-06-16 Monday, June 16 0.979432 USD
2008-06-17 Tuesday, June 17 0.980296 USD
2008-06-18 Wednesday, June 18 0.98174 USD
2008-06-19 Thursday, June 19 0.987167 USD
2008-06-20 Friday, June 20 0.982994 USD
2008-06-23 Monday, June 23 0.984155 USD
2008-06-24 Tuesday, June 24 0.98668 USD
2008-06-25 Wednesday, June 25 0.986777 USD
2008-06-26 Thursday, June 26 0.988045 USD
2008-06-27 Friday, June 27 0.988142 USD
2008-06-30 Monday, June 30 0.981836 USD
2008-07-01 Tuesday, July 1 0.978474 USD
2008-07-02 Wednesday, July 2 0.987459 USD
2008-07-03 Thursday, July 3 0.980008 USD
2008-07-04 Friday, July 4 0.980008 USD
2008-07-07 Monday, July 7 0.982898 USD
2008-07-08 Tuesday, July 8 0.979912 USD
2008-07-09 Wednesday, July 9 0.989315 USD
2008-07-10 Thursday, July 10 0.989805 USD
2008-07-11 Friday, July 11 0.990786 USD
2008-07-14 Monday, July 14 0.994036 USD
2008-07-15 Tuesday, July 15 0.998502 USD


Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     0.9983 0.9989 0.9955 0.9985 +0.0009 +0.09% 
CD.U08 Sep 2008 0.9979 0.9979 0.9950 0.9950 -0.0018 -0.18% 
CD.Z08 Dec 2008 0.9800 0.9800 0.9800 0.9961 +0.0027 +0.27% 
CD.H09 Mar 2009 0.9757 0.9757        0.9956 +0.0027 +0.27% 
CD.M09 Jun 2009 0.9880 0.9880 0.9880 0.9950 +0.0027 +0.27% 
CD.U09 Sep 2009 0.9865 0.9865 0.9865 0.9946 +0.0027 +0.27% 
CD.Z09 Dec 2009 0.9845 0.9845 0.9845 0.9942 +0.0027 +0.27%  

Other combinations: (http://quotes.ino.com/exchanges/?c=currencies)

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.U08 Sep 2008 0.9729 0.9729 0.9729 0.9729 +0.0028 +0.29%  
EURO/BRITISH POUND (NYBOT:GB)
GB.U08.E Sep 2008 (E) 0.7960 0.7972 0.7935 0.7943 -0.0051 -0.64%    
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.U08.E Sep 2008 (E) 164.680 165.040 164.455 164.840 -0.810 -0.49%    
EURO/US$ (SMALL) (NYBOT:EO)
EO.U08.E Sep 2008 (E) 1.5835 1.5846 1.5781 1.5792 -0.0032 -0.20%   

Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The September Canadian dollar closed up 29 points at .9970 today. Prices closed near mid-range today and did hit a fresh six-week high. Bulls have the near-term technical advantage.


Analysis

The new blather isn't up yet so I posted the one from last night. Watching the graphs, the loonie is flirting with par against the greenback and gaining against the euro.

[Dr.Phool]

103. Loonie

:silly: :crazy: :silly:

[TrogL]

134. Closing numbers, blather and analysis

Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     0.9983 0.9989 0.9955 0.9985 +0.0009 +0.09% 
CD.U08 Sep 2008 0.9979 0.9979 0.9945 0.9978 +0.0010 +0.10% 
CD.Z08 Dec 2008 0.9800 0.9800 0.9800 0.9972 +0.0011 +0.11% 
CD.H09 Mar 2009 0.9757 0.9757        0.9967 +0.0011 +0.11% 
CD.M09 Jun 2009 0.9880 0.9880 0.9880 0.9961 +0.0011 +0.11% 
CD.U09 Sep 2009 0.9865 0.9865 0.9865 0.9957 +0.0011 +0.11% 
CD.Z09 Dec 2009 0.9845 0.9845 0.9845 0.9953 +0.0011 +0.11%  

Blather - the easy-to-read guy's on tonight so I posted the whole thing

The September Euro currency closed down 58 points at 1.5765 today. Prices closed near the session low on profit-taking pressure. Euro bulls still have the solid near-term technical advantage.

