STOCK MARKET WATCH, Wednesday July 22

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday July 22, 2009



Bush Administration Officials Under Indictment = 2

Financial Sector Officials In Prison = 4

AT THE CLOSING BELL ON July 21, 2009



Dow... 8,915.94 +67.79 (+0.76%)

Nasdaq... 1,916.20 +6.91 (+0.36%)

S&P 500... 954.58 +3.45 (+0.36%)

Gold future... 946.90 -1.90 (-0.20%)

10-Yr Bond... 3.47 -0.13 (-3.71%)

30-Year Bond 4.39 -0.13 (-2.86%)

---

U.S. FUTURES & MARKETS INDICATORS

NASDAQ FUTURES..............................................S&P FUTURES

Market Conditions During Trading Hours

GOLD, EURO, YEN, Loonie and Silver

---

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---

This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.

Read more: du

[ozymandius]

1. Market Observation

Opportunism Knocking (?) on the Demise of OBAMACARE
by Frank Barbera

For years it has been nothing less than a national embarrassment that so many individuals in the United States are unable to afford healthcare costs, and as a result, live their lives uninsured. Current estimates suggest that upward of 46 million to 47 million Americans do not have healthcare coverage. With his sweeping victory last November, President Obama put a lot of personal capital in his drive to put forth the lofty goal of extending healthcare coverage to all Americans. Unfortunately, that goal may be in jeopardy as the Congressional Budget Office recently told the Senate Budget Committee that none of the bills seen thus far would contain healthcare costs and reduce them substantially over time. What’s more, even as President Obama is out stumping for the current healthcare bill, within his own party a coalition of conservative Blue Dog Democrats have already announced that they will not vote for the bill which is seen to be raising taxes at the worst point in an economic contraction. In the present House Bill, the goal is to expand insurance to 97% of Americans utilizing a surtax of between 1% to as much as 5.4% for families whose earnings amount to more then $350,000 per year. In a theme and variation, House Speaker Pelosi discussed applying the surtax to individuals making at least $500,000, and families making $1 million a year or more. Yet there is a good chance that with the fiscal budget exploding in the wake of the economic implosion, that healthcare reform may end up scuttled once again.

Strangely enough while the national tragedy may drag on, if yet another Administration runs aground on the rocky shoals of failed healthcare reform, for investors the demise of Obamacare may end up spelling ‘o-p-p-o-r-t-u-n-i-t-y’ as in “opportunity knocking”. Now I know, and be forewarned, that the following analysis is going to sound really crass. Unfortunately in the capital markets, sometimes there is just no way around sounding crass when making money is involved and is the stated goal. In this column, we look at the potential investment angles surrounding all sorts of different opportunities, and sometimes, by default, this requires a lot of admittedly twisted logic as this is often the lens through which the capital markets view things. Thus, for those of you who are steadfast ‘humanitarians’ and champions of thoughtful universal care, while applauding you, we ask you to temporarily take off the compassionate humanitarian hat and don the more aggressive ‘hedge fund’ investor cap. Without that type of mindset, nothing that follows will make much sense.

You see, Obamacare has already had much the same impact as “Clinton-care” would have had 16 years ago. ‘Obamacare’ has scared the capital markets silly, causing them to avoid Healthcare stocks like the plague over the last few months. Even within healthcare, there are sectors such as Big Pharma, and the Managed Care stocks that have been particularly reviled. In many cases, the stocks in the managed care sector of Healthcare now trade at prices not seen since 2004, over 5 years ago. What's more, these companies are generally super profitable and of course, therein was the great fear. Namely, that ‘Obamacare’ would make them a whole lot less profitable in the future.

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

[Tansy_Gold]

2. G'mornin'!

First rec. Yay!

Maybe now I can go back to sleep. . . . . .






Tansy Gold, up at 2:00 with whiny dogs

[ozymandius]

4. Good morning, Tansy!

:donut: :donut: :donut:

I'm sorry about the whiny dogs. Everyone okay?

[Roland99]

7. Good morning.

No whiny dogs here. Just me:

"I don't *wanna* go to work! hmmmph!"

[ozymandius]

10. Hi Roland.

It's been awhile. How are things?

[Roland99]

13. Going well!

My ideas at work are being accepted and liked by some higher ups even. Yay me.

No internet for a week and won't get it bacj until next Tue. Some disagreement with Brighthouse (who owns the cabling in the bldgs) and the apt complex (who is now using AT&T U-verse).

Starting to help plan my oldest's wedding with her (and *trying* to keep her head out of the clouds. lol!)

Still lurk here often and hope to contribute more again soon!

:hi:

[ozymandius]

15. Congratulations, all around.

For one who is exceptionally busy, this is wonderful news in that you are exceptionally busy in most wonderful ways.

[AnneD]

26. Morning Marketeers...

:donut: and lurkers. Congrats Roland. It goes like it goes like a river that flows. No matter what happens on the ticker-life goes on. Kudos on the good job-but we knew that!

As father of the bride, your job is easy-just practice say "yes honey", "it looks great", "it will be ok". Practice you penmanship. Remember, no son-in-law is good enough for your baby......that is until your baby has her baby. Suggested viewing...The original Father of the Bride and Daddy's Little Dividend. Some things never change.

