STOCK MARKET WATCH, Thursday October 2

[ozymandius]

Source: du

STOCK MARKET WATCH, Thursday October 2, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 110
DAYS SINCE DEMOCRACY DIED (12/12/00) 2809 DAYS
WHERE'S OSAMA BIN-LADEN? 2534 DAYS
DAYS SINCE ENRON COLLAPSE = 2825
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

In recognition of those prescient of the Dow's precipitous return of Bush values (9/29/08): JuneBourder and AnneD

AT THE CLOSING BELL ON October 1, 2008

Dow... 10,831.07 -19.59 (-0.18%)
Nasdaq... 2,069.40 -12.93 (-0.62%)
S&P 500... 1,161.06 -3.68 (-0.32%)
Gold future... 888.00 +7.20 (+0.81%)
30-Year Bond 4.25% -0.06 (-1.32%)
10-Yr Bond... 3.77% -0.06 (-1.54%)






GOLD,EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

[ozymandius]

1. Market WrapUp

Market & Economic Snapshot
BY CHRIS PUPLAVA

Wall Street’s Pulse

Despite all the efforts from the Federal Reserve, Treasury, and White House, the credit markets remain frozen as banks are afraid to lend to each other as well as the consumer and businesses. We are at a far more precarious position than at any point since the crisis began last year as the various spreads, bank willingness to lend, and bank borrowings from the Fed below illustrate. Below are various commercial paper credit spreads, with the first between low quality (A2/P2) and high quality (AA) commercial paper, followed by spread between 90 day commercial paper and risk-free 90 day T-Bills.

-chart-

As promised, below is an update of the Fed’s balance sheet as there most certainly have been some developments. I’ve often commented in previous WrapUps that I felt the Fed would pull every trick in the play book, to Chairman Bernanke’s credit, to try and bring market stability with swapping the Fed’s balance sheet of US Treasuries for Wall Street securitized garbage and various lending facilities, before resorting to helicopter drops. US Treasuries as a percent of Fed Assets have plummeted from over 90% to now below 50% as the Fed continues to be the buyer of last resort for Wall Street’s waste.

....

The time has now arrived where the Fed has resorted to its last back drop, increasing the money supply by expanding its balance sheet as B-52 Ben leads the paper bombing squad to drop its digital dollars on the markets and economy. Greenspan’s Y2K panic printing of US dollars is a mere pittance to Bernanke’s current bomb drops. The Fed had $905.7 billion in assets as of September 3rd. In less than four weeks the Fed has expanded its balance sheet to the tune of $308.2 billion dollars, or an increase of 34% in less than a month. It must be nice to expand one’s assets to the tune of 34% with a simple touch of a magic wand! Let’s revisit the Bernanke comment made above

But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.

....

So there you have it. Credit markets remain frozen, the Federal Reserve is dropping B-52 dollar bombs (devaluing our currency), household net worth is declining, incomes are falling, and jobs are being lost to the tune of over a half million year-to-date. The economic tanker is clearly in recessionary waters that will not be calming until at least next year. What the Federal Reserve and government do from here will decide the depth and duration of the current recession but make no mistake, an economic recovery will not take place until next year as the economy will not turn on a dime.

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

[Roland99]

3. "B-52 Ben". heh heh

Morning, ozy!

[truthisfreedom]

2. Did it drop below bush's start point of 10,578.24 yet?

Just wondering.

[Hissyspit]

4. Yes, the 777-point drop of the Dow took it about 200 points below.

[ozymandius]

7. The S&P and Nasdaq had long settled below the 1/22/01 averages.

The Dow stayed below the Bush starting average for a day while hovering close to that average since then.

In average terms, factoring in the rate of inflation (or dollar devaluation to debt), value has flown from the markets in the past eight years.

[truthisfreedom]

8. Negative. Stock. Growth. The bush legacy. Into oblivion.

[radfringe]

12. lol... have already sketched a toon about this

will try to have it finished for tomorrow...

meanwhile - in anticipation of tonight's debate: http://www.worldnewstrust.com/wnt-reports/commentary/look-daddy-lady-has-no-clothes.html

[ozymandius]

5. Today's Reports

08:30 Initial Claims 09/27
Briefing.com 440k
Consensus 475K
Prior 461K

10:00 Factory Orders Aug
Briefing.com -2.0%
Consensus -2.9%
Prior 1.3%

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

[UpInArms]

36. Initial Claims @ 497,000 - last week rev'd up 35,000!

01. U.S. 4-wk. continuing claims rise 46,750 to 3.53 million
8:30 AM ET, Oct 02, 2008

02. U.S. continuing jobless claims rise 48,000 to 3.59 million
8:30 AM ET, Oct 02, 2008

03. U.S. 4-wk. avg. initial jobless claims up 11,500 to 474,000
8:30 AM ET, Oct 02, 2008

04. U.S. weekly initial jobless claims rise 1,000 to 497,000
8:30 AM ET, Oct 02, 2008

(last week was reported at 461,000!)

[Roland99]

40. wow...just a few months ago we were still averaging in the 330k-340k range

Or so it seems anyway...guess it's been a bit more than 3 months.

I need to work up some new graphs this weekend for the various jobs numbers.

[AnneD]

46. Morning Marketeers....

:donut: and lurkers. I have to dash today but this story has been making the national and local news. They blame foreclosure, but the root cause is joblessness-once again the press is watching the wrong mouse hole :eyes:.....

RENO, Nevada (AP) -- A few tents cropped up hard by the railroad tracks, pitched by men left with nowhere to go once the emergency winter shelter closed for the summer.


Mack Martinez, 19, of Cedar Rapids, Iowa, passes time at a tent city in Reno, Nevada, on June 25.

1 of 2 Then others appeared -- people who had lost their jobs to the ailing economy, or newcomers who had moved to Reno for work and discovered no one was hiring.

Within weeks, more than 150 people were living in tents big and small, barely a foot apart in a patch of dirt slated to be a parking lot for a campus of shelters Reno is building for its homeless population. Like many other cities, Reno has found itself with a "tent city" -- an encampment of people who had nowhere else to go.

From Seattle to Athens, Georgia, homeless advocacy groups and city agencies are reporting the most visible rise in homeless encampments in a generation.

Nearly 61 percent of local and state homeless coalitions say they've experienced a rise in homelessness since the foreclosure crisis began in 2007, according to a report by the National Coalition for the Homeless. The group says the problem has worsened since the report's release in April, with foreclosures mounting, gas and food prices rising and the job market tightening. iReport.com: What are tough times forcing you to give up?

more....

http://www.cnn.com/2008/LIVING/wayoflife/09/19/tent.cities.ap/

The saddest thing I heard in the tv film was on lady saying (paraphrase) "I always thought I'd go camping in a tent-not living in one". Just the tone in her voice made me feel so sad.....

:cry:

[Roland99]

51. I'm lucky in that if I lose the house I'm renting and can't afford elsewhere...

I have family/friends I can move in with. I could stay with my Dad for months, years even, if needed.

Many people aren't so lucky.

[AnneD]

73. As embarrassed as I would be....

I have friends and family too (as witnessed by offers during/after Ike). Humble pie is not tasty. This is why I STILL am not for the bail out bill. It addresses the wrong end of the equation.

This tent city thing is JUST starting to make the news. All the facts are not in and we are being rushed into doing something that might hamstring the next president (unless it is McSame).

[kineneb]

92. Hoovervilles...Bushvilles

...the great circle of history... thinking of all those Dorothea Lang photos.

Unless things get really bad, I should be able to stay put. My house payment is under $200, and there is room enough in the backyard (in tents, sheds, etc) to put up friends who need a safe spot. There may not be room in the house, but I would not let them go truly homeless.

[Wednesdays]

95. Yup. We're heading back to the Good Ol' Days

[AnneD]

97. That's kind of you....

and that's what it may take for Main Street to survive this. That's why I say, MS has been at this economic shit storm for 2 years now, and Congress is surprised at the reaction this bail out has gotten. Well hell, they haven't been listening.

[Demeter]

74. As the Great Mugambo Says "We're Freaking Doomed!"

[UpInArms]

48. Factory orders drop 4% in August, most in 2 years

http://www.marketwatch.com/news/story/factory-orders-drop-4-august-most/story.aspx?guid=%7B1173861B%2DAD58%2D4D7A%2DBA24%2D6B3B5279A431%7D&dist=hplatest

WASHINGTON (MarketWatch) - Demand for U.S. factory goods dropped at the fastest rate in two years in August on much lower orders for metals, machinery and vehicles, the Commerce Department reported Thursday.

Factory orders fell 4%, worse than the 3% drop expected by economists surveyed by MarketWatch. Orders had risen 0.7% in July, revised down from the 1.3% estimate given a month ago.

