STOCK MARKET WATCH, Thursday 17 June

[ozymandius]

Thursday June 17, 2004

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 221
DAYS SINCE DEMOCRACY DIED (12/12/00) 3 YEARS, 188 DAYS
WHERE'S OSAMA BIN-LADEN? 2 YEARS, 242 DAYS
WHERE ARE SADDAM'S WMD? - DAY 455
DAYS SINCE ENRON COLLAPSE = 938
Number of Enron Execs in handcuffs = 18
Recent Acquisitions: Jeff Skilling
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54

---

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

---

AT THE CLOSING BELL ON June 16, 2004

Dow... 10,379.58 -0.85 (-0.01%)
Nasdaq... 1,998.23 +2.63 (+0.13%)
S&P 500... 1,133.56 +1.55 (+0.14%)
10-Yr Bond... 4.73% +0.05 (+0.98%)
Gold future... 385.20 -3.50 (-0.90%)


|||


GOLD, EURO, YEN and Dollars

---

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

---

[ozymandius]

1. WrapUp by Mike Hartman

Good News, but Stock Prices Frozen

All of the economic news for today comes with two-thumbs-up for a continuing robust recovery. Industrial production in the U.S. exceeded the anticipated gain of 0.8% when the Federal Reserve reported an increase of 1.1%, the biggest jump in nearly six years. Building permits rose to the highest level in more than thirty years. Economists forecast a drop in consumer confidence from 90.2 in May to 89.9 for June, but instead it roared-in at 95.2. Gasoline prices are at two-month lows. Southern California home buyers are in a feeding-frenzy bidding prices through the roof. The Consumer Price Index came in lower than expected and Alan Greenspan said inflation is nothing to worry about. The Fed’s Beige Book was released today and one reporter called it the “good news report,” claiming we’re in a “sweet spot” and the Fed is happy with the growth as manufacturing and employment are recovering. So with all this jump-for-joy economic news, why is the stock market struggling to show a gain for the day?

The biggest thing happening today is simply the fact that everything is moving exactly the opposite to what happened yesterday. The big trigger yesterday was the surprise from the release of the CPI numbers. Investors in the bond market were crowded-in on the wrong side of the trade with money positioned short on bonds in anticipation of stronger inflation numbers. Once the market saw a muted inflation report, they scrambled to buy Treasury debt driving interest rates lower, which weakened the U.S. dollar and pushed stocks higher. Mr. Greenspan backed-up the softer than expected CPI report by saying the Fed would stick to their measured rate increases that most analysts read as a quarter of a percent at a time. The strong economic numbers today had a negative effect on bond prices, ramped the dollar higher and left stock investors scratching their heads.

-cut-

Complicating Factors

From an investment strategy perspective, we are in a very complex environment. Over the last decade we have had tremendous asset inflation in stocks, bonds and real estate primarily due to the constant expansion of credit. This unprecedented expansion has created a massive tug-o-war between the very powerful forces of inflation and deflation. Our current global monetary system is actually very similar to a “ponzie scheme” whereby the supply of money and credit need to continuously expand, otherwise there won’t be enough money to pay back existing debt. If the supply of money and debt contracts it will cause a chain reaction of debt defaults which means governments around the world will have to scrap the current global fiat merry-go-round money machine and start over with something new. They don’t want to do that because they would prefer to keep their current power structures in place.

Economic Jihad -- Lots on the Line

Japan is trying to get out of a decade-long recession, China is quickly becoming a huge economic force as the Chinese people get a taste of what it is like to enjoy many of the things we take for granted (energy, transportation, jobs and home comforts), and the European Union is working to place the euro at parity with the U.S. dollar as a world reserve currency. Have you ever noticed how upset the U.S. officials get when an oil exporting nation wants to trade their oil for euros rather than dollars? You can see the stakes are very high.

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

[ozymandius]

2. This part is interesting.

What he says about the Exchange Stabilization Fund.

I do have to wonder about the resistance in the markets. If there were not major players with lots of fiat currency at their disposal manipulating the numbers, where would we be numbers-wise now?

[KoKo]

4. Another interesting part, "Global Monetary System." Is this what could

be coming? This sentence in his article:

As far as the outcome, I foresee another stagflation scenario like we saw back in the Seventies. I believe assets with debt attached will deflate in value and tangible assets who’s value is not contingent on debt will appreciate in value. The alternative scenario would be something like a period where we go through hyper-inflation followed by massive deflation ushering in a new money system. If the globalists want to get to a one-world currency, that would be one way to achieve their goal.

If the push is to manipulate world currencies and debt then it would be reasonable to think that this is what "powers that be" are working towards. Would we have a "One-World Currency" based on a printing press or backed by GOLD?

The manipulation going on sure seems to say something's up. A bunch of "Project for the New American Century" monetarists working behind the scenes for this "Global Currency" scheme and we won't know about it until we wake up one day and they've taken over power just like the PNAC for War Mongers have. :tinfoilhat: ??? Or, a possibility?

[KoKo]

6. And, another interesting comment about Oil markets being controlled so

this is why the Iraqi pipeline being blown up so many times isn't factoring into the prices. I haven't been able to figure how WHY our disaster in Iraq hasn't affected the oil markets or our stock market.

In the "old days" this would have been reflected in world markets. Iraq Invasion was supposed to be paid for with Iraq Oil Revenue (Wolfowitz said) Yet, when that proves to be impossible it doesn't seem to affect anything...except our huge debt paying for this.

"Alices World" we live in. But, I hope we can figure out where this is all going for our own preservation..those of us here, who are trying to figure this out. Trying to plan for our futures in a rational way.

[UpInArms]

8. well, today the tune is changing

http://www.thestreet.com/markets/marketfeatures/10166399.html

Oil Up on Iraqi Export Shutdown

Oil prices regained the $38-a-barrel level Thursday as recent attacks on Iraqi's oil infrastructure, which have crippled exports, finally began to cause worries about short-term supplies.

The benchmark U.S. crude gained 40 cents, or 1.1%, to $38.05 a barrel, having closed below $38 the past two sessions, while gasoline prices gained almost 1 cent, or 0.8%, to $1.155 a gallon


Iraqi exports, which have ranged between 1.6 million and 1.8 million barrels a day recently, have been shut down since Tuesday, because of saboteur attacks on pipelines feeding the main terminal in the southern city of Basra.

Fellow members of the Organization of Petroleum Exporting Countries have pledge to compensate for any short-term supply disruption, but it remains unclear how long it will take to fully repair all of the pipelines.

Oil prices have fallen more than 12% from their record high, touched right before OPEC's meeting two weeks ago.

...more...

[ozymandius]

14. Commentary about this yesterday

on NPR's ATC. A commentator says that the exploding oil pipelines have little effect on the price of oil increasing. Their effect, however, is felt in the lack of oil prices' decrease.

This also sends a political message. It says that a faction that does not like the prevailing political situation (or any political situation) can impact politics and economics globally through well-placed explosives at key industrial installations.

[54anickel]

18. You mean these nuts?

http://www.singleglobalcurrency.org/default.html

[KoKo]

42. morrison bonpasse, the lone nut so far advocating this. But, who knows

given the wacko PNAC'ers maybe bonpass (he lists his name without initial caps..:eyes:) will find a big financial backer and turn out to be a Newt Gingrich type crusador for the "Mundo" (his world currency).

:eyes:

[54anickel]

57. Global Resource Bank

Interesting links here. They're having a meeting this July as well.

http://www.fact-index.com/g/gl/global_resource_bank.html

[KoKo]

64. I'll have to bookmark this...looks like a good read...but I need to get my

brain sharper...thanks..

[UpInArms]

3. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 89.58 Change -0.46 (-0.51%)

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?font=Reuters&pv_noticia=MTFH02021_2004-06-17_10-09-44_N2W312461

Gold firms in Europe, glued to euro-dollar moves

LONDON, June 17 (Reuters) - Gold nudged higher in Europe on Thursday morning as it closely tracked euro-dollar moves, with dealers expecting the market to trade in familiar ranges amid deliberations over the pace of U.S. interest rate rises.

Spot gold <XAU=> inched up to $385.80/386.60 an ounce by 1000 GMT, compared with $384.50/385.00 last quoted in New York on Wednesday.

"Gold should continue to trade in the recent $380-90 range for the moment, but with sizeable volumes of scaled up selling above $390 and more economic data due out today gold will feel heavy ahead of the Fed's rate decision at the end of the month," James Moore of TheBullionDesk.com said in a daily report.

Gold's status as a safe-haven asset was also highlighted by another deadly bomb attack in Baghdad.

The dollar held in tight ranges against the euro after a recent series of mixed U.S. economic data reaffirmed expectations of a 25 basis points U.S. interest rate rise later this month.

The euro was at $1.2034 <EUR=>, slightly higher than levels seen late in U.S. trade on Wednesday.

Dealers will be alert to more U.S. data on Thursday for their impact on the dollar, including producer price and weekly jobless claims figures out at 1230 GMT. The Philadelphia Fed releases its factory activity survey for June at 1600 GMT.

...more...

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?font=Reuters&pv_noticia=MTFH03802_2004-06-17_11-46-29_L17309506

FOREX-Swiss franc gains on rate rise, dollar broadly lower

LONDON, June 17 (Reuters) - The Swiss franc rose across the board on Thursday after the central bank delivered its first interest rate rise in four years, while the dollar fell victim to a wave of demand for the yen and new security concerns in Iraq.

The Swiss currency rose sharply against the dollar and the euro as the rate decision boosted its yield appeal. But it gave back a little ground later when the central bank signalled it would not be happy with a stronger franc.