Our week vacation with my niece is drawing to an end. We did a night tour last night. She loved the lights. We drove through the theater district which is always interesting. We will do the zoo today. It is one of the prettiest zoos in the country (and I have seen many across the nation). It really is a zoological garden. My fav thing to look for is the banana trees (bananas grow upside down-in case you didn't know). We are so tropical that the zoo grows some of the bananas they need-along with other produce. I think this is why some of the animals do so well here. And the vets are so great. I'll never forget the time I called one of the vets to ask him why my goldfish died (I was a kid). The guy took time from his busy schedule and together we were able to diagnosis the problem. He saved my next fish, that's certain. Those are things you tend to remember.

I hope you are all able to get out into the sun and enjoy the summer while it is here. I have been doing so much that I have not been able to do any reading. The paperwork for my transfer is starting to hit the presses. I hope it doesn't get too ugly. They (principals) try to tell you how to do YOUR job, and keep adding more for you to do and ignore you when you are there, but they are helpless and don't want you to be absent for even a day. The smart principals don't like to lose a nurse-it is when they don't have a nurse that they realize your value. I need to call some of my parents to break the news to them if this goes through. The one child I will miss is the diabetic I have worked with every since she was first diagnosed in the first grade. We have grown together. She will soon learn to inject her self. I have been giving her tips all along. Too bad I can't be there to take her next step, but I just can't turn down the opportunity to get into a less stressful position doing 2/3rds less work than I am doing now. It will give me more of a chance to do my advocacy work.

Happy hunting and watch out for the bears.

[Roland99]

51. Excellent advice, AnneD

'cept I'm having to reign in some of her ideas for venues/caterers. But, it's fun. I'll have to watch those movies again. Been years!

I already had tears welling up a couple months ago when she tried on her 1st dress. :-)

[ozymandius]

3. Today's Report

10:30 Crude Inventories 07/17
Briefing.com NA
Consensus NA
Prior -2.81M

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

[UpInArms]

21. "seasonal adjustments" cause rise in mortgage applications

http://www.reuters.com/article/bondsNews/idUSNYS00524820090722

NEW YORK, July 22 (Reuters) - U.S. mortgage applications rose despite a jump in borrowing costs last week, but still bounced around the year's lows with unemployment fears depressing demand.

The Mortgage Bankers Association's total loan applications index rose by a seasonally adjusted 2.8 percent to 528.9 last week, even as 30-year mortgage rates rose by about 1/4 percentage point to 5.31 percent.

The measure of requests to buy homes and refinance loans was up from a seven-month low of 444.8 three weeks earlier but still less than half the level seen during the spring, when mortgage rates sank to record lows.

"The primary negatives right now are the high rate of unemployment and general uncertainty about the future path of the economy, which make people reluctant to buy," said David Stiff, chief economist at Fiserv in Cambridge, Massachusetts, which produces the S&P/Case-Shiller and other price indexes.

Home affordability has vastly improved with mortgage rates about 1-1/4 percentage less than a year ago and home prices, based on the S&P/Case-Shiller gauges, plunging an average 32 percent in the past three years.

But the fear of unemployment, with the highest rate of job loss in almost 26 years, is keeping many potential buyers unwilling or unable to commit to such a major purchase, economists said.

The MBA's index of applications to purchase homes inched up by 1.3 percent last week to 262.1, and has been fairly range-bound for months.

Federal Reserve Chairman Ben Bernanke told Congress on Tuesday that unemployment is apt to stay uncomfortably high into 2011 and could drain consumer confidence.

...more...

[UpInArms]

38. Total petroleum inventories rise to 19-year high

Gasoline inventories rise 800,000 barrels: EIA
10:31am Today

Distillate inventories rise 1.2 million barrels
10:31am Today

Total petroleum inventories rise to 19-year high
10:31am Today

U.S. crude inventories fall 1.8 million barrels
10:30am Today

[ozymandius]

5. Oil slips as US crude supplies rise

VIENNA – Oil prices fell below $65 a barrel Wednesday after data showed a rise in U.S. crude inventories, a sign that consumer demand remains sluggish in the world's biggest economy.

Benchmark crude for September delivery was down $1.01 to $64.40 a barrel by noon European electronic trading on the New York Mercantile Exchange. On Tuesday, the August contract expired, rising 74 cents to settle at $64.72.

U.S. crude inventories rose 3.1 million barrels last week while gasoline supplies gained 1.3 million, the American Petroleum Institute said late Tuesday. Analysts expected the API numbers to fall 2.0 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

Investors will be watching for inventory data from the Energy Department's Energy Information Administration on Wednesday for more signs crude demand may be waning. The API numbers are reported by refiners voluntarily while the EIA figures are mandatory.

....

In other Nymex trading, gasoline for August delivery slipped by over 3 cents to $1.78 a gallon and heating oil dropped slightly to $1.68. Natural gas for August delivery was steady at $3.71 per 1,000 cubic feet.

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

[Roland99]

9. Speculation trading in oil needs to be banned.

What a yo-yo-ing of oil prices lately.