The weaker-than-expected data add to the evidence that the U.S. economy is mired in a recession, and could prompt more calls for the Federal Reserve to cut interest rates again to stimulate growth.

Orders for durable goods fell 4.8% in August, revised lower from the 4.5% estimate provided a week ago. Shipments and orders for nondurable goods fell 3.3%, largely because of lower prices for crude oil and gasoline.

Excluding the 9.1% drop in transportation orders, factory orders fell 3.3%, the biggest drop since September 2001.

Orders for core capital equipment goods - the kind of tools businesses invest in order to expand or update their productive capacity - fell 2.4%, the biggest drop since January 2007. Shipments of core capital equipment - a key input for gross domestic product -- fell 2.1%.

...more...

[UpInArms]

50. factory orders report - line items:

02. U.S. Aug factory inventory-sales ratio rises to 1.26 v. 1.21
10:00 AM ET, Oct 02, 2008

03. U.S. Aug. core capital equipment orders fall 2.4%
10:00 AM ET, Oct 02, 2008

04. U.S. Aug. durable-goods shipments fall to 8-year low
10:00 AM ET, Oct 02, 2008

05. U.S. Aug. factory shipments fall 3.5%
10:00 AM ET, Oct 02, 2008

06. U.S. Aug. orders ex-transportation off 3.3%, most in 7 years
10:00 AM ET, Oct 02, 2008

07. Drop in factory orders is largest in 2 years
10:00 AM ET, Oct 02, 2008

08. U.S. Aug. factory orders fall 4% vs. 3% decline expected
10:00 AM ET, Oct 02, 2008

[Hissyspit]

6. Asian Stocks Fall Despite Senate Rescue Plan Vote

http://news.yahoo.com/s/ap/20081002/ap_on_bi_ge/world_markets

Asian stocks fall despite Senate rescue plan vote

By TOMOKO A. HOSAKA, Associated Press Writer
2 hours, 2 minutes ago
TOKYO - Asian stock markets retreated Thursday as broader concerns about a global economic slowdown outweighed any relief over the U.S. Senate's passage of the bailout package to rescue the U.S. financial system.

Japan's benchmark Nikkei 225 stock average lost 1.1 percent at 11,242.65, while Hong Kong's Hang Seng index slipped 0.9 percent to 17,850.13.

Benchmarks in Australia, South Korea, Singapore and Taiwan were also in negative territory.

In Washington Wednesday, the Senate approved a revised rescue bill with tax breaks and other sweeteners by a vote of 74-25. The House of Representatives votes on the plan Friday. But even if the package is approved, investors are skeptical about the bailout's ultimate impact on a faltering global economy, analysts said.

"Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy," said Aric Au, marketing manager for institutional sales at Phillip Securities in Hong Kong. "But at this moment, nobody is sure about this. They need to have more information about the finalized plan."

[Demeter]

20. Sheer Senatorial Cowardice

Using Other People's Money to comfort themselves for the work they didn't do before, and still refuse to do now.

[Dr.Phool]

25. Maybe all my bitching at Bill Nelson's staff did some good.

One of 8 dems to vote NAY, + Bernie Sanders.

[MattSh]

41. This says it all...

[Demeter]

82. Outstanding Poster!

[aquart]

128. I forgot about that site!

[ozymandius]

9. Oil steady at $98 on US bailout hopes

SINGAPORE - Oil prices were steady at $98 a barrel Thursday in Asia as expectations the U.S. Congress will pass a revised $700 billion financial industry bailout package this week offset concern over slowing crude demand in the world's biggest economy.

Light, sweet crude for November delivery was down 24 cents to $98.29 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. Prices fell overnight $2.11 to settle at $98.53.

The U.S. Senate late Wednesday approved the rescue bill, 74-25, after adding tax breaks and a provision to raise the cap on federal deposit insurance. The House of Representatives, which rejected an earlier version of the bill Monday, will likely vote on the new version by the end of the week.

....

In other Nymex trading, heating oil futures fell 0.53 cents to $2.8416 a gallon, while gasoline prices gained 0.50 cents to $2.365 a gallon. Natural gas for November delivery rose 4.2 cents to $7.77 per 1,000 cubic feet.

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

[Demeter]

76. I Just Bought Gas at $3.47

Haven't done that in....I can't remember, but I could look it up!

[Roland99]

83. Nov RBOB down to $2.27/gal. Gas here *should* be about $2.87 TOPS. We're $3.47.

[MadinMo]

93. Just fell to $3.04 this week in SW Missouri.

I understand it is around $2.99 in the Kansas City area.

The price here has been steadily dropping while the southeast has shortages. What gives?

Oh, is it close to an election?

[ozymandius]

10. House girds for second try on financial rescue

WASHINGTON - Now for the big do-over. House members get another chance to vote on a bill that many would like to avoid: a massive financial rescue plan that has infuriated millions of voters but is described by President Bush and congressional leaders as vital to keeping the economy from sliding into a deep recession.

This time, it comes back to the House loaded with billions of dollars worth of tax cuts and other sweeteners. They are meant to attract at least a dozen House members who voted against the measure Monday, when it failed, 228-205, triggering a record drop in the stock market.

Senators added the new items in a 74-25 vote late Wednesday, sending the beefed-up package back to the House for a showdown vote expected Friday. House leaders planned to spend Thursday pressing rank-and-file members for the dozen converts they need.

The bailout package was never in danger in the Senate. Senators instead played catalysts for the House, adding tax provisions popular with the left and right in a bid that House leaders hope — but cannot guarantee — will persuade enough of the House rank-and-file to switch from "nay" to "aye" on a highly contentious bill a month before Election Day.

http://news.yahoo.com/s/ap/20081002/ap_on_bi_ge/financial_meltdown

[ozymandius]

11. SEC extends selective ban on short sales to Oct. 17

The Securities and Exchange Commission on Wednesday extended its selective ban on short-selling -- betting that a stock's price will drop -- until just before midnight Eastern Time Oct. 17, media reports said. Last month, the agency had banned short sales on nearly 1,000 financial-related and other stocks in an effort to prevent big stock-price declines. The Wall Street Journal reported that the SEC also required hedge-fund managers to disclose their short positions until Oct. 17 and that it would make this rule permanent.

http://www.marketwatch.com/news/story/sec-extends-selective-ban-short/story.aspx?guid={4D342D9C-3CC8-4FE2-A68F-E855BA4DC6A5}

---

Hedge funds thrive by short selling. It looks as though the SEC has decided that any hedge fund is not too big to fail.

[Demeter]

21. They Couldn't Even Sort Through And Remove Such Protection Off a Few?

It must be nice to have friends in positions of power.

[54anickel]

52. Whodavthunk? n/t

[Roland99]

139. right up to my bday!

[girl gone mad]

146. Maybe they should just ban all selling.

From here on out, only buy orders will be filled.

Problem solved!

[Demeter]

Or They Could Have a 3 Month Stock Market Holiday

If businesses had an entire quarter to tend to their knitting without having to worry about the stock price, they could get something done that might strengthen the fundamentals of their companies....

[ozymandius]

13. Lehman Hedge-Fund Clients Left Cold as Assets Frozen

Oct. 1 (Bloomberg) -- Lehman Brothers Holdings Inc.'s bankruptcy probably means the end of hedge-fund manager Oak Group Inc. after 22 years in business.

John James, who runs the Chicago-based firm with $25 million of assets, didn't buy Lehman stock or debt. Instead, his potentially fatal mistake was to rely on the bank's prime brokerage in London, a unit that provides loans, clears trades and handles administrative chores for hedge funds. He's one of dozens of investment managers whose Lehman prime-brokerage accounts were frozen when the company filed for protection from creditors on Sept. 15.

.....

Asset Amounts Unknown

Managers with a smaller percentage of assets in Lehman limbo include Harbinger Capital Partners, Amber Capital LP and Bay Harbour Management LLC, which are each based in New York, and RAB Capital Plc and GLG Partners Inc., both in London. Olivant Ltd., run by former UBS AG President Luqman Arnold, said today it can't access a 2.78 percent UBS stake, worth about $1.4 billion, it held at Lehman.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aOCwLPNpkkjY&refer=exclusive

[Demeter]

22. Pulpava Said that Ben and Harry (new Ice Cream Team?) Goofed on Lehman

He said they gravely miscalculated the results of letting Lehman go under, and that the entire crisis stems from that callous treatment. Now nobody feels anybody is safe from such orphanage.

Not that they should be, but it sure smells bad when one firm is treated like that, and others are coddled....