The September Japanese yen closed steady at .9554 today. Prices closed near the session low after hitting a fresh six-week high early on today. The bulls have gained some upside near-term technical momentum, but need to show some follow-through strength very soon.

The September Swiss franc closed down 42 points at .9832 today. Prices closed nearer the session low. Bulls still have the slight near-term technical advantage.

The September Canadian dollar closed up 3 points at .9971 today. Prices closed near mid-range today. Bulls have the near-term technical advantage. Bulls' next upside price objective is producing a close above solid chart resistance at this week's high of 1.0018.

The September British pound closed down 32 points at 1.9894 today. Prices closed nearer the session low today on profit taking from recent gains. Bulls have the near-term technical advantage.

The September U.S. dollar index closed up 21 points at 72.34 today. Prices closed nearer the session high today on short covering in a bear market. Bears still have the overall near-term technical advantage.

Analysis

Well isn't THAT interesting - the loonie gained against pretty much everything. He's claiming the pound and Euro's fall on "profit taking" so we'll have to see what happens tomorrow. If what I've been reading about the European economic zone's economy vs. UK vs. Canada plays out, I predict some contrary movement, which I'm not sure would be good for the Canadian economy right now other than Canadian tourists' pocketbooks.

[radfringe]

100. Oil's 2-day decline: $11 a barrel

Oil's 2-day decline: $11 a barrel
Futures plummet after surprise growth in crude, gasoline stockpiles hints at impact of high prices on usage.
Last Updated: July 16, 2008: 12:17 PM EDT
http://money.cnn.com/2008/07/16/markets/oil/index.htm?postversion=2008071611

NEW YORK (CNNMoney.com) -- Oil prices plummeted Wednesday, bringing a two-day selloff to about $11 a barrel, after the government's weekly inventory report suggested record high gasoline prices may be reducing the nation's energy consumption.

At 12:16 p.m. ET, light, sweet crude for August delivery was down $4.45 to $134.29 a barrel in electronic trading on the New York Mercantile Exchange.

Oil was down $1.17 before the report's release. Wednesday's drop followed a $6.44 plunge Tuesday that was the second largest decline ever on a dollar basis.

The government's weekly stockpile report showed that crude supplies rose by 3 million barrels in the week ended July 11. Analysts were looking for a drop of 3 million barrels according to a poll by energy research firm Platts.

[TrogL]

101. What does this mean?

The Euro appears to be in a bit of a slump against everything except the greenback.

Here's some blather from http://quotes.ino.com/chart/?s=CME_CD.U08&v=s

I swear they're either computer-generated, or three different guys write them. Last night's was comprehensible...

The September Euro currency closed down 37 points at 1.5826 today. Prices closed near the session low after hitting a fresh contract and all-time high today. Profit taking pressure was featured. Bulls still have the solid near-term technical advantage.

This morning we've got the least comprehensible I've seen in ages...

The September Euro is slightly higher in early electronic trading. Euro finds sell stop orders are likely located just below technical support at Tuesday's low of 1.5814 and then just below support at this week's low of 1.5790. Shorter-term technical resistance for the Euro is seen at the overnight high of 1.5998 and then at 1.5950. Buy stops likely reside just above those levels. Slow stochastics for the Euro are bearish early today. Today's key near-term Fibonacci support/resistance level: 1.5822. Wyckoff's Intra Day Market Rating: 6.0

So, WTF is:

• finds sell stop orders
  
• buy stops
  
• stochastics
  
• technical support/resistance
  
• Fibonacci support/resistance
  

[UpInArms]

105. all those are forex trading terms

Stochastic Oscillator

A technical momentum indicator that compares a security's closing price to its price range over a given time period. The oscillator's sensitivity to market movements can be reduced by adjusting the time period or by taking a moving average of the result. This indicator is calculated with the following formula:

%K = 100<(C - L14)/(H14 - L14)>

C = the most recent closing price
L14 = the low of the 14 previous trading sessions
H14 = the highest price traded during the same 14-day period.

%D = 3-period moving average of %K



The theory behind this indicator is that in an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low. Transaction signals occur when the %K crosses through a three-period moving average called the "%D".

********
Who was Fibonacci?
The "greatest European mathematician of the middle ages", his full name was Leonardo of Pisa, or Leonardo Pisano in Italian since he was born in Pisa,Italy (see Pisa on Google Earth), the city with the famous Leaning Tower, about 1175 AD.