Meanwhile, some analysts said the dollar was also hurt by news of a suicide car bomb attack on an army recruiting centre in Baghdad which highlighted the difficulties faced by the U.S.-led coalition in restoring stability to the country.

The yen snapped broadly higher, gaining about one percent against the dollar, propelled by technical trading in a thin market.

"The Swiss franc is the main fundamental story today," said Mark Henry, currency strategist at GNI in London.

...more...

http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=5442282

Dollar Keeps Gains But Seen Softening

TOKYO (Reuters) - The dollar kept gains versus the euro and yen on Thursday as fresh U.S. data provided more evidence of a strengthening economy and investors got used to the idea that U.S. interest rates would likely rise gradually.

U.S. industrial production rose 1.1 percent in May, beating economists' forecasts for a 0.8 percent gain, while U.S. housing starts fell less than expected in May and home building permits jumped to a record high.

Despite another round of upbeat data, analysts expect the dollar to soften when the U.S. Federal Reserve finally raises rates after months of currency fluctuations due to see-sawing expectations in the market.

"Now we are waiting for a 25 basis point hike on June 30, so if that happens the dollar is likely to go lower," said Tohru Sasaki, chief forex strategist at JP Morgan Chase in Tokyo.

<snip>

The market has factored in a Fed move to raise interest rates by 0.25 percentage point at the end of this month, followed by another rise in August, traders say.

But speculation that it could raise rates by as much as half a percentage point at its meeting on June 29-30 has chilled since Greenspan's latest remarks and the CPI data.

Higher interest rates are seen benefiting the dollar as they would likely attract more investors to dollar- denominated assets.

...more...

http://money.cnn.com/2004/06/16/commentary/dobbs/dobbs/

The party's over

NEW YORK (MONEY Magazine) - The Federal Reserve has signaled that it is likely to raise interest rates, just as energy and consumer prices are rising.

The fiscal stimulus provided by the Bush tax cuts is ebbing. And although 625,000 jobs were added in March and April, increases in salaries and wages remain alarmingly subdued.

I talked to Merrill Lynch chief North American economist David Rosenberg about how our nation's economic outlook is changing and how he expects consumers and investors to fare through the remainder of the year.


DOBBS: Let's begin with jobs. Will the recent improvement last?

ROSENBERG: Most of the leading indicators are telling us that we have turned the corner on the employment side. I'm not necessarily convinced that we're going to be seeing the very strong numbers continue. To me, the more important aspect is not so much the employment side but the income side.

Q. How are we doing on that front?

A. Even with these very large numbers, real wage and salary income in March was down 0.1 percent. Average weekly earnings were up 0.3 percent in April, but it looks like consumer prices rose about 0.3 percent as well.

So my sense here is that real income growth is actually still rather subdued. I think the critical thing for the consumer is that even though income growth is rising in nominal terms, it's barely keeping up with the increases in life's necessities: medical care, food and energy.

Interest rates are backing up, and the fiscal stimulus is basically over. You tack on higher energy prices and this headwind ahead for the consumer comes to about $180 billion between now and the end of the year at an annual rate.

Q. Gasoline prices are now at a record high. Oil is moving above $40 a barrel. What will the impact be on both the consumer and the investor?

A. In terms of the investor, it's a classic case where higher energy prices would be good news for the energy sector, but they're a margin crimper for a lot of other industries. And although energy use in the United States as a share of GDP has gone down over time, it's still very significant for individual sectors.

If these gas prices are sustained, they could easily shave half a percentage point off of GDP growth. You're talking about the difference between this year being in the high fours and the low fours. But half a percentage point on a $10-trillion-plus economy isn't exactly chump change.

...more...

Have a Great Day Marketeers!

[ozymandius]

12. Good morning UpInArms and all.

:donut: :donut: :donut: :donut: :donut: :donut:

I am sorry to have been so scarce over the past few days. We have been ill (some kind of 24 hour bug with nasty after-effects).

The commentary at the SMW has been wholly enjoyable. Thanks to all for their participation - especially you UIA and 54anickel who have been providing most of the posts.

My presence her will be limited all this week as I ready more materials and network for more job apps.

all things good!

Ozy :hi:

[UpInArms]

13. Ah, but Ozy, my hat is always off to you -

your faithful morning post allows this thread to be "born" everyday - and it is a wonderful forum for all those monetarilary related items that would hold little interest in and of themselves

:yourock:

[54anickel]

19. Interesting bit on the whole idea of currency speculation from '97

http://www.twnside.org.sg/title/nar-cn.htm

IN 1975, about 80% of foreign exchange transactions (where one national currency is exchanged for another) were to conduct business in the real economy. For instance, currencies change hands to import oil, export cars, buy corporations, invest in portfolios, or build factories. Real transactions actually produce or trade goods and services. The remaining 20% of transactions in 1975 were speculative, which means that the sole purpose was an expected profit from buying and selling currencies themselves, based on their changing values. So, even in the days when the real economy was dominant, some currency speculation was going on. There had always been that little bit of frosting on the cake.

Today, the real economy in foreign exchange transactions is down to 2.5% and 97.5% is now speculative. What had been the frosting has become the cake. The real economy has become just a small percentage of total financial currency activity.

My estimate is that in 1997 we will have close to $2 trillion in currencies being traded per day. This is equivalent to the entire annual gross domestic product (GDP) volume of the United States being turned over via currency trading every three days.

more...

[54anickel]

23. Ewww, this is a bit scary (now that I finished reading the whole thing -

having that "mental focus" problem again today)

They both agree that there are many more people now who have an interest in profiting from instability; previously, they had an interest in stability. If you have an unstable system, it is just a question of when it will fly off the handle. It will blow apart at the moment when the US dollar experiences a crisis. When the dollar crisis occurs, the world will have no system left.

The only precedent I know is the collapse of the Roman monetary system. In the 1929 crash, the monetary system held. We had all kinds of other problems - unemployment, stock market crashes, currency inflation in Germany - but there was a gold standard that held. Today, we have no gold standard to fall back on. So there is no precedent for a collapse of this nature. And this would be a truly global phenomenon. All currencies in the world are based on the dollar. So if you have a crisis on the dollar, you pull out the linchpin and... boom.

The third consequence is some thing with which you are very familiar. As a great portion of the national currencies - about $2 trillion per day - is being turned around in the financial cyber-economy, there is just no satisfactory medium of exchange available to people at the bottom. National currencies are not widely available to the poorer parts of the population. The age of labour as a key component of production is gone. If you don't have a job, you don't have 'money' (i.e., national currency). Even despite the fact that structural unemployment is increasing, the economy can continue to 'grow' very well. Technology will shift us still further in that direction.

"Structural unemployment" and "structural changes" - How many times have we heard those terms from Greenspin and his merry men at the Fed and Treasury?

[UpInArms]

26. some of Meanspin's speeches referring to

"structural unemployment" and "structural changes"

http://www.federalreserve.gov/boarddocs/speeches/2004/20040126/default.htm

Remarks by Chairman Alan Greenspan
Economic flexibility
Before the HM Treasury Enterprise Conference, London, England
(via satellite)
January 26, 2004

excerpt:

But as the depression receded into history, attitudes toward job security and tenure changed. The change was first evidenced by the eventual acceptance by the American public of President Reagan's discharge of federally employed air traffic controllers in 1981 when they engaged in an illegal strike. Job security, not a major concern of the average worker in earlier years, became a significant issue especially in labor negotiations. By the early 1990s, the climate had so changed that laying off workers to facilitate cost reduction had become a prevalent practice. Whether this seeming greater capacity to discharge workers would increase or decrease the level of structural unemployment was uncertain, however. In the event, structural unemployment decreased because the broadened freedom to discharge workers rendered hiring them less of a potentially costly long- term commitment.

The increased flexibility of our labor market is now judged an important contributor to economic resilience and growth. American workers, to a large extent, see this connection and, despite the evident tradeoff between flexibility and job security, have not opposed innovation. An appreciation of the benefits of flexibility also has been growing elsewhere. Germany recently passed labor reforms, as have other continental European nations. U.K. labor markets, of course, have also experienced significant increases in flexibility in recent years.

Beyond deregulation and culture change, innovative technologies, especially information technology, have been major contributors to enhanced flexibility. A quarter-century ago, companies often required weeks to unearth a possible inventory imbalance, allowing production to continue to exacerbate the excess. Excessive inventories, in turn, necessitated a deeper decline in output for a time than would have been necessary had the knowledge of their status been fully current. The advent of innovative information technologies has significantly foreshortened the reporting lag, enabling flexible real-time responses to emerging imbalances.

and

http://www.newsday.com/business/ny-greenspan-nomination,0,2349283.story?coll=ny-business-headlines

Thursday, June 17, 2004


Greenspan nomination hearing testimony

excerpt:

We at the Federal Reserve gradually came to recognize these structural changes and accordingly altered our understanding of the key parameters of the economic system and our policy stance. But while we lived through them, there was much uncertainty about the evolving structure of the economy and about the influence of monetary policy.

The Federal Reserve's experiences over the past two decades make it clear that such uncertainty is not just a pervasive feature of the monetary policy landscape; it is the defining characteristic of that landscape. As a consequence, the conduct of monetary policy in the United States has come to involve, at its core, crucial elements of risk management. This conceptual framework emphasizes understanding the many sources of risk and uncertainty that policymakers face, quantifying those risks when possible, and assessing the costs associated with each of the risks.