[Dr.Phool]

27. We need Cramer to steer us out of this mess.

I was getting ready to leave at about 7:00 last night to meet a friend who's going through a divorce, and as I picked up the remote to turn off the TV, Inside Edition came on, with Cramer apologizing to all of his "fans" for telling them to run out and buy Wachovia two weeks ago.

How often is this guy wrong? I remember Bear-Stearns.

Could I get drunker every time he makes a bad stock pick, or every time Mooselini says something stoopid? We'll find out tonight, I guess.

Maybe we should have a separate SMW, Palin drinking party tonight. Get a sitter for the kids.

[KoKo]

45. He was pushing Halliburton last night, too. Great stock....(unless one remembers the lawsuits)

:eyes: He's a carnival barker. Brilliant guy..but a scam artist supreme.

[TalkingDog]

69. I've been wondering about Palin drinking party rules.

Linky?

[Dr.Phool]

91. I'm just going to have a shot every time she says something stupid.

My wife says I'll be smashed in 20 minutes.

[TalkingDog]

99. You betcha!!! Got a stomach pump handy? Versions 1 and 2 posted

RULES OF THE SARAH PALIN VICE PRESIDENTIAL DEBATE DRINKING GAME

Version 1
--Take a chug of Moosehead beer whenever Sarah Palin says the following:

*maverick
*reformer
*any sentence including the words "neighbor" and "Russia"
*small-town values
*Gwen or Joe (remember how many times Palin said "Charlie" during the Gibson interview?)
*off shore oil drilling
*Alaska
*"Thanks but no thanks!"
*witchcraft (not likely...but hey, you never know, especially if Kathleen Parker's name should pop up)

--Take two chugs of Moosehead whenever Sarah Palin does the following:

*Utters a coherent sentence (i.e., contains a subject and a verb and makes logical sense)
*Talks about her new friend Henry Kissinger or Hamid Karzai
*Explains how being the part-time mayor of Wasilla, Alaska with a full-time city manager counts as executive experience

--Chug a whole bottle of Moosehead if Sarah Palin mentions the following:

*Palin Presidency


Version 2
*If Palin calls herself a reformer or a maverick, drink.

*Ditto if she says the same about McCain. (Ok, I realize you might get plowed in the first minute if you drink every time this happens. We can say “sip” on this one to avoid debate alcohol poisoning.)

*If she throws in a sarcastic & belittling comment or gesture about Obama (e.g. community organizer, that finger-to-the-wind move), drink.

*If she claims Troopergate was a partisan smear campaign against her, drink.

*If she claims she’s more qualified than Biden to be VP (or than Obama to be Pres) because she has executive experience, drink.

*If she cites having met foreign leaders in NYC this week as foreign policy experience, drink.

*Every time she says Gwen’s (Ifill, the moderator) name in her answers (much like the CHARLEEE of the Gibson interview), drink.

*For every policy dodge into irrelevant generalities, drink. (dangerous territory here td)

*If she says, AGAIN, that she has foreign policy experience because of her proximity to Russia, drink. Twice.

*If she says, AGAIN, that she sold the damn plane on eBay, drink twice. (Specific proven lies = x 2)

*If she says, AGAIN, that she was against the Bridge to Nowhere, drink twice.

[Dr.Phool]

107. It sounds like it's going to be a very boring debate.

I was just listening to Robert Fiske on Democracy Now, discussing the rules that were agreed upon by both campaigns months ago, including questioning parameters, moderators, everything.

90 second answers. No follow ups. Two minute closing statements.

He said everything was agreed upon by the "Debates Campaign Commission", a private corporation funded by corporations, and run by lobbyists. It's main purpose was to exclude third party candidates.

He said that Anheuser-Busch is a major donor, which is the main reason you always have a debate in St. Louis.

What am I going to do with all this vodka? I have an idea. :beer:

[Hugin]

119. Could you work that into some sort of a pool?

We need a new pool around here.

:bounce:

[TalkingDog]

131. Palin Debate Pool

Send your guesses to me about how many times Gov. Palin does any of the above.

Copy the word or concept from the list and put a number in front of it. That will represent how many times you think she will say or suggest "X"

I will be on the 'net til 5 pm and will stop taking guesses at 4:45 in order to post updates.

Wrong guesses will negate right ones, so it is possible to end up with a negative score (much like the Republican Party) So choose carefully.

Winner will receive and Photoshopped image of how you look in my head when I'm reading your posts....

And the undying gratitude of pool lovers everywhere.

[TalkingDog]

148. Prag has sent in his guesses for the pool. Where's yours? n/t

[AnneD]

160. Sounds like a plan to me....

The clubhouse will be full of Palin supporters.bleck:puke:

[aquart]

35. Lehman donated to Democrats?

Just asking.

[Hugin]

43. Last I heard Lehman was one of McCain's largest contributors.

I don't have a reference for this, however.

[antigop]

60. See post #59. n/t

[antigop]

59. Here ya go... from opensecrets.org

http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00006424
McCain 117500

"This table lists the top donors to this candidate in the 2008 election cycle. The organizations themselves did not donate , rather the money came from the organization's PAC, its individual members or employees or owners, and those individuals' immediate families. Organization totals include subsidiaries and affiliates."


http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638
Obama 370,524

Top contributors to federal candidates and parties
http://www.opensecrets.org/industries/contrib.php?cycle=2008&ind=F
#10 Lehman Brothers 64% Dems 36% Repubs

[Robbien]

62. These guys don't care about party affiliation, they only care about dollars

More to the point, they only care about the dollars of a select group.

Goldman had a huge stake in AIG. The big players were not that heavily invested in Lehman. Or so I've read.

[AnneD]

79. Let's play "NAME THAT NEW FLAVOUR" from Ben & Harry's

Peanut Butter Spackel Crackle
Colour of Money Pistachio-tribute to PN
Funky Monkey- Chocolate covered pretzel
Cowardly Congressional Custard-the priciest of the line
Golden Parachute-pinapple, coconut, orange and mango-a tropical escape in a bowl
Chocked full of Nuts-make up your own punchline

AnneD -feeling plucked and F#@*@d

[Demeter]

105. Gee, Give You an Idea and You Run With It!

I see an encyclopedia in your future!

Or a franchise!

[AnneD]

144. I do get carried away sometimes...

but I saw great comic potential. Too bad credit is tight. I might open an ice cream parlour in DC..

Bail Out Butterscotch
Wall Street Ripple-fudge ripple and chunks of payday candy bars......

"My mind is a raging torrent, flooded with rivulets of thought, cascading into a waterfall of creative alternatives."

[Roland99]

151. Oh, AnneD. You are crackling me up!! Here's a few....

Money is the Root Beer of All Evil Float - for Jim Cramer
Imadeamint - for all the fat cats who got away
Gullible Gummy Yummy - for all the fools still 100% vested in stocks
Fudge Ripple Effect - for private and public entities hurt by the credit crunch

[AnneD]

161. I'll be up to 31 flavours in no time....

Palin Praline Cherry Smash with Marshmallows or maybe I'll call it Moose Mash
White Blizzard (McCain) White Chocolate, Macadamia Nut, and coconut
Black Irish-Fudge, dark chocolate chunks, marshmallow creme ripple, and crushed thin mints- O'Bama
Delaware Punch-need I say more-gooey grape goodness with a heck of punch
Inditemint-Orange, chocolate, and mint togather for life in this perp walk classic
Wastin away in Bushville-chocolate, marshmallow creme and graham cracker bits

Well, I'll come up with more later......

I want to call one Frozen Assets-but I can't figure out what the ingredients are:shrug:

[Demeter]

162. "Frozen Assets"

Coconut, lime, pinch of salt, and vodka. Or whatever is in a margarita...to drink while you are waiting for relief.

Intangibles: diet ice cream--lots of ice, no cream. Artificial flavor, color and sweetener. Upscale snow cone.

LehmanAid: no calories, made with ashes.

SternBear: brownie chunks, fudge ice cream, pecans.

[AnneD]

163. Girl friend....

you and I are our own product development team. Let's do some research:9

[Demeter]

164. I do know how to make ice cream

I used to make it for the kids with goat milk, since they are allergic to cow's milk protein.

(The things one does for children--the crash courses, the creative design and engineering, the sheer damn volume of sweat, blood and tears...)

[AnneD]

165. Because we don't pop them out a dozen at a time....

it has always been labour intensive.

[ozymandius]

14. U.S. Stock Futures Drop on Economy Concern; Honeywell Retreats

Oct. 2 (Bloomberg) -- U.S. stock-index futures declined as investors speculated reports today on factory orders and jobless claims will add to evidence the credit crisis pushed the economy closer to a recession.

.....