[ozymandius]

11. Exactly! Energy supplies are a matter of national security.

These matters should not be toyed with - especially among some rogue traders looking to score a quick buck a-la Enron.

[ozymandius]

6. Apple smashes profit forecasts, iPhone shines

SAN FRANCISCO (Reuters) – Apple Inc's quarterly profit blew past Wall Street forecasts thanks to strong sales of Macs and iPhones and higher-than-expected gross margins, boosting its shares 4 percent on Tuesday.

The company continued to defy the global recession with a solid 13 percent jump in fiscal third-quarter net profit. It sold more than seven times as many iPhones -- 5.2 million units of its latest signature device -- as the year-ago period.

....

Apple reported a net profit of $1.23 billion, or $1.35 a share, for its fiscal third quarter ended June 27, up from $1.07 billion, or $1.19 a share, in the year-ago period.

Earnings per share beat by far the average Street forecast of $1.18 according to Reuters Estimates, and topped even the most bullish "whisper" numbers of $1.30 to $1.35.

....

Apple said it sold 2.6 million Macs, up 4 percent from a year ago, and 5.2 million iPhones in the June quarter, during which the company launched its third-generation iPhone 3GS and cut the price on the second-generation model to $99.

http://news.yahoo.com/s/nm/20090722/bs_nm/us_apple

---

On a personal note, I secured a new Mac Mini last night. It should be here in a few days. The courier is the USPS. Hopefully, this will lessen the chances of a repeat of the fiasco I experienced using UPS.

[ozymandius]

12. Side thought: I wonder if Apple's success boosted Intel's fortune's. n/t

[CatholicEdHead]

34. It did somewhat, Macs have been running Intel chips

for the past few years when they migrated away from Motorola/IBM PowerPC Chips. Also the netbook segment is pretty hot today, so Intel is selling Atom chips left and right (Atom chip is roughly equivalent to a Pentium 4 chip).

[ozymandius]

8. Federal reserve chief heads back to Capitol Hill

WASHINGTON – Federal Reserve Chairman Ben Bernanke heads back to Capitol Hill Wednesday, where he's likely to face more tough questions about the central bank's extraordinary actions to rescue the economy and its ability to take on even more responsibility.

Last year's taxpayer-financed rescues of insurance giant American International Group and others have touched a nerve with the public and some lawmakers.

Although Bernanke's innovative policies have been credited with averting a financial catastrophe last year, critics worry about putting taxpayers' money at risk and creating a situation where companies may feel more inclined to take big gambles on the belief that the government will clean up their messes.

....

Bernanke also worked to beat back an administration proposal to create a new consumer protection regulator for financial services and strip some of those duties from the central bank. The House panel delayed a committee vote on that legislation until September.

Consumer groups and lawmakers have blamed the Fed for failing to crack down early on dubious mortgages practices that fed the housing boom and figured into its collapse. Later this week, the Fed will issue a proposal to boost disclosures on mortgages and home equity lines of credit. It also will include new rules governing the compensation of mortgage originators.

http://news.yahoo.com/s/ap/20090722/ap_on_bi_ge/us_bernanke

[ozymandius]

14. Bernanke Seeks to Cordon Off Monetary Policy From Lawmakers

July 22 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke sought to cordon off the central bank’s independence on monetary policy from congressional scrutiny as lawmakers challenged its authority on everything from currency swaps to emergency loans.

The 55-year-old Fed chairman yesterday stepped up his defense of the central bank as it faces a bill with 275 legislator-sponsors to repeal immunity from audits of monetary policy. Bernanke told the House Financial Services Committee that Fed actions helped avert a credit “collapse,” and gave Congress its own task: cut “unsustainable” budget deficits.

....

At stake is the future structure of the 95-year-old central bank, which was conceived to stem financial panics and is charged with achieving stable prices and maximum employment. Bernanke’s remarks yesterday showed he’s open to relinquishing some powers, while retaining autonomy on setting interest rates and oversight of consumer finance.

....

Lawmakers have sought greater scrutiny over the Fed after blaming it for failing to police lending practices during the credit boom that began to burst in 2007, sparking what has become the deepest U.S. recession in at least half a century.

The Obama administration’s proposed revamp of financial regulations would have the Fed stripped of powers over consumer finance, while at the same time make it the new overseer of all financial firms big enough to pose a risk to the system. It would also subject the Fed’s ability to make emergency loans to approval by the Treasury.

http://news.yahoo.com/s/bloomberg/20090722/pl_bloomberg/ahdmqzlmxb2u

[spotbird]

30. "....while at the same time make it the new overseer of

all financial firms big enough to pose a risk to the system."

We are so screwed.

[AnneD]

28. Side thought here....

Since these banks are paying back the bailout money.....How much profit did we make on the deal? I mean that was a selling point-we the tax payer would see a profit on this for taking a risk. Where's THAT money. These folks are getting bonuses again-where's the taxpayer's interest on investment?

AnneD-asking the annoyingly obvious question.

[Demeter]

32. Better to Ask: How Much Money and JOBS Did We Lose?

We didn't get squat from this deal.

[Tansy_Gold]

35. Somebody in another thread a day or so ago

posted some things from the Fed's "mission statement," apparently taken right off their website or something. I should copied it here but I didn't.

