STOCK MARKET WATCH -- Friday, 19 July 2013

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Friday, 19 July 2013[font color=black][/font]

SMW for 18 July 2013

AT THE CLOSING BELL ON 18 July 2013
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Dow Jones 15,548.54 +78.02 (0.50%)
S&P 500 1,689.37 +8.46 (0.50%)
Nasdaq 3,611.28 +1.28 (0.04%)


[font color=red]10 Year 2.53% +0.03 (1.20%)
30 Year 3.63% +0.04 (1.11%) [font color=black]


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[font size=2]Market Conditions During Trading Hours[/font]
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
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The Big Picture
Financial Sense
Calculated Risk
Naked Capitalism
Credit Writedowns
Brad DeLong
Bonddad
Atrios
goldmansachs666
The Stand-Up Economist
The Automatic Earth
Wall Street on Parade
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[font color=black][font size=2]Handy Links - Essential Reading:[/font][/font]
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Matt Taibi: Secret and Lies of the Bailout


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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
Open Government
Earmark Database
USA spending.gov
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[font color=black][font size=2]Handy Links - Videos:[/font][/font]
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Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
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[font color=red]Partial List of Financial Sector Officials Convicted since 1/20/09 [/font][font color=red]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
6/4/12 Matthew Kluger, lawyer, sentenced to 12 years in prison, along with co-conspirator stock trader Garrett Bauer (9 years) and co-conspirator Kenneth Robinson (not yet sentenced) for 17 year insider trading scheme.
6/14/12 Allen Stanford sentenced to 110 years without parole.
6/15/12 Rajat Gupta, former Goldman Sachs director, found guilty of insider trading. Could face a decade in prison when sentenced later this year.
6/22/12 Timothy S. Durham, 49, former CEO of Fair Financial Company, convicted of one count conspiracy to commit wire and securities fraud, 10 counts of wire fraud, and one count of securities fraud.
6/22/12 James F. Cochran, 56, former chairman of the board of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and six counts of wire fraud.
6/22/12 Rick D. Snow, 48, former CFO of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and three counts of wire fraud.
7/13/12 Russell Wassendorf Sr., CEO of collapsed brokerage firm Peregrine Financial Group Inc. arrested and charged with lying to regulators after admitting to authorities he embezzled "millions of dollars" and forged bank statements for "nearly twenty years."
8/22/12 Doug Whitman, Whitman Capital LLC hedge fund founder, convicted of insider trading following a trial in which he spent more than two days on the stand telling jurors he was innocent
10/26/12 UPDATE: Former Goldman Sachs director Rajat Gupta sentenced to two years in federal prison. He will, of course, appeal. . .
11/20/12 Hedge fund manager Matthew Martoma charged with insider trading at SAC Capital Advisors, and prosecutors are looking at Martoma's boss, Steven Cohen, for possible involvement.
02/14/13 Gilbert Lopez, former chief accounting officer of Stanford Financial Group, and former controller Mark Kuhrt sentenced to 20 yrs in prison for their roles in Allen Sanford's $7.2 billion Ponzi scheme.
03/29/13 Michael Sternberg, portfolio mgr at SAC Capital, arrested in NYC, charged with conspiracy and securities fraud. Pled not guilty and freed on $3m bail.
04/04/13 Matthew Marshall Taylor,fmr Goldman Sachs trader arrested, charged by CFTC w/defrauding his employer on $8BN futures bet "by intentionally concealing the true huge size, as well as the risk and potential profits or losses associated."
04/04/13 Matthew Taylor admits guilt, makes plea bargain. Sentencing set for 26 June; faces up to 20 years in prison but will likely only see 3-4 years. Says, "I am truly sorry."
04/11/13 Ex-KPMG LLP partner Scott London charged by federal prosecutors w/passing inside tips to a friend in exchange for cash, jewelry, and concert tickets; expected to plead guilty in May.










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[font size=3][font color=red]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.[/font][/font][/font color=red][font color=black]

[Demeter]

1. Believe it or not, I have a theme for The Weekend

I even have one for the next weekend.

They are cynical, sarcastic, quirky topics, and allow full ventilation for all and musical challenges for hamerfan, should he join us.

It's been a really hot week. Maybe we can cool off this way.

[hamerfan]

39. I will be there!

Thanks for the invite. I likes challenges and looking forward to WEE!

And have a great vacation, Tansy.

hamerfan

[Demeter]

2. JPMorgan in Talks to Settle Energy Manipulation Case for $500 Million

http://dealbook.nytimes.com/2013/07/17/jpmorgan-in-talks-to-settle-energy-manipulation-case-for-500-million/

JPMorgan Chase, the Wall Street giant whose reputation in Washington has eroded in a matter of months, is now moving to avert a showdown over accusations that it manipulated energy prices. The nation’s largest bank, which has previously clashed with its regulators, is seeking to settle with the federal agency that oversees the energy markets, according to people briefed on the matter. The regulator, the Federal Energy Regulatory Commission, found that JPMorgan devised “manipulative schemes” that transformed “money-losing power plants into powerful profit centers,” a commission document said.

The potential deal, the people said, is expected to cost the bank about $500 million, a record for the commission, which has adopted a harder line with Wall Street over the last year. For JPMorgan, which reported a record $6.5 billion quarterly profit last week, the fine will hardly dent the bottom line. The accusations against JPMorgan surfaced this spring in the confidential commission document, reviewed by The New York Times, that outlined a pattern of illegal trading in the California and Michigan electric markets. The document, a warning that investigators would recommend that the agency pursue civil charges, also claimed that a senior JPMorgan executive, Blythe Masters, gave “false and misleading statements” under oath. It is unclear whether Ms. Masters would be included in the potential settlement, but people close to her said that the regulator was unlikely to file a separate action against her. Initially, investigators planned to recommend that the agency hold Ms. Masters and three of her employees “individually liable,” a move that would have cast a shadow over her long career on Wall Street, where she is known for developing complex financial instruments.