Futures on the Standard & Poor's 500 Index expiring in December lost 5.50, or 0.5 percent, to 1,162.90 as of 9:52 a.m. in London. Dow Jones Industrial Average futures slipped 0.3 percent to 10,856. Nasdaq-100 Index futures added 0.2 percent to 1,581.50. European stocks advanced, while Asian shares dropped.

.....

Labor Department figures at 8:30 a.m. may show the number of first-time claims for unemployment benefits is at a level that signals the job market has deteriorated. Jobless claims probably fell to 475,000 from 493,000 the previous week as job losses related to the Gulf Coast hurricanes subsided, according to a Bloomberg survey median.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aVfanix7YHm4&refer=us

[Demeter]

108. The "Credit Crisis" Is Pulling the Lipstick Off the Recession, That's All

or in other words, the chickens have come home to roost.

[ozymandius]

15. Quote of the Day: Fair Value Accounting

from The Big Picture:

Wachovia went out with a book value of $75 billion. Citi paid $2 billion. Could it be that asset values are overstated, not understated?

-Michael Rapoport, Dow Jones

http://bigpicture.typepad.com/comments/2008/10/quote-of-the-da.html

[Demeter]

23. More Likely the Deal of a Century

and doing nothing for the vulnerable's sense of security.

[ozymandius]

16. Have fun watching the antics of Krusty the Klown's Kasino.

I'll check back much, much later.

:hi:

[Joe Chi Minh]

17. That cartoon, Ozymandius, speaks to the very issue that struck me very, very forcibly

this morning - an issue that could not be more surreal.

When I saw Reid and Dodd almost in tears as they reflected on their "all coming together", and how they had even more respect for each other, it struck me that there they were, having apparently saved our "civilisation as we know it" - when if they had "got a grip" of the massive electoral fraud, the whole blasted rape ofthe country would not have occurred, nor the economies of the whole world placed in extreme jeopardy!

AND THEY'RE STILL NOT ATTACKING THE REPUBLICAN ELECTION FRAUD AND VOTER SUPPRESSION!!!!

They don't want a clean election with too much power, because, ironically, they'd be TOO ANSWERABLE TO THE PEOPLE. God forbid, they might be pushed towards a POPULIST GOVERNMENT! That's the only explanation I can think of.

Pardon us, Messrs Reid and Dodd, if our emotionalism is differently inspired.

[Demeter]

18. That Cartoon Is Seriously Wrong

Incurious George never questions himself nor Cheney, nor anybody else unfortunate enough to have entrance into or residence in the Bubble of Silence.

[Joe Chi Minh]

24. The other thing that knocked me for six this morning was the fact that the

talking heads and the politicos always keep talking about a bail-out without any reference to the equally major issue attendant on it: REGULATION.

And now, believe it or not, we are told the proposed bail-out is being "festooned" with goodies for the people - as if it weren't their own blasted money that would be paying for it!!!!!!, and REFERRING TO OVERSIGHT, (maybe I missed a reference to "REGULATION") WITHOUT ANY REFERENCE TO POWERS BEING INVESTED IN OVERSIGHT BODIES, POWERS TO ENFORCE THEIR REGULATION!!!!!!

PS: Notice they've lost the stomach for trying to spin it as a "rescue"! Though I wouldn't bank on its lasting for long.

[Hugin]

42. I no longer care about Party Politics... I'm gonna get myself a lobbyist.

After being told incessantly yesterday by the media that Members of Congress are not obligated to represent their
constituents. (Even by, much to my dismay, Thom Hartmann) Odd, considering we pay their salaries. But, the vast
majority of them don't need the pittance they're officially paid.

I've decided the only way to influence Washington is to totally forget about politics. I don't care who's elected...
In fact, the more slimy and corruptible the better.

Instead, I'm going to take all of the money I would have used as political donations and I'm going to buy myself
a lobbyist who'll go to Washington, throw the bucks around and do what I frisking say.

Yes, it's come to this.

The U.S. Chamber of Commerce got this one thing correct. I'm surprised I didn't see it before.

:grr:

Yes, I've gone to the Dark Side.

[antigop]

54. Prag, I came to the same conclusion years ago. You are not alone. n/t

[Hugin]

55. If we're to be a Banana Republic... Shouldn't we start acting like it?

It's only rational.

Seems kind of redundant to have Privatized representation... But, I don't see any other way.

The likes of Abramoff, Norquist, The K-street Gang, and Stevens have created this world. Now, we
have to find a way to live in it.

I assure you... To begin with my Lobbyist will be working for the less fortunate.

[Demeter]

78. I Heard About This Carpenter from Nazareth

although it seems he was born in Bethlehem...might make an effective lobbyist!

[Dr.Phool]

89. Wasn't he a community organizer?

And the guy who executed him was a governor?

[Joe Chi Minh]

158. Yes. His words resonate with a lot of people who aren't necessarily formally

religious even.

[Joe Chi Minh]

156. There was an interesting article on this theme recently in the Guardian.

The Indian journalist who wrote it said that, strange as it seemed, while they, like us, mock their corrupt politicians, they actually feel more comfortable with them because they know where they stand sort of thing! TAnd they can get things done in ways they may be all too familiar with, but, you know, the get things done: the can-do "ethos" of organised crime! The system's so established!

[Festivito]

19. Debt: 09/30/2008 10,024,724,896,912.49 (UP 79,146,664,930.90) (>10T$ up 79B$ & 1T$-yr)

HAD TO EDIT THE so far numbers.
(I'm sad, our first 1T$ year, first hit at 10T$ debt, and mainly because this shouldn't even include the 700B$ passed last night meaning next year will certainly be 1T$ year as well.)
= Held by the Public + Intragovernmental(FICA)
5,808,691,665,403.71 + 4,216,033,231,508.78
(Public, I think now includes China and Brazil et. al.)

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

HISTORICAL:
President's term ends/begins: Jan 20
01/20/1993 4,188,092,107,183.60 BC Inaugural
01/22/2001 5,728,195,796,181.57 BC (UP 1,540,103,688,997.97)
09/30/2008 10,024,724,896,912.49 ** (UP 4,296,529,100,730.92 so far)

Fiscal Year ends: Sep 30
(Guess who might want to hide the Reagan Bush years.)
Borrowed in 1993: (OLDER DATA IS MISSING)
Borrowed in 1994: 281,261,026,873.94
Borrowed in 1995: 281,232,990,696.07
Borrowed in 1996: 250,828,038,426.34
Borrowed in 1997: 188,335,072,261.61
Borrowed in 1998: 113,046,997,500.28
Borrowed in 1999: 130,077,892,735.81
Borrowed in 2000: _17,907,308,253.43 Bill alone
Borrowed in 2001: 133,285,202,313.20 Bill and George
Borrowed in 2002: 420,772,553,397.10 All George
Borrowed in 2003: 554,995,097,146.46
Borrowed in 2004: 595,821,633,586.70
Borrowed in 2005: 553,656,965,393.18
Borrowed in 2006: 574,264,237,491.73
Borrowed in 2007: 500,679,473,047.25
Borrowed in 2008: 1,017,071,524,650.01 Year ends.
Borrowed in 2009: Starts today

LARGEST DAYS AVAILABLE ON Debt to the Penny WEBSITE:
06/30/2008 128,200,612,476.68
12/31/2007 108,622,976,742.69
06/28/2002 107,716,270,980.63
12/29/2006 87,148,200,929.51
12/30/2005 83,066,982,307.77
12/31/2003 82,778,163,943.03
05/27/2003 81,970,574,786.98
06/30/2003 80,445,348,663.30
12/31/2002 80,144,324,975.66
06/30/2006 80,033,382,700.63
09/30/2008 79,146,664,930.81

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.)
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3520692&mesg_id=3520705

[DemReadingDU]

26. Since you are looking at these numbers

Could you tell when $700 billion is added?

What I'm trying to determine, could Paulson have already started to raid the Treasury?

I'm thinking that the bailout bill is just formality, that Paulson already gave himself power to keep the markets afloat. Is that possible? Can you tell when Paulson starts grabbing those billions?

Thanks!

[Festivito]

30. I wish I knew for sure. Anything is possible with this admin.

The GAO year-end final report should be interesting.

The money has been flying since the day this admin began.

We should see the borrowing happen. The last time I saw the 700-club-bill-now-law it started with 350, then a Q&A before the rest goes out.

I'll just have to wait and see it.

[DemReadingDU]

31. ok thanks

I don't know if there is any way to keep track of this, but if possible, maybe you will find a pattern that Paulson is using billions more to keep the markets afloat. I don't think it is just going to be a total of $700 billion. I think it is going to be billions and billions, over and over and over again.
Thanks!

[tama]

29. Largest month

Hard to imagine that any other month in history would beat september 2008 and c. 380 billion.

