STOCK MARKET WATCH, Thursday 30 March

[ozymandius]

Thursday March 30, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1026 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1925 DAYS
WHERE'S OSAMA BIN-LADEN? 1625 DAYS
DAYS SINCE ENRON COLLAPSE = 1586
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
Other Arrests of Execs = 54


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




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON March 29, 2006

Dow... 11,215.70 +61.16 (+0.55%)
Nasdaq... 2,337.78 +33.32 (+1.45%)
S&P 500... 1,302.89 +9.66 (+0.75%)
Gold future... 578.60 +6.40 (+1.11%)
30-Year Bond 4.84% +0.05 (+1.02%)
10-Yr Bond... 4.81% +0.03 (+0.67%)






GOLD, EURO, YEN, Dollars and Loonie


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

THE POLITICS OF FINANCIAL MARKETS

Markets this morning are still working to digest the statement from the Federal Reserve after they raised the Fed Funds rate to 4.75% yesterday afternoon. The overall tone of the statement was more hawkish toward the future course of interest rates than most traders were expecting. Prior to the announcement, stocks were higher, bonds were relatively flat and the dollar was lower. Once traders heard, “Some further policy firming may be needed,” the dollar reversed course and moved higher, bonds sold off to reflect higher yields and the Dow Industrials sold off more than a hundred points with the broader S&P 500 down 12 points. Two hours into today’s session the dollar is flat, bonds are modestly lower and stocks are struggling to remain in positive territory with the Dow Industrials higher by ten points at 11,164 and the S&P 500 three points higher at 1,296.

To paraphrase CNBC’s man on the floor of the New York Stock Exchange, Bob Pisani, he says, “The Fed continues to raise interest rates, but the stock market is resilient; it simply doesn’t go down. Each month we keep making new highs, and it’s making the bears go crazy.” To be blunt, it would not be politically expedient to see a meltdown in stock prices, even though the Fed marches-on with higher interest rates and hawkish rhetoric toward the future of interest rate increases. Yesterday, Alan Binder, a former Fed Governor said he believes the Fed will stop rate hikes between 4.75% and 5.25%. Robert McTeer, another former Fed Governor said the statement invites the same policy for the next meeting, and 5% is now inevitable. Bill Gross offered more detail by commenting that employment data will be the key indicator moving forward. Higher unemployment claims should signal a pause by the Fed, but with strong employment data rates will continue higher.

-cut-

I believe our leaders have the desire to maintain the status quo of America as the one-world superpower. They must control the financial markets by maintaining the status of the U.S. dollar and by maintaining the supremacy of our military might. When I look at the big picture for the direction of the financial markets, I see things in “lock-down” mode. Let’s take a quick look at stock prices, bond prices and the strength of the U.S. dollar for the last few years:

-cut-

How to Maintain the Status Quo

I came across a good editorial by DeepCasterLLC in the Financial Sense University called “Juiced Numbers – How the Government Gets the Statistics It ‘Wants,’ Markets Get Manipulated, and Citizens Get Deluded, and Worse.” Here is a brief excerpt from the article:

more...

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

[WhiteTara]

44. wow, thanks for that post! Here's what really

caught my eye

How do we know when the end is near? Deepcaster and Williams agree on the answer. "If I were looking for one factor to signal the onset of some really serious problems, I would watch the dollar. If you start to see a sharp sell-off, or if the selling starts to pick up a little steam and begins to look like a panic, or you start to hear talk of an Asian country dumping a little extra in the way of dollars, it will be a sign of really bad times to come."

[specimenfred1984]

55. I Think GM Is Already Signaling The End

A collapse of a few banks at a time will cause the whole derivatives market to fall. When that happens, the banks all dump stocks, bonds, futures, metals and real estate.

I think another sign is all the ETF (Exchange Traded Funds) being allowed to trade, like GLD (gold) and the new crude oil ETF set to trade on Monday. It's massive speculation, like during the Nasdaq bubble.

[Roland99]

49. Gold, silver, oil, interest rates up, GDP down to 1.7% and stocks rise?

Is the Fed boosting Repurchase Agreements (since M3 is no longer published we don't know anymore) to keep the stock market going?

[Roland99]

53. Here's a good explanation of the fiddling of CPI from "Juiced Numbers"

Originally, the whole purpose of the CPI was to "measure the change in the cost of a fixed basket of goods over time." But Boskin and Greenspan said that we should allow for substitution because people can buy hamburger when the price of steak goes up.

But, of course, "if you allow substitutions you aren't measuring a constant standard of living, you're measuring the cost of survival." Williams correctly concludes.

But the effect of this statistical chicanery is very real and very adverse to, for example, retirees because the CPI was, and is, being used to adjust Social Security payments to compensate for increases in the cost of living.

Today, as a result of the Boskin-Greenspan "fix," it understates those increases and therefore under-compensates retirees for those costs.

[54anickel]

122. The Casey Files: Shadow Statistics

(Link to the John Williams interview at the end. I know this has made the rounds a couple of times here - just in case anyone missed it)

http://www.321gold.com/editorials/casey/casey033106.html

British politico extraordinaire Benjamin Disraeli has been much quoted for his saying "There are lies, damned lies, and statistics!" And you know the old quip that nothing is scarier than hearing someone say, "I'm from the government and I'm here to help you."

Combining the two very well might result in the poor joke the government-reported statistics have morphed into over the decades. While initially, one might suppose, measures of things like inflation and employment might have been well-intentioned-if for no other reason than that they purport to give people and businesses some basis on which to forecast their own activities-government has increasingly diluted, skewed, tampered with and downright fabricated the data in order to paint the rosiest possible picture.

In the following article Doug Hornig, one of the editors here at Casey Research, pulls away the curtain on this shameful shell game and in the process provides you with a rare glimpse of things as they actually are, versus as the government wishes you to think they are.

Fortunately, armed with insights that most Americans will not be privy to until it is too late, you are able to protect yourself with investments in sectors that will provide extreme profits as the house of cards begins to collapse. Of course I refer to gold and silver bullion and, for the biggest returns, the carefully selected stocks of junior companies involved in precious metals exploration.

Read on, and don't hesitate to pass this along to anyone you care about.

more...

[ozymandius]

2. Today's Reports

8:30 AM Chain Deflator-Final Q4
Briefing Forecast 3.3%
Market Expects 3.3%
Prior 3.3%

8:30 AM GDP-Final Q4
Briefing Forecast 1.6%
Market Expects 1.7%
Prior 1.6%

8:30 AM Initial Claims 03/25
Briefing Forecast 305K
Market Expects 305K
Prior 302K

10:00 AM Help-Wanted Index Feb
Briefing Forecast 38
Market Expects 38
Prior 37

[UpInArms]

17. 8:30 Reports:

8:30 AM ET 3/30/06 4-WEEK AVG. OF CONTINUING CLAIMS STAYS AT FIVE-YEAR LOW

8:30 AM ET 3/30/06 U.S. CONTINUING JOBLESS CLAIMS RISE 20,000 TO 2.483 MLN

8:30 AM ET 3/30/06 U.S. INITIAL WEEKLY JOBLESS CLAIMS FALL 10,000 TO 302,000

8:30 AM ET 3/30/06 U.S. Q4 CORPORATE PROFITS RISE RECORD $185.8 BILLION

8:30 AM ET 3/30/06 U.S. Q4 BUSINESS INVESTMENT UP 4.5%, SLOWEST IN 2 YEARS

8:30 AM ET 3/30/06 U.S. Q4 CONSUMER SPENDING UP 0.9%, SLOWEST IN 11 YEARS

8:30 AM ET 3/30/06 U.S. Q4 CORPORATE PROFITS UP 21.3% YEAR-ON-YEAR

8:30 AM ET 3/30/06 U.S. Q4 GDP REVISIONS DUE TO HIGHER INVENTORY BUILDING

8:30 AM ET 3/30/06 U.S. Q4 CORE INFLATION 2% IN PAST YEAR VS. 1.9% PREVIOUSLY

8:30 AM ET 3/30/06 U.S. Q4 GDP FINAL SALES FALL 0.2%, WEAKEST SINCE 2002

8:30 AM ET 3/30/06 U.S. Q4 GDP REVISED TO 1.7% VS. 1.6% AS EXPECTED

[UpInArms]

18. Initial Claims @ 302,000 - last week revised UP by 10,000 (that's 10 Thou)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BE69CC84D%2D5652%2D49CD%2DB696%2D39882C561436%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- First-time claims for state unemployment benefits fell by 10,000 to 302,000 in the week ending March 25, the Labor Department said Thursday. It's down from the prior week's revised 312,000 and is the lowest since Feb. 18. The number of people continuing to collect unemployment benefits, meanwhile, rose by 20,000 to 2.483 million. The four-week average of continuing claims fell by 3,250 to hit 2.472 million. It's a five-year low.

[UpInArms]

20. U.S. Q4 GDP revised up to 1.7% as expected

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B345040D8%2D3326%2D4A6A%2D9AFE%2D01C2B85C85B3%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - U.S. real gross domestic product grew at a 1.7% annualized rate in the quarter, compared with the earlier estimate of 1.6%, the Commerce Department reported Thursday. The revision was as expected. Meanwhile, corporate profits increased a record $185.8 billion at a annualized rate. The upward revision to GDP was due largely to higher inventory building by businesses, which offset lower consumer spending on services. Final sales in the economy fell 0.2% in the quarter. Core consumer inflation increased at a 2.4% annual pace in the quarter, higher than the 2% implicit target of the Fed, and up from 2.1% estimated a month ago. In the past year, core inflation has risen 2%.

[UpInArms]

38. Help-Wanted Index rises to 39

10:00 AM ET 3/30/06 U.S. NEWSPAPER JOB ADS RISES IN 8 OF 9 REGIONS

10:00 AM ET 3/30/06 U.S. FEB. HELP-WANTED INDEX RISES TO 39 VS. 38

[UpInArms]

40. U.S. newspaper help-wanted ads rise in February

NEW YORK, March 30 (Reuters) - The number of help-wanted ads in U.S. newspapers rose in February, mirroring a pickup in advertising in most U.S. regions, a private research group said on Thursday.

The Conference Board said its gauge measuring help-wanted ad volume in the United States was 39 in February, up from a revised 38 in January. It was originally pegged at 37.

The Conference Board said online want-ad volume fell to 1,987,000, from about 2,162,000 in January.

The research firm surveys help-wanted ad volume at 51 newspapers across the country each month.

[UpInArms]

64. DOE: US Natural Gas Supply Down 104 bln cubic ft

10:33 AM ET 3/30/06 U.S. NATURAL GAS SUPPLY DOWN 104 BLN CUBIC FT: ENERGY DEPT

10:33 AM ET 3/30/06 MAY NATURAL GAS DOWN 0.6C AT $7.45/MLN BTU AFTER $7.38 LOW

[ozymandius]

3. Oil holds above $66, world powers discuss Iran

LONDON (Reuters) - Oil held above $66 on Thursday, in sight of its $70 record, after the U.N. Security Council managed to speak with one voice on Iran's atomic program.

-cut-

Oil prices had touched their highest level since early February on Wednesday, pushed up by a surprisingly steep fall in weekly U.S. gasoline stocks just as the world's biggest oil consumer gears up for its summer driving season.

In real terms oil is at its highest level for a quarter of a century. Prices have climbed from below $20 in a four-year rally partly driven by fast-growing Chinese demand. Supply disruptions in Nigeria and
Iraq have added impetus.

Analysts Goldman Sachs stuck to their forecast that U.S. WTI crude would average $69.50 a barrel over the rest of 2006. They noted world economic growth was on a firm footing.

more...

[UpInArms]

45. May Crude @ $66.50 bbl - May NatGas @ $7.42 mln btus

10:09 AM ET 3/30/06 MAY CRUDE RISES 5C TO $66.50/BRL IN EARLY NY TRADING

10:09 AM ET 3/30/06 MAY NATURAL GAS DOWN 3.6C AT $7.42/MLN BTU AHEAD OF STK DATA

[UpInArms]

99. May Crude @ $66.90 bbl - April Unleaded Gas @ $1.983 gal

12:07 PM ET 3/30/06 MAY CRUDE NEARS $67/BRL, TRADES NEAR TWO-MONTH HIGH

12:07 PM ET 3/30/06 MAY CRUDE LAST UP 45C, OR 0.7%, AT $66.90/BRL IN NY

12:07 PM ET 3/30/06 MAY NATURAL GAS UP 4.4C, OR 0.6%, AT $7.50/MLN BTUS

12:07 PM ET 3/30/06 APRIL UNLEADED GAS UP 1.5% AT OVER 2-MO HIGH OF $1.983/GAL

[UpInArms]

106. May Crude @ $67 bbl (was $67.05 bbl)

12:42 PM ET 3/30/06 MAY CRUDE RISES ABOVE $67/BRL FOR FIRST TIME SINCE FEB. 6

12:42 PM ET 3/30/06 MAY CRUDE LAST UP 55C AT $67/BRL AFTER $67.05 HIGH

[UpInArms]

124. May Crude closes @ $67.15 bbl - May NatGas @ $7.487 mln btus

2:56 PM ET 3/30/06 MAY CRUDE CLOSES AT 2-MONTH HIGH OF $67.15/BRL, UP 70C

2:56 PM ET 3/30/06 MAY NATURAL GAS UP 3.1C TO CLOSE AT $7.487/MLN BTUS

[ozymandius]

4. Officials: Gas Prices May Rise This Summer

WASHINGTON - The price of gasoline could rise this summer because of supply problems from the phaseout of a fuel additive found to contaminate groundwater, government and industry officials said at a Senate hearing Wednesday.

The additive, methyl tertiary butyl ether, or MTBE, accounts for about 10 percent of the volume of every gallon of gasoline with which it is blended — or 1.4 percent of the nationwide supply — but refiners plan to stop using it next month because Congress refused to grant them protection from lawsuits.

MTBE will be replaced with ethanol, but there are doubts within the Energy Department and the oil industry about whether there will be enough of the corn-derived fuel to meet the anticipated surge in demand, and whether the country's distribution system is ready to handle it.

-cut-

The average retail price of gasoline in the United States is $2.50 a gallon — the highest level since October — and some analysts say $3 is a possibility by summer.

more...

[Roland99]

27. They're rising now! $2.75 now. $0.41 jump this week alone.

[AnneD]

51. Morning Marketeers,

:donut: Saw a blurb on yesterday on our CBS affiliate. As reported here on this thread a few months ago, the refineries are not adding that M something additive because it is toxic and there are outstanding lawsuits about it. Here they will adding ethanol, but it needs to be shipped from the farmlands in the Central US to the refineries. There is even a distinct possibility that they will not have enough ethanol available......KY anyone...



Happy hunting and watch out for the bears.