Anyway, among the state responsibilities for the Fed were to protect consumer interests and promote full employment. Ain't that a laugh?!

I wonder if "some lawmakers" will ask Ben about that.. . . . . .




Tansy Gold, still breathing normally, not holding breath

[AnneD]

39. Yeah, I read that....

a mission statement and a dollar still won't get you a cup of coffee.

The best mission statement in the world, the Constitution of the US clearly states.....

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

Congress hasn't been looking out for we the people for a while now. The Constitution and a writ of Habeas Corpus still won't get you your freedom.

[Tansy_Gold]

41. And the saddest thing is that this guy ran for president on a whole

we the people theme -- we can do it, yes we can, all that shit -- and now he's not even letting us know who from the health care "industries" came to meet with him on policy. He brought in all the old retreads from previous disaster economics and threw change out the window.

I'm seriously, seriously, seriously thinkin' about movin' to Spain. I'm just sick of the whole pile of shit.




Tansy Gold

[Demeter]

42. Hablo Espan~ol, up poco.

And I have ex-inlaws there....

[Tansy_Gold]

43. Y yo también. (con una llamada al Ghost Dog)

Seriously, I took a break from my incredibly boring paid job and looked online at property in the area where I'd go if I could/did. I shouldn't have done that. I really really should not.

Pero no tengo dinero suficiente y tengo mis cuatros perros y mis libros y mis piedras. . .. pero me gusta la Costa del Sol. . .. . .

Hey, Ghost Dog, you got any advice???




Su amiguita,

Tansy Gold

[Tansy_Gold]

45. here's the thread

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3980102#3980114

Post #4, with credit to hedgehog for posting it --

Mission
The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.

Today, the Federal Reserve's duties fall into four general areas:

* conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
* supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
* maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
* providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system

http://www.federalreserve.gov/aboutthefed/mission.htm


Well, they do manage to clear a lot of checks......


Just general FYI. . . . .


Tansy Gold, still lookin' at property in Spain. . . ..

[Demeter]

46. I'm Going to Assume You Know What the Phrase "Castles in Spain" Means

o literate published romance novelist, one! I get a tickle out of the thought of just throwing in the towel and doing the ex-pat thing. Just like Fitzgerald, and that singer and all...

[Tansy_Gold]

47. Nope, no castles, though some of the prices might as well be.

Just houses.

I loved Spain, and looking at pictures of available real estate makes me want to go back. There are obstacles of course, and not just the money.

But in the course of my life I have achieved some things that no one ever believed I would, things that were truly in the realm of fantasy in terms of my background, etc. They were dreams I had that I never gave up hope on. Sometimes they turned out as expected or better, sometimes not so great. But the point was that I never gave up on myself.


And it's a long time since I gave myself that little pep talk.


Thanks, Demeter. :yourock:



TG

[AnneD]

50. I fall into that list too....

Never envisioned traveling around the world, I figured I would marry another Indian, just not one from Hyderabad. We will probably go into the great white north, a la Jack London.

We were waiting to see what happened during this next election. I was happy that a DEM got elected, until I realized that the DEM party was no longer about the people but the corporate sponsors-even though Obama lead the way in small donations. I feel violated, and without so much as a tube of Vaseline! We are still not happy with the direction that the country is going.

[Festivito]

16. Debt: 07/20/2009 11,601,270,694,948.64 (UP 782,468,265.39) (Small small rise.)

(Both make a small rise for today.)

= Held by the Public + Intragovernmental(FICA)
= 7,254,984,489,704.24 + 4,346,286,205,244.40
UP 171,809,229.69 + UP 610,659,035.70

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 307-Million person America.
If every American, man, woman and child puts in $3.26 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.77, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 12 seconds we net gain a another American, so at the end of the workday of the report, there should be 306,911,942 people in America.
http://www.census.gov/population/www/popclockus.html ON 05/25/2009 01:14 -> 306,504,012
Currently, each of these Americans owe $37,800..
A family of three owes $113,399.99. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 22 reports in the last 30 to 31 days.
The average for the last 22 reports is 9,252,685,860.39.
The average for the last 30 days would be 6,785,302,964.29.
The average for the last 31 days would be 6,566,422,223.50.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 124 reports in 181 days of Obama's part of FY2009 averaging -0.11B$ per report, 0.00B$/day so far.
There were 199 reports in 293 days of FY2009 averaging 7.92B$ per report, 5.38B$/day.

PROJECTION:
There are 1,280 days remaining in this Obama 1st term.
By that time the debt could be between 13.4 and 20.0T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
07/20/2009 11,601,270,694,948.64 BHO (UP 974,393,646,035.56 so far since Obama took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
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: 1,576,545,798,036.20 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
06/30/2009 +084,349,097,965.60 ------------**********
07/01/2009 -009,218,801,329.89 --
07/02/2009 -025,885,550,566.82 -
07/03/2009 -000,017,140,719.16 ----
07/06/2009 +029,989,200,037.82 ------------********** Mon
07/07/2009 +000,215,166,015.48 ------------********
07/08/2009 +000,621,025,720.38 ------------********
07/09/2009 +010,396,425,012.59 ------------**********
07/10/2009 -000,364,273,300.28 ---
07/13/2009 -000,000,617,291.42 ------ Mon
07/14/2009 +000,244,233,965.61 ------------********
07/15/2009 +057,721,794,648.52 ------------**********
07/16/2009 +016,136,405,834.08 ------------**********
07/17/2009 +000,062,427,388.38 ------------*******
07/20/2009 +000,171,809,229.69 ------------******** Mon