[Festivito]

37. You got it.

200809 Total 378,999,341,272.38
199301 Total 127,528,036,792.84
200802 Total 120,043,134,805.53
200306 Total 111,977,997,691.71
200206 Total 107,136,448,152.93
200806 Total 103,339,243,421.01
199603 Total 101,745,662,759.54
200603 Total 101,270,777,990.29
200305 Total 97,762,411,546.27
200411 Total 95,532,060,434.41
200510 Total 94,413,742,490.86
200807 Total 93,473,516,196.53
200310 Total 89,444,776,363.05
200502 Total 85,395,075,889.30
200402 Total 82,708,504,366.78
200307 Total 81,073,952,035.81
200712 Total 79,831,294,281.60
200803 Total 79,542,714,343.75
200512 Total 78,102,335,592.97
200406 Total 77,952,166,577.16
200610 Total 77,355,456,350.14

[DemReadingDU]

38. That 380 billion

That's for bailout of Fannie/Freddie, AIG?

What else?

[tama]

85. B52 Bernanke

I can't say I really understand what is happening, but couple diagrams from todays market wrapup caught my attention. The first was "good collateral" behind Fed's money operations dropping to 50% from 90% this year, like scared cat's tail. The second was what I understood to be pure helicopter money jumping by 30% in just a few days.

In a word, it seems that monetizing a là Weimar republic/Zimbabwe has really began.

Does this mean that Fed is printing money out of thin air that banks of choise are at least partly investing in federal bonds (which have been moving wildly)? If so, I'm still in doubt that perpetuum mobile has been invented.

[tama]

32. How about a new pool?

The amount of debt increase for four next years. Here's my take:

Fiscal year 2009: 2,3 trillion
Fiscal year 2010 10 trillion
Fiscal year 2011 100 trillion
Fiscal year 2012 quadrillion
(2013: none - dollar is no more, Federal Reserve is no more, US is no more)

Winner gets one bolivar (equal to quintillion old dollars).

[Festivito]

159. 10/01/2008 10,124,225,067,127.69 (UP 99,500,170,215.20) (FY2009)

(New Fiscal Year, FY2009.)
= Held by the Public + Intragovernmental(FICA)
5,850,791,254,967.39 + 4,273,433,812,160.30
(Public, I think now includes China and Brazil et. al.)

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

HISTORICAL:
President's term ends/begins: Jan 20
01/20/1993 4,188,092,107,183.60 BC Inaugural
01/22/2001 5,728,195,796,181.57 BC (UP 1,540,103,688,997.97)
10/01/2008 10,124,225,067,127.69 ** (UP 4,396,029,270,946.12 so far)

Fiscal Year ends: Sep 30
(Guess who might want to hide the Reagan Bush years.)
Borrowed in FY1993: (OLDER DATA IS MISSING)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: _99,500,170,215.20 so far Only one day.

TOP 10 MONTHS FROM DEBT TO THE PENNY:
2008-09 Total 378,999,341,272.38
1993-01 Total 127,528,036,792.84
2008-02 Total 120,043,134,805.53
2003-06 Total 111,977,997,691.71
2002-06 Total 107,136,448,152.93
2008-06 Total 103,339,243,421.01
1996-03 Total 101,745,662,759.54
2006-03 Total 101,270,777,990.29
2003-05 Total 97,762,411,546.27
2004-11 Total 95,532,060,434.41
2005-10 Total 94,413,742,490.86

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.)
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3522481&mesg_id=3522543

[DemReadingDU]

28. Columbus, Oh - Jurors picked for National Century CEO trial

10/1/08 Jurors picked for trial of National Century’s founderBusiness First of Columbus - by Kevin Kemper

One dozen jurors and four alternates will determine the innocence or guilt of Lance Poulsen.

More than 100 prospective jurors from the southern half of Ohio assembled in the U.S. Courthouse in Columbus Wednesday so that government prosecutors and Poulsen’s defense lawyers could drain the pool down to 16.

The field of jurors is comprised of seven women and nine men who appear to be of varying ages and backgrounds.

Over the next four weeks, those jurors are expected to determine whether Poulsen, the founder and former president of Dublin-based National Century Financial Enterprises Inc., committed a $2.84 billion fraud.

National Century was once the nation’s largest financier of physician practices and other health-care firms. It specialized in buying receivables at a discount for quick cash. It then packaged the receivables as asset-backed bonds and sold them to investors.

NCFE collapsed into bankruptcy in 2002, forcing other medical businesses to fail and prompting the U.S. Justice Department to begin looking into the company’s failure.

The government has alleged that Poulsen was key to the supposed fraud, and has charged the 65-year-old with one count each of conspiracy, wire fraud and money laundering conspiracy, four counts of concealment of money laundering and six counts of securities fraud. He has pleaded not guilty to all the charges.

Throughout Wednesday afternoon’s jury selection, U.S. District Judge Algenon Marbley spent time asking those assembled if they had read, watched or heard reports about Poulsen or National Century.

Marbley also asked jurors about their knowledge of those involved in the current trial and previous trials.

Most jurors had little or no knowledge of Poulsen, NCFE or witnesses the prosecution and defense plan to call.

In addition to questions about jurors’ knowledge of the case, Marbley also asked jurors if they or any of their relatives work for the government.

“Is there anyone who believes they would be more likely to believe a law enforcement witness simply because he or she is a law enforcement witness?” Marbley asked.

Throughout the questioning, Poulsen looked around at prospective jurors, in what appeared to be an attempt to make eye contact.

Attorneys for Poulsen attempted to lay groundwork for their defense, asking jury members if they understood that companies fail every day and it’s not because of illegal activity.

“Mistakes aren’t crimes,” said Peter Anderson, Poulsen’s attorney.

William Terpening, another of Poulsen’s attorneys, asked jurors if they realize that relying on the expertise of others, such as accountants or lawyers, is a fair thing to do.

And in a nod towards the recent turmoil in the financial markets, Terpening asked jurors not to hold any losses they’ve recently suffered against Poulsen.

Earlier in the afternoon, at least three prospective jurors told Marbley they would have a problem being fair because of corporate fraud cases that have come to light in recent years.

Opening arguments for the prosecution and defense are scheduled to begin at 9 a.m. Thursday.

http://www.bizjournals.com/columbus/stories/2008/09/29/daily26.html



link backwards to previous articles...
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3520692&mesg_id=3520734

[UpInArms]

33. dollar watch

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

Last trade 80.098 Change +0.458 (+0.59%)

Dollar Could Be Troubled By Rate Cuts Even If Bailout Goes Through

http://www.dailyfx.com/story/bio1/Dollar_Could_Be_Troubled_By_1222884818537.html

On the eve of the second Congressional vote for the US bailout plan, dollar traders have a singular focus on the stability of the financial markets. However, even after the crisis has been put to rest, it won’t take long before the realization that a recession and rate cuts are likely on the way sets in.



The Economy And The Credit Market

On the eve of the second Congressional vote for the US bailout plan, dollar traders have a singular focus on the stability of the financial markets. However, even after the crisis has been put to rest, it won’t take long before the realization that a recession and rate cuts are likely on the way sets in. Over the past few weeks, the failure of major banks and complete seizures of the credit market have necessitated the undivided attention of policy makers and investors. A distant after thought is the second round effects of this turmoil; and that is a potentially accelerated recession. With growth and inflation figures cooling quickly in the background, the forecasts for rate cuts read in Fed Fund futures are well supported. For the meeting on the 29th, there is a near 100% chance of a 25bp cut and 46% probability for a 50bp easing. Expectations for December are far more dovish.



A Closer Look At Financial And Consumer Conditions



In the hierarchy of priorities, the normal functioning of the credit and financial markets for traders is the equivalent of air to humans’ existence. However, when that need has been satisfied, market participants then must consider the health of the economy and the environment for investment. Looking at data over the past few months, the outlook for growth is certainly dour. With a housing recession and slow down in business activity already in place, the biggest threat to the economy is consumer spending. Therefore, with unemployment rising quickly and wages fading, hope for a rebound is fading.



Credit and lending conditions are as volatile as ever. Though the overnight lending rates (LIBOR) pulled back from their record advance following the initial voting down of the bailout plan, the dramatic swings certainly damages confidence on its own. Aside from this, demand for short-term and deeply liquid funds remains near multi-year highs. The relative safety of 3-month T-Bills is evident in the depressed yield; but it will be important to see how things evolve if the government agrees to further leverage its already enormous debt load. At the same time, fear has launched Libor rates even as demand balloons.

...more...