[Roland99]

63. MTBE is what caused Santa Barbara to not be able to use their water supply

It leaked from storage tanks and tainted their water supply. They had to buy water from elsewhere.

[AnneD]

73. No wonder they are so hot

to put ethanol in the gas. People are particular about their water, and rightly so.

[UpInArms]

127. April Unleaded Gas @ $1.995 gal - highest since Oct 3

3:10 PM ET 3/30/06 APRIL UNLEADED GAS CLOSES AT ITS HIGHEST LEVEL SINCE OCT. 3

3:10 PM ET 3/30/06 APRIL UNLEADED GAS UP 4.15C, OR 2.1%, AT $1.9957/GAL

[Roland99]

132. That's gonna put a damper on that Consumer Confidence Index

[ozymandius]

5. Home loan demand up before Fed rate increase

NEW YORK (Reuters) - U.S. mortgage applications rose for the first time in three weeks, reflecting a modest increase in home purchasing loan requests before the Federal Reserve's widely expected interest-rate hike, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended March 24 rose 1.2 percent to 571.7 from the previous week's 565.0, its lowest level so far this year.

-cut-

The MBA's seasonally adjusted purchase mortgage index rose 2.7 percent to 404.1 from the previous week's 393.6.

However, the index -- widely considered a timely gauge of U.S. home sales -- was significantly below its year-ago level of 470.9.

more...

[UpInArms]

13. US mortgage industry-Too many rules may be stifling

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-29T234528Z_01_N29306090_RTRIDST_0_FINANCIAL-MORTGAGES-GUIDELINES.XML

WASHINGTON, March 29 (Reuters) - Excess restrictions on such nontraditional home loans as interest-only and payment-option mortgages risk stifling the market, industry groups said in public comments released on Wednesday.

In their first extensive comments on guidelines issued late last year by U.S. bank regulators on nontraditional mortgages, the Mortgage Bankers Association and America's Community Bankers warned in separate letters that too many rules might restrict innovation.

"The American consumer could suffer greatly from any guidance that imposes unduly restrictive standards on the use of these mortgage products," the industry group America's Community Bankers said in a letter written March 27.

"Such restrictions could result in lenders' being less willing to offer alternative mortgage products and this would severely limit the flexibility in financing options that consumers enjoy today," the group added.

The Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the National Credit Union Administration issued the guidelines in December, spurred by worries over growth in exotic loan products during the housing boom.

...more...

[salin]

29. Right. Give us more rights to Predatory Lending!

aka Americans need to rack up MORE DEBT!

[ozymandius]

6. U.S. stocks set for flat start, GM eyed

LONDON, March 30 (Reuters) - U.S. stocks are expected to open steady, with the focus on General Motors (GM.N: Quote, Profile, Research) after Moody's Investor Service cut its rating, and the auto maker said it is discussing a stake sale in its Japanese partner Isuzu Motors (7202.T: Quote, Profile, Research).

-cut-

Moody's on Wednesday cut its ratings on GM for the third time since August, citing the automaker's disclosure that accounting restatements may affect access to a $5.6 billion standby credit facility.

GM also said it is discussing selling its stake in its longtime Japanese partner Isuzu Motors, another step in its restructuring to cope with heavy losses.

more...

[ozymandius]

9. GM seeking to sell Isuzu Motors shares

TOKYO (Reuters) — General Motors said Thursday that it is discussing selling its stake in Japanese truck maker Isuzu Motors, another step in its restructuring to cope with heavy losses.

GM's sale of most of its stake in Japanese carmaker Suzuki Motor. earlier this month for much-needed cash had raised speculation of a sale of its Isuzu holdings. Last year GM sold its entire 20% stake in another Japanese automaker, Fuji Heavy Industries.

The Detroit-based automaker lost $10.6 billion in 2005 as it faced high labor and commodities costs, loss of U.S. market share to foreign rivals and sluggish sales of sport-utility vehicles — typically its largest profit generators.

-cut-

GM said it is discussing the possible sale in a private transaction, but Japanese trading houses Mitsubishi and Itochu said they had received requests to buy GM's holdings in Isuzu.

more...

http://www.usatoday.com/money/autos/2006-03-30-gm-isuzu_x.htm

[UpInArms]

131. GM bondholders face demotion if GM secures credit line

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B343BCE1E%2D02BA%2D4E43%2D8BFF%2D63461A527C9F%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- As if General Motors Corp. (GM) bondholders didn't have enough to worry about with the auto maker's relentless troubles, they may find themselves with even less security in the coming weeks.

Moody's Investors Service and Standard & Poor's have warned that because GM may soon pledge collateral to back up its multi-billion dollar line of credit, unsecured bondholders could find themselves lower in the company's pecking order. That could lead to lower recoveries and a drop in GM's already basement-level unsecured debt ratings.

"Depending on the level of security granted (for a bank facility), the unsecured debt rating could be lowered," S&P analysts said in a statement.

<snip>

For bondholders, a lower spot in the company's capital structure really matters if GM were to file for bankruptcy court protection. The specter of bankruptcy - while usually far off for a company with more than $20 billion in cash - would draw dramatically nearer if Delphi's workers strike.

"If a secured (credit) line comes and there's a prolonged strike, you're not very happy" as an unsecured bondholder, said Bradley Rubin, senior auto analyst at BNP Paribas in New York.

...more...

[ozymandius]

7. Google to Issue More Stock Before S& P Listing

Google Inc. announced plans yesterday to offer 5.3 million shares of common stock, which could raise $2.1 billion and meet the expected demand for the company's shares when it is listed on the Standard & Poor's 500-stock index next month.

The shares will be offered at yesterday's closing price of $394.98 each.

Google said the money raised by the offering will be used to fund "general corporate purposes," which might include acquisitions, according to the firm's filing with the Securities and Exchange Commission made yesterday after the market closed. It is the Internet search giant's second effort to raise money off of its soaring stock price.

Since its initial public offering in 2004, when Google debuted at $85 a share, the company's stock has taken off. Last year, Google raised $4 billion on a stock offering with its shares priced at $279.99.

more...

www.washingtonpost.com/wp-dyn/content/article/2006/03/29/AR2006032902229.html

[RawMaterials]

25. AHH the private printing press

lets just issue more stock to raise money.

[ozymandius]

8. TURMOIL IN THE AUTOMOTIVE INDUSTRY: UAW won't vote on offer

Delphi Corp. could move to cancel union contracts Friday, which might eventually trigger a strike. The auto supplier's largest union said it will not vote on Delphi's latest cost-cutting proposal.

The UAW said on its Web site Wednesday it expects Delphi to file a motion at 9:30 a.m. Friday in bankruptcy court in New York that would cancel union contracts and eliminate retiree medical and life insurance benefits, a motion that likely will lead its 33,000 U.S. hourly workers to prepare for a strike.

-cut-

A Delphi strike would be devastating to GM, its largest customer and former owner. GM can try to cushion the impact of a Delphi strike by stockpiling automotive parts and new vehicles. It also has tried to diversify its business away from Delphi. But a strike would quickly cause GM to stop production at auto assembly plants across North America due to a lack of parts. During the first 60 days of a strike, GM would burn through $7 billion to $8 billion of cash, analyst John Murphy of Merrill Lynch said in a report to clients on Wednesday.

"GM ... would bleed enormous amounts of cash," Murphy said.

more...

http://www.freep.com/apps/pbcs.dll/article?AID=2006603300468

[ozymandius]

10. Silver Reaches 22-Year High as Investors Bet on Precious Metals

March 30 (Bloomberg) -- Silver futures rose to their highest in 22 years, trading above $11 an ounce, as investors bet precious metals will outperform stocks and bonds.