Pisa was an important commercial town in its day and had links with many Mediterranean ports. Leonardo's father, Guglielmo Bonacci, was a kind of customs officer in the present-day Algerian town of Béjaïa, (see Bejaia on Google Earth ) formerly known as Bugia or Bougie, where wax candles were exported to France. They are still called "bougies" in French.

So Leonardo grew up with a North African education under the Moors and later travelled extensively around the Mediterranean coast. He would have met with many merchants and learned of their systems of doing arithmetic. He soon realised the many advantages of the "Hindu-Arabic" system over all the others.

D E Smith points out that another famous Italian - St Francis of Assisi (a nearby Italian town) - was also alive at the same time as Fibonacci: St Francis was born about 1182 (after Fibonacci's around 1175) and died in 1226 (before Fibonacci's death commonly assumed to be around 1250).

By the way, don't confuse Leonardo of Pisa with Leonardo da Vinci! Vinci was just a few miles from Pisa on the way to Florence, but Leonardo da Vinci was born in Vinci in 1452, about 200 years after the death of Leonardo of Pisa (Fibonacci).

[TrogL]

116. They had stock markets during Fibonacci's time?

Ok, I found this explanation (http://www.stockta.com/fibonacci.html) but I don't grok it either.

This (http://www.sec.gov/answers/stopord.htm) cleared up the other two - sort of.

[Hugin]

119. Yeah, but, they were called casinos back then...

The Royal Dude/Dudette would typically keep a mathematician on payroll to make sure the house always had an
advantage.


Kept bread on the table for many notables...

Gauss
Laplace
Pascal

etc. etc. etc.

http://www.stetson.edu/~efriedma/periodictable/

My how things stay the same.

This is one reason I can't believe TPTB are as totally surprised and oblivious to what is currently going on as they would
have us think.

Somebody knows.

Just not the TeeVee Bubblevision folks.

[Tansy_Gold]

123. "Somebody knows" Duh, of course they do!

:hi:

That's why we calls 'em shruggers. They knows but they don't cares.


Maybe I'm just goofy, but it seems to me we really ought to be putting a little more credence -- and a little more investigative energy -- into all this. And I know the "we" here on DU aren't enough to do the work. However, I don't think we're alone, either.

It's easy -- and maybe even comforting -- to shrug off (pun intended) the notion that there's some kind of grand conspiracy behind the market manipulation. But if we reach the point where a conspiracy theory is the only one that fits the facts, maybe we shouldn't dismiss it so easily???


Tansy Gold, :shrug:

[DemReadingDU]

136. I don't recall having seen that table before

and Erich Friedman is near my part of the country where I grew up. Must check with siblings to see if they have seen this table.

[Ghost Dog]

125. Fibonacci Numbers and Golden sections in Nature

* Fibonacci Numbers and Nature
Fibonacci and the original problem about rabbits where the series first appears, the family trees of cows and bees, the golden ratio and the Fibonacci series, the Fibonacci Spiral and sea shell shapes, branching plants, flower petal and seeds, leaves and petal arrangements, on pineapples and in apples, pine cones and leaf arrangements. All involve the Fibonacci numbers - and here's how and why.
* The Golden section in Nature
Continuing the theme of the first page but with specific reference to why the golden section appears in nature. Now with a Geometer's Sketchpad dynamic demonstration.

0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987 ..More..

/Lots more... http://www.mcs.surrey.ac.uk/Personal/R.Knott/Fibonacci/

/More math... http://www.mcs.surrey.ac.uk/Personal/R.Knott/Fibonacci/fibnat2.html

[TalkingDog]

127. A beginner's guide to constructing the Universe.

http://www.constructingtheuniverse.com/

or: How to make even numbers interesting......


When one is visual/pattern oriented, but numbers are too "abstract", just drag out good old Fibonacci. Helping students understand the structure that underlies most of what we find "beautiful" through the Golden Ratio: 1 to 1.61 can "lateralize their skillset" and make both numbering and patterning accessible. Right Brain/Left Brain.....

[DemReadingDU]

137. I don't recall these interesting numbers either

Where have I been?

:shrug:

[TrogL]

120. OK, so let's have a go at translating this into English

The September Euro is slightly higher in early electronic trading.