Euro Open: All Eyes On European Central Bank Rate Decision as Dollar Hits 1.3930

http://www.dailyfx.com/story/special_report/special_reports/Euro_Open__All_Eyes_On_1222927393853.html

The US Senate voted in favor of the revised 400 page rescue plan in an effort to shore up the balance books of the financial sector. Representatives said that a final vote by the House of Representatives could come as early as Friday. European Central Bank President Jean-Claude Trichet has stated his strong support for the US effort saying that the must “go (in favor), for the sake of the U.S. and for the sake of global finance.” Such statements have led some to believe that today’s ECB meeting will result a rate cut. Furthermore, the Euro hit a low of 1.3930 ahead of the key meeting.



...more...

[UpInArms]

34. US Debt hits 10 Trillion dollars - spending more than $2.76 Billion per day!

U.S. NATIONAL DEBT CLOCK

The Outstanding Public Debt as of 02 Oct 2008 at 12:19:36 PM GMT is:



The estimated population of the United States is 304,833,920
so each citizen's share of this debt is $32,900.34.

The National Debt has continued to increase an average of
$2.76 billion per day since September 28, 2007!

http://www.brillig.com/debt_clock/

[Hugin]

44. Wheee!

We could use the debt clock as a fan in the soup kitchen!

[AnneD]

145. I think I have a terminal case...

of buyers remorse.....

[Roland99]

39. 8:47am Futures point to a not-so-happy opening

DJIA INDEX 10,780.00 -107.00
S&P 500 1,155.40 -13.00
NASDAQ 100 1,560.75 -18.00

[Roland99]

47. 10:00am - Woe is me

Dow 10,651.62 -179.45
Nasdaq 2,027.63 -41.77
S&P 500 1,138.25 -22.81
10-year 3.69% -0.08
Oil $95.90 -$2.63
Gold $862.10 -$25.20

[UpInArms]

49. 10:07 EST and the jig is up

Dow 10,609.01 222.06 (2.05%)
Nasdaq 2,022.93 46.47 (2.25%)
S&P 500 1,135.16 25.90 (2.23%)
10-Yr Bond 3.699% 0.069

NYSE Volume 954,176,750
Nasdaq Volume 243,091,140.625

10:00 am : Stocks remain in an early funk. All three major indices are extending their downturn following disappointing economic data.

August factory orders fell 4.0%, which follows an advance of 0.7% for the prior month. Economists, on average, expected factory orders to decline 3.0% in August.

An early underperformer in the tech sector (-2.9%), and a weight on the Nasdaq, is Akamai (AKAM 15.93, -1.20). AKAM was downgraded at a couple of firms. Most notably, the stock was lowered to Sell from Neutral at Goldman Sachs. DJ30 -193.70 NASDAQ -41.49 SP500 -24.01 NASDAQ Adv/Vol/Dec 684/207 mln/1610 NYSE Adv/Vol/Dec 599/187 mln/2216

09:45 am : The major indices have opened with losses and continue to trend lower. The decline is broad based with eight of the ten sectors showing declines.

Losses are most pronounced among industrial companies (-5.4%). Their decline is largely due to General Electric (GE 22.29, -2.21), which is pricing a capital raise at a substantial discount to yesterday's closing price. Early indications suggest the pricing will come in at $22.25 per share.

Health care is showing some relative strength (+0.3%). Eli Lilly (LLY 43.81) was named by The Wall Street Journal as the secret bidder behind an offer to acquire ImClone (IMCL 65.12, -0.23) for $70 per share.DJ30 -151.97 NASDAQ -25.14 SP500 -18.74 NASDAQ Adv/Dec 768/1405 NYSE Adv/Dec 716/1971

[Hugin]

53. It's looking like 10,600 is the new PISL on the Dow.

Down from approx 11,000.

or they're trying to influence the House vote later today.

[DemReadingDU]

57. yep, the House better hurry up and pass the bailout bill

as if the Stock Market has any bearing at all on the stuck credit markets.

[Demeter]

80. I Doubt That It Has ANY Bearing on Stuck Credit

I think Ben took his foot off the pedal to try to force the House's hand. Scare the plebes into forking over the shekels.

[NMDemDist2]

56. Factory orders drop 4% in August, most in 2 years

Source: Marketwatch

Factory orders drop 4% in August, most in 2 years
Demand drops, pushing inventories at factories higher
By Rex Nutting, MarketWatch
Last update: 10:31 a.m. EDT Oct. 2, 2008

WASHINGTON (MarketWatch) - Demand for U.S. factory goods dropped at the fastest rate in two years in August on much lower orders for metals, machinery and vehicles, the Commerce Department reported Thursday.

Factory orders fell 4%, worse than the 3% drop expected by economists surveyed by MarketWatch. Orders had risen 0.7% in July, revised down from the 1.3% estimate given a month ago.

The weaker-than-expected data add to the evidence that the U.S. economy is mired in a recession, and could prompt more calls for the Federal Reserve to cut interest rates again to stimulate growth.

Orders for durable goods fell 4.8% in August, revised lower from the 4.5% estimate provided a week ago. Shipments and orders for nondurable goods fell 3.3%, largely because of lower prices for crude oil and gasoline.

Excluding the 9.1% drop in transportation orders, factory orders fell 3.3%, the biggest drop since September 2001.


http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3522860

[DemReadingDU]

58. TED Spread, 3.60

wow, there is a lot of Fear out there

http://www.bloomberg.com/apps/quote?ticker=.TEDSP:IND

[antigop]

61. So the Fed pumped over$600 billion the other day,the spreads are getting worse.

And Congress wants to hand even more money over to these guys?

<edit> Am I missing something here?

[DemReadingDU]

63. They are idiots

Nothing is going to stop this financial credit bubble from bursting, the FED is only delaying it for a while longer.

edit: To me, the reason for Paulson to tap our tax dollars now, before the bubble bursts, is to ensure his wealthy banker cronies (all over the world) get bailed out, and we taxpayers get stuck with the trash.

[antigop]

67. Oh, I agree,DRDU. I forgot the sarcasm thingy. It was a sarcastic remark about Congress. n/t

[DemReadingDU]

68. lol

:)


I'm just livid this morning that our Congress is so stupid.

[antigop]

70. Yeah, me, too. n/t

[radfringe]

66. yeah, when the Senate voted last night to pay the ransom

wall street had it's feelings hurt because senators didn't include milk and cookies

[TalkingDog]

71. I've been calling it "protection money".

Now for something completely different: Ethel the Frog examines the Piranha Brothers
http://www.youtube.com/watch?v=8ZkWL-XvO0U

[Birthmark]

130. Dinsdale!

Yeah, the bailout: aka "The Other Other Operation." I've been using that analogy, too.

The Vercotti Brothers' Sketch also applies pretty well.

[antigop]

64. Buffett support fails to lift GE

http://dailybriefing.blogs.fortune.cnn.com/2008/10/02/buffett-support-fails-to-lift-ge/

The Warren Buffett halo effect isn’t quite as great at General Electric (GE) as it was at Goldman Sachs (GS). GE shares dropped in early trading Thursday, after the Fairfield, Conn., conglomerate sold $12 billion worth of common stock to the public at $22.25 a share.

That’s a 9% discount to the stock’s closing price Wednesday. Thursday’s selloff comes after GE announced that Buffett, CEO of Berkshire Hathaway (BRKA), would plow $3 billion into the company by buying preferred stock paying a 10% dividend. In contrast, shares of Goldman rose 6% last Thursday after the company said Buffett would buy $5 billion of preferred stock and the public would take $5 billion of common.

GE said its $15 billion capital raise will bolster its financial flexibility, but the steep cost has the shares trading near the 52-week low they reached Wednesday before the Buffett announcement was made, amid questions about the health of its GE Capital unit.

“The equity offering in conjunction with the Buffett investment and Buffett’s statement of support should alleviate near term liquidity concerns,” writes Citi analyst Jeffrey Sprague. “However, GE is potentially taking 6-7% dilution and selling shares near a five-year low.” GE shares recently were off 7% at $22.75.

[Roland99]

65. 11:10am - Bleaker St. (heh heh) DJIA back under Chimpy's inaugural date.

Dow 10,548.56 -282.51
Nasdaq 2,069.40 -22.48
S&P 500 1,122.86 -38.20
10-year 3.67% -0.10
Oil $96.10 -$2.43
Gold $849.00 -$38.30

[antigop]

72. Putnam joins Treasury's money market guaranty program

http://financialweek.com/apps/pbcs.dll/article?AID=/20081002/REG/810029987/1036

Putnam Investments of Boston today announced it plans to participate in the U.S. Treasury’s money market guaranty program.

On Sept. 19, the U.S. Treasury announced a temporary guaranty program for publicly offered money market mutual funds.

Funds must pay a fee to participate in the program, which will be financed with up to $50 billion from the treasury’s Exchange Stabilization Fund, which was created in 1934.

If a fund falls below the $1 net asset value, it will trigger the insurance.