164,421,202,610.58 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $1,936,638,891,689.57 in last 305 days.
That's 1,937B$ in 305 days.
More than any year ever, including last year, and it's 190% of that highest year ever only in 305 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 305 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3978801&mesg_id=3978914

[Festivito]

52. Debt: 07/20/2009 11,601,270,694,948.64 (UP 782,468,265.39) (Small small rise. TEST)

(Both make a small rise for today.)

= Held by the Public + Intragovernmental(FICA)
= 7,254,984,489,704.24 + 4,346,286,205,244.40
UP 171,809,229.69 + UP 610,659,035.70

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 307-Million person America.
If every American, man, woman and child puts in $3.26 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.77, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 12 seconds we net gain a another American, so at the end of the workday of the report, there should be 306,911,942 people in America.
http://www.census.gov/population/www/popclockus.html ON 05/25/2009 01:14 -> 306,504,012
Currently, each of these Americans owe $37,800..
A family of three owes $113,399.99. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 22 reports in the last 30 to 31 days.
The average for the last 22 reports is 9,252,685,860.39.
The average for the last 30 days would be 6,785,302,964.29.
The average for the last 31 days would be 6,566,422,223.50.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 124 reports in 181 days of Obama's part of FY2009 averaging -0.11B$ per report, 0.00B$/day so far.
There were 199 reports in 293 days of FY2009 averaging 7.92B$ per report, 5.38B$/day.

PROJECTION:
There are 1,280 days remaining in this Obama 1st term.
By that time the debt could be between 13.4 and 20.0T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
07/20/2009 11,601,270,694,948.64 BHO (UP 974,393,646,035.56 so far since Obama took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
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: 1,576,545,798,036.20 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
06/30/2009 +084,349,097,965.60 ------------**********
07/01/2009 -009,218,801,329.89 --
07/02/2009 -025,885,550,566.82 -
07/03/2009 -000,017,140,719.16 ----
07/06/2009 +029,989,200,037.82 ------------********** Mon
07/07/2009 +000,215,166,015.48 ------------********
07/08/2009 +000,621,025,720.38 ------------********
07/09/2009 +010,396,425,012.59 ------------**********
07/10/2009 -000,364,273,300.28 ---
07/13/2009 -000,000,617,291.42 ------ Mon
07/14/2009 +000,244,233,965.61 ------------********
07/15/2009 +057,721,794,648.52 ------------**********
07/16/2009 +016,136,405,834.08 ------------**********
07/17/2009 +000,062,427,388.38 ------------*******
07/20/2009 +000,171,809,229.69 ------------******** Mon

164,421,202,610.58 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $1,936,638,891,689.57 in last 305 days.
That's 1,937B$ in 305 days.
More than any year ever, including last year, and it's 190% of that highest year ever only in 305 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 305 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3978801&mesg_id=3978914

[Festivito]

53. Debt: 07/21/2009 11,604,364,019,085.61 (UP 3,093,324,136.97) (Debt down a little.)

(Debt moved down a small amount, FICA side went up and I went on vacation.)

= Held by the Public + Intragovernmental(FICA)
= 7,254,662,502,679.06 + 4,349,701,516,406.55
DOWN 321,987,025.18 + UP 3,415,311,162.15

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 307-Million person America.
If every American, man, woman and child puts in $3.26 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.77, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 12 seconds we net gain a another American, so at the end of the workday of the report, there should be 306,919,142 people in America.
http://www.census.gov/population/www/popclockus.html ON 05/25/2009 01:14 -> 306,504,012
Currently, each of these Americans owe $37,809.19.
A family of three owes $113,427.57. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 23 reports in the last 30 to 32 days.
The average for the last 23 reports is 8,984,887,524.59.
The average for the last 30 days would be 6,888,413,768.85.
The average for the last 32 days would be 6,457,887,908.30.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 125 reports in 182 days of Obama's part of FY2009 averaging -0.13B$ per report, -0.01B$/day so far.
There were 200 reports in 294 days of FY2009 averaging 7.90B$ per report, 5.37B$/day.