This is sort of a futures market in Euros - a gamble on the price the Euro will be at two months from now. This is different from the cash price right now.

Euro finds sell stop orders are likely located just below technical support at Tuesday's low of 1.5814 and then just below support at this week's low of 1.5790.

11 minutes ago the Euro was at 1.5784, so most of this is now complete nonsense, but it opened at 1.5833 so we'll use that number as a starting piont.

I'm assuming that "Euro finds" is really short form for "those people investigating what's up with the Euro will find that"...

...there are clusters of "sell stop orders" (automated breakpoints saying "stop selling my Euros if its selling price goes below this point") just below 1.5814 and 1.5790. Those numbers are computed by various formula (stochastics and Fibronacci) found to work over time. Presumably those sell stop orders have kicked in and the only people selling Euros are those who think they see a bargain elsewhere that will climb higher than the Euro bounces back. Or they're Gold Bugs on a binge.

Shorter-term technical resistance for the Euro is seen at the overnight high of 1.5998 and then at 1.5950. Buy stops likely reside just above those levels.

On the flip side there's another set of breakpoints in place saying "stop buying Euros at these ridiculous prices 'cause obviously somebody's doing something stupid and I don't want in on it (eg. mania, bubble)", again these numbers determined by examining the entrails of a goat, the casting of bones or alchemy (hence the Golden Rule).

Slow stochastics for the Euro are bearish early today.

When the high shaman slaughtered the goat and drank its blood at dawn, there were three twists in the large intestine so the Euro is expected to fall.

Today's key near-term Fibonacci support/resistance level: 1.5822.

If the Euro gets one magic number away from 1.5822 either direction...EVERYBODY PANIC!!!!!

[Hugin]

122. Good summary...

Looks reasonable. Perhaps too reasonable.

And they say Alchemy is a lost art. ;)

[Ghost Dog]

121. Well, eg. this way of interpreting the data?

European recession looms as Spain crumbles

By Ambrose Evans-Pritchard
Last Updated: 2:15pm BST 15/07/2008

The eurozone is tipping into a deeper downturn than America itself despite the tremors in the US mortgage industry, and may already be in full recession for the first time since the launch of the single currency.

...

Industrial production for the EMU bloc fell 1.9pc in May, according to fresh Eurostat data. It is the sharpest one-month decline for the region since the exchange rate crisis in 1992. Officials in Berlin have warned that Germany's economy could contract by as much as 1.5pc in the second quarter as export orders crumble.

Industrial output in both Italy and Greece has slumped 6.6pc over the past year. Portugal is off 6.2pc. "It is a very ugly picture: we're on maximum alert," said Emma Marcegaglia, head of Italy's business federation Confindustria.

...

Jacques Cailloux, Europe economist at the Royal Bank of Scotland, said a "reverse decoupling" is now under way as Europe goes down harder than the US - just as it did after the dotcom bust. "There is loss of momentum across the board. We can't exclude a recession," he said.

Spain is now spiralling into the worst crisis since the Franco dictatorship. "The economy is in dire straits," said Dominic Bryant, Spain expert at BNP Paribas.

"Some of the housebuilders are going to go bust, it is as simple as that. Over 10pc of Spain's economy has been building houses. This compares with 6pc-7pc in the US at the height of the bubble. The adjustment will be enormous," he said.

...

The crunch engulfing Spain's property market is rapidly turning into a full-fledged national drama. The developers' association APCE said house prices had already fallen 15pc since September. Unemployment has risen by 425,000 over the past year, reaching 9.9pc.

Deutsche Bank said the property crisis is more serious that the collapse in the early 1990s. It expects a 35pc fall in real house prices by 2011 as the market slowly clears the vast overhang of property, now estimated at nearly 700,000 homes.

In Castilla-La Mancha - Don Quixote's region - some 69pc of all houses built over the past three years are still unsold.

Spain's premier, Jose Luis Zapatero, blamed the European Central Bank for making matters worse by raising interest rates into the teeth of the crisis last week. He called the move "irresponsible". More than 98pc of home loans in Spain are priced off floating rates linked to Euribor, which has risen 145 basis points since August.