“Putnam’s money market funds have maintained their $1 share price and continue to represent safe and high quality investments,” Robert L. Reynolds, president and chief executive, said in a statement.

“However the program is well worth the peace of mind we hope it provides investors.”

[DemReadingDU]

75. Is there a list of all MMMF participating in this guaranty program?

MMMF is Money Market Mutual Fund


Has the government printed a list of all the MMMF participating in this guaranty program?

I guess I could call Fidelity, Vanguard.

[antigop]

87. I don't know of a list...but here is what Vanguard says

https://personal.vanguard.com/us/news?article=/freshness/News_and_Views/news_ALL_mmguarantee_09232008_ALL.jsp

Vanguard is evaluating the U.S. Department of the Treasury program to temporarily guarantee the account values of shares held in participating money market funds (taxable and tax-exempt), and will make a determination regarding participation by the October 8 deadline. The program applies to account values as of the close of business on September 19.

[Renew Deal]

77. Bailout fails: Market Jumps. Bailout passes: Market drops

Coincidence? I don't think so.

[Demeter]

81. It's Not Completely Signed Sealed and Delivered Yet, RIght?

[girl gone mad]

147. and isn't it funny how the media whores..

tell us just the opposite.

Yesterday: Market is up because everyone believes the bailout will pass.
Today: Markets are trading independently of the bailout

Or maybe traders know something that we don't? Markets have reached the conclusion that no matter how much money Congress throws into the derivatives abyss, the problem will not be going away.

[Demeter]

84. Deposit Plan Will Cost Banks More

Source: New York Times Crossposting from Girl Gone Mad

...

When banks were flush, most of them paid nothing for a golden government guarantee. Bank failures were so rare that, for a decade, the Federal Deposit Insurance Corporation waived most of the premiums it normally would have collected to insure bank deposits.

But now the government plans to raise the amount of deposit insurance that consumers have, leaving the F.D.I.C. — and potentially taxpayers — in a bind.

After forgoing premiums from 1996 to 2006, the agency must now turn to struggling banks and ask them to pay more, putting more pressure on the industry. If a large number of banks fail, the F.D.I.C. may have to turn to the Treasury for more money, forcing taxpayers to foot the bill.

“It’s unfortunate that we didn’t have more time to build up the fund in the good times,” said Sheila C. Bair, the F.D.I.C. chairwoman, in an interview Wednesday. “It is what is, and we are dealing with the situation.”



Read more: http://www.nytimes.com/2008/10/02/business/02deposit.ht...

[54anickel]

86. WAIT!!! I'm freakin' outta pockets here! n/t

[Ghost Dog]

88. European Stocks Fall on Credit, Economy Concerns

Oct. 2 (Bloomberg) -- European stocks fell for the first time in three days after a record decline in short-term borrowing by companies and a jump in U.S. jobless claims heightened concern that the credit crisis is spilling over into the broader economy.

Siemens AG and ThyssenKrupp AG retreated more than 4 percent as the Federal Reserve said the U.S. commercial paper market shrank by $94.9 billion in the past week, making it harder for companies to finance their day-to-day operations. Porsche SE and Renault SA led carmakers lower after American jobless claims climbed to a seven-year high and factory orders fell in August by the most in almost two years. BHP Billiton Ltd. tumbled 5.3 percent as a rally in the dollar dragged down oil and gold.

The Dow Jones Stoxx 600 Index lost 0.7 percent to 255.87 as of 3:29 p.m. in London. The index earlier climbed as much as 1.7 percent after UBS AG said it expects a ``small profit'' in the third quarter, spurring a rally in banking shares.

...

National benchmark indexes decreased in 14 of the 18 western European markets. France's CAC 40 sank 1.1 percent, and the U.K.'s FTSE 100 dropped 0.8 percent. Germany's DAX slumped 1.9 percent.

/... http://www.bloomberg.com/apps/news?pid=20601085&sid=aqAP3NkfBoIM&refer=europe
________

Europe stocks sag; economic woes eclipse rate hopes
Thu Oct 2, 2008 11:35am EDT PARIS, Oct 2 (Reuters) - European stocks fell on Thursday, reversing a two-session recovery as bleak U.S. data rekindled recession jitters and eclipsed dovish comments made by European Central Bank President Jean-Claude Trichet.

The FTSEurofirst 300 index of top European shares unofficially closed 1.3 percent lower at 1,058.81 points, after rising to as high as 1,090.25 in intraday.

Mining and industrial stocks took a beating, with ArcelorMittal (MTP.PA: Quote, Profile, Research, Stock Buzz) sinking 8.9 percent, Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) dropping 8 percent and Siemens (SIEGn.DE: Quote, Profile, Research, Stock Buzz) losing 4.5 percent.

Banks managed to eke out gains, led by UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) rising 8.1 percent after the Swiss lender said it will book a small profit for the third quarter and reduce its U.S. commercial and residential mortgage-related holdings.

...

European Central Bank President Jean-Claude Trichet said economic activity was weakening in Europe and opened the door to an interest rate cut. The ECB left its main interest rate at 4.25 percent, but Trichet said policymakers considered a cut as the euro zone economy slows and inflation risks eases.

/... http://www.reuters.com/article/marketsNews/idCAL260808320081002?rpc=44&sp=true
________

ECB opens door to lower interest rates, markets hit
Thu Oct 2, 2008 11:13am EDT FRANKFURT, Oct 2 (Reuters) - The European Central Bank opened the door for its first rate cut in more than five years on Thursday, saying inflation risks have eased as financial market turbulence hits the euro zone economy.

...

ECB President Jean-Claude Trichet said the turmoil on financial markets had created extraordinarily high uncertainty around the economic outlook and there was clear evidence of the economy weakening, lessening but not eliminating price risks.

The ECB's policymaking Governing Council had discussed cutting rates at its policy meeting on Thursday before making its unanimous decision that no change was needed this month, he said.

"We had examined two options -- to keep interest rates unchanged; the other one (was) decreasing interest rates," Trichet told reporters at his monthly news conference. "Our conclusion is that we were right in keeping interest rates as they are."

...

Figures derived from Eonia rates show markets have ramped up bets for an ECB cut to 4 percent into year-end while a second cut to 3.75 percent is seen by March.

...

In the last month, commodity prices have fallen further, economic data suggest a euro zone recession is increasingly likely and European banks have been dragged into the growing crisis of confidence among investors. Money market tensions are worsening despite massive central bank liquidity injections, with banks increasingly desperate for cash and pushing the rates at ECB auctions to record highs.

...

Inflation eased to 3.6 percent in September, still well above the ECB's 2 percent ceiling, but Trichet said this was likely to fall into line at the "beginning of 2010" -- a revision from last month, when price stability was seen "in the course" of 2010.

On growth, lower oil prices and ongoing growth in emerging economies "might support a gradual recovery in the course of 2009", Trichet said, in comments which struck analysts as more pessimistic than the assessment given a month earlier.

Trichet dropped last month's language that the current monetary policy stance was helping to achieve price stability, and that the ECB had "no bias" regarding future monetary policy moves. Asked about the change in language, he cited the high level of uncertainty although he said the ECB remained free to act as it saw fit.

/... http://www.reuters.com/article/marketsNews/idINL220542320081002?rpc=44&pageNumber=2&virtualBrandChannel=0&sp=true

[kickysnana]

90. Xpost ...Washington Mutual said that the Fed closed the discount

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4151446

[Demeter]

117. I Feel More Than a Little Sick After Reading That Whole Thread

It's going to take generations of forensic accounting to write the truth about this Bush Years.


And Paulson the self-proclaimed expert is not going to come out of it whole.

Come to think of it, he'd better hope that some of the people he's screwed over don't have well-connected godfathers or spooks in the family.

[Roland99]

94. Oh this is funny to watch. The last two hours the DJIA has been hovering near Chimpy's starting line

They're fighting SO hard to keep at or above.



Nope...no manipulation at all.

[Roland99]

96. 1:24pm - Testing new session lows (NASDAQ back under 2,000)

Dow 10,535.10 -295.97
Nasdaq 1,998.62 -70.78
S&P 500 1,124.36 -36.70
10-year 3.66% -0.11
Oil $94.50 -$4.03
Gold $845.60 -$41.70

[Dr.Phool]

100. I'm trying to remember the last time I saw the S&P below 1100.

[Roland99]

102. Around 4 years ago exactly?

S&P500 5-year

[Dr.Phool]

121. Yep, Oct 18, 2004........1095

[Wednesdays]

98. Ted Spread is now 3.61

At what point will the Ted Spread alone become a crisis...like when they start charging me 20 cents on the dollar just to deposit my paycheck? :shrug:

[antigop]

101. Mackerel -- the new currency?

http://online.wsj.com/article/SB122290720439096481.html

When Larry Levine helped prepare divorce papers for a client a few years ago, he got paid in mackerel. Once the case ended, he says, "I had a stack of macks."