Silver has gained 15 percent this month in anticipation of U.S. government approval for Barclay Capitals' exchange-traded fund linked to the price of the precious metal. The fund makes it easier to own the metal and a similar gold fund helped send prices to a 25-year high last month.

-cut-

Silver may climb another $4 or $5 should the Securities and Exchange Commission approve Barclay's request to list shares on the American Stock Exchange, Paul Walker, chief executive officer of London-based metals researcher GFMS Ltd., said yesterday. Amex got approval on March 21 from the SEC to list the shares. The Barclays petition is still pending.

more...

http://quote.bloomberg.com/apps/news?pid=10000006&sid=ab4XrRS__HQw&refer=home

[UpInArms]

12. Gold sets fresh 25-year high; silver at 22-year high

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B00D016AD%2D4F4B%2D48F2%2D8E5E%2DE42C403261B4%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Gold futures struck a fresh 25-year high early Thursday, silver rose to its highest level in 22 years and copper set a new record, as a weak dollar sparked a fresh rally among commodities. Gold for April delivery was last trading up $5.30 at $578.60 an ounce, after touching a high of $580.20. Silver rose 31 cents to $11.43 an ounce, off a peak of $11.52 an ounce. Copper was last up 1.25 cents at $2.451 a pound, having risen to as high as $2.459 a pound.

[rfranklin]

19. This is real money....inflation is rampant...the paper "dollar" is

a joke and that fact will become apparent sooner or later in a very unpleasant way.

[UpInArms]

35. up $11 this morning - to $584

[UpInArms]

36. June Gold @ $590.30 oz - May Silver @ $11.49 oz

9:44 AM ET 3/30/06 JUNE GOLD JUMPS $11.79 TO 25-YR HIGH OF $590.30/OZ

9:44 AM ET 3/30/06 MAY SILVER UP 37.5C AT 22-YR HIGH OF $11.49/OZ

9:44 AM ET 3/30/06 MAY COPPER UP 1.75C AT RECORD $2.456/LB

[UpInArms]

39. Gold futures rise to quarter-century highs above $590

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC5644434%2DD58F%2D4676%2D9E92%2DEB2EA4F6CEC8%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- June gold climbed $11.60, or 2%, to $590.30 an ounce in New York, after tapping a fresh 25-year high of $591.20. May silver also touched $11.51 an ounce, a level not seen since in 22 years, with the contract last trading up 37.5 cents, or 3.4%, at $11.49. "With June gold managing a fresh contract high this morning, the stock market fanning the potential for physical demand and the funds apparently facilitating the upward motion, we expect prices to continue to rise," said Nell Sloane, an analyst at NSFutures.com, in daily commentary.

[54anickel]

47. Buck achieving new lows, yields and gold rising together - not a good

sign. Will TPTB be able to juggle stocks and the buck today? Looks like there's too many balls in the air for them not to drop one sooner or later.

[JNelson6563]

70. Whoo-boy!

Ugly stuff. Good time to be long on gold though.

Still, I smell fear.

Julie

[silverlib]

52. I can't keep hitting the refresh button often enough...

this is amazing. It can't possibly keep up this pace all day. I'm a lurker to this post everyday. I can't thank you that post here daily enough. There's always news, as well as good humor.

[UpInArms]

56. Morning silverlib!

Looks like it Mr. Toad's Wild Ride today - we'll have to see what shakes out :eyes:

Drop in anytime and welcome to the SMW! :hi:

[AnneD]

60. Hey, when did

we start selling ice cream?????? I missed it :party: Welcome silverlib

[silverlib]

84. Thanks - but not selling ice cream-

just giving it away!

[AnneD]

92. I work with kids all day...

the reaction that a good humour truck elicits from these kids is hysterical. I mean they totally lose it. A Pavlov response. The adults are a tad more contained...but barely. One of the highlights of my day.:rofl:

[UpInArms]

116. June Gold @ $591.80 oz (Holy Shit!)

1:49 PM ET 3/30/06 JUNE GOLD UP $13.20 TO END AT NEW 25-YR HIGH OF $591.80/OZ

[UpInArms]

119. May Silver @ $11.66 oz

1:55 PM ET 3/30/06 MAY SILVER UP 4.9% TO END AT 22-YR HIGH OF $11.66/OZ

[UpInArms]

11. daily dollar watch

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

Last trade 89.79 Change -0.12 (-0.13%)

Dollar Bulls Remain Deadlocked With Majors

http://www.dailyfx.com/story/dailyfx-reports/daily-technicals/7663-dollar-bulls-remain-deadlocked-with.html

EUR/USD – Euro bulls managed to keep the pair above the psychologically important 1.2000 handle, a level created by the 38.2 Fib of the 1.2588-1.1639 USD rally and is further reinforced by the combination of the 20-day and 50-day SMA’s, as after greenback longs failed to gain momentum. As euro bulls push the pair higher, a move above 1.2100 figure will most likely see the pair advance above 1.2115, a level defended by the 50.0 Fib of the 1.2588-1.1639 USD rally. A further move to the upside will most likely see EUR/USD head toward 1.2227, a level marked by the 61.8 Fib of the 1.2588-1.1639 USD rally. However in case dollar longs manage to push the pair below 1.2000 handle, a further advance by the dollar longs will most likely see the pair head lower target euro offers around 1.1932, a level marked by the December 28 daily high and with further advance on the part of the dollar trader seeing the pair head below 1.1900 figure and target bids around 1.1864, a level defended by the 23.6 Fib of the 1.2588-1.1639 USD rally. Indicators are favoring Euro longs with both positive momentum indicator and MACD treading above the zero line, while neutral oscillators give either side enough room to maneuver.

<snip>

USD/JPY – Japanese Yen longs managed to push the advancing dollar longs with the pair testing bids around 117.35, a level marked by the 23.6 Fib of the 104.16-121.46 USD rally. A further move on the part of the yen longs will most likely see USD/JPY head lower and target 116.00 figure, a level defended by the January 17 daily high at 115.93. A further move to the downside will most likely see USD/JPY extending its decline toward the psychologically important 115.00 handle, a level protected by the 38.2 Fib of the 104.16-121.46 USD rally and 200-day SMA at 114.90. However in case greenback longs manage to push the pair back above 118.00, , a further move to the upside will most likely see the pair head higher and target yen offers around 118.17, a level marked by the December 30 daily high. A further move to the upside will most likely see the pair extend its gains above 119.00 figure and target offers around 119.39, a level established by the February 3 daily high. Indicators are favoring yen bulls with both negative momentum indicator and negative MACD treading below the zero line, while neutral oscillators give either side enough room to maneuver.

...more...

[UpInArms]

34. peeking at the buck

Last trade 89.60 Change -0.31 (-0.34%)

Settle Time 15:01 Open 89.89

Previous Close 89.91 High 90.25

Low 89.60 2006-03-30 09:30:55, 30 min delay

52wk High 92.63 52wk High Date 2005-11-16

[UpInArms]

41. still tumbling downward

Last trade 89.45 Change -0.46 (-0.51%)

Settle Time 15:01 Open 89.89

Previous Close 89.91 High 90.25

Low 89.39 2006-03-30 09:57:05, 30 min delay

[WhiteTara]

46. does this have meaning here?