PROJECTION:
There are 1,279 days remaining in this Obama 1st term.
By that time the debt could be between 13.4 and 19.9T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
07/21/2009 11,604,364,019,085.61 BHO (UP 977,486,970,172.53 so far since Obama took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
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: 1,579,639,122,173.20 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
07/01/2009 -009,218,801,329.89 --
07/02/2009 -025,885,550,566.82 -
07/03/2009 -000,017,140,719.16 ----
07/06/2009 +029,989,200,037.82 ------------********** Mon
07/07/2009 +000,215,166,015.48 ------------********
07/08/2009 +000,621,025,720.38 ------------********
07/09/2009 +010,396,425,012.59 ------------**********
07/10/2009 -000,364,273,300.28 ---
07/13/2009 -000,000,617,291.42 ------ Mon
07/14/2009 +000,244,233,965.61 ------------********
07/15/2009 +057,721,794,648.52 ------------**********
07/16/2009 +016,136,405,834.08 ------------**********
07/17/2009 +000,062,427,388.38 ------------*******
07/20/2009 +000,171,809,229.69 ------------******** Mon
07/21/2009 -000,321,987,025.18 ---

79,750,117,619.80 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $1,939,732,215,826.54 in last 306 days.
That's 1,940B$ in 306 days.
More than any year ever, including last year, and it's 191% of that highest year ever only in 306 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 306 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3980467&mesg_id=3980488

[ozymandius]

17. SunTrust Swings to Loss on Credit Costs

SunTrust Banks Inc. reported Wednesday that it swung to a second-quarter loss on increased credit costs and a year-earlier gain as the bank's results beat expectations.

Many regional banks have suffered during the credit crunch on their considerable exposure to construction and commercial real-estate loans, as well as their longer exposure to the deteriorating housing market. They have also been hurt by the rising unemployment rate, which has led to high credit losses.

....

The Atlanta regional bank, which has been hard-hit by the housing crisis, posted a loss of $183.5 million, or 41 cents a share, compared with year-earlier income of $540.4 million, or $1.52 a share. The prior year results included a gain on the sale of stock in Coca-Cola Co.

http://online.wsj.com/article/SB124825799554271365.html

[ozymandius]

18. Lower Consumer Demand Weighs On Whirlpool

Whirlpool Corp.'s second-quarter earnings fell on weaker consumer demand for appliances. But the company reported higher North American profit on its cost-cutting efforts and overall earnings were double what analysts expected.

As such, the company sees 2009 income at the top half of its prior target.

Whirlpool, which has also been dealing with pressures from raw-material expenses, has been trying to combat the weak sales environment with belt-tightening. But the housing slump and tight credit markets have been dissuading consumers from buying new refrigerators, stoves and other major appliances.

....

Whirlpool's North American profit rose 19% despite a 17% sales drop. U.S. major appliance shipments dropped 14% and the company reiterated its the region's shipment forecast for the year.

http://online.wsj.com/article/SB124825795560471671.html

[ozymandius]

19. Harvard’s Feldstein: Beware the ‘Double-Dip’

From The Big Picture

“There is a real danger this is going to be a double dip and that after six months or so we’ll have some more bad news. We could slide down again in the fourth quarter.”

-Martin Feldstein

Normally, I don’t get too excited when some economist or another makes these proclamations. However, Feldstein is not your ordinary economist. He was, up until recently, the head of the National Bureau of Economic Research. And he was very forthcoming in 2007 about the housing mess. Last year, he openly discussed the likelihood of a recession. He also dissed the government’s GDP inflation and employment data. (my kinda guy).

So when Feldstein starts talking double dip, I consider his analysis very closely . . .

more, including excerpts and other writings at the link...

[AnneD]

29. A bad day is when the shit hits the fan....

a good day is when you get a 2 minute warning BEFORE the shit hits the fan. Today is a good day.

[Dr.Phool]

37. Roubini reiterated the same thing last week.

After CNBC came up with the bullshit, claiming that he said the recession was over. He stuck to his original forecasts, and added in a probable double-dip.

[UpInArms]

20. dollar watch

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

Last trade 78.831 Change +0.021 (+0.03%)

US Dollar Delays a Renewed Bear Trend After Bernanke Commentary, CIT Warnings

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_Delays_a_Renewed_1248223788147.html

A quick glance at the dollar index tells us how close the benchmark currency is to a dramatic shift in trend. The greenback has produced a generally, bearish bias for the past two weeks now; but the stakes have not yet been as high as they are now. Resistance is set in a rising trendline that spans this entire year and further finds a complement swing low in the early June swing low at 78.35. The same tension is unmistakable among the majors. EURUSD is eying seven-month highs above 1.4340, a typical GBPUSD daily range could drive the pair above 1.60 and NZDUSD has already tested nine-month highs before pulling back into the late US session. The scene is set; and fundamental market participants are eagerly awaiting direction on a breakout or reversal. What could set the market’s potential energy into motion; and could we really be on the cusp of aca new trend after nearly two months of congestion?

Today’s price action was notable in that it broke pace with Monday’s anti-dollar and subsequently deflated a what could have been an aggressive breakout. This does not mean the market has been automatically consigned to a reversal; but it gives dollar bulls a fighting chance to regain control of their currency. Event risk helped the dollar regain its footing. Considering both the greenback and Japanese yen were stabilizing, it was clear that risk appetite was sidelined. The sigh of relief breathed after yesterday’s announcement that a privately funded rescue of troubled commercial lender CIT seems to have been released too early. In a regulatory filing today, the lender its existing liquidity would not cover the repayment of a $1 billion round of debt maturing on August 17th. At the same time, the bombastic earnings data that kicked the season off last week has lost its consistency. While blue chips Caterpillar, Apple and Merck beat their respective forecasts; Stress Test banks Regions Financial and State Street, along with DuPont, Coca-Cola and United Technologies missed their benchmarks. To truly recharge a bullish trend, the outlook for returns (and indirectly broader growth) may need to be far stronger than what today’s results have shown.