This framework entails devising, in light of those risks, a strategy for policy directed at maximizing the probabilities of achieving over time our goals of price stability and the maximum sustainable economic growth that we associate with it. In designing strategies to meet our policy objectives, we have drawn on the work of analysts, both inside and outside the Fed, who over the past half century have devoted much effort to improving our understanding of the economy and its monetary transmission mechanism. A critical result has been the identification of key relationships that, taken together, provide a useful approximation of our economy's dynamics. Such an approximation underlies the statistical models that we at the Federal Reserve employ to assess the likely influence of our policy decisions.

[54anickel]

27. Hey Meanspin, nobody asked ME!!! (or anyone else I know for that matter)

American workers, to a large extent, see this connection and, despite the evident tradeoff between flexibility and job security, have not opposed innovation.

[KoKo]

45. Thanks, UIA, those two snips really make Greenspin's policies clearer

than the hours I've spent listening to his parsed testimony.

An interesting comment from your first snip: American workers, to a large extent, see this connection and, despite the evident tradeoff between flexibility and job security, have not opposed innovation.

I wonder if all attention to "Outsourcing" could be the first sign that American workers are waking up and beginning to "oppose innovation.'

What's annoying is how "above it all" Greenspin and his cohorts are in speaking their own Economic Language amongst themselves, while no translators are available who can speak the truth to the American people about the implications of what they say until their policies are revealed and a done deal.

[54anickel]

31. Talk about a timely tie-in!

From the 97 article:

What is beginning to happen in the developed countries is a new phenomenon: an explosion of 'local currencies' - money that is not the national currency. We haven't seen this since the Great Depression when there were literally thousands of local currencies in the US and other countries affected by massive unemployment. By supporting the development of local money schemes, we may in fact create the groundwork for the next system. This could become one of the most powerful ways available to support citizen control.

The first thing that came into mind was the Liberty Dollar and these electronic "currencies" on the net(Pay-pal, digital gold, etc). Then I stumbled across this piece which mentions the Liberty as well:

http://www.a1-guide-to-gold-investments.com/gold-standard-2.html

snip>

What the state giveth, the state taketh away

What happened while we had a gold standard? Every time a new war came around and we (i.e., our government) had to pay for things we (it) didn’t have the money for - out the window went the gold standard, and in flew the fiat-virus.

So what good is a gold standard if it does its restraining work on governments and central banks only at the good graces of the State? It’s like saying: “Yes, I’ll agree to be bound by this contract until I no longer agree to be bound.” It’s worse than useless; it’s an illusion of stability.

Just as useless are attempts to convince the “gub-mint” to let us have a gold standard again. If it doesn’t suit them (and it doesn’t), then they won’t. Period!

Still thinking about writing your Congressman to vote for Ron Paul’s bill next time around? Maybe in ten or twenty years there’ll be a chance - but then again: maybe not. Or maybe the impending economic catastrophe will convince enough people in high places to involve gold again in some form or fashion to lend some of its stability to the currency situation. But if these highly-placed elitists do that ( and that’s an “IF” with a capital “I” and a capital “F”) they can also change their minds again.

Therein lies the problem.

So what about a parallel currency, pretty much like what’s going on right now with online digital gold currencies, except in physical bullion coin format? Would that be better?

Well, maybe. But there are a few things to consider beforehand.

First of all, the State has the prerogative of declaring what is and what is not “legal tender.” A bullion currency cannot compete or interfere with the State’s prerogative in that regard.

Under the US Constitution, Congress also has the exclusive power to”to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.” Does that mean a private individual or association of individuals cannot agree to accept or not accept something of value in trade for something else?

No. Fortunately, it doesn’t mean that. That case was opened and closed by the “Liberty Dollar” introduced by an organization called “Norfed.” The Liberty Dollar is a partially silver-backed paper-currency in circulation among a fairly sizeable but loose association of individuals and merchants. No legal challenges were launched by the government. In fact, representatives of several authorities have declared that the activity is entirely legal and does not interfere with any government prerogatives.

more...

[54anickel]

49. OK, this is getting eerie. Another timely tie-in to that '97 article's

notion of alternate currencies. Was the author prophetic? What weird Karma is at work that I'm stumbling onto this crap today?
:tinfoilhat:

http://shoshonenewspress.com/index.asp?Sec=News&str=2869

Mining district putting silver back into circulation

By Don Sauer
Staff writer

SILVER VALLEY -- Watch any old Western movie and inevitably some cowboy will mosey into a saloon, slap the bar and order up a shot of whiskey. When the bartender sets the glass down, the dusty gunslinger will flip a coin onto the bar.
That coin will hit the wood surface of the bar with an unmistakable sound -the ring of real silver.

That unique sound is once again being heard in real life in the Silver
Valley this summer. Sterling Mining Co., which is currently developing plans to reopen the Sunshine Mine at Big Creek, is working with area businesses to put real silver back into circulation with the $10 "Sterling" medallion which is currently being offered through numerous local businesses.

Sterling President Ray DeMotte, along with Bunker Hill Mine owner Bob Hopper and representatives of the Silver Valley Mining Association,
presented the idea to members of the Historic Silver Valley Chamber of
Commerce and the Historic Wallace Chamber of Commerce at a meeting Tuesday night.

DeMotte said the idea is to use the Sterling as a means of promoting silver by putting it back into circulation and getting it back into the hands of the public.

Paul Robinson of KWAL Radio, who is also promoting the plan, said that
Shoshone County would become the first community in the nation to once again use silver as a means of exchange.

[UpInArms]

5. May 2004 Producer Price Index to be Released on Thursday, June 17

http://www.bls.gov/ppi/may_ppi_notice.htm

The Producer Price Index (PPI) for May 2004, originally scheduled for release on June 11, will be released on Thursday, June 17, at 8:30 a.m. EDT.

The BLS expresses its apologies to those who experience any problems as a result of this delay.



Last Modified Date: June 16, 2004

and.....

It's MaeveDay!

wonder what the employment numbers will do?

stay tuned and we shall see the wheel of fortune spin :D

[Maeve]

16. It's Maeve's day with the family!

Heading to King's Island for the day (all my guys have the day off, so we're taking advantage of it). It may rain, but we're hitting the water park anyway, so...

The Initial Claims weren't that far off the expected (between "market" and "Briefing.com" predictions), but the big shock to the system is the PPI and jump in wholesale inflation.

That and an influential bond fund manager voicing doubts about the global economy CNN Money Story

Off to the slides and going under water--hope the markets aren't headed that way too!! :hi:

[54anickel]

21. My, that's an interesting one by the influential bond fund manager

Pimco chief says global outlook unstable

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1087373055886

The outlook for the global economy is the most uncertain for 20 or 30 years, according to Bill Gross, the influential chief investment officer of Pimco, the world's biggest bond fund manager.

"Too much debt, geopolitical risk and several bubbles have created a very unstable environment which can turn any minute.

"More than any point in the past 20 or 30 years, there's potential for a reversal," he warned in an interview with the Financial Times.

"We have become a levered global economy, specifically in Japan and the US.

snip>

The threat of economic instability, he said, stemmed in part from "the advent of financial alchemy" - in particular, the growing use of hedge funds.

more...

[KoKo]

47. he says the Hedges are putting $$'s into "stocks, commodities&real estate!

Could this be our "PPT" the "invisible hand" which keeps propping this market up? Could this be the group that's bulldozing down perfectly good buildings all over my City and building news ones every day? I keep hearing that "Venture Capital" dried up after the dot com bust, yet everywhere I see new office buildings going up (when the existing ones are running empty). Who's funding all this? Who's funding the "zero mortgages." :crazy:

Gross makes it pretty plain when he says they are now acting like banks.

Quote from him in article: "They are amazingly similar in the leverage they use and have the same structure, borrowing at 1 per cent and lending or investing longer, and they take it to an extreme because they go into stocks, commodities, real estate."

[UpInArms]

7. Reports are in

8:29am 06/17/04

U.S. MAY PPI UP 0.8% VS 0.6% FORECAST

8:30am 06/17/04

U.S. MAY CORE PPI UP 0.3% VS 0.2% FORECAST

8:30am 06/17/04

U.S. MAY PPI UP 5.0% YR-ON-YR, HIGHEST SINCE DEC. 1990

8:30am 06/17/04

U.S. WEEKLY JOBLESS CLAIMS DOWN 15,000 TO 336,000

8:30am 06/17/04

U.S. 4-WEEK AVG. JOBLESS CLAIMS DOWN 2,750 TO 343,250

8:30am 06/17/04

U.S. CONTINUING JOBLESS CLAIMS UP 31,000 TO 2.90 MLN

and they are saying that the RayGun Whorefest impacted the unemployment report

8:30am 06/17/04

JOBLESS CLAIMS IMPACTED BY REAGAN FUNERAL - LABOR DEPT.

[UpInArms]

10. blurb on employment numbers

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B8FC7A857-0C12-499F-BACA-ECD9F9929291%7D&

U.S. jobless claims fall in latest week

WASHINGTON (CBS.MW) - First-time claims for state unemployment benefits fell 15,000 to 336,000 in the week ended June 12, the Labor Department reported Thursday. The four-week average of initial claims fell 2,750 to 343,250. A Labor Department official said a portion of the decline in claims can be attributed to the closing last Friday of 15 state unemployment offices as for former President Ronald Reagan's funeral. The drop in claims was roughly in line with the forecasts of Wall Street economists. Meanwhile, the number of Americans receiving state jobless benefits rose 31,000 to 2.90 million in the week ending June 5. The four- week moving average of continuing claims fell 9,500 to 2.93 million, the lowest since June 2001.

[Frodo]

11. Interesting note on that Initial Claims number

I noticed that last week's number was revised downward by 1,000.