How do we know when the end is near? Deepcaster and Williams agree on the answer. "If I were looking for one factor to signal the onset of some really serious problems, I would watch the dollar. If you start to see a sharp sell-off, or if the selling starts to pick up a little steam and begins to look like a panic, or you start to hear talk of an Asian country dumping a little extra in the way of dollars, it will be a sign of really bad times to come." This is a quote from a posted link here on the SM thread.

[UpInArms]

50. see my post #48 - right now it's the ME, but it could catch on quickly

:hide:

[UpInArms]

48. Dollar slides vs. rivals on rate fears (foreign diversification)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B17419CFB%2D174F%2D4300%2DAAD1%2DC7C1FCD56898%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- The dollar traded lower against its major rivals early Thursday, amid expectations that the interest-rate differential between the U.S. and other parts of the world will narrow soon.

Sentiment towards the euro has improved recently following several robust economic reports out of the euro zone.

<snip>

Diversification "a significant impact"

The U.S. currency was also bid lower on concerns that Middle Eastern governments may shift reserves away from the American currency.

The United Arab Emirates central bank governor overnight reiterated comments that the country was looking to raise the euro's weighting in its reserves to 10% of its total from 2%.

"Although the potential shift in reserves by the UAE does not represent a huge amount on its own, if this becomes a trend throughout the region it will have a significant impact on currency markets," said currency analysts from BNP Paribas.

...more at link...

[WhiteTara]

54. I was afraid of that

:scared: too

[UpInArms]

59. looks like the buck has caught a few bids - now in suspension

Last trade 89.49 Change -0.42 (-0.47%)

Settle Time 15:01 Open 89.89

Previous Close 89.91 High 90.25

Low 89.39 2006-03-30 09:53:54, 30 min delay

[54anickel]

93. Overnight markets sell the US$ (Today's Pfenning)

http://www.kitcocasey.com/displayArticle.php?id=633

Good day... The dollar was sold off in Asian and European markets last night. The reason for the sell-off was that traders believe the yield advantage of U.S. assets over Europe and Japan will narrow this year. Talk about obvious! I guess with no real data out on either side of the Atlantic yesterday, they had to fall back on the old SIRT (Stupid Interest Rate Talk). If the SIRT was good for the US$ on the way up, it will continue to be used as a reason to sell the dollar on the way down. Yes, interest rates in the U.S. are going to stop rising soon, and interest rates in Europe and Japan have just begun their moves up. While these interest rate differentials certainly will help hasten the dollars demise, I believe the economic fundamentals here in the U.S. will end up being the real force driving the US$ down.

Today we will get the GDP data along with Personal Consumption and the weekly jobs numbers. This data will likely show a U.S. economy that is (to steal a phrase from John Mauldin) just 'muddling through'. GDP is expected to be 1.7% for the 4th quarter with personal consumption at 1.2%. These expectations are identical to the prior numbers, so they should be a non-event. The jobless data are expected to show a firming labor market. As I said yesterday, the Bernanke's Fed will be watching these numbers closely to see if a tightening labor market will spur wage inflation and make it necessary to raise rates past the expected 5% top. Initial jobless claims are predicted to come in at 305k and the continuing claims at 2475k. A number above these should cause a sell-off in the US$, while lower numbers will cause it to rally.

Our bond trader John Kaupisch pointed out yesterday that in spite of all the negative news coming out of Europe and a FOMC rate increase, the euro had held steady just over 1.20 (before rallying overnight to just under 1.21). The last time we had riots in Paris, the euro fell almost 2 cents. Those riots combined with the FOMC decision should have sent the euro into a tailspin, but instead it is up over 1% in the last 5 days. The markets currently have a dollar negative tone, and will take any opportunity to sell the US$ off. Once these markets get moving, they can act like a freight train and absolutely clobber anyone standing in their way. Right now, there is broad based support for the euro, and smart money is being placed against the dollar.

The pound sterling rose against the dollar after an industry report showed house prices in Britain rose more than expected in March. The average cost of a home in Britain rose 1.1% from February when prices were unchanged. The pound had been sold off earlier this year as many currency traders were predicting another cut in interest rates by the BOE. With housing prices firming up again, these same traders are now looking for rates to remain steady. I expect the pound to gain vs. the US$ but lose against the euro as interest rates are increased by the ECB. Don't look for any movement in rates by the BOE in 2006.

As was widely predicted, Iceland's central bank raised rates. But the size of the interest rate increase did surprise the markets. Iceland's krona rose against the dollar and euro after the central bank unexpectedly increased its key interest rate by three quarters of a percentage point. Sedlabanki, Iceland's central bank, will publish its latest inflation forecasts later today and hold its annual meeting tomorrow, so expect some more volatility from this currency over the next few days. Annual inflation has exceeded the bank's 2.5% target since April 2004. Inflation has surpassed the central bank's target for two years after economic growth exceeded 8 percent in 2004 and 5 percent last year.

more...

[54anickel]

71. `E. Asia must prepare for possible dollar collapse'

http://www.hindu.com/2006/03/29/stories/2006032905401700.htm

TOKYO: With the U.S. trade deficit at a record high and global interest rates rising, East Asian economies need to be prepared for a possible `collapse' of the dollar, the Asian Development Bank warned on Tuesday.

"Any shock hitting the U.S. economy or the global market may change investors' perceptions given the existing global current account imbalance,'' said Masahiro Kawai, ADB's head of regional economic integration. "Our suggestion to Asian countries is: do not take this continuous financing of the U.S. current account deficit as given. If something happens then East Asian economies have to be prepared,'' he told reporters on a trip to Japan.

Because of the highly interdependent nature of the East Asian economies, if countries worked together to allow their currencies to collectively appreciate against a tumbling dollar then the cost of adjustment would be spread, he said. "The possibility of a U.S. dollar collapse or sharp decline may be small at this point but it would generate very significant turmoil so East Asian economies... ought to be ready for that,'' Mr. Kawai said.

The Manila-based ADB is working on several indices of Asian currencies that could be helpful to monitor exchange rate movements in the case of a sharp dollar decline, though its main aim is to help develop regional bond markets.

Hmmmm, mainly to help regional bond markets...wasn't that also the quoted reason for the GCC regional currency in yesterday's article?

Why yes, it was...

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=78983&version=1&template_id=48&parent_id=28
It will not only foster the integration of money markets across the region and lead to a uniform short-term interest rate structure, but also contribute to the integration and development of the region’s bond and equity markets thereby facilitate savings and investments, the paper written by Muhammad al-Jasser and Abdulrahman al-Hamidy said.


What was that old tune I used to "sing"?

I see zones,
I see glittering zones.
And the fiat buck's bones,
amongst those lovely zones.

See zones, see zones.
See zones, see zones.

[UpInArms]

77. Lying in the face of Reality - Fratto spews some crap

U.S. Treasury repeats strong dollar in U.S. interest

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-30T160150Z_01_WAT005179_RTRIDST_0_ECONOMY-DOLLAR-URGENT.XML

WASHINGTON, March 30 (Reuters) - A U.S. Treasury spokesman repeated on Thursday that a strong dollar was in the U.S. interest and said that currency values should be set in open markets.

"The administration's policy on the dollar is unchanged," Treasury spokesman Tony Fratto said. "A strong dollar is in the national interest. Currency values should be set in open, competitive markets."

Earlier, rumors that the White House might issue a statement on the currency caused the dollar to fall in value against other major currencies.

[54anickel]

95. Hey, I thought that was Snow's line. They bumping him out of the

spotlight already?