While the bank still disputes the accusations, the recent settlement talks signal a shift in strategy for JPMorgan, which previously declared its intention “to vigorously defend” itself. Other banks, including Barclays, are fighting the commission in similar cases, casting the agency as overly aggressive. A settlement with JPMorgan could undermine Wall Street’s counterattacks and pave the way for more settlements. With the recent overture, JPMorgan appears to have taken a more conciliatory approach to Washington broadly, as it works to mend relationships with regulatory agencies. Its new tack, advocated by top JPMorgan lawyers, underscores the bank’s realization that it was swiftly losing credibility in Washington. Within regulatory circles, JPMorgan had become known as something of a bully, a bank quick to strike a combative tone with regulators. In a Congressional report examining a $6 billion trading loss the bank sustained last year, investigators faulted it for briefly withholding documents from regulators. The energy markets regulator also accused the bank of stonewalling investigators.

A settlement with the commission would enable JPMorgan to resolve the embarrassing accusations without fighting a lengthy legal battle. It also would allow the bank to focus on its other legal woes as it remains caught in the cross hairs of at least eight other federal offices. In addition to inquiries stemming from the trading loss, banking regulators are weighing enforcement actions against the bank for the way it collected credit card debt. Jamie Dimon, JPMorgan’s chief executive who was once known as Washington’s favorite banker, acknowledged in his annual letter to shareholders that “unfortunately, we expect we will have more” enforcement actions in “the coming months.” He apologized for letting “our regulators down” and vowed to “do all the work necessary to complete the needed improvements.”...AMONG OTHER THINGS

SCHAUDENFREUDE ON A FRIDAY MORNING...BETTER THAN CAFFEINE OR CHOCOLATE!

[Demeter]

5. U.S. regulator upholds record $453 million Barclays power-trade fine

http://www.reuters.com/article/2013/07/16/us-ferc-barclays-powerscheme-idUSBRE96F18G20130716

The U.S. Federal Energy Regulatory Commission (FERC) said on Tuesday Barclays and four of its power traders must pay fines totaling $453 million, confirming the nation's top energy cop will pursue its most ambitious market manipulation case to date.

The record fines, first proposed by the regulator's staff in October 2012 over alleged manipulation of California and other western power markets by the British bank last decade, were upheld in an order after assessment by FERC commissioners.

Tuesday's order said the FERC commissioners agreed with earlier findings by regulatory staff, which said the bank deliberately lost money in physical power markets to benefit its financial positions between 2006 and 2008, and that the Barclays traders knew their activity was unlawful.

"FERC finds that their actions demonstrate an affirmative, coordinated and intentional effort to carry out a manipulative scheme, in violation of the Federal Power Act and FERC's Anti-Manipulation Rule," the regulator said in a statement.

The case will likely now move to federal court where Barclays hopes to defend itself against the allegations that it has long disputed...MORE

[DemReadingDU]

16. JPMorgan Executive May Escape Penalty

7/18/13 JPMorgan Executive May Escape Penalty

Even as the nation’s top energy regulator is poised to extract a record settlement from JPMorgan Chase over accusations that it manipulated power markets, the agency is expected to spare a top bank lieutenant who federal investigators initially contended made “false and misleading statements under oath,” according to people briefed on the matter.

Blythe Masters, a seminal Wall Street figure who is known for developing exotic financial instruments, emerged this spring at the center of an investigation by the Federal Energy Regulatory Commission into accusations of illegal trading in the California and Michigan electricity markets.

The regulator found that JPMorgan designed trading “schemes” that converted “money-losing power plants into powerful profit centers,” a commission document said.

While the commission and JPMorgan are negotiating a settlement for about $500 million, the people briefed on the matter said, Ms. Masters is not expected to face a separate action. The move signals a pivot for the agency, which has been increasingly flexing its enforcement muscle, according to the people briefed on the matter, who spoke on the condition they not be named.

Months earlier, investigators planned to recommend that the regulator find Ms. Masters, who holds a powerful position within JPMorgan as the head of its commodities business, “individually liable.” But as the investigation progressed, these people said, top energy regulatory officials have been leaning toward not pursuing any civil charges against Ms. Masters.

more...
http://dealbook.nytimes.com/2013/07/18/jpmorgan-executive-may-escape-penalty/?partner=rss&emc=rss&smid=tw-nytimes

[wordpix]

32. how come Ms. Masters gets a pass for lying under oath?

Does she give good BJs or what?

[Demeter]

40. Everybody gets a pass these days

as long as you have banking credentials....

[Demeter]

3. Former Goldman director Gupta fined, banned in SEC case

http://news.yahoo.com/ex-goldman-director-gupta-fined-banned-sec-case-214548473.html

Former Goldman Sachs Group Inc. director Rajat Gupta was ordered to pay a $13.9 million civil penalty and banned from serving as an officer or director of a public company for having illegally passed corporate secrets to former hedge fund manager Raj Rajaratnam, a top U.S. regulator said on Wednesday.

The U.S. Securities and Exchange Commission said the order was issued earlier in the day by U.S. District Judge Jed Rakoff in Manhattan, who also oversaw Gupta's related criminal trial.