No big deal obviously (what's 1,000 jobs between friend, eh?) but it was pointed out to me that the number has only been revised downwards three or four times in the alst year. It is almost always upward.

[54anickel]

20. Reaction in the futures blather

8:56AM: S&P futures vs fair value: +0.8. Nasdaq futures vs fair value: -3.2. Futures indications continue to trade off their earlier highs in response to the stronger than expected May PPI report... Providing some floor to the selling, however, is the weekly initial claims report: claims for the week of June 8 fell 15K to 336K (consensus of 340K) - the lowest level since May 8... As a result, the broader market is still poised for a relatively unchanged open.
8:34AM: S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: -4.0. Data hit and futures market didn't show much interest, although the stronger than expected PPI headlines has caused some minor slippage since the last update... current levels point to a relatively flat to modestly lower open

8:23AM: S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: -2.5. Futures market indication ahead of the economic data (PPI, core-PPI, and initial claims) at 08:30 ET continues to suggest a relatively flat open

7:59AM: S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: -2.5. Little conviction in the futures market, which is consistent with the action in foreign markets and recent trading in the U.S... current levels imply a relatively flat open for the cash market

6:18AM: S&P futures vs fair value: +1.9. Nasdaq futures vs fair value: -1.0.

[UpInArms]

9. U.S. May PPI up 0.8%, core rate up 0.3%

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38155.3546990741-815288259&siteID=mktw&scid=0&doctype=806&property=&value=&categories=&

WASHINGTON (CBS.MW) - Wholesale food and energy prices rose 0.8 percent in May, the Labor Department estimated Thursday. This is the largest increase since March 2003. Core producer prices, excluding food and energy goods, rose 0.3 percent. The increases were above expectations. Economists surveyed by CBS MarketWatch had forecast a 0.6 percent rise in overall PPI and a 0.2 percent rise in core prices. Over the past year ended in May, the PPI has risen 5.0 percent. This is the largest 12-month increase since December 1990.The core PPI has risen 1.7 percent over the past 12 months, the highest since January 1991.

[UpInArms]

15. Super rich can afford their own language

http://msnbc.msn.com/id/5226726/

NEW YORK - With the rich not only getting more numerous but richer by the year, a new language of "wealth-speak" has been created by bankers who are desperate to get a slice of their lucrative business.

Readers of the Eighth Annual World Wealth Report, published this week by investment bank Merrill Lynch & Co. and consulting firm Capgemini, get full exposure to this euphemistic new- age language.

The word "millionaire" shows up only twice in the report — in the footnotes. Instead, individuals with more than $1 million in financial assets, excluding their main home, are called HNWIs, or "high net worth individuals" by the authors, using a term coined by the banking industry.

"Ultra-HNWIs" are the super rich, defined as a small but rapidly growing group of 70,000 individuals with more than $30 million in assets. It was Merrill who pegged the "ultra" threshold at $30 million, a few years ago.

The report estimates there were 7.7 million millionaires around the world at the end of 2003, up by half a million from 2002.

...worth clicking on the link if only to read the last line...

:puke:

[54anickel]

46. Who wants to become the next millionaire - er um HNWI?

Wealthy HK people increase sharply: Merrill Lynch

http://news.xinhuanet.com/english/2004-06/17/content_1532393.htm

HONG KONG, June 17 (Xinhuanet) -- There were an estimated 15,000 high net worth individuals (HNWIs) in Hong Kong at the end of 2003,up nearly 30 percent from 2002, according the latest published 2004 World Wealth Report by Merrill Lynch and Capgemini.

"Of the 68 countries and territories surveyed by the World Wealth Report last year, Hong Kong recorded the biggest jump in the high net worth individual population," said Cheong Soon Tam, regional market managing director of Merrill Lynch Global Private Client.

"This can be attributed to the recovery in the economy and the property market," Tam said.

Merrill Lynch defines HNWIs as peoples with financial assets ofat least 1 million US dollars, excluding home real estate.

more...


India is home to 61,000 millionaires

http://www.expressindia.com/fullstory.php?newsid=32646

Mumbai, June 16: India is home to an estimated 61,000 high net worth individuals (HNIs) at the end of 2003, whose wealth stood at $267 billion. The number of HNIs increased 22 per cent from 50,000 HNIs in 2002.

As per the 2004 world wealth report published by Merrill Lynch and Capgemini released on Wednesday, the sharp jump in the number of wealthy individuals in India is mainly on account of a booming stock market and healthy economic growth.


More Singaporeans hit magic million last year

http://straitstimes.asia1.com.sg/topstories/story/0,4386,256625,00.html

DESPITE Sars and tough times for the economy, the ranks of Singapore's millionaires managed to swell last year.

Around 990 new millionaires joined Singapore's magic mega-rich circle, says a new survey.

That's 'millionaire' based on financial assets of at least US$1 million - which is 1.7 times more than that amount in Singapore dollars.

And - get this - those assets exclude that usual local barometer of wealth, the value of the home they live in.

The increased number of millionaires was a 3.3 per cent rise over the year before, lifting the total number of Singaporeans with seven figures to their name to 31,000.


117,000 Aussies on global rich list

http://www.theaustralian.news.com.au/common/story_page/0,5744,9865825%255E643,00.html


SURGING real estate values, a stable share market and a strong trading relationship with China helped swell the ranks of Australia's rich by 11per cent, or 12,000, to 117,000 last year.

An appreciating Australian dollar also helped many more Australians jump the $US1million ($1.4million) wealth barrier to qualify as a high net worth individual (HNWI), according to the Merrill Lynch/Capgemini World Wealth Report.

The average wealth -- defined as excluding the family home but including superannuation -- of the rich at the end of 2003 was $US3.2million, compared with the global average of $US3.7million. Their total wealth increased by $US38billion to US$368billion, up 12per cent on 2002.

While there was no Australia-specific breakdown of how that wealth is held, the average HNWI Australians' exposure to property was estimated at 34per cent, double the 17per cent global HNWI average.

"There's no doubt that property is ingrained in the Australian psyche the way that fixed interest is in Europe," said Peter Opie, Merrill Lynch vice-president, investments in Australia.


My, the list seems endless! Tell me again how we are NOT somehow in a global bubble economy! Hey, Hey, we must all be headed to EASY STREET!
http://news.google.com/news?num=30&hl=en&edition=us&q=cluster:quote%2ebloomberg%2ecom%2fapps%2fnews%3fpid%3d10000087%26sid%3da7YNOEwNozbQ%26refer%3dtop%5fworld%5fnews

[ozymandius]

17. Well, I am away to become a "high net worth individual".

Just kidding, of course.

My son needs to get to daycare while I prepare my materials in search of a job.

I'll check back later today Marketeers. Enjoy the antics at the Casino.

Ozy :hi:

[UpInArms]

22. Markets are Open at 9:44 EST and some pre-market blather

Dow 10,367.59 -11.99 (-0.12%)
Nasdaq 1,990.40 -7.83 (-0.39%)
S&P 500 1,131.43 -2.13 (-0.19%)
10-Yr Bond 4.755% +0.023

ino.com

The September NASDAQ 100 was lower overnight as it consolidates some of Tuesday's rally. Closes above last week's high crossing at 1500 are needed to renew the rally off May's low. However, stochastics and the RSI are bearish signaling that a top has likely been posted. Closes below Monday's low crossing at 1455.50 would open the door for a possible test of the June 3rd low crossing at 1446.50 later this month. The September NASDAQ 100 was down 1.00 point at 1481 as of 6:44 AM ET. Overnight action sets the stage for a steady to weaker opening by the NASDAQ composite index later this morning.

The September S&P 500 index was slightly lower in quiet overnight trading. Closes above last week's high at 1142.20 would open the door for a test of April's high crossing at 1147.10 later this month. However, stochastics and the RSI are turning bearish signaling that a short-term top is in or is near. Closes below Monday's low at 1121.80 would confirm that a short-term top has been posted. The September S&P 500 Index was down 0.20 pts. at 1132.80 as of 6:45 AM ET. Overnight action sets the stage for a steady to weaker opening when the day session begins later this morning.

briefing.com

9:14AM: S&P futures vs fair value: +0.1. Nasdaq futures vs fair value: -4.0. Stage remains set for a lackluster open as the futures market continues to trade close to fair value... Look for weakness in tech following JBL's Q4 (Aug) warning last night... The market has two economic reports due out during regular session trading: May Leading Indicators at 10 ET and the June Philadelphia Fed Index at 12... See Briefing.com's Economic Calendar for consensus estimates.

8:56AM: S&P futures vs fair value: +0.8. Nasdaq futures vs fair value: -3.2. Futures indications continue to trade off their earlier highs in response to the stronger than expected May PPI report... Providing some floor to the selling, however, is the weekly initial claims report: claims for the week of June 8 fell 15K to 336K (consensus of 340K) - the lowest level since May 8... As a result, the broader market is still poised for a relatively unchanged open.

8:34AM: S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: -4.0. Data hit and futures market didn't show much interest, although the stronger than expected PPI headlines has caused some minor slippage since the last update... current levels point to a relatively flat to modestly lower open

8:23AM: S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: -2.5. Futures market indication ahead of the economic data (PPI, core-PPI, and initial claims) at 08:30 ET continues to suggest a relatively flat open

7:59AM: S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: -2.5. Little conviction in the futures market, which is consistent with the action in foreign markets and recent trading in the U.S...