[54anickel]

112. The 7 stages of a dollar crisis (from Feb 2004)

http://moneycentral.msn.com/content/P72747.asp

snip>

What we are witnessing is the unfolding of a dollar crisis. Though its external value seems to be a nebulous concept for many folks, as the dollar's ongoing decline builds to a crisis, it will have a significant impact on the workings of financial markets -- and affect everyone's financial well-being. (For review, please see my past columns: "The dollar's dramatic decline comes out of your wallet”; "The dollar: linchpin to stocks and the economy"; "Face up to the falling dollar"; “Fantasy, the Fed and the falling dollar: Oh my!"; and "The dollar is on borrowed time.")

7 small steps to crisis
Here, then, is my outline of a 7-step process of creating a full-blown crisis.
Step 1. Nobody notices or pays attention that the dollar is falling.

Step 2. Folks wake up, but they either don't care or rationalize dollar weakness as a good thing.

Step 3. The central banks now know they have a problem, but the bankers think the market will obey them. It will, for a while. (This is the step we have now reached and what emerged at the G7 meeting.)

Step 4. The dollar now tests everyone's resolve by resuming its decline. The currency markets will not respond to jawboning by finance ministers.

Step 5. In this step, the finance ministers are forced to take action. (Think about it. Even if they'd stated that they wanted the dollar to go up, nothing either explicit or implied indicates they'll do anything about what's happening. That will come next.) When they do take action, the market will do what they want -- but only for a while.

Step 6. The ministers take some additional action, but it won't be enough, and the currency markets won't do what the ministers want.

Step 7. Finally, we'll have a full-blown crisis, and that will be the end game.

more...

Hmmmm, have we reached step 5 already?

[UpInArms]

125. dollar sags again

Last trade 89.39 Change -0.52 (-0.58%)

Settle Time 15:01 Open 89.89

Previous Close 89.91 High 90.25

Low 89.32 2006-03-30 14:59:57, 30 min delay

[UpInArms]

14. Morgan Stanley cuts 20-25 brokerage managers -memo

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-30T014942Z_01_N29374637_RTRIDST_0_FINANCIAL-MORGANSTANLEY-BROKERAGE-UPDATE-1.XML

NEW YORK, March 29 (Reuters) - Morgan Stanley (MS.N: Quote, Profile, Research) on Wednesday cut 15 percent of the senior managers who oversaw its retail brokerage operations in the New York area as part of a restructuring of that unit, according to an internal memo.

The cuts affect about 20 to 25 people who worked in the investment bank's New York City headquarters and in suburban Westchester County.

"While it is difficult to see colleagues go, please understand that these changes are designed to better position the organization going forward," brokerage chief James Gorman said in the memo to Morgan Stanley's global wealth management group. "Other changes will follow in the near future."

To streamline Morgan Stanley's brokerage management structure, Gorman said he will also consolidate 61 "areas" in the network into 23 "districts," according to the memo.

A Morgan Stanley representative confirmed the memo's contents, which characterized the job cuts as the "departure" of senior management.

...more...

[UpInArms]

15. HealthSouth Reports Loss of $446 Million - accounting fraud

http://sfgate.com/cgi-bin/article.cgi?f=/news/archive/2006/03/29/financial/f071915S71.DTL&type=business

(03-29) 07:19 PST Birmingham, Ala. (AP) --

HealthSouth Corp. said Wednesday that losses swelled to $446 million last year, partly because it agreed to pay millions of dollars to settle lawsuits stemming from a $2.7 billion accounting fraud.

The Birmingham-based rehabilitation and medical services chain said its annual loss increased sharply from $174 million in 2004 after it agreed to pay $215 million in stock and warrants to settle investors' complaints.

But HealthSouth said income for each of its operating segments also was off because of changes in government reimbursement rules. The company reported net revenues of $3.2 billion, down from $3.75 billion in 2004.

The report included a note from auditors that HealthSouth's internal accounting controls were still not adequate.

...more...

[salin]

30. 2.7 Billion in accounting fraud... and all they have to pay

is less than 10%. Now there's a way to prevent future corporate fraud... :eyes:

[AnneD]

57. I've never worked there...

but I have yet to here positive feed back from Nurses that do work there. I am not making a recommendation one way or the other but they don't treat the folks actually doing the work well. Nuf said.

[UpInArms]

16. Bolten wants Snow replaced at US Treasury-NY Times

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-30T132206Z_01_N30379384_RTRIDST_0_BUSH-SNOW-REPORT.XML

WASHINGTON, March 30 (Reuters) - Joshua Bolten, the incoming White House chief of staff, wants Treasury Secretary John Snow replaced with someone who can present the administration's message more forcefully, The New York Times reported on Thursday.

Bolten, who takes over the top staff job next month, wants President George W. Bush to shake up his economic team and overhaul White House management, the Times said, quoting a prominent Republican who consults with the White House.

Among the names being mentioned to replace Snow were Henry Paulson, chief executive of Goldman Sachs; John Mack, chief executive of Morgan Stanley, and Richard Parsons, chairman of Time Warner, the newspaper said.

The Times quoted Republicans as saying if a new secretary was picked from Wall Street, it would help reassure financial markets that are worried about growing budget and trade deficits.

On Wednesday, White House spokesman Scott McClellan said Bush believes Snow is doing a good job.

...more...

[UpInArms]

28. If there ever was a question regarding the corrupt ties of *Co and

the financial and media giants, here is the living proof:

http://www.nytimes.com/2006/03/30/politics/30bush.html

Names circulating in Republican circles as possible candidates for the Treasury post included Henry M. Paulson Jr., the chief executive of Goldman Sachs; John J. Mack, the chief executive of Morgan Stanley; and Richard D. Parsons, the chairman of Time Warner.

[54anickel]

42. My money is on "Mack the Knife" Seems like a WS darling though

his "speak your mind" mentality might not go over well in DC. Gotta wonder if any of these guys would be willing to give up their cushy salaries though.

Richard D. Parsons - http://www.timewarner.com/corp/management/corp_executives/bio/parsons_richard.html
Before joining Time Warner, Mr. Parsons was Chairman and Chief Executive Officer of Dime Bancorp, Inc., one of the largest thrift institutions in the United States. Previously, he was the managing partner of the New York law firm Patterson, Belknap, Webb & Tyler. Prior to that, he held various positions in state and federal government, as counsel for Nelson Rockefeller and as a senior White House aide under President Gerald Ford. Mr. Parsons received his undergraduate education at the University of Hawaii and his legal training at Union University's Albany Law School.

Mr. Parsons’ civic and non-profit commitments include Co-Chairman of the Mayor’s Commission on Economic Opportunity in New York; Chairman Emeritus of the Partnership for New York City; Chairman of the Apollo Theatre Foundation and service on the boards of Howard University, the Museum of Modern Art and the Museum of Natural History. He also serves on the boards of Citigroup and Estee Lauder.


Henry M. Paulson Jr. -
http://www.newsmeat.com/ceo_political_donations/Henry_Paulson.php
http://www.ita.doc.gov/TD/PEC/henrypaulson.html
Mr. Paulson has been Chairman and Chief Executive Officer of Goldman Sachs since May 1999, and has been a director since August 1998. He is also Chairman of the firm’s Management Committee. He served as President and Chief Operating Officer from 1994 to 1998 and as Co-Head of the Investment Banking Division from 1990-1994. He was made Managing Partner of the Chicago office in 1988 and head of Investment Banking Services for the Midwest Region in1983. He became Partner in 1982.