And, though the dollar has undoubtedly deferred to risk trends to reach its current lows; it is clear that FOMC Chairman Ben Bernanke’s commentary helped prevent the next stage of the dollar’s plummet. Delivering his semiannual Monetary Policy report to the House Financial Services Committee, the central banker maintained his cautious yet optimistic outlook for the US. A perfect summary for his statement can be found in his comments that there are “tentative signs of stabilization,” yet “monetary policy remains focused on fostering economic recovery.” The most profound take away from this event is Bernanke’s calls for beginning work towards reducing the nation’s deficit. This may fall on deaf ears among the ranks of politicians; but confidence from the Fed Chairman that an economic recovery can be sustained while working off the nation’s debt load hints at strength that many speculators or market commentators have did not expect. Tomorrow, Bernanke will sit in for round two with the Senate; but there is unlikely to be any substantial changes from today’s script.

...more...

Bank of England Votes Unanimously to Maintain Current Policy

http://www.dailyfx.com/story/market_alerts/fundamental_alert/Bank_of_England_Votes_Unanimously_1248252507833.html

BoE minutes from the July 8-9 meeting showed MPC members discussing if an "immediate change" to the asset purchase target was required but decided that there had not been enough new evidence to justify this and that the August Inflation Report would "provide an opportunity to reassess the stock of asset purchases". Hence, not much more information on that subject than what was given in the short statement following the rate announcement earlier this month. The Minutes showed that MPC members thought that the medium-term outlook for the economy had not changed very much since May, though near-term downside risks to GDP had diminished somewhat and the immediate inflation outlook might be a little higher. The MPC also noted that the Q2 GDP contraction (due Friday) would probably be smaller than it had thought two months ago and surveys also suggested that there was more momentum going into the second half of the year. But a lack of bank lending was still weighing on the economy. The MPC was unanimously behind keeping the repo rate steady at 0.5%. The 10-year September Gilt future initially rose on the minutes release but quickly fell over 20 ticks compared to pre-announcement levels as the statment did not include any real suggestions that the asset target will be upped next month.

GBP rallied after the BoE minutes, which indicated that there was no immediate need to change the asset purchase target in July. Cable rallied to 1.6390, but is running in to offers ahead of 1.6400 after further headlines suggested that the August Inflation Report would provide an opportunity to asset the program to date. It offered little in the way of fresh insight, but there are some market participants that still believe that the Bank will extend its program in early August. GBP is likely to find a modicum of support from these minutes intra-day, but the big picture theme is unlikely to change as the market looks forward to U.K. earnings season and the August Inflation Report. Cable stops remain under 1.6300, while offers are anticipated over 1.6400 and in to 1.6430. Weak shorts may be squeezed through 1.6400 before Cable resumes its bearish intra-day theme.

...more...

[ozymandius]

22. Just out of curiosity...

When has a central bank chairman ever said anything not optimistic about the economic engine he oversees?

I know that Greenscam stepped close to that line with his 'irrational exuberance' lecture. But really - when has the Fed Chairman not been a Pollyanna clown?

[Demeter]

23. Volcker, Perhaps?

He was as solemn as the grave, still is, for that matter.

[UpInArms]

27. I just grow weary of the pom-poms and short skirts

when a dose of reality and some real vision would go a long way to getting this country back on its feet.

:hi:

[AnneD]

33. It is fear that keeps them in power.......

As long as they can stir up fear, they can paint themselves as white knights, capable of rescuing us-if we just sign over our rights to control the supply of money.

I am curious to see how this movement of people to people lending progresses. Hubby and I were looking at this and giving it some serious thought. Might be worth the risk and give a better return at less risk. I am a strong believer in human capital. Look for the banks and feds to squash something like this. Like when the auto industry bought all the trolley systems up and tore up the tracks so that people had to buy cars.

[MARALE]

44. Love the dollar watch

The movement of the dollar can tell so much about how things are going. Thanks UIA.

[UpInArms]

48. hiya Marale!

the buck is looking for some fairy dust these days :)

:hi:

It's good to see you here today or any day :grouphug:

[Demeter]

24. Toyota says it's no longer profitable in North America

http://www.detnews.com/article/20090721/AUTO01/907210324/1148/Toyota+says+it+s+no+longer+profitable+in+North+America

David Shepardson / The Detroit News

Washington -- Toyota's top executive in the United States said Monday the company was reviewing its entire operation here, including whether to close a factory in California and when to open a factory in Mississippi.

In an hour-long interview with reporters at Toyota's Washington office, Yoshimi Inaba said Toyota is not profitable in North America despite cost cutting in the organization, but he said he hopes the company could be profitable in its next fiscal year in North America. Inaba, who is president and chief operating officer of Toyota Motor America and chairman and CEO of Toyota Motor Sales USA, is taking up his responsibilities at a crucial time for the Japanese automaker.

Toyota's sales have fallen 38 percent in the first six months of the year -- to 770,000 cars and trucks from nearly 1.25 million vehicles in the first six months of 2008. U.S. industry auto sales fell 35 percent in the first half of the year.