Mr Zapatero has resorted to a fiscal boost worth 1.5pc of GDP to help cushion the slump. But Spain's budget surplus is turning into a deficit as tax revenues collapse. Car sales, for instance, fell 31pc in May. The Bank of Spain is concerned about the health of smaller regional lenders with heavy exposure to the mortgage market. Deputy governor Jose Vinals has called on banks to set aside more against bad debts. "Provisions need to keep rising throughout the year. Prudent coverage levels are needed to face this situation with confidence," he said.

The precipitous slide now under way in Europe has yet to cause investors to lose their ardour for the euro, but a number of analysts, including Bill Gross, head of the giant bond fund Pimco, say there is no justification for the euro's 25pc to 30pc over-valuation against the US dollar. "We're turning incredibly bearish on the euro," said BNP Paribas.

The counter argument is that the US has merely stolen growth from the future with this spring's one-off fiscal stimulus package. Dollar bears expect a nasty second leg to the crisis later this year, forcing the Fed to slash interest rates to 1pc or lower.

Goldman Sachs said Europe is the "tie-breaker" for the whole global economy.

/... http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/15/ccspain115.xml&CMP=ILC-mostviewedbox

[TrogL]

124. Interesting how the four economies handle the banking crisis

TrogL: You need to be aware that I'm a person of some controversy - I'm openly gay.
Priest (Anglican): While I follow the Traditions that state that homosexual relations are a sin, I will not address the issue from the pulpit and if hard pressed will feel the need to first air my views on bankers. Do NOT get me started.

Canada has large banks. You can count them on the fingers of two hands. Canada has extremely strict banking laws to prevent banks getting into the kind of trouble seen down south, but despite this also has a deposit insurance system. Canada also has trust companies and credit unions but they are under even stricter scrutiny than the banks. While you could get a "zero-down" mortgage at a higher rate than normal, "sub-prime" mortgages were completely out of the question. The only banks that got burned by the whole sub-prime fiasco were those who bought into some of the phony paper coming up from the States. Due to the size and stability of the banks, this caused barely a ripple - it was page 144 news noticable only by economics junkies like me.

From comments to the article above:

Given the scale of parallel debt-driven property meltdowns in Spain and the UK, it is clear that Spanish banks are in a much stronger position to absorb domestic mortgage asset writedowns, as has been illustrated by Santander's bid for A&L. On top of that, they have recourse to the ECB for funding. Compare that with our own tight-fisted BoE which is turning away desperate cash-strapped banks.

Which leads me to believe Spain follows the Canadian model; the Brits the American.

[Hugin]

128. After reading earlier about the reforms in the New Deal...

I'm now of the impression that the Neo-Con's thrust has been to push the American model back
to being like the historic Brit model.

"Which leads me to believe Spain follows the Canadian model; the Brits the American."

[Ghost Dog]

130. Exactly right. Spanish mortgages are sound (but see below); nothing like subprime or Alt-A etc.

The problem to mortgage-holders is the variable rate, calculated according to the EURIBOR (Euro inter-bank borrowing rate), which has been rising. So the monthly payments for most people are rising (most Spaniards are home-owners and many have second homes - except young 'first-time buyers', many of whom find themselves 'priced-out' of the market). And as people lose jobs they tend to lose the ability to make mortgage payments, after the one-year allowance of unemployment benefit.

But the big financial problem comes from the property development/construction business (both residential building outside large cities and on coasts, and for the expansion of the tourist trade). These 'real estate' companies have been greedy, have overbuilt (at a very fast pace), and have borrowed huge sums from banks (bancos) and savings banks (cajas de ahorro) to finance the spree. Many property developers will go bankrupt, and therefore many (of the smaller, they say) um, lets call them 'lending institutions' (including who knows how many in Europe - many German banks, it is said, have invested in Spanish construction) may get burned.

However, all concerned insist that Spanish banking regulation is very tight and so far has not made mistakes. There has been little contamination from US or UK toxic waste, for example.

And UK and US (or USUK, pronounced "you suck", if you prefer) are, of course, the epitome of the neo-shrugger 'Anglo-Saxon' model, of course (with a little but not much more social security in the UK case). Canada, Australia and NZ appear to be operating in a somewhat different space... Perhaps you'd like to comment further?