[UpInArms]

24. Market Numbers and blather at 10:04 EST

Dow 10,341.55 -38.03 (-0.37%)
Nasdaq 1,979.52 -18.71 (-0.94%)
S&P 500 1,127.41 -6.15 (-0.54%)
10-Yr Bond 4.759% +0.027

9:45AM: As indicated by the futures market, the cash market opened a little lower, shedding a few points on the better than expected PPI data, despite a drop in unemployment claims...The Nasdaq is leader the broader averages lower on early weakness in semiconductors and electronic manufacturers after JBL announced it will miss estimates...Early leadership can be seen gold and homebuilding...

[54anickel]

25. Wonder if we'll see some of that bizarre S&P movement again today

as it tries to hold above that 1121.80? Think that's the one I'll choose to watch for the day for entertainment. Perhaps even a rally to 1142.20? - Nah. Clinging to the waterline of 1121.80 should be the hightlight for the day.

[54anickel]

28. China's Jan.-May Property Prices Rise 11%; Investment Surges

http://quote.bloomberg.com/apps/news?pid=10000080&sid=aC7pMHms9e4c&refer=asia

June 17 (Bloomberg) -- China's residential and commercial property prices rose 11 percent from a year earlier in the first five months and investment in real estate climbed by about a third, the National Bureau of Statistics said.

Prices for homes, offices and other commercial property rose to an average 2,708 yuan ($327) a square meter (10.764 square feet), the Beijing-based bureau said on its Web site. Investment jumped 32 percent to 370 billion yuan.

snip>

China's investment in real estate climbed 32 percent to more than 1 trillion yuan last year, the fastest growth since 1995.

[54anickel]

29. Secure your Gold and Oil Positions -Saudi Arabia is the Brink of Civil War

http://www.321gold.com/editorials/ridley/ridley061604.html

snip>

Close examination reveals that the Saudi Royal Family of some 6,000 princes (women are excluded), along with favored business buddies like the bin Ladens, absorb virtually all the billions of oil revenues. Their shallow egos demand displays of material wealth and power evident by pampered palace living. One nurse who I know of who worked over there reported that one Saudi prince who she attended to had gold bars placed on his bedroom floor to keep his feet cool. And of course there are the chauffeured limousines, private jets, and western educations for the royals. This is another classic example of third world politics where the power elite keep themselves in luxury while their subjects are kept under strict control.

The Saud Royalty enforces strict Islamic laws and harsh punishments for the 22 million subjects under their rule. By our standards, the rule of the law is primeval. For the worst lawbreakers, public beheadings are still the norm.

To help keep the masses somewhat happy however, billions of dollars have been doled out to the under classes. These funds have gone to some positive things such as schools and mosques however there is a clear money trail showing that al Qaeda terrorists have also been on the receiving end.

Clearly, this terrorist financial support shows there is dissention within the ranks of the Saudi power elite. The clearest example being Osama bin Laden himself.

snip>

Once King Faud dies, the potential for civil war within Saudi Arabia will be high.

If Prince Nayef decides to challenge Prince Abdullah, he may have the help of terrorist supporters. Within Saudi Arabia there is a generation of hard core religious fanatics who have been brainwashed into believing they are on a mission to rid the world of non-believers. This is what one Arab writer has described as the "culture of death." These are the people who don't think twice about blowing up innocent people along with themselves.

This isn't a pleasant scenario however it's very real. More troubling is that if Saudi Arabia's oilfields ever go offline for too long, the world will go into a major economic tailspin.

Meanwhile, the targets of choice for terrorists in Saudi Arabia are the western workers who live and work there. Alex Standish, the editor of Jane's Intelligence Digest, said the situation in Saudi Arabia has strong parallels to the fall of the Shah of Iran who was toppled in 1979. He said there is a lot of evidence to suggest al Qaeda is gathering strength.

The bombings and assassinations are having there desired effect as westerners are starting to leave. If this exodus continues, oil shipments would be severely impaired. The United States and the rest of the industrial world are counting on Saudi to increase their oil production, not dial it back. It should be more then obvious the world will not sit idly by and wait for the Saudi's to sort out their political problems.

[54anickel]

52. Related article - West predict mass exodus of expatriates from Saudi Arabi

http://jang.com.pk/thenews/jun2004-daily/16-06-2004/main/main6.htm

BRUSSELS: In the wake of latest terrorist attacks against foreigners in Saudi Arabia, several governments in the West have predicted a mass exodus of expatriate workers from the Kingdom, reliable European sources told The News.

Referring to such official predictions, Jane’s Intelligence Digest (JID), in its latest report, has drawn "significant parallels between the current situation in Saudi Arabia and the final months of the Shah of Iran before his flight into exile." JID is known for its credible prognostications in the sphere of defence and international security.

Quoting "experienced Middle East analysts", the JID says, "The collapse of authority tends to be the end result of a self-fulfilling prophecy. Once there is the perception that the old regime is doomed, it is usually a matter of time before it actually collapses. We saw precisely this sequence of events in Iran in 1979."

Assessing that whether al-Qaeda’s long-standing strategy of destabilising the increasingly embattled House of Saud stands any real prospect of success, JID says that the steady exodus of expatriate workers from Saudi Arabia is set to gather pace in the coming weeks, following the latest terrorist assault against foreigners in the Kingdom.

more...

[54anickel]

30. The Greenspan Dilemma (Love this pic!!!)

snip>

This graph illustrates monetary growth (as a measure of M-3), and more than anything else, defines the very essence of Alan Greenspan. He has more than doubled the money supply over the last ten years and has created more money than all of the other Fed Chairman's put together. When in doubt, print it! As if that weren't enough, he has created a staggering $501.9 billion through the first 22 weeks of this year, and more than $150 billion of this came during the month of May. One has to wonder what has the Chainman so worried that he would resort to such extreme action.

This is particularly disconcerting when you look at what he's received for the investment made. The following chart traces the price of just a few representative items throughout 2004:

What's clear from this chart is that if you invested in stocks, bonds, or gold, you came up empty. Only oil and copper provided any return on investment for Mr. Greenspan, and given a closer look, that's somewhat deceiving. Oil rose 37% this year but most would admit that this acts as a tax on the average American since the US is a net importer of crude oil. Also, copper appears to have gained 10% but it actually traded as low as 112.50 on Friday and did close below the January 1st closing price; so those gains have gone up in smoke. It gets even scarier if you notice that copper, gold, silver and bonds have all taken swan dives since the middle of March as did the Commodity Research Bureau (CRB) Index.

Then just what did Mr. Greenspan get for his half a trillion dollars? The answer is time! Time for him and time for this Administration to find the next bubble, or patch up the present bubbles. That's all the money supply graph really is, a play for time, and it only worked because the dollar just happens to be the reserve currency for the world. In my opinion, that one fact is the only thing that separates the United States from Argentina. If our half a trillion dollars didn't produce gains then just where did all of this money go? Well, as far as I can tell it went for the following:

To maintain the status quo in the market place. Maybe it can't rally, but they sure don't want it to fall in an election year
.
I have no doubt that a good chunk of it went to plug some gaping holes in both Fannie Mae's and Freddie Mac's balance sheets
.
Iraq and Afghanistan
.
In a concerted effort to keep the American consumer in the Malls and stores, wearing the numbers off of those credit cards. The consumers are responsible for 70% of our economy and Greenspan has to keep them spending

snip>

Alan Greenspan will raise rates once this year, but he'll also continue to crank out dollars like they're going out of style. One negates the other, and if you crank out enough dollars you'll even convince the markets that inflation is still a threat, at least over the short run. The bad thing about an increase in rates is that it will stifle consumer spending. Remember the consumer? He's seventy percent of the economy and if he stops spending, the party's over. And that is Greenspan's dilemma....

more...

[Frodo]

32. A question

I can't see the graph, so I'm making assumptions, but isn't that about what you should expect? The money supply need to grow in relation to the economy or you get inflation/deflation problems. Doubling in ten years is a growth rate of just over 7%/year. I don't know the true averages, but 4% net GDP growth plus 3% inflation over ten years would require a doubling of the money supply, wouldn't it?

[54anickel]

34. That's what you would expect and require in this new game where

deficits don't matter implemented by Sir Ronnie and supply-side economic theory - yes. But, is that game coming to an end? Our GDP growth hasn't been so much based on real growth of trade in goods and services for the past couple of decades as much as it's been "inflated" growth in this "New Economy". Can the games continue? I don't know - that's what is so interesting about living in these times. We may be at a turning point for monetary and fiscal policy. Changes in monetary policy and control have happened throughout history - it keeps evolving rather than staying the same. One system dies to be replaced by another due to some crisis. Are we there? I don't know, but it's interesting.

I don't know why you can't see the graph unless you can't get to the linked article.

[54anickel]

33. Hmmm, what's this? The debt is going down a bit and no Fed security

lendings yesterday. No takers lately?

http://www.publicdebt.treas.gov/opd/opdpenny.htm

[UpInArms]

35. just looking at the partial month of June

06/15/2004        $7,211,999,666,400.12
  06/14/2004        $7,214,233,343,501.43
  06/11/2004        $7,218,774,763,035.08
  06/10/2004        $7,222,662,194,222.20
  06/09/2004        $7,214,624,032,891.61
  06/08/2004        $7,216,377,230,064.30
  06/07/2004        $7,212,924,994,568.87
  06/04/2004        $7,211,664,978,671.13
  06/03/2004        $7,210,718,887,247.47
  06/02/2004        $7,191,874,357,776.22
  06/01/2004        $7,187,557,826,891.12

It appears that through June 8, the debt increased daily -
decreased slightly on the 9th, increased greatly on the 10th,
decreased again on the 11th and 14th and now again on the
15th.