Gupta, 64, is appealing his June 2012 conviction and two-year prison term for having fed confidential tips he learned at Goldman board meetings in the second half of 2008 to Rajaratnam, a former billionaire who ran Galleon Group. The tips included news about Goldman's financial results and a crucial $5 billion investment during the financial crisis by Warren Buffett's Berkshire Hathaway Inc.

Gupta is a former global managing director of the consulting from McKinsey & Co. He remains free during his appeal...MORE

[Demeter]

4. The Markets Soar to Rub Salt inthe Wounds of My Home Town Detroit

Detroit bankruptcy: What is Chapter 9?

http://www.mlive.com/news/index.ssf/2013/07/detroit_bankruptcy_what_is_cha.html#incart_river_default

...The federal bankruptcy code is divided into a number of chapters, each of which deal with a particular form of bankruptcy. Chapter 9 specifically deals with municipalities, including cities like Detroit. Unlike the more common Chapter 7 or Chapter 13 personal bankruptcy, a Chapter 9 bankruptcy does not include possible liquidation of assets. Instead, Emergency Manager Kevyn Orr will be responsible for submitting a "debt adjustment plan" to deal with the outstanding claims against the city's coffers, which will require each group of creditors to sign off on the proposal.

Also unlike a personal (or business) bankruptcy, Detroit's petition for bankruptcy protection may not be heard in the federal district where it was filed. As a municipal bankruptcy, the filing can be assigned to any court within the Sixth Circuit, which covers Michigan, Ohio, Kentucky and Tennessee. The determination will be made by the chief judge of the Sixth Circuit Court of Appeals and will be based on which trial judge can most effectively take on the case.

Day-to-day operations

Immediately after the filing, Detroit was protected from claims by creditors under an "automatic stay," which is a provision of bankruptcy law that precludes collecting on outstanding debts. Because the bankruptcy court does not have the authority under federal law to interfere in the day-to-day operations of the city, Detroit will still be able to provide police, fire and other public services. The city can also borrow money as necessary to continue operations, without court approval, and the court cannot exercise any authority over the political or governmental powers of the city.

Objections

Despite the automatic stay, creditors can still seek to prevent Detroit from moving forward with the bankruptcy by objecting to the petition. in order to file a petition, the city is required to have negotiated in good faith with creditors prior to filing, and failure to negotiate in good faith is considered grounds for a dismissal. The process of objecting to the petition, and any possible resolution of those objections, could take weeks or months to resolve depending on the nature of the objections.

Judge would have stopped Detroit bankruptcy filing

http://www.mlive.com/news/detroit/index.ssf/2013/07/judge_would_have_stopped_detro.html#incart_river_default

An Ingham County judge says she would have stopped Detroit from filing for bankruptcy, but the petitioners from city pension funds were minutes late, the Free Press reports.

The newspaper writes:

Ingham County Judge Rosemarie Aquilina said she would have issued a restraining order to stop the Detroit bankruptcy, if given a chance.

“We got out here as quickly as we could,” Aquilina told the attorneys for the pension funds and retirees. “Obviously not in time.

“It was my intention to grant your request.”

The pension funds for the Detroit’s General Retirement System and the Detroit Police and Fire Retirement System are challenging the city's ability to slash retiree benefits to resolve billions of dollars in municipal debt. They say reductions in pension benefits are illegal.

Detroit Emergency Manager Kevyn Orr is calling for reductions in pension benefits.

Detroit bankruptcy was 'the only viable option,' says Gov. Rick Snyder

http://www.mlive.com/news/detroit/index.ssf/2013/07/detroit_bankruptcy_was_the_onl.html#incart_river_default

Gov. Rick Snyder on Thursday called bankruptcy the "only viable option" to address Detroit massive and enduring financial troubles.

The city became the largest municipality in U.S. history to file for bankruptcy Thursday afternoon following weeks of mostly failed efforts to negotiate drastic concessions from debt holders, including banks, unions and pension boards.

"The fiscal realities confronting Detroit have been ignored for too long," Snyder said in a statement. "I'm making this tough decision so the people of Detroit will have the basic services they deserve and so we can start to put Detroit on a solid financial footing that will allow it to grow and prosper in the future.

"This is a difficult step, but the only viable option to address a problem that has been six decades in the making."

Snyder has in the past expressed opposition to pursuing bankruptcy because of the impact it could have on the borrowing ability of surrounding communities and the state. But he said in an approval letter included in the Thursday filing that he was convinced that bankruptcy is a "necessary step as a last resort to return this great city to financial and civic health for its residents and taxpayers."

He cited a "failure to meet obligations to citizens" after a 60-year decline...

I CANNOT MEASURE THE DEPTH OF OF MY CONTEMPT FOR GOVERNOR SNYDER.

[wordpix]

34. so I'm guessing Detroit's assets will go to private interests, right?

Not sure how this will play out but it appears to be a repug wet dream---seize the city's assets (roads, parks, bridges, buildings, water and sewer infrastructure, land) and sell them to the highest bidder.

[Demeter]

6. Cyber attacks on stock exchanges put markets at risk

AT RISK? OF WHAT? DERAILING ALL THE HIGH FREQUENCY TRADING SO THE QUANTS CAN'T MAKE THEIR TARGETS AND MISS THE SNOW FEST?

PARDON MY SCOFFING. IF A PHONY, RIGGED MARKET FALLS IN AN EMPTY FOREST, IS THERE ANY NOISE?

http://www.reuters.com/article/2013/07/16/cybercrime-exchanges-report-idUSL1N0FM1ZI20130716

Around half of the world's securities exchanges were the target of cyber-attacks last year, according to a paper based on a survey of 46 exchanges released on Tuesday. The prevalence of attacks along with the interconnected nature of the markets creates the potential for widespread impact, said the joint staff working paper by the International Organization of Securities Commissions' (IOSCO) research department and the World Federation of Exchanges Office. (Link to the report

"There could be systemic impacts ... from cyber attacks in the securities markets, especially considering that our financial system is relying more and more on technological infrastructure," the report's author, Rohini Tendulkar of the IOSCO Research Department, said in an interview.