Among the issues the company is considering in its re-evaluation process is whether to keep open the 25-year-old New United Motor Manufacturing Inc. assembly plant in Fremont, Calif. The plant, which employs 4,700 people, is a joint venture formed with General Motors, but the Detroit automaker recently withdrew from the pact during its stay in bankruptcy court.

"That put us in a very difficult position," Inaba said. "We are carefully evaluating all the options."

He didn't commit to a timetable for a decision on Nummi, but said a decision would be made "quite soon." He said Toyota hadn't received an incentive package from California yet.

The hourly workers at Nummi are represented by the United Auto Workers, and the contract expires next month. Inaba said the UAW contract "is one consideration, but not the single deciding factor."

Inaba noted that California is Toyota's single biggest market in the United States, and closing the factory would negatively impact its image there.

The company also is contemplating what to do with its Mississippi plant. Toyota has completed the structure, but not moved equipment into it or given a date it might open because of the sharp decline in auto sales. It was scheduled to open next year. Toyota has said it may build the Prius in Mississippi, but Inaba said those plans are unclear.

Asked whether Toyota could shelve its Mississippi plant permanently, Inaba said, "I hope not," and added, "I'm not that pessimistic" about its future.

"Toyota is certainly at a crossroads with respect to capacity," said Michael Robinet, vice president of global forecast at CSM Worldwide. "Virtually every manufacturer is stepping back and looking at their capacity."

Inaba refused to rule out layoffs or plant closures at its other North American plants.

Inaba said the company had made mistakes in making too many decisions in Japan, urging more "decentralization" of decision-making.

Because of Toyota's success for the last eight years, there was an attitude among some executives that, "OK, now we have been so successful, we understand the market, so can make a decision there rather than here," Inaba said.

Inaba said the company is listening to the market, and customers "had been a little bit lost."

When asked whether Toyota had become complacent, he said, "Complacent or arrogant -- a lot of people use that -- I don't know," he said, adding that the company had tried to guard against those qualities.

Inaba acknowledged that Toyota vehicles had often lacked "passion" and that the company's vehicles must be "more exciting, more nimble."

"Toyota is a good car but not exciting. Those are the comments we usually (or) always get," Inaba said.

Inaba said he supported the decision of the U.S. government to rescue General Motors Co. and Chrysler Group LLC with $65 billion in loans. "Stepping into Chrysler and GM was a necessary step for the government, for the country," Inaba said.

But he said he hoped the U.S. government would have a "free-market level ground in mind in deciding what to do next."

He also said GM and Chrysler were right to shrink their dealer networks. Toyota, he said, has no plans to expand its dealer network in the U.S.

[ozymandius]

25. Watergate Hotel attracts no bids

An attempted auction of the Watergate Hotel, part of a Washington landmark made famous by a presidential scandal, has failed to attract any bids.

The opening price on the hotel was $25m (£15.2m), but none of the 10 people registered to bid did so.

....

The auction attracted dozens of spectators, including journalists and residents of the complex.

PB Capital Corp, which had loaned $40m to Monument Realty, will take back the property and attempt to find a buyer.

http://news.bbc.co.uk/2/hi/americas/8162272.stm

[4dsc]

31. June's P/E ratio for the S&P 500 was 134?

If we look at the fundamentals of the S&P 500 we find a grim reality:



http://www.doctorhousingbubble.com/

Can this be true??

[Dr.Phool]

36. If that is true, it's insane.

[DemReadingDU]

40. It's probably manipulated somehow

Just like the stock market is manipulated, buying and selling is manipulated

:crazy:

[UpInArms]

49. Creditors claim "looting" of Magna Entertainment (racetrack operator)

http://www.reuters.com/article/bondsNews/idUSN2234543420090722

WILMINGTON, Del., July 22 (Reuters) - Racetrack operator Magna Entertainment Corp (MECAQ.PK) fraudulently transferred more than $125 million to companies controlled by Canadian billionaire Frank Stronach before filing for bankruptcy, creditors charged in a court filing.

The complaint by unsecured creditors claimed that horse-racing enthusiast Stronach used his control of MI Developments Inc (MID), the majority shareholder of Magna Entertainment (MEC), to secure prized assets and fraudulently transfer payments to his companies.

"MID breached its fiduciary duties of good faith, honest governance, loyalty and care to MEC and its creditors by, among other wrongs, looting and engaging in self-dealing transactions to the detriment of the debtors," the complaint said.

MI Developments (MIMa.TO) said in a statement that the committee's claims are without merit and that it intends to contest them vigorously.

Stronach, Magna Entertainment and the attorney for the creditors could not be reached for comment.

The complaint, filed in Delaware's bankruptcy court by the Official Committee of Unsecured Creditors and dated Tuesday, seeks to subordinate MI Developments' secured claims in the Magna Entertainment bankruptcy and recover the payments.

The complaint claimed that MI Developments prevented Magna Entertainment from selling assets that might have allowed it to successfully restructure. At the same time, according to the complaint, MI Developments propped up failing Magna Entertainment, which owns the Pimlico Race Course that hosts the Preakness Stakes, and "larded" it with secured loans made through an Icelandic unit.

...more...

:facepalm:

who woulda thunk? a gambling outfit being dishonest???