Perhaps it is a reflection of some old debt bonds maturing? 

Someone with more knowledge or information would have to
explain it to me "like you would to a child".

The other question that I would have is:

Has Congress officially increased the debt limit yet? It could
be an off-shoot of that, if the answer is "no".

[54anickel]

37. Debt limit? We don't need no stinking debt limit!

I have to admit that I haven't watched the daily totals for each month that closely to catch the ups and downs for each day. I thought that last month was pretty much all up daily, but I may have confused that with the monthly listing - which has been always up from the previous.

Month to month, year to year it's been up, up and away! I'd like to see the year to year figures before '87 and supply-side economics. Maybe I'll have time to dig that up later.

Prior
Months

05/28/2004 $7,196,382,805,621.99
04/30/2004 $7,133,789,490,581.43
03/31/2004 $7,131,067,950,647.32
02/27/2004 $7,091,943,110,094.84
01/30/2004 $7,009,234,605,728.06
12/31/2003 $7,001,312,247,818.28
11/28/2003 $6,925,065,499,881.34
10/31/2003 $6,872,675,839,106.67


Prior Fiscal
Years

09/30/2003 $6,783,231,062,743.62
09/30/2002 $6,228,235,965,597.16
09/28/2001 $5,807,463,412,200.06
09/29/2000 $5,674,178,209,886.86
09/30/1999 $5,656,270,901,615.43
09/30/1998 $5,526,193,008,897.62
09/30/1997 $5,413,146,011,397.34
09/30/1996 $5,224,810,939,135.73
09/29/1995 $4,973,982,900,709.39
09/30/1994 $4,692,749,910,013.32
09/30/1993 $4,411,488,883,139.38
09/30/1992 $4,064,620,655,521.66
09/30/1991 $3,665,303,351,697.03
09/28/1990 $3,233,313,451,777.25
09/29/1989 $2,857,430,960,187.32
09/30/1988 $2,602,337,712,041.16
09/30/1987 $2,350,276,890,953.00

[54anickel]

36. 11:50 update, and I gotta run for a while

Dow 10,369.79 -9.79 (-0.09%)
Nasdaq 1,985.44 -12.79 (-0.64%)
S&P 500 1,130.94 -2.62 (-0.23%)
10-yr Bond 4.736% +0.004
30-yr Bond 5.401% -0.009

NYSE Volume 520,967,000
Nasdaq Volume 613,206,000

11:30AM: The market has bounced higher in the past 30 minutes with the Dow finding strength in Caterpillar (CAT, +0.5%) and Microsoft (MSFT, +1.0%) as the Nasdaq continues to underperform...Semiconductors and electronic manufacturers are doing the bulk of the damage to the Nasdaq while the S&P is pulled down by weakness in Cisco (CSCO, -2.3%) and Intel (INTC, -1.64%)...Airlines are a little lower this morning after Jet Blue (JBLU, +0.62%) reported weaker than expected revenues following Delta's (DAL, +0.2%) bleak revenue guidance yesterday...
The A/D line is starting to improve at 4-to-5 on the NYSE and 1-to-2 on the Nasdaq as up/down volume remains a weak 4-to-5 on the NYSE and 1-to-3 on the Nasdaq...NYSE Adv/Dec 1344/1652, Nasdaq Adv/Dec 924/1866

11:05AM: The broader averages are weaker this morning; with the Dow seemingly reluctant to react...The Nasdaq continues to lead the market lower on weakness in semis and poor performance by Jabil (JBL, -15.79%) as the indices hold near the session lows...Several downgrades in radio stocks, including Westwood One (WON, -3.69%) and Cox Radio (CXR, -4.11%), are adding to the day's declines...Treasuries are following through with yesterday's declines as 10-year yields climb to 4.75% on a higher than expected May PPI...

Leading indicators came in a little higher than expected at 0.5% compared to a 0.4% consensus but offered little to market sentiment since the data is mostly old news...NYSE Adv/Dec 1100/1779, Nasdaq Adv/Dec 806/1866

Advances & Declines
NYSE Nasdaq
Advances 1471 (45%) 1039 (34%)
Declines 1552 (48%) 1788 (59%)
Unchanged 193 (6%) 167 (5%)

----------------------------------------------------------------------

Up Vol* 213 (45%) 161 (28%)
Down Vol* 251 (53%) 403 (70%)
Unch. Vol* 7 (1%) 6 (1%)

----------------------------------------------------------------------

New Hi's 74 42
New Lo's 32 33

[54anickel]

38. The Secular Stock Market Trend

http://www.gold-eagle.com/editorials_04/milhouse061504.html

Last year at around this time we asked the question: "Has a bear market started yet?" We thought this was a reasonable question because the NYSE advance-decline line had been trending higher for three years and several important sectors of the market were clearly not in long-term downward trends. And the question seems even more relevant today than it did 12 months ago because the NYSE advance-decline line hit an all-time high early this year, and although the senior stock indices have never looked like challenging their 2000 peaks many sub-indices have moved to all-time highs over the past 12 months. The question really doesn't exist, though, if we make the sensible decision to define the secular trend in terms of valuations rather than prices.

When we try to define secular stock market trends in terms of prices we run up against two problems. First, nominal prices are expressed in terms of a currency that is constantly changing. Second, when a currency depreciates as a result of inflation an effect, at least during the early stages of the inflation, can be higher earnings and higher stock prices.

It is possible, however, to eliminate the 'smoke and mirrors' effect that massive monetary stimulation can cause because over long periods the stock market has always differentiated between real earnings growth and earnings growth caused by inflation. Specifically, investors have historically paid less for earnings that stem from inflation than for earnings that stem from real (productivity-driven) growth. In other words, if earnings are being artificially boosted by currency depreciation then P/E ratios will trend lower.

Further to the above, if we define secular trends in terms of the average P/E ratio, as opposed to the nominal level of a stock-market index, the secular trends will not be obscured by changes in the value of the currency. For example, the below chart shows how long-term trends can appropriately be defined by the trends in the S&P500's P/E ratio.

The logical conclusion is that a secular bear market began following the major peak in the P/E ratio during the first two years of this decade and will, if history is any guide, continue until well into the next decade.

more...

[54anickel]

39. Fuel Costs Have Ripple Effect on Businesses

http://www.washingtonpost.com/wp-dyn/articles/A47851-2004Jun16.html

snip>

Fed Chairman Alan Greenspan said on Capitol Hill on Tuesday that he and his colleagues generally agree that "inflationary pressures are not likely to be a serious concern in the period ahead." Although overall inflation has jumped in recent months, that is largely because of surges in energy and food prices, which several Fed officials believe should be temporary. Already, the prices of crude oil and gasoline have receded somewhat from their recent peaks.

The Beige Book provides a snapshot of how spiking fuel prices and other price pressures were affecting businesses over the past eight weeks.

For example, strong economic growth was raising the demand for freight transportation services in most Fed districts, the report said, and "transportation firms are more readily passing on cost increases from rising fuel and health care coverage costs to their customers."

snip>

The Fed banks also reported rising prices for a variety of other goods.

Tuition at the University of Minnesota is going up 14 percent in the coming year, and prices have moved higher in the Minneapolis Fed Bank's district for meat, drywall, lumber, cement and fertilizer.

Ice cream prices are up in the Dallas district, as well as prices for petrochemicals, plastics, steel, aluminum, lumber, paper, liner board, cement, brick, tile, glass ceramics, corn, wheat, rice, cheese and milk.

Nearly half of the manufacturers surveyed in the Philadelphia district have raised the prices of their products since the beginning of the year.

The rebounding tourist industry was able to raise prices in several areas.

snip>

Florida hotels and restaurants raised room rates and menu prices as the weaker dollar prompted more Europeans to visit Florida, and caused more U.S. visitors to go there instead of overseas, the Fed said. Traffic out of Orlando International Airport had climbed back to pre-Sept. 11 levels for the first time.

Other signs of economic strength abounded, mixed with pockets of weakness.

more...

[54anickel]

40. FCC asked to put phone rates on hold

http://www.freep.com/money/business/phone17e_20040617.htm

President George W. Bush's top telecommunications official urged regulators to delay increasing the rates AT&T Corp. and other telephone companies pay to rent local-phone networks.

The interim rate rules being written by the Federal Communications Commission to replace those struck down by an appeals court should "include the maximum legally sustainable transition period without wholesale rate increases," Michael Gallagher, acting assistant secretary for communications and information in the Commerce Department, wrote in a letter Wednesday to FCC Chairman Michael Powell.

The interim rules "should cover a full year, unless superseded by permanent rules," Gallagher wrote. The Bush administration and the FCC last week declined to back AT&T and MCI Inc. in a Supreme Court challenge of the lower-court ruling, raising the possibility the companies would pay more to rent phone lines from Verizon Communications Inc. and other local carriers.

Gallagher wasn't more specific on the transition period, and department spokesman Clyde Ensslin declined to elaborate. The chief executives of the four largest U.S. local-phone providers have said they won't raise wholesale rates until year-end.

more...

[UpInArms]

41. Market Numbers and blather at 1:21 EST

Dow 10,373.69 -5.89 (-0.06%)
Nasdaq 1,985.79 -12.44 (-0.62%)
S&P 500 1,131.58 -1.98 (-0.17%)
10-Yr Bond 4.718% -0.014

1:00PM: The market is tapering off near the afternoon highs with the Nasdaq continuing to underperform the major averages...Semiconductors have stabilized on the session lows but continue to weigh on computer equipment manufacturers due to weakness in Jabil Circuit (JBL, - 16.3%)...Volume remains weak as range-bound trading persists...Gold stocks have stepped up again, posting +1.3% gains, while strength is found in hotels and oil & gas...The Philadelphia Fed release came out better than expected and offered little response to the equity market but sent 10-year yields back to unchanged for the day...