Among the exchanges surveyed, 53 percent said they experienced a cyber attack last year. The most common forms were Denial of Service attacks, which seek to disrupt websites and other computer systems by overwhelming the targeted organizations' networks with computer traffic, and viruses. Other forms of cyber-crimes reported by the exchanges included laptop theft, website scanning, data theft, and insider information theft. None of the exchanges reported financial theft as part of the attacks.

"Cyber-crime also appears to be increasing in terms of sophistication and complexity, widening the potential for infiltration and large-scale damage," the report said, adding that a major attack could result in widespread public mistrust and a retreat from the markets.

MORE

[Demeter]

7. Did you hear about Congresscritters wanting to shut down Fannie and Freddie?

If the goal is to shrink the housing market to one tenth its size...it must be nice to be totally ignorant of basic economic realities....and still get paid handsomely! Sorry for the Freeper sources...it appears our side is whistling past the graveyard on this one.

Congressional Report Raises Spectre of FHA Bailout

http://news.heartland.org/newspaper-article/2013/06/24/congressional-report-raises-spectre-fha-bailout

The Federal Housing Administration's (FHA) losses over the next 30 years could be much higher than originally projected, according to the findings of a congressional committee. The dismal forecast has some bracing for another taxpayer-financed bailout.

The House Oversight and Government Reform Committee, chaired by Rep. Darrell Issa (R-Calif.) is reporting that a worst-case scenario stress test conducted last year estimated the FHA could suffer losses as high as $115 billion. That forecast is significantly worse than the one reported by independent auditor Integrated Financial Engineering Inc., which projected losses of $65 billion for the 79-year old agency. Federal law requires the FHA to keep enough reserves to cover projected losses or to accept a government bailout if it cannot.

FHA was created as a part of the National Housing Act of 1934 with the goal of improving housing affordability. The agency does not lend money to borrowers but insures lenders against losses on loans that meet certain standards, making lenders more willing to extend credit.

The primary cause of the FHA's troubles is the plague of underwater mortgages that has struck the housing sector in recent years. During the late housing bubble, the FHA lost market share as more private lenders sold “subprime” loans to home buyers. But with the collapse of the housing market in 2007-08, much of that business returned to the FHA. While the agency has played a major role in propping up home prices, it has also been overwhelmed by defaults....

FHA’s Biggest Loser: No-Money-Down Mortgages

http://blogs.wsj.com/developments/2012/11/26/fhas-biggest-loser-no-money-down-mortgages/

One of the biggest reasons the Federal Housing Administration is facing severe financial woes is a problem agency officials identified and sought to correct years ago. The Federal Housing Administration is facing a capital crunch largely due to loans it guaranteed as the housing bubble deflated from 2007 through 2009, the agency has said. A big chunk of the losses leading to a $16.3 billion shortfall have come from programs that allowed home sellers to fund down payments via nonprofit groups that provided them to buyers as a “gift.” After trying for years, the FHA finally prevailed on Congress to shut down the programs in late 2008, but not before the agency backed billions in risky no-money-down loans as home prices were dropping fast. The Journal looked at the programs in a Page One story just a month before Congress passed a bill that ultimately shut them down.

Seller-funded down-payment assistance loans accounted for just 4% of outstanding loans at the end of September, but they represented 13% of all seriously delinquent mortgages, according to a recently released audit. The audit said that had the FHA not allowed the programs to go forward, then the mortgage program’s $13.5 billion net worth deficit would have turned to a positive $1.77 billion. It’s possible, of course, that some of these loans might have been made anyway with buyers putting their own money down, and some of those, of course, could have also defaulted. Overall, the FHA says it is now facing $70 billion in claims it will have to pay on mortgages that it insured between 2007 and 2009.

The fight over no-money-down programs turned into a years-long battle in Washington. The Internal Revenue Service ruled in May 2006 that down-payment assistance groups had directed down payments from the builder to the buyer while collecting hefty fees. As Developments later wrote, “Despite the ruling, these groups kept giving out gifts, mostly to low-income buyers who would not be able to afford a house without them.”

The Department of Housing and Urban Development, which oversees the FHA, proposed a rule that would have banned the programs, but a federal judge stayed the ban, “and the charities lived on,” Developments wrote. The nonprofit groups argued that they had been unfairly singled out by HUD despite helping buyers avoid subprime loans. By 2008, the FHA was raising concerns that the agency could one day exhaust its reserves, due in no small part to the programs. But the real-estate industry and supporters of the programs in Congress fought to save the programs, fearing that the collateral damage to the housing market would be too severe...

[Demeter]

8. The Land of the Rising Sun just sank beneath the waves!

Dropped 250 points in half an hour....

This is where I give it up for the night. Happy Friday, everyone! Except Japan, I'm afraid...

[xchrom]

9. Research: The Labor Force Participation Rate Will Stay Flat Through 2015

http://www.businessinsider.com/research-the-labor-force-participation-rate-will-stay-flat-through-2015-2013-7

Here is some research from Macroeconomic Advisers: Where’s Labor Force Participation Heading?
• Fifty-five percent of the recent decline in the participation rate is due to structural factors that, on balance, will continue to exert downward pressure on participation through 2015.

• The other forty-five percent is cyclical and will gradually abate. However, the cyclical decline in participation has been larger and more persistent than in past cycles due to the unusually large increase in the average duration of unemployment during this cyclical episode.