[TrogL]

132. I used to work for one of the financial institutions

granted only as a teller, but it did give me an insider's look at banking practices. Also, I applied for a mortgage right around the time the housing bubble started up so I'm fairly up-to-speed on that aspect of it as well.

The big-name "Canadian" banks are the Canadian Imperial Bank of Commerce, Bank of Montreal, Bank of Nova Scotia and Royal Bank of Canada. You also see branches of the Bank of Hong Kong's Canadian subsidiary.

Canada Trust turned banking on its ear in the 1980's (when I was working for them). They were the first Canadian financial institution to embrace on-line transactional computerized banking. They had huge IBM (and I believe later Cray) mainframes in London, Ontario and a network of local mini-computers to handle the load. You could walk into a Canada Trust anywhere and it acted as "your" branch. The only thing that actually resided at your "home branch" was your original signature card. Canada Trust grew exponentially until it became constrained by its "trust company" status and was bought out by Toronto Dominion Bank creating TD Canada Trust. It's still an oddity in the marketplace because it now functions as a bank, acts like a trust company (eg. open crazy hours) and the other day I got phone call from them flogging insurance (but I think that was from a side-operation as part of the larger TD group).

Day to day operations always revolved around risk. As tellers we were allowed to say "we don't want you for a customer" if somebody was trying to do something dodgy. A loan was considered an earned privilege, not a right.

But you were asking about the mental space of Canadian banking in general.

Here ya go.

http://www.fin.gc.ca/toce/2001/bank_e.html

[Tansy_Gold]

138. :::: sigh :::::

Oh, you're makin' me wish I'd moved to Spain instead of Apache Junction. . . .


Tansy Gold, who couldn't have taken two dogs and several tons of rocks with her then and has four dogs and more rocks now. . . . . . .

[UpInArms]

106. Fed to conduct $75 bln, Schedule 2 TSLF auction

http://www.reuters.com/article/marketsNews/idUSNYE00032220080716

NEW YORK, July 16 (Reuters) - The U.S. Federal Reserve will undertake a $75 billion 28-day Term Securities Lending Facility (TSLF) auction on Thursday, according to the New York Fed on Wednesday.

The Fed will accept riskier Schedule 2 collateral in exchange for Treasuries, which primary dealers can then lend out to get short-term cash loans in the U.S. repurchase market, to help shore up balance sheets, the New York Fed announced on its Web site.

http://www.newyorkfed.org/markets/tslf/termseclending_Historical.cfm

Auction Announcement 


July 16, 2008


 	Auction Details 1 	 

		
 	Auction collateral type 2	Schedule 2	 
		
 	Offering amount	$75 billion par	 
		
 	Maximum award	$15 billion par (20% of offering)	 
		
 	Minimum fee rate	0.2500 percent	 
		
 	Auction date
    Start time
    Close time	July 17, 2008
02:00 p.m. ET
02:30 p.m. ET	 
		
 	Settlement date	July 18, 2008	 
		
 	Term	28-day	 
		
 	Maturity date	August 15, 2008

[Ghost Dog]

107. Oil relief, weaker euro lift European stocks (junkie rally)

LONDON, July 16 (Reuters) - European shares ended higher on Wednesday as falling oil prices supported the broader market, a weaker euro underpinned automotive stocks and solid results from Wells Fargo (WFC.N: Quote, Profile, Research, Stock Buzz) lifted battered banks.

The FTSEurofirst 300 index of top European shares closed 0.5 percent higher at 1,115.97 points, having fallen as much as 1.6 percent earlier in the session.

A $5 drop in crude CLc1 on the back of a surprise increase in U.S. inventories lifted airline stocks, with Air France-KLM (AIRF.PA: Quote, Profile, Research, Stock Buzz) rallying 7.8 percent, Lufthansa (LHAG.DE: Quote, Profile, Research, Stock Buzz) up 4.8 percent and British Airways (BAY.L: Quote, Profile, Research, Stock Buzz) up 6.9 percent.

Automotive stocks soared as the U.S. dollar strengthened against the euro <EUR=> after Federal Reserve Chairman Ben Bernanke told a U.S. House of Representatives panel that currency intervention may be warranted under certain conditions.

BMW (BMWG.DE: Quote, Profile, Research, Stock Buzz) was up 2 percent, Renault (RENA.PA: Quote, Profile, Research, Stock Buzz) rose 7.4 percent and Peugeot (PEUP.PA: Quote, Profile, Research, Stock Buzz) added 4.6 percent.