Crude prices continue to climb as supply concerns take shape due to the recent pipeline and car bombings in Iraq...NYSE Adv/Dec 1598/1091, Nasdaq Adv/Dec 1503/ 1817

12:25PM: Volume remains weak in today's range-bound session as the Nasdaq continues to underperform the broader market on weakness in semis and electronic manufacturers...The Dow is currently just off the session highs set on the open as strength in Caterpillar (CAT, +0.5%), Microsoft (MSFT, +1.0%) and General Electric (GE, +0.8%) hold the market up...Carnival Cruise (CCL, +3.4%) beat Q2 consensus estimates by $0.05 and issued in line guidance for Q3 giving competitor Royal Caribbean (RCL, +5.9%) added support...

U.S. auto manufacturers are slightly weaker today despite Ford (F, +0.2%) raising Q2 guidanc while radio stocks continue to underperform the broader market...New 52-week high/lows look bullish at 3-to-1 on the NYSE and 4-to-3 on the Nasdaq...NYSE Adv/Dec 1597/1471, Nasdaq Adv/Dec 1112/1765

[54anickel]

43. This Summer Will Belong to the Bull

http://biz.yahoo.com/ts/040617/10166443_1.html

Let's review the market's progress over the last few weeks. Earlier this month I argued that a summer rally would begin after triple-witching options expiration ends this Friday. My prediction was based on bullish statistics for the weeks leading into earnings season in recent quarters.

So far the major indices have moved higher than I expected when I wrote that column. The good news is that they've taken out several resistance levels, and then tested them successfully. On the flip side, we haven't seen the Dow, S&P 500 or Nasdaq Composite make higher highs yet. They've been unable to reach this important milestone in unison since last December.

Technical analysts are pointing out that volume has remained weak throughout the run-up off the May lows. But my respectful response is, "who cares?" The market isn't grinding through a phase where volume minutiae correctly forecast future direction. Instead we should focus on the cumulative effect of the last three weeks and make sure it supports higher prices.

Weekly charts effectively turn down the chatter and get inside recent price action. And their current message is quite encouraging for the bulls. For example, the Nasdaq 100 Trust's (AMEX:QQQ - News) weekly chart shows rising relative strength for the first time this year. There's a good chance that other indicators will kick in soon and exhibit the upward slope that defines a healthy recovery after a long correction.

more...

[KoKo]

48. The major indices have moved higher than he expected?? Whoa....

whatever he's smokin' is powerful.... or perhaps he's heavily into the "Hedges" and is privy to stuff that few of us have access to.

(excuse me while I Chimp smirk, here)

[54anickel]

56. What indices is he watching and what did he expect? WTF?

[54anickel]

44. China embraces lawsuits to protect trade turf

http://www.iht.com/articles/525355.html

snip>

"As China feels the competitive pressure resulting from China's entry into WTO, more domestic companies will avail themselves of trade remedies procedures to protect their turf from foreign competition," he said.
.
China's own exporters are already the target of dumping suits in the United States, with which it had a record $124 billion trade surplus last year. The U.S. International Trade Commission ruled last month that Chinese companies must pay duties on the $276 million worth of televisions they ship to the United States and is due to make a similar ruling on furniture Friday.
.
Last week, the Commerce Ministry in Beijing decided at a hearing attended by domestic steel producers and users to keep anti-dumping tariffs on South Korean, Russian and Taiwan cold- rolled steel in place.
.
"China is learning how to play the game," said Robert Broadfoot, managing director of the Political and Economic Risk Consultancy in Hong Kong. "When singled out for what it considers to be unfair accusations, it's learning how to retaliate."
.
"They now take the WTO very seriously," said Johnson Tan, a Beijing-based partner at Jones Day, a law firm that represents U.S. companies involved in trade disputes in China. "They have committees that look at these provisions available under the WTO, and they are getting much more sophisticated."
.
more...

[UpInArms]

50. Market Numbers and blather at 2:33 EST

Dow 10,374.97 -4.61 (-0.04%)
Nasdaq 1,985.23 -13.00 (-0.65%)
S&P 500 1,131.72 -1.84 (-0.16%)
10-Yr Bond 4.697% -0.035

2:00PM: The Dow found resistance at the session highs as range-bound trading dominates...Semis continue to offer weakness in the Nasdaq while the S&P runs into resistance at yesterday's closing levels...Crude oil prices continue to climb, boasting a +3.3% gain, on heightened supply fears out of Iraq...Recreational stocks are up roughly +3.0% today after Carnival Cruise (CCL, 3.5%) reported quarterly earnings nearly tripled...Shares of Royal Caribbean (RCL, 6.7%) and Six Flags (PKS, 2.4%) posted respectable gains as expectations grow for increases in recreational consumer spending...NYSE Adv/Dec 1785/1374, Nasdaq Adv/Dec 1290/1684

1:35PM: The Dow has peeked into positive territory as the Nasdaq continues to trail behind the broader averages...The performance of semiconductor stocks typically sets the tone for the Nasdaq as a whole...Following this morning's dismal guidance by JBL, the Philadelphia Semiconductor Index (SOX, 3.2%) shed as much as -3.2% on the day and set the stage for an underperforming technology sector...The Nasdaq has spent the session lower in comparison to its blue chip counterparts as the Dow finds support from strength in (CAT, +0.9%) and Microsoft (MSFT, +1.6%)...

Year-to-date the SOX is down roughly 10% while the Nasdaq remains relatively unchanged over the same period...This seems to display a recent resilience in the Nasdaq over longer terms by the playing down the influence semiconductors typically have over technology sector...NYSE Adv/Dec 1662/1477, Nasdaq Adv/Dec 1168/1776

Am going away for a while - hopefully back later in the day :hi:

[54anickel]

51. Fannie, Freddie asset growth worrisome - Greenspan

http://biz.yahoo.com/rc/040615/economy_greenspan_mortgages_1.html

WASHINGTON, June 15 (Reuters) - Rapid expansion of the assets of government-sponsored mortgage finance enterprises Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) could have a destabilizing effect on the U.S. economy, Federal Reserve Chairman Alan Greenspan said on Tuesday.

"The size of the subsidy, that is debatable but I am sure is there, creates a problem of expanding assets -- mortgage assets or indeed any set of assets -- in a way which could become destabilizing if it continues on very much beyond where they are, because they have become very large financial institutions," Greenspan said in response to questions from the Senate Banking Committee.

Greenspan said the companies are well managed but that because of their ties to government, they are not subject to market adjustment forces that would constrain their growth.

[54anickel]

53. Japan and the Bad Loans

http://www.321gold.com/editorials/lee/lee061604.html

snip>

While the average American household has over US $7,000 in credit card debts, the average Japanese household saved over US $3,000 a month in 2003 (over $1.8 trillion for year). The total private Japanese savings are estimated to be over US $90 trillion. (http://christianparty.net/japanpsa.htm)

It's a very simple issue regarding Japan's bad debts. If Japan really wants to avert "deflation" and fix "bad loans," all BOJ needs to do is pull out its computer and type in $100 trillion yen (US $1 trillion) and transfer this "asset" to major banks to fill the holes. Problem solved.

You say, "John you are crazy, governments can't do that, printing yens like this will cause the currency to crash."

Really? How could the BOJ then freshly print 10 trillion yen to buy US $87 billion between Dec'03 and Jan'04 to weaken the yen?

In our opinion, Japan's foreign reserve (US $400 billion) and net trade surplus status can easily absorb the new money. Just as a comparison, the US is on track to create US $2 trillion in 2004 with over $1 trillion in federal and trade deficits.

"Why then won't Japan fix the debt problem as you suggested, John?"

Steve Saville and Ed Bugos (the two analysts we highly respect) contend that since most Japanese are savers, the BOJ has to look after its constituents and not dilute the yen.

We beg to differ (again see BOJ's yen intervention). As with all capitalist systems, the constituents of government are businesses that make campaign contributions. Otherwise why else would the BOJ print its valuable currency to buy the dollar (to save export business)?

more...

[54anickel]

54. Pension Pain

http://www.mises.org/fullstory.asp?control=1545



Private pensions in this country date back more than 100 years, that is to say, to a time when most people didn't live long enough to collect them. Nowadays Americans take living comfortably to 75 and beyond to be an entitlement. Not that longevity in itself is something to complain about, but it does have a few downsides—like a gradually sinking pension system.

Pension Benefit Guaranty Corporation (PBGC) is a federal agency whose responsibility is to protect current and future retirees—as of now about 44 million—in the event of a meltdown of their employer-sponsored pension plan. The Washington, D.C.-based entity was chartered as part of the Employee Retirement Income Security Act of 1974 (ERISA).

Congress intended PBGC to insure traditional, or "defined-benefit," plans. Under such a plan, an employer or employee representative (e.g., labor union) makes periodic contributions to an investment fund whose managers promise to pay all participating workers their vested benefits upon retirement or departure. The worker's benefit level is determined by a formula based on earnings and length of service. Benefits are paid as a monthly stream of income, known as an "annuity," or as a lump sum.

It's a fact of life that pension funds can and do fail. Indeed, the collapse of Studebaker a decade earlier, more than any one event, led to the ERISA law. When that auto manufacturer shut down its assembly plant in South Bend, Ind. in 1964, only 3,600 of 10,500 workers and retirees—those aged 60 or older who had put in at least 10 years of service—received their promised benefits. Some 4,000 others, aged 40–59, received only 15 percent, while 2,900 remaining persons under age 40, got nothing. In creating PBGC, lawmakers were confident that no employee would ever get burned like this again. As the law stipulated that a pension plan's assets must be sufficient to cover liabilities, intervention by the corporation would be a last resort.