• Going forward, the cyclical rebound in participation will roughly offset the continuing downward push of structural forces. Consequently, we project that in 2015, when the FOMC will be contemplating the first increase in the federal funds rate, the participation rate will be 63.4%, the same as in the second quarter of this year.


Read more: http://www.calculatedriskblog.com/2013/07/research-labor-force-participation-rate.html#ixzz2ZUTTCfLY

[David Zephyr]

44. Thanks.

I didn't know you were here at this forum. I've never been here before. I don't DU much anymore (getting too old), but I am in my fourth decade of investing and fair or not, it's the table we sit at and I don't mind saying I'm done well for our family by making what Elizabeth Warren correctly calls a "rigged game" work on our behalf, too.

The research you provided (thank you!) really underscores what we already know to be true in our guts, but it is so stark to see it in print. What a distorted sense of values this nation's powerful have. Military excursions and bases all over the planet, the corrupt "war on drugs", sweetheart deals of corporate welfare for the connected and powerful and shitty paying jobs shrinking for the working class, shitty schools, shitty healthcare and on and on.

Anyway, saw your name and wanted to say "hi" to you. Hope you are doing well.

[xchrom]

45. Hey!

[xchrom]

10. Markets Are Falling After Declines In China And Japan

http://www.businessinsider.com/morning-markets-july-19-2013-7

Markets are generally a bit lower this morning.
Thanks to big earnings whiffs from Microsoft and Google after the bell yesterday, the NASDAQ will likely get slapped around today.

Meanwhile, Japan and China both had bad sessions.

Japan lost about 1.5% in weird trading activity, which saw a sharp decline about an hour and a half into the day.

Conversely, China had been fine, but it too lost 1.5%, seeing a fairly swift decline late in the day.



Read more: http://www.businessinsider.com/morning-markets-july-19-2013-7#ixzz2ZUY3gcwQ

[Demeter]

11. Is it real, or is it a power play?

And who is yanking the chain?

[DemReadingDU]

21. Microsoft Writes Off $900 Million on Surface Tablets, appx six million tablets!

7/19/13 Microsoft Writes Off $900 Million on Surface Tablets
Microsoft on Thursday reported lower-than-expected quarterly earnings as faltering PC sales ate into its Windows business and the company took an unexpected $900 million (£591m) charge for its inventory of unsold Surface tablets, sending its shares down 5% in after hours trading.

Taking the £590m write-down into account, it would suggest that Microsoft has a store of six million unsold Surface tablets.

more
http://www.ibtimes.co.uk/articles/492120/20130718/microsoft-takes-900-million-charge-surface-tablets.htm

[Fuddnik]

24. Nobody wants the extra expense for a touch screen computer.

And nobody wants Windows 8.

Following it's history, every other Windows project sucks, and everyone waits for the next version to fix all the screw-ups in the previous edition. Windoze ME, Vista, and now Win8.

[DemReadingDU]

29. I never saw the need for a tablet either

However, these cellphones nowadays are so smart that I do want one of them, especially for the potential future 'bash mobs'. See post #26.

P.S. not to organize them, but to avoid them!

[Demeter]

30. It's been suggested that the board could use tablets, instead of mounds of paper

for board meeting briefings. I was going to look into it, but if the product has no future, I'd hate to invest any time or money into it. There's always laptops.

[DemReadingDU]

36. According to Karl Denninger, the tablet craze is over

7/19/13 Karl Denninger...
You will, in the not-so-distant future, carry a mobile device that will have "nearly anywhere" access to fast data connectivity. That device will be able to utilize a display device of virtually any resolution, although the screen in it will be of modest pixel count (E.g. 1024x768 or similar.)

On your desktop there will be a display with much higher resolution (e.g. 1920 x 1080), your TV in your living room and bedroom will have much higher resolution, and you will have small, light devices that all interface with this personal computing device.

Your screen will be whatever happens to be around, whether it be a TV, projector or other device. Connections will be all wireless -- exactly as the above keyboard and mouse are, using standard protocols (bluetooth in the above case, DLNA or similar for displays.)

This won't satisfy gamers and others who demand instant response times and insane pixel counts spread across multiple monitors -- they will still buy desktop machines with big, beefy processors and graphics cards. But for everyone else, including business users, this will become "the standard."

more...
http://market-ticker.org/cgi-ticker/akcs-www?post=222877

[wordpix]

35. also, people are used to the mouse and/or touchpad- quick and easy

I'm one and I see no reason to change over to a touch screen when I can just click

[DemReadingDU]

37. Same with me

Read my post #36 above, some forward thinking from Karl Denninger
or here is the link
http://market-ticker.org/cgi-ticker/akcs-www?post=222877

[David Zephyr]

43. Definitely pricey, but I have the Windows 8 Surface Pro and it is amazing.

After all the noise, I still bought the Surface Pro 128 before heading for South America. I bough the "Classic Start Button" software because I am not that young. I use both Apple and MS and have for decades. I am very impartial on this subject. We have iMacs at the house and iPads and PC's at our businesses.

Fuddnik, the Surface Pro is an iPad on steroids. It is a full computer with MS Word, Excel, Powerpoint, Outlook Express all inside a nifty little tablet. The mega-tiles threw me for a day or two so I stayed with my "Start" software option, but since that second day, I've never needed those training wheels.

Windows 8.1 will include the Start Button for all the old folks like me, but I can honestly tell you: Windows 8 is simply amazing. The Surface Pro goes with me everywhere.