Prior to joining the firm in 1974, Mr. Paulson was a member of the White House Domestic Council, serving as Staff Assistant to the President from 1972 to 1973 and as Staff Assistant to the Assistant Secretary of Defense (Comptroller) at the Pentagon from 1970 to 1972.

Mr. Paulson is a member of the Board of Directors of the NYSE, a director and a member of the Executive Committee of the New York City Investment Fund and a member of the Board of Directors of the Peregrine Fund, Inc. He is also Co-Chairman of the Asia/Pacific Council of The Nature Conservancy. Mr. Paulson serves on the Advisory Board of the J.L. Kellogg Graduate School of Management at Northwestern University and on the Board of Directors of the Associates of Harvard Business School and is Chairman of the Advisory Board of the Tsinghua University School of Economics and Management. In addition, he is a member of the Governing Board of the Indian School of Business.


John J. Mack (aka Mack the Knife) - http://en.wikipedia.org/wiki/John_J._Mack
John J. Mack (1945? - ) is the present CEO and Chairman of the Board of Morgan Stanley. He returned to the company on June 30, 2005 to replace Phil Purcell, who had become CEO after the 1997 merger of Morgan Stanley and Dean Witter, of which Purcell was already CEO.

Mack had previously been with Morgan Stanley for nearly 30 years and served as president from 1997 to 2001, leaving after a "bitter power struggle with Purcell".

From 2002 until July 2004, he was Co-CEO of CSFB (Credit Suisse First Boston), where he slashed 10,000 jobs, living up to the nickname "Mack the Knife" which he had earned during the 1990s while at Morgan Stanley. He became Chairman of Pequot Capital Management in 2005.


http://www.businessweek.com/1996/02/b345744.htm
In one of Wall Street's best years ever, Morgan Stanley Group President JOHN J. MACK had a nice one of his own. Mack, 51, forcefully integrated independent departments. It worked. The firm's stock rose 43%, and its earnings soared 73%. Under Mack, Morgan became the only foreign investment bank allowed to do business inside China.


http://www.horatioalger.com/members/member_info.cfm?memberid=MAC03

snip>
Mack credits his success in business with his ability to not only learn quickly but to learn from his mistakes. Guided by his mentor at Morgan Stanley, Dick Fisher, he learned to diffuse stress with humor and to be willing to make tough decisions. “I grew up at Morgan Stanley,” he says. “The people around me were very smart and I had a chance to learn something every day. I also learned the value of speaking up and saying what I think. Too many people are averse to expressing their views.”

[54anickel]

58. OK, I take that back after reading today's wrap-up. Paulson gets my vote

unless they are willing to "mix it up" a bit. I'm thinking Goldman Sachs all the way. Those big RNC donations don't hurt either! Paulson first, Mack second to give the appearance of wanting a bit of diversifying ideas. If they take Mack, they'll surely neuter him early on - could be risky should he decide to write a book...O'Neill style.

[UpInArms]

61. Looks like Mack might have too many ideas of his own -

so my vote goes to Paulson also :D

[Roland99]

67. Wouldn't that fit in well with the Vulcans from the OEO under Nixon?

[54anickel]

31. Bwahahaha! "Heck of a job" time. As usual, image is everything with

this mal-admin. Nevermind how the actual job performance has been. Of course, personally, I think Snow sucks - but Bush thinks he's doing a fine job.

Funny how they believe Wall Street will trust one of their own! Remember that article that spoke to the idea of a new economic paradigm that financial professionals would understand but would take some convincing of investors and the general public?


And these children that you spit on
As they try to change their worlds
Are immune to your consultations
They’re quite aware of what they’re going through

Ch-ch-ch-ch-changes
(turn and face the strain)
Ch-ch-changes
Don’t tell them to grow up and out of it
Ch-ch-ch-ch-changes
(turn and face the strain)
Ch-ch-changes
Where’s your shame
You’ve left us up to our necks in it
Time may change me
But you can’t trace time

[Roland99]

65. Why not someone from Wall St? They're already in the know as to the

market manipulations.

[UpInArms]

69. SnowJob-no comment on reports about replacement

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-30T153403Z_01_WBT005064_RTRIDST_0_ECONOMY-SNOW-URGENT.XML

WASHINGTON, March 30 (Reuters) - U.S. Treasury Secretary John Snow refused on Thursday to comment on a New York Times story saying that he could be replaced as part of a shake-up of top Bush administration officials.

"I don't think it's helpful to make comments on rumors from nameless sources," Snow said in response to reporters' questions after addressing a business group.

Treasury spokesman Tony Fratto issued a statement saying Snow, who has served more than three years in the top Treasury post, "is proud to be part of President Bush's economic team."

"His only focus is on advancing the president's economic agenda," Fratto said. He said the Treasury would not comment on personnel issues, "especially on unsubstantiated rumors from nameless sources."

[UpInArms]

91. White House: No comment on Snow departure rumors

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-30T163037Z_01_WBT005067_RTRIDST_0_ECONOMY-SNOW-BUSH-URGENT.XML

CANCUN, Mexico, March 30 (Reuters) - White House spokesman Scott McClellan declined to speculate on Thursday about reports Treasury Secretary John Snow may be replaced.

But he said Joshua Bolten, President George W. Bush's new chief of staff, has the authority to recommend changes in administration staffing.

"Josh has the authority to do what he feels is needed. He'll be looking at the White House structure and personnel," McClellan said.

[UpInArms]

21. Treasury price losses mount after inline GDP report

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4DECC3AA%2DF244%2D480E%2D8C74%2DB81EC383F7E6%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Treasury price losses intensified early Thursday, sending yields higher, after the Commerce Department said that fourth-quarter gross domestic product was revised higher, in line with economists' expectations. The yield ($TNX 48.39, +0.29, +0.6% ) on the 10-year benchmark note rose to 4.815%, up from 4.808% before the news. Real gross domestic product grew at a 1.7% annualized rate in the quarter, compared with an earlier estimate of 1.6%, due to increased inventory buildups by businesses. Separately, the Labor Department said initial jobless claims in the latest week fell by 10,000 to 302,000.

[UpInArms]

98. U.S. Treasuries fall on rising inflation fears

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-30T165940Z_01_N30986_RTRIDST_0_MARKETS-BONDS-UPDATE-2.XML

NEW YORK, March 30 (Reuters) - U.S. Treasury debt prices fell and benchmark yields rose to a 21-month high on Thursday after a reading on fourth-quarter inflation came in above expectations, fueling fears the Federal Reserve will stay aggressive to control prices.

The Fed's favorite measure of inflation, the core personal consumption expenditures index was revised higher for the fourth quarter of last year to a level above the central bank's presumed comfort level.

<snip>

The key catalyst on Thursday for the higher yields was the price index for personal consumption expenditures excluding food and energy items, which was revised up to a 2.4 percent rate of annual increase in the fourth quarter from an estimated 2.1 percent a month ago. The Fed's presumed target level for core PCE is 1 to 2 percent.

...more...

We certainly would be interested to know what that number would be if those items were included :eyes:

[54anickel]

22. Lone Star Funds Raided in South Korea, Warrant Issued

Ahhh, those Texan bidness folks. Spreading Corporate American values around the globe! (No offense meant to Texans in general, of course)

http://www.bloomberg.com/apps/news?pid=10000080&sid=asCvUyhYG44Y&refer=asia

March 30 (Bloomberg) -- South Korean prosecutors raided the Seoul office of Lone Star Funds on allegations that the U.S. investment firm evaded taxes on the sale of buildings and breached foreign-exchange rules in international transactions.