BANKS STAGE SHARP TURNAROUND

Banks, the heaviest drag on the European market earlier in the day, ended higher after Wells Fargo reported unexpectedly strong quarterly results.

The DJStoxx European banks index rose 1.6 percent, with Barclays (BARC.L: Quote, Profile, Research, Stock Buzz) adding 2.4 percent and Fortis (FOR.BR: Quote, Profile, Research, Stock Buzz) (FOR.AS: Quote, Profile, Research, Stock Buzz) gaining 4.6 percent, and UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) rising 3.4 percent.

Alpha Trading asset manager Stefan de Schutter doubted the longevity of the turnaround witnessed in late trade.

"We were oversold earlier and this is a technical rally. The comments from Bernanke were a big push but in the end nothing has really changed," he said.

...

The VDAX-NEW volatility index, based on sell and buy options on Frankfurt's top 30 stocks, was down 3.7 percent at 26.76.

Huerkamp said that company earnings had shown a surprising resilience throughout the credit crunch, noting that "our economic-earnings-valuation-sentiment-model still indicates that the current dip should be the last dip in the current crisis".

...

Britain's commodity-heavy FTSE 100 .FTSE ended down 0.4 percent, while Germany's DAX .GDAXI added 1.2 percent and France's CAC .FCHI rose 1.3 percent.

Heavyweight oil groups BP (BP.L: Quote, Profile, Research, Stock Buzz), Total (TOTF.PA: Quote, Profile, Research, Stock Buzz) and Shell (RDSa.L: Quote, Profile, Research, Stock Buzz) shed between 2.8 and 3.2 percent.

/... http://www.reuters.com/article/eurMktRpt/idUSL1673610720080716?sp=true

[Roland99]

110. Yeah...+150 on the Dow because oil is down $4/bbl or so? SUCKERS!

and they came a runnin'


Inflation is proving to be worse even in the jacked-up numbers we all know are way understated but the markets relish in a few bucks off the price of oil.

[Dr.Phool]

112. If the past couple of weeks are any indication,

I'd put on my parachute at about 3:30.

Just to be safe.

[Pale Blue Dot]

114. Yes. This is the same thing that happened a couple of weeks ago.

Stocks were way up on light volume and then crashed back to earth 15 minutes before the close.

[skoalyman]

113. about time for alittle diddy

Rainbow Stew

There's a big, brown cloud in the city,
And the countryside's a sin.
An' the price of life is too high to give up,
Gotta come down again.
When the world wide war is over and done,
And the dream of peace comes true.
We'll all be drinkin' free bubble-ubb,
Eatin' that rainbow stew.
When they find out how to burn water,
And the gasoline car is gone.
When an airplane flies without any fuel,
And the satellite heats our home.
One of these days when the air clears up,
And the sun comes shinin' through.
We'll all be drinkin' free bubble-ubb,
An' eatin' that rainbow stew.

Eatin' rainbow stew in a silver spoon,
Underneath that sky of blue.
All be drinkin' free bubble-ubb,
An' eatin' that rainbow stew.

Instrumental break.

You don't have to get high to get happy,
Just think about what's in store.
When people start doin' what they oughta be doin',
Then they won't be booin' no more.
When a President goes through the White House door,
An' does what he says he'll do.
We'll all be drinkin' free bubble-ubb,
Eatin' that rainbow stew.

Eatin' rainbow stew in a silver spoon,
Underneath that sky of blue.
We'll all be drinkin' that free bubble-ubb,
Eatin' some rainbow stew.

Eatin' rainbow stew in a silver spoon,
Underneath that sky of blue.
All be drinkin' that free bubble-ubb,
Eatin' rainbow stew.:radio: :woohoo:

[Hugin]

117. Good song... Good song...

Way to pick 'em skoalyman. :thumbsup:

[skoalyman]

118. thanks I always liked ole Merle Haggard

here's another http://www.youtube.com/watch?v=JxzJAF1BxP4

[TalkingDog]

126. PPT is now on Steroids....

Yikes.... Now they get some respect!

[ozymandius]

129. Who was pimping what today? Oil?

Oh...wait. It was shorts betting on a puff of wind from financials sending the NYSE volume to shrieking highs.