MS priced it way too high and the write off was brutal, but the right thing to do and to bring the price down. The $900 million was less than the $1 Billion Marissa Mayer spent for Tumblr which she said this week won't begin to generate revenue until next year. And I know you know that $1 Billion to Yahoo is very big piece of capital compared to $900 Million to MSFT.

I own stock in Apple, Google, Microsoft and Yahoo so I am pretty unbiased on this subject.

Google is doing a lot of smart things, but can be "creepy" to use Schmidt's own words. Mobile is hurting Google right now, but they are adapting.

Apple under Cooke needs to really deliver something soon as Google is eating into their underwear.

Microsoft under Ballmer quietly began building their cloud computing structure and they are about to own it. Recently MSFT has signed up the U.S. Veterans Administration, the U.S. Air Force, the City of San Jose, the State of Texas and the the list just keeps growing and growing to their Azure Cloud services which provides all the MS Office programs and cloud security to all of those institutions' employees and databases. Moreover, their Bing now has 17% of all the search market, and albeit they were late, they are now selling Windows phones (Nokia) and tablets which is all new revenue. Of the three, I think MSFT is the sleeper with the most upside for its stock in 2014. Aside from the write down of inventory, MSFT turned in another decent quarter, has a great dividend and has one of the very few AAA+ ratings by S&P.

Yahoo is the sweetest investment of all though. Marissa Mayer at the helm and Daniel Loeb with a lot of power on the Board. Yahoo has 1.1 Billion Unique Visitors, has the #1 financial news site in the world, the number one biggest sports audience (bigger than ESPN) and more. More people watched the Olympics on Yahoo than on television. The idiot CEO's before the Loeb/Mayer Duo took over never knew how to mobilize or monetize that. These two do and are doing it. Plus Yahoo owns over 20% of Alibaba which is about to IPO and could be over $100 Billion.

Once the Surface Pro tablets are down in price, you might give them a second thought. I'm carrying around an entire computer now in a little tablet. It's simply amazing.

[DemReadingDU]

46. Thanks for the info!

[xchrom]

12. Democrats Win as Youth Avoid Politics via Elected Office

http://www.bloomberg.com/news/2013-07-19/democrats-win-as-youth-avoid-politics-via-elected-office.html

In the Democratic Party, President Barack Obama, 51, represents the youth movement.

Though Republicans have been undergoing a period of self-examination after losing the White House, questioning their policies and the quality of their candidates, Democrats have their own void: a shortage of rising stars.

The younger voters who helped deliver Obama two terms aren’t reflected in the makeup of the party leadership. So far, the two most frequently mentioned successors to Obama in 2016 are Hillary Clinton, 65, and Vice President Joe Biden, 70.

The top Democrats in Congress, Senators Harry Reid of Nevada, Dick Durbin of Illinois, Chuck Schumer of New York, and Representatives Nancy Pelosi of California, Steny Hoyer of Maryland and James Clyburn of South Carolina have an average age of 70.

[Demeter]

27. As if the old fossils would get out of the way

Finally got rid of a couple of ancient Democrats...about 2 decades too late.

You can't block out the Boomers, Gen X, and their children and grand children, and expect successors. Yet everybody has been blocking Boomers since the first headcount. The backlog is still enormous, even with the culling through the decades of rough times of the Boomer population.

And it's the selfish Depression babies who have been doing the blocking: your parents and mine. The parents of the Boomers.

[DemReadingDU]

13. Solon: Investigators still searching for CEO after standoff ends

7/17/13 Solon: Investigators still searching for CEO after standoff ends

An arrest warrant has been issued for a man after a standoff in Solon ended with an empty house.

The FBI says it determined that a home on Liberty Drive in Solon was empty around 11 a.m. The home had been surrounded since late Tuesday night when a man barricaded himself inside.

A federal arrest warrant has now been issued for Alex Spirikaitis for false credit institution entries.

Spirikaitis was the CEO of the Taupa Lithuanian Credit Union on E. 185th Street in Cleveland. Regulators closed the credit union this week said FBI Special Agent Vicki Anderson, after it, "had no prospect for restoring viable operations."

"It's a very large house so it took a lot of time to go through. Our tactical teams are very methodical," said Anderson of the search.

http://www.wkyc.com/news/article/306814/33/Solon-Suspect-wanted-by-FBI-in-standoff-with-police

[xchrom]

14. Schäuble Visits Greece: Aid but No Haircut for Athens

http://www.spiegel.de/international/business/german-minister-schaeuble-pledges-100-million-euros-to-greece-a-911891.html

It's a good day for pedestrians in Athens. Several streets in the Greek capital have been blocked off, leading to heavy traffic away from the center. Everyone knows the cause of the chaos. His name adorns the front pages of newspapers and escapes from the radio of a passing motor scooter: Schäuble.

When the German finance minister arrived in Athens on Thursday morning, security was tight. As a precaution, the police banned "all outdoor meetings and demonstrations" for the entire day. Schäuble, after all, is unpopular in Greece, with many in the country seeing him as the author of their austerity suffering. He is, in short, an unwelcome guest.

Yet only shortly after his arrival, Schäuble sought to improve the atmosphere, praising Greece's progress in combating the debt and economic crisis that has plagued the country for the last six years. Athens has made "great strides in consolidating its economy," he said at a press conference at the German-Greek Chamber of Industry and Commerce in Athens. The Greeks are facing hard times, said Schäuble, but there is no other way.

[xchrom]

15. Going, Going, Gone: Crisis-Plagued Madrid Sells Out

http://www.spiegel.de/international/business/madrid-takes-dramatic-steps-to-curb-red-ink-in-crisis-a-911438.html

Sol, is the Spanish word for sun. Could there be a better name for the most important square in Spain's capital. The square, where Puerta del Sol, or the sun gate in the old city wall, once stood, marks Spain's geographic center. From this ground zero, the national roads lead out into the country, and it's where the kilometer counting begins. Three subway and two commuter train lines also converge under the square.