Prosecutors also issued a warrant to detain Steven Lee, the Dallas-based firm's former country manager, Chae Dong Wook, a prosecutor in the Supreme Prosecutors' Office, said today. Lee, who has resigned and left Korea, wasn't available to comment.

``The raid was to secure evidence for the investigation into whether Lone Star's activities were illegal,'' Chae told reporters in Seoul.

Lone Star, which has invested more than $10 billion in South Korea, last week agreed to sell a $6.6 billion stake in Korea Exchange Bank in the nation's biggest takeover. The firm stands to gain more than $4 billion from its 2 1/2 year investment in Korea Exchange, after an index tracking the nation's bank stocks more than doubled.

more...

[skids]

110. Hrm, wasn't that...

...the firm that Wayne Madsen was calling a cornerstone of the BFEE?

[54anickel]

23. Nasdaq Abandons $4.2 Billion Takeover Offer for LSE (Update5)

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aok_n0qEjQ6w&refer=home

March 30 (Bloomberg) -- Nasdaq Stock Market Inc. withdrew a 2.4 billion-pound ($4.2 billion) bid for London Stock Exchange Plc, abandoning an attempt to create the first transatlantic stock market. Shares of LSE slumped the most in more than 4 1/2 years.

Nasdaq, the largest U.S. electronic equity market, pulled its offer of 950 pence a share, the New York-based company said in a statement today. LSE shares declined as much as 10.7 percent to 1,000 pence, the biggest drop since July 20, 2001. The stock traded at 1,017 pence as of 12:12 p.m. in London.

``LSE looks a little bit left out in the cold,'' said Stuart Fraser, a director at Brewin Dolphin, which manages $28 billion, including about 500,000 LSE shares. While the share price is still above Nasdaq's bid, LSE is no longer ``in active play,'' he said.

Nasdaq is the third suitor in 14 months to walk away from LSE as Chief Executive Officer Clara Furse, 48, holds out for more money. Furse, who has touted LSE's viability as an independent company, on March 10 rejected Nasdaq's approach. LSE shares surged 34 percent in the next four days to a record 1,190 pence as analysts forecast the New York Stock Exchange may join the bidding.

snip>

An LSE-Nasdaq combination would have created a single marketplace for stocks such as Microsoft Corp. and BP Plc, and would have given foreign companies a way to tap American investors without having to meet U.S. regulatory requirements.

more...

[UpInArms]

24. Abramoff free, despite sentence

http://www.theage.com.au/news/world/abramoff-free-despite-sentence/2006/03/30/1143441279604.html

Walking free was not the only leniency granted Abramoff. His sentence of five years and 10 months was the minimum permitted under sentencing guidelines. His co-conspirator Adam Kidan also got the minimum. They were, however, ordered to pay restitution of $US21.7 million ($A30.8 million).

They were found guilty for a scam in which they faked a $US23 million transaction that was made to look as if they were putting their own money into a venture to buy a series of floating casinos based off Florida in order to obtain a $US60 million loan.

Part of their sentencing deal is to co-operate with an investigation into the murder of the man they bought the casinos from, Konstantinos "Gus" Boulis. They have denied any involvement in the murder, for which three men, including one with connections to the New York Mafia, have been charged.

Abramoff faces up to 11 years in jail on a separate charge in Washington of fraud, tax evasion and conspiracy to bribe public officials. His sentence could be reduced — and served concurrently with the Miami sentence — for his continuing co-operation in the bribery probe.

[UpInArms]

26. Future of Maytag's plants, offices in Iowa uncertain

http://desmoinesregister.com/apps/pbcs.dll/article?AID=/20060330/BUSINESS04/603300390/1029/BUSINESS

The creation of the world's largest appliance maker clouds the future of Maytag's operations in its home state.

The Justice Department's decision not to challenge the deal between Maytag and Whirlpool avoids a prolonged court fight. But Whirlpool hasn't disclosed its plans for Maytag's Iowa operations.

Newton Mayor Chaz Allen said he's relieved one decision has been made, but the community still hangs on the most important one: the future of 2,300 corporate and factory workers in Newton.

"At least we know who we're working with," Allen said. The city hopes to continue discussions with Whirlpool that began in Chicago in February, he said.

The Justice Department's antitrust division said Wednesday that it "thoroughly investigated" the proposed acquisition and "determined that the proposed transaction is not likely to reduce competition substantially."

<snip>

Albert Foer, president of the American Antitrust Institute in Washington, D.C., said the decision "bodes very poorly for merger controls." The institute had asked the Justice Department to block the purchase or at least require the new company to spin off holdings in its laundry business.

...more...

[ozymandius]

32. Look out for those futures charts! Could poke an eye out. (blather)

09:01 am : S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: +3.0. Futures trade continues to reflect the stock market's muted reaction to the recently released Q4 GDP data. Treasuries have taken a more bearish cue, though. Yields across the curve are continuing to rise, and the benchmark 10-year note is now at 4.84%. Going back to the equity market, there are a few items from the corporate front that are lending support. GM is reportedly moving closer to selling a 51% stake in GMAC to an investor group, regulators are reportedly putting finishing touches on an agreement that will allow Boeing (BA) and Lockheed Martin (LMT) to merge their government rocket businesses, Nokia (NOK) raised its 2006 forecast for handset growth, and Best Buy (BBY) reported earnings that met expectations and raised its FY07 guidance.

08:35 am : S&P futures vs fair value: +0.5. Nasdaq futures vs fair value: +5.0. In-line with economists' projection, GDP grew 1.7% in Q4. The chain deflator, meanwhile, checked in at 3.5%, slightly ahead of the 3.3% that economists had expected. In the markets' immediate reaction, futures trade has held relatively steady but bond yields have ticked slightly higher. The data isn't expected to have any real influence throughout the day, given its dated nature and the realization that the Fed acknowledged the slowdown seems to have reflected temporary or special factors. Last week's Initial Claims report has also been released. Claims were 302,000, slightly below the 305,000 that the market anticipated. The prior week's number was revised upward by 10,000 to 312,000.

[UpInArms]

33. DOJ: Hedge fund manager Wright faces federal fraud charge

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B5B03915C%2D802A%2D4835%2DA98D%2DB733C8995861%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The Department of Justice on Wednesday unsealed a March 10 federal criminal complaint against Kirk Wright, 35, of Marietta, Ga., who has been charged with mail fraud, relating to the collapse of hedge funds operated by International Management Associates and International Management Associates Advisory Group. The complaint alleges a fraud involving $150 million to $180 million in missing investor assets, said U.S. Attorney David Nahmias in a statement. An arrest warrant has been issued for Wright, who is wanted by the Federal Bureau of Investigation. The DOJ added that Wright, a principal owner of IMA and IMAAG in Atlanta, operated hedge funds, and that in late 2005, Wright allegedly represented to several clients that the funds had more than $150 million under management in the custody of the brokerage firm Ameritrade, now known as TD AmeriTrade Holding Corp. (AMTD 20.96, +1.80, +9.4% ) . The complaint alleges that Wright's claims were "lies," and that the Ameritrade statements were fabricated, reflecting accounts that did not exist, and balances more than 1,000 times the actual value of the accounts. The criminal complaint charges mail fraud, executed by mailing a set of false asset statements to IMA investor Stephen Atwater. The charge carries a maximum sentence of 20 years in prison and a fine of up to $250,000.

[UpInArms]

37. 9:52 EST Partying in the Pits

Dow 11,226.26 +10.56 (+0.09%)
Nasdaq 