Dow 11,239.28 Up 276.74 (2.52%)
Nasdaq 2,284.85 Up 69.14 (3.12%)
S&P 500 1,245.36 Up 30.45 (2.51%)
10-Yr Bond 3.934% Up 0.09
NYSE Volume 6,699,922,000
Nasdaq Volume 2,503,838,250

4:25 pm : On Wednesday, the financial sector soared the most in its 19-year history after Wells Fargo (WFC 27.14, +6.63) reported better-than-expected earnings, sparking a rally that was compounded by short-covering. As a result, the stock market posted a large 2.5% gain, as a steep drop in crude prices helped overshadow a disappointingly high inflation reading.

Wells Fargo reported second quarter earnings of $0.53 per share, topping Wall Street's expectation by $0.03. In addition, the San Francisco-based bank raised its dividend by 10%, indicating it is in a solid financial position despite the current environment. The stock spiked 32% on the news.

This, along with better-than-expected earnings from Charles Schwab (SCHW 21.91, +2.69), Northern Trust (NTRS 76.00, +8.81) and Marshall & Ilsley (13.61, +2.02) sent the financial sector soaring to a 12.3% gain -- the largest advance since it was created in 1989.

It was a solid session outside of financials as well, with eight of the ten economic sectors posting an advance, aided by the second straight day of tumbling oil prices, bargain hunting and short-covering.

With regard to crude oil, prices fell 3.1% after a government report showed an unexpected crude and gasoline inventory build, sparking a rally in energy-price sensitive areas.

The consumer discretionary sector jumped 4.4%. General Motors (GM 11.46, +1.62) and Ford (F 5.49, +0.84) posted their largest one-day gain in years as investors scooped up the beaten down names. Meanwhile, retailers spiked 5.5% as oil prices eased.

Airlines surged 18% thanks to the drop in crude prices and better-than-expected earnings from American Airline parent AMR Corp (AMR 5.74, +1.33) and Delta Airlines (DAL 6.03, +1.36).

Other beaten down areas saw a surge in buying interest; the homebuilder group spiked 14% and the building product group rose 11%.

The tech sector performed roughly in-line with the market, unable to outperform despite Intel (INTC 20.91, +0.20) reporting earnings that topped estimates. The semiconductor-giant's margins were on the low side of previous guidance, which kept buying interest in check.

The energy sector was a laggard after the drop in crude prices took a toll on oil producers (-3.0%). The defensive-oriented utility sector slipped 1.9%.

On the economic front, June inflation rose by a higher-than-expected amount due to rising energy and food costs. Core inflation also was higher than expectations due to larger increases in the indexes for shelter, tobacco and smoking products, and the apparel index. Specifically, June CPI rose 1.1% month-over-month, higher than the expected increase of 0.7%. Core CPI, which excludes food and energy, rose 0.3%, which is also higher than the consensus estimate of 0.2%. CPI is now up 5.0% year-over-year (highest since 1991) and core CPI is up 2.4%.

Industrial production rebounded to 0.5% gain in June from the decline of 0.2% in May. The gain is in part due to a 5.4% increase in the output of motor vehicles and parts as activity resumed at plants that had been idled during the American Axle strike. Separately, capacity utilization increased to 79.9% from 79.6%.

Fed Chairman Bernanke gave his semiannual testimony before the House Financial Services Committee. Much of his testimony was a rehash of his appearance before the Senate yesterday. Of note, the chairman said the GSEs (Fannie Mae (FNM 9.22, +2.15)) and Freddie Mac (FRE 6.91, +1.65)) are adequately capitalized and in no danger of failing. He went on to say that action by Congress is justifiable in order to raise confidence in the GSEs.

The FOMC meeting minutes from the June 24-25 meeting were also released this session. The minutes did not provide the market with any new information, and as a result had a limited impact on trade.DJ30 +276.74 NASDAQ +69.14 NQ100 +2.5% R2K +3.7% SP400 +2.4% SP500 +30.45 NASDAQ Adv/Vol/Dec 2218/2.44 bln/670 NYSE Adv/Vol/Dec 2430/1.73 bln/759

[Ghost Dog]

131. High volume. High volume. n/t

Organised conspiracy + PPT + lemmings (ie. your life savings/pension fund manager) at play?