But so much for Sol. As of early June, the announcements on the subway identify the famous square as "Next station: Vodafone Sol." Even the time-honored signs at the metro entrances were replaced. Now the red logo and name of the British wireless group are displayed on new enamel signs. Starting in September, line 2 will simply be called "Vodafone."

The advertising generates €1 million ($1.3 million) a year in revenue for the capital region, which is deeply in the red. Its government headquarters building is located at the front of the square, where Ignacio González, the conservative president of the Madrid region with the Popular Party (PP), has his office. He finds the new revenue model convincing, and he now wants to offer companies other subway lines as PR vehicles. In the last five, crisis-ridden years, the company that operates the Madrid metro has seen its passenger numbers decline by more than 12 percent, and it has accumulated a record €500 million ($655 million) in debt. González wants to generate additional revenues by privatizing the city bus lines.

Foolish Ideas

Although Madrid residents shake their heads over such tonterías, they no longer resist the foolish things their administration does. After five years of growing unemployment and an economic recession, Spaniards are demoralized. With debts of €7.4 billion, the capital is the most highly indebted city in the country.

[Tansy_Gold]

18. ¡Qué lástima!

Pobrecitos madrileños.

[xchrom]

17. China frees banks to set their own lending rates

http://www.bbc.co.uk/news/business-23377060


Chinese authorities have given the banking system greater freedom by allowing it to set their own lending rates.

Previously banks were not allowed to lend at rates below a certain level set by the People's Bank of China (PBOC).

The People's Bank said it hoped the move would lead to lower costs for companies.

It is being seen as a significant part of the government's plan to make the economy more market-orientated.

[xchrom]

19. Detroit, tip of a vast pensions liability iceberg

http://www.guardian.co.uk/commentisfree/2013/jul/18/detroit-pensions-liability-iceberg

Detroit's filing of the biggest municipal bankruptcy in US history caps three decades of the city's steady decline, characterized by crime, shrinkage of auto manufacturing industry, and a population all too eager to leave for the more hospitable suburbs.

Detroit's bankruptcy is, primarily, a lesson in how cities and states cannot avoid their pension responsibilities without a backlash of biblical proportions. In 2006, Detroit, like many other cities and states, was facing a $1.5bn gap in its pension payments to its public employees. As Quartz noted:

The city converted them into debt called "certificates of participation", or COPs, which it sold through a legally separate financial vehicle at a floating interest rate. Then it entered into a swap with UBS that converted those to fixed rates. This swap became very expensive when rates dropped after the financial crisis. A very similar arrangement led to the Jefferson County bankruptcy, and a massive scandal that sent several financiers to jail.

Other municipalities – like Baltimore, Maryland and Nassau County in Long Island – have fallen foul of Wall Street financial engineering. That's not the main lesson to take from Detroit, however.

The main lesson is that many cities and states are facing a public pension crisis. Even if they don't come to so dark an end as Detroit, they are playing with fire

[xchrom]

20. global power project part 6: banking on influence with BoA

http://www.nationofchange.org/global-power-project-part-6-banking-influence-bank-america-1374210008

This July, Bank of America was expecting to report an earnings increase of 32% from last year. The Washington Business Journal declared the bank among the top 10 “most improved brands” of the year. Bank of America is the second-largest bank in the United States following JPMorgan Chase.

So why does this bank deserve such an “improved” reputation? Perhaps it's worth looking at a little of the bank’s record for some clarity.

During the first year of the global financial crisis, which the big banks helped to create and which they profited enormously from, the government stepped in to bail out Bank of America. They rewarded the bank $20 billion for its massive financial crimes, as well as a special guarantee for nearly $100 billion of potential losses on the balance sheets of Merrill Lynch, which Bank of America acquired during the crisis.

As it turns out, Bank of America and other big banks continue to get "backdoor bailouts" through the Federal Reserve Bank of New York, which acts as a legal guarantor and protector of the Wall Street chain gang of criminal conglomerates. The bank was recently added to a list, compiled by a corporate watchdog group, of the "dirty dozen" criminal financial institutions for its role deceiving investors, committing mortgage and foreclosure abuses and engaging in municipal bond rigging and illegal payments.

[xchrom]

22. An 'Affront to Democracy' Steers Detroit Toward Austerity

An 'Affront to Democracy' Steers Detroit Toward Austerity

http://www.thenation.com/blog/175351/affront-democracy-steers-detroit-toward-austerity#axzz2ZV5U8cc2

Recalling the partial meltdown of a nearby nuclear power plant a decade earlier, and a book that revealed the extent of the crisis, Gil Scott Heron sang in 1977, “We Almost Lost Detroit.”

The city survived, and remains home to 700,000 Americans and the symbolic center of the nation’s auto industry. But after decades of neglect by federal and state officials, and a meltdown of American manufacturing, Detroit is facing exceptionally hard economic times.

Detroit is up against plenty of threats. But the most pressing political threat over the past several months has come from a Republican governor who seeks to impose his will on a city that did not choose him or his austerity agenda.

On Thursday afternoon, Michigan Governor Rick Snyder made his move.

And the notion that the people who live in America’s great cities must govern their own affairs took a huge hit.

[Tansy_Gold]

23. I think this and post #19 above

Fit into what I call a sociological big picture.

It's not so much about macro-economics (there's another post in another forum about that which I'll try to bring over) as it is about the failure of both the educational process and the media to examine the multitude of interrelated factors that impact an economy.

What's been happening in Detroit since the 1960s has been not just an affront to democracy. I think the bigger picture would show it as an intentional and deliberate and systematic undermining of democracy, and it's driven by an inseparable combination of greed, lust for power, and racism.

I don't get to watch or even listen to very much TV, but as I've caught snippets of news commentary on the Zimmerman verdict, I can only shake my head at the contorted efforts so many different and disparate parties engage in to try to deny that race is any part of it. I wanted to get up from the dinner table last night and punch Ron Goldman's sister right through the screen for her absurd comments.

Of course race was a factor. Of course race was a factor in the riots of the 60s. Of course race is a factor in the destruction of Detroit, just as it's been the main factor in the destruction of Jefferson County, Alabama.

So it's not just "...the notion that the people who live in America's great cities must govern their own affairs." It's the concept that "the people" anywhere have any rights of self-determination at all!!

Detroit had to be destroyed. It was not only a reality of working class economic and political power -- thanks to the unions -- but it was a reality that thumbed its nose at traditional American racism. And that traditional racism had to be maintained at all costs. Detroit could not be allowed to prosper, not when auto workers of any and all colors exerted their power to enjoy a comfortable portion of the wealth their labor created. Destroy the auto industry of Detroit, and you destroy the unions. Destroy the unions, destroy the pension plans, destroy the municipal workers and their benefits, destroy the schools, destroy the soul.

Years ago, my husband and I bought a goofy little board game called "Beat Detroit." It's all about trying to get through the vicissitudes of car ownership and life, and the winner is someone who manages to drive their "car" 50,000 miles without going broke or breaking down. Today the game is different. Today's it's "Destroy Detroit," and "Destroy Chicago," and "Destroy Boston" and "Destroy the Powder River Basin" and "Destroy Madrid" and destroy any other place the holds any potential to break the power of the aristos.

It will not stop until more people see how far reaching the tentacles of the monster are, and it will not stop until the fundamental issues are dragged kicking and screaming into the light of day.

[DemReadingDU]

25. Exactly. It isn't just 'Destroy Detroit'. It's Destroy______

At the present, Detroit is the largest city in America that has gone bankrupt. Think of Detroit as the canary in the coal mine for the rest of the cities. Yeh, it's coming, who is going to get up to stop it? Generally, Americans won't, until they have no money, no savings, no credit, no job, no food, and are desperate. Then, desperate people do desperate things.

[DemReadingDU]

26. Long Beach 'Bash Mob'

video at link, appx 3 minutes

7/18/13 Long Beach Residents Warned About Friday ‘Bash Mob’
Officials in Long Beach are warning residents about a planned ‘Bash Mob’ potentially planned for Friday afternoon.
In a ‘Bash Mob,’ an unruly but organized crowd — sometimes as many as 100 people — race through the streets committing thefts, petty crimes, assaults and property damage.
A ‘Bash Mob’ most recently occurred in the Long Beach area on July 9 in the Pike and City Place areas downtown, according to Long Beach Police Sgt. Aaron Eaton. One person was arrested and several business reported property damage during the incident.
Detectives investigating the July 9 incident found out about the planning stages of another event, by the same group, scheduled for 2 p.m. Friday, Eaton said.
“The Long Beach Police Department takes this issue very seriously and will be prepared to arrest anyone whose intent is to commit criminal acts,” Eaton said. “We will continue to support everyone’s right to free speech and assembly. However, the police must also protect the safety of those victims targeted by these ‘bash mobs.”‘
Police did not know if the planned ‘Bash Mob’ was connected to a similar incident in Hollywood Tuesday evening.
Eaton says the “mobs” are apparently organized on social media site and often come up with their own names. The “mobs” also arrive and leave by Metro.
“They are able to gather quickly and commit these crimes. Most often, it appears theft is the intent and target of why they are doing this.” said Eaton.
As in Tuesday’s incident in Hollywood, innocent bystanders and businesses are most often hit.
In the July 9 incident in Long Beach, KCAL9′s Suraya Fadel said there were a few minor injuries, several businesses sustained property damage and there was one arrest and several citations.
http://losangeles.cbslocal.com/2013/07/18/long-beach-residents-warned-about-friday-bash-mob/

[Demeter]

31. Wilding is making a come-back?

Why?

[Roland99]

28. But, according to repukes all over, it's the "libs" fault

[wordpix]

38. is it "destroy" or is it "city for sale to private parties/corporations"?

Imagine if all the city's buildings, roads, streets, bridges, land, parks, bridges, schools, etc. are up for sale to the highest bidders or the ones with connections. I have a dystopian vision of how it will go. If there's no decision-making process of, by and for the residents, there will instead be corporate owners and decisions based on the bottom line.

[Demeter]

41. Other than the odious Koch bros. who want to turn Detroit into a toxic waste site, nobody's

particularly interested in this excellent location.

I'm not sure why, either.

As for assets, after 60 years of neglect, there aren't any. Not worth mentioning, anyway.

There's a bridge and a tunnel to Canada. There's miles of flatness. But the roads, water, sewers, etc are all in major repair mode.

Somebody wants cheap land to make a killing, maybe. Or a private estate. But there's still too many people...

[wordpix]

42. hmmm, methinks you have something there--toxic or perhaps NUKE waste dump

I'm sure the nuke industry would love to get those 40 yr-old fuel rods out of the pools near the towers. Then the industry could say, "See, we're all cleaned up and ready to operate for another 20 years."

[Demeter]

33. I need to print this for the Board

and not just on the storage issue--we have a board member who seems to feel in sympathy with the CEO about trees...