Looking Great on Paper

more...

[54anickel]

55. Is Hertz a Zero or a Hero? (Options expensing)

Used sensibly unexpensed stock options are a unique form of compensation that can attract talent. Used sensibly expensed stock options are also a unique form of compensation that can attract talent. It is estimated that between 1995 and 2003 nearly $215 billion of options expenses went unexpensed (S&P 500). To the average investor it isn’t sensible to allow billions of dollars in compensation to stay off the income statement.

It has been nearly 2-years since Robert H. Herz was appointed Chairman of the Financial Accounting Standards Board (FASB). During this time Mr. Herz has talked a big game – one of his original platforms was a push towards principle-base accounting – but he has not managed to catch many headlines. In fact, beyond quickly punching out some much needed reform on off balance sheet schemes – something that was easily accomplishable following Enron – Herz has basically been cowering in corner; waiting/hiding from his one true calling.

“We issued a preliminary document for public comment about the accounting for stock-based compensation in November 2002.” Herz.

Although there is nothing ‘preliminary’ about it, under Herz’s command the stock option issue has progressed slowly -- until now. Come June 30, 2004 FASB will be done talking. FASB wants options expensed next year. Throwing a wrench into this plan, The House of Representatives Financial Services Committee just voted to restrict any expensing standard from FASB. After many battles, the war may soon be decided…

more...

[54anickel]

63. Whoops, here's the link

http://www.fallstreet.com/june1704.php

[54anickel]

58. Closing stuff - Tomorrow is another quadruple witch-thingy

Dow 10,377.52 -2.06 (-0.02%)
Nasdaq 1,983.67 -14.56 (-0.73%)
S&P 500 1,132.05 -1.51 (-0.13%)
10-yr Bond 4.692% -0.040
30-yr Bond 5.362% -0.048

NYSE Volume 1,296,095,000
Nasdaq Volume 1,480,188,000

Close Dow -2.06 at 10377.52, S&P -1.53 at 1132.03, Nasdaq -14.56 at 1983.67: The cash market opened lower on the higher than expected core PPI data, despite a drop in unemployment claims...Weakness came early in the session from Jabil Circuit (JBL, -13.1%) following last night's poor guidance announcement and weighed heavily on semiconductors and the Nasdaq all session...The effects of JBL's guidance were widespread in technology stocks with big names like Hewlett Packard (HPQ, -2.0%), one of JBL's largest customers, easing on the news as investors voiced concerns over demand issues...
The SOX Index finished the session -3.6%, led lower by Xilinx (XLNX, -7.3%) and Linear Technologies (LLTC, -3.7%), as weakness associated with JBL's guidance forced speculation that overall demand for semiconductors would wane...Several downgrades in radio stocks, including Westwood One (WON, -0.8%) and Cox Radio (CXR, -0.12%), added to the day's declines as both set new 52-week lows following the downgrades...The Dow found strength in Caterpillar (CAT, +0.9%) and Microsoft (MSFT, +2.1%) as it outperformed the broader market all session...

Crude prices closed +3.0% today after shrugging off supply concerns all week, as analysts anticipate continued violence in Iraq will eventually lead to longer term output shortages and higher prices...Tomorrow's quadruple witching option expirations could add some well needed depth to the market...The only economic release slated for tomorrow is the current account balance at 8:30 ET, but the release lacks significant market moving impact...The broader averages closed modestly lower with the Nasdaq underperforming the blue chip averages...NYSE Adv/Dec 1872/1391, Nasdaq Adv/Dec 1267/1823

3:30PM : The broader averages continue sideways trading as volume remains light...With only a half hour of trading remaining, the Dow and S&P remain in striking distance of positive territory, but a lack of conviction is keeping the averages fractionally lower...New 52-week high/lows are quite bullish on the NYSE at 115/36 with new highs including energy companies like Exxon Mobil (XOM, +0.11%), Marathon (MRO, +2.11%) and ConocoPhillips (COP, +0.64%)...

For new 52-week lows we have Taiwan Semiconductor (TSM, -0.94%) helping to ease the SOX Index while Westwood One (WON, -0.62%) and Cox Radio (CXR, -0.52%) are helping to pull radio stocks lower following downgrades in each...NYSE Adv/Dec 1800/1427, Nasdaq Adv/Dec 1267/1765

3:00PM : The market continues to trade sideways on a lack of conviction and light volume... Nothing has fundamentally changed in the last 30 minutes...Traders are simply buying the lows and selling the highs of the existing range looking for scalp trades... Treasuries are pushing to new highs, despite this morning's higher than anticipated core PPI data, sending yields on the 10-year as low as 4.684%...


Advances & Declines
NYSE Nasdaq
Advances 1883 (54%) 1238 (38%)
Declines 1367 (39%) 1861 (57%)
Unchanged 183 (5%) 149 (4%)

----------------------------------------------------------------------

Up Vol* 702 (54%) 412 (28%)
Down Vol* 552 (42%) 1039 (70%)
Unch. Vol* 42 (3%) 20 (1%)

----------------------------------------------------------------------

New Hi's 130 60
New Lo's 40 42

[54anickel]

59. UPDATE 2-U.S. House backs business tax bill, tobacco buyout

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=5450786

WASHINGTON, June 17 (Reuters) - A bill that would repeal export tax subsidies that violate global trade rules and provides a $9.6 billion buyout for tobacco growers passed the U.S. House of Representatives on Thursday.

The bill, passed on a vote of 251-178, would end tax breaks for U.S. exporters the World Trade Organization had ruled were illegal. U.S. lawmakers must repeal the tax subsidy in order to end European Union trade sanctions against U.S. goods that began in March.

snip>

Both bills have been criticized by public-interest groups as being loaded up with special-interest provisions.

The House bill would use money saved from repealing the export tax subsidy to finance a tax cut for domestic manufacturers and small businesses. The bill also includes tax breaks for U.S. multinational corporations that critics said could encourage companies to shift jobs overseas.


'GOODY BAG'

Rep. James McGovern, a Massachusetts Democrat, called the House bill a "goody bag of corporate tax giveaways."

more...

[54anickel]

60. Low US jobless rate ignores "hidden unemployed" (SSDD)

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=5451014

NEW YORK, June 17 (Reuters) - A key reason the official U.S. unemployment rate is so low is the growing number of working-age people leaving the labor force, outplacement firm Challenger, Gray & Christmas said on Thursday.

This trend was first reported exclusively by Reuters on Monday in a study of little-known figures buried inside the U.S. employment report each month.

The Bureau of Labor Statistics, which produces the data, also publishes an alternative measure that tries to capture the hidden unemployed, those who are not included in the official unemployment rate for various statistical reasons, Reuters reported.

snip>

"It shows there is more slack in the labor market than appears on the surface and as job opportunities improve, we'll see people re-entering the labor force to search for work," former Fed Governor Lyle Gramley told Reuters.

"That means fears that inflation is about break out all over the place do not seem warranted," he said in a recent interview.


Hmmm, what happened the last time Greenspin started raising rates to appease the currency and bond markets? Oh yeah, we started going down the toilet and he had to start dropping them, and keep dropping them and then continue to hold them at emergency levels for what - nearly a year?

[54anickel]

61. California Sues Enron For Fraud (Hey, whatever rolls yer socks!)

Some interesting links off the page to some of the latest on Enron

http://www.theneworleanschannel.com/money/3431009/detail.html

SACRAMENTO, Calif. -- California's top law enforcement officer is suing Enron, charging it manipulated prices during the state's energy crisis, costing residents hundreds of millions of dollars.

Attorney General Bill Lockyer's suit seeks restitution and damages from the Houston-based energy giant, whose trading practices are also under investigation by the Justice Department.

It contends between 1998 and 2001, Enron engaged in fraudulent schemes to artificially boost electricity prices and company profits.

Three former Enron traders have been charged with wire fraud involving price manipulation in California.

more....

[54anickel]

62. Bush Gives Contract to Tax Traitor/Campaign Donor

http://www.misleader.org/daily_mislead/Read.asp?fn=df06022004.html

President Bush has said he wants to “make sure that the system is fair for those of us who do pay taxes” and that “we want everybody paying their fair share.”1 But yesterday, the president went out of his way to lavish a massive government contract on a major campaign contributor,2 even though it specifically moved operations offshore to avoid paying U.S. taxes.

According to news reports, the Bush administration yesterday gave a $10 billion contract3 for the Department of Homeland Security to Accenture (formerly Arthur Andersen), despite the company having recently moved its official headquarters to Bermuda to avoid U.S. taxes.4 The contract was awarded less than two years after the White House and its allies in Congress gutted a House-passed provision that would have banned awarding homeland security contracts to corporations who exploit tax loopholes, move offshore, and avoid U.S. taxes.5 At the time, Accenture lobbied to eliminate the provision,6 hiring GOP political consultant “and Bush family confidant” Charlie Black to lobby on its behalf.7 Accenture executives have given President Bush more than $68,000 in campaign contributions8 since 2000.

Of course, the president has made a practice of paying lip service to the problem of corporate tax evasion, while actively opposing solutions behind the scenes. ABC News reported that when Congress was considering bills to curb the practice in 2002, Bush “said the Bermuda loophole should be closed” but refused to support “any of the bills that would do so”9 and then allowed his allies to kill the legislation.