Mr. Levine and his client were prisoners in California's Lompoc Federal Correctional Complex. Like other federal inmates around the country, they found a can of mackerel -- the "mack" in prison lingo -- was the standard currency.

"It's the coin of the realm," says Mark Bailey, who paid Mr. Levine in fish. Mr. Bailey was serving a two-year tax-fraud sentence in connection with a chain of strip clubs he owned. Mr. Levine was serving a nine-year term for drug dealing. Mr. Levine says he used his macks to get his beard trimmed, his clothes pressed and his shoes shined by other prisoners. "A haircut is two macks," he says, as an expected tip for inmates who work in the prison barber shop.

There's been a mackerel economy in federal prisons since about 2004, former inmates and some prison consultants say. That's when federal prisons prohibited smoking and, by default, the cigarette pack, which was the earlier gold standard.

Prisoners need a proxy for the dollar because they're not allowed to possess cash. Money they get from prison jobs (which pay a maximum of 40 cents an hour, according to the Federal Bureau of Prisons) or family members goes into commissary accounts that let them buy things such as food and toiletries. After the smokes disappeared, inmates turned to other items on the commissary menu to use as currency.

Maybe we should stock up?

[Dr.Phool]

110. Tuna!

I have a ton of it in my pantry. I always stock up for hurricane season. This year, I went a little overboard.

[antigop]

103. Insurers plunge on Reid's "bankrupt" remark

http://money.cnn.com/2008/10/02/news/companies/insurance_stocks/index.htm

Comments from Senate Majority Leader Harry Reid about a 'major insurance company' on the verge of bankruptcy send already hard-hit stocks sharply lower.

Several big life insurance stocks fell sharply Thursday, dragged down by jitters about their role in the credit crisis and fears sparked by a comment from Senate Majority Leader Harry Reid, D-Nev., Wednesday about a potential bankruptcy in the industry.

"We don't have a lot of leeway on time. One of the individuals in the caucus today talked about a major insurance company. A major insurance company -- one with a name that everyone knows that's on the verge of going bankrupt. That's what this is all about," Reid said prior to the Senate's approval of the $700 billion bailout bill.

Steven Schwartz, an analyst who covers insurance companies for Raymond James & Associates, said that even before Reid made his bankruptcy comment, investors were growing worried about life insurers' exposure to real estate as well as "secondary exposure" via investments in troubled finance firms like Lehman Bros, Wachovia and Washington Mutual.

But the comment from Reid clearly caused even more fear.

"Harry Reid didn't help any," Schwartz said.

[DemReadingDU]

113. Remember when Schumer opened his mouth about IndyMac bank?

IndyMac bank went bankrupt!

Now we have Reid opening his mouth about insurers. Uh oh.

[Dr.Phool]

104. Beware of Chase bearing gifts.

I can't figure out what's up with this letter. This card is the only one that I carry a balance on, and it's at prime rate.I haven't used the thing in months, and am trying to pay it off before rates jump.

I just got a letter saying that I now have NO credit limit. I'm digging through the fine print, looking for the "Gotcha!", and I can't find any.

I'm still not going to use the sucker, and pay it off as fast as I can.

I just don't trust them at all. And what's this about a credit crisis?

[antigop]

109. Maybe it means you really have NO CREDIT??? n/t

[Dr.Phool]

116. It is kind of confusing.

Citi can now be happy that we now have a CITI card. We were getting over 20 solicitations a week from them, that all went into the shredder. Now I suppose my wife's Wachovia Visa will be a CITI visa soon.

[Hugin]

114. Is it still at the same interest rate?

Beware of them changing the terms.

I can almost guarantee it's not all in your best interests.

[Dr.Phool]

120. That's what I'm figuring.

I've dealt with some of their bullshit before. There was no mention of an interest rate change. I go over all that on every statement.

If they get cute, I can transfer it to another at the same rate.

[DemReadingDU]

115. no limit?

like you can charge infinitely?

[Dr.Phool]

118. I've always wanted a Lear Jet!

[Hugin]

125. Could you donate a small itty bitty sum...

Toward our new SMW Lobbyist?

You'll get a free emoticon of your choice.

[Dr.Phool]

126. I'll kick in for a lobbyist, but you'll have to give me a toaster or something.

I already have all those emoticons.

[Hugin]

132. And you don't have a toaster?

I thought everyone had a toaster!

You could always sell an extra emoticon on the Internet.

[Dr.Phool]

135. Better yet, Emoticon Default Swaps!

[Renew Deal]

122. Weird

I've heard about credit limits decreasing. Maybe you have no credit left?

[Dr.Phool]

127. Nope.

It now says that I have no pre-set spending limit, and may exceed my previous limit without over limit fees.

Fuck 'em. I'm still not going to use it.

[Renew Deal]

129. Can you buy me a Porsche?

I'll pay you back. :D

[Dr.Phool]

133. After I get my Lear Jet.

And learn to fly it.:)

[tama]

154. Oh Lord,

won't you buy me
a Mercedes Benz

[CatholicEdHead]

137. Is the fine print in the original agreement?

Not the recent changes?

[Dr.Phool]

140. Who knows?

The original agreement was about 14 years, and 3 banks ago.

[antigop]

106. Aw, geez, look who would be on the oversight committees if the bailout bill passes

http://money.cnn.com/2008/10/02/news/economy/what_is_in_bill/index.htm?postversion=2008100213

Oversight: The bill would set up two oversight committees.

A Financial Stability Board would include the Federal Reserve chairman, the Securities and Exchange Commission chairman, the Federal Home Finance Agency director, the Housing and Urban Development secretary and the Treasury secretary.

A congressional oversight panel, to which the Financial Stability Board would report, would have five members appointed by House and Senate leadership from both parties.

How wonderful! These guys are going to oversee themselves.
:puke:

[DemReadingDU]

111. sounds like the foxes guarding the hen house, n/t

[Dr.Phool]

112. The PPT gets a new name!

[Roland99]

123. I am Jack's complete lack of surprise

[Roland99]

124. 2:33pm - 10,500 the new PSIL?

Dow 10,519.80 -311.27
Nasdaq 1,990.22 -79.18
S&P 500 1,121.07 -39.99
10-year 3.67% -0.10
Oil $94.50 -$4.03
Gold $844.30 -$43.00

[Mojorabbit]

134. Weird how gold is falling.

Does not make sense.

[Dr.Phool]

138. Nothing makes sense anymore.

[kickysnana]

141. Something to do with the Swiss bank only dealing in actual metals, not paper? n/t

[Dr.Phool]

143. Wierd. I was just on Kitco's web site

Almost all of their 1 oz. gold coins are gone from their order page.

Last week, they doubled the premium on them. I wonder what's up with that.

[Roland99]

150. It's been up wildly and down wildly. Very odd. Disconcerting.

[Dr.Phool]

136. Playboy looking for ... assets ... on Wall Street

At least they won't need money for clothes.

Playboy looking for ... assets ... on Wall Street
Magazine plans pictorial of women working in Manhattan’s financial sector

Most viewed on msnbc.com
updated 2 hours ago

NEW YORK - Playboy magazine is offering a new way to lose your shirt on Wall Street.

The adult entertainment magazine, long famous for its photo spreads of nude women and lessons in living the urbane life of the well-heeled bachelor, is launching a search for models to pose for its upcoming feature, "Women of Wall Street."

Playboy came up with the idea for the feature after the onset of the global financial crisis, which has vaporized fortunes and left Wall Street reeling. It is planned for the February 2009 edition of the monthly magazine and on its Web site.

http://www.msnbc.msn.com/id/26993318/

[Roland99]

142. At the close - Slow mo crashing.

Dow 10,482.85 -348.22
Nasdaq 1,976.72 -92.68
S&P 500 1,114.28 -46.78
NYSE 7,155.71 -364.24
10-year 3.65% -0.12
Oil $93.97 -$4.56
Gold $844.30 -$43.00

[radfringe]

149. maybe we should have a pool -

where will the dow be when bush leaves office?

[Dr.Phool]

152. Does it stop at zero? Or do negative numbers count?

I think that he's so irrelevant anymore, that they just sober him up a little and send him out with a script of doom and gloom.

[tama]

153. There are no stock markets

in socialist countries.

Hm. So what is the real difference between a PPT pwned stock market and a socialist country?

[Demeter]

155. The Socialist Country Has Nowhere to Go But Up.

[tama]

157. Interesting thought

Don't know what to make of it, how to interprete it. So I'll leave it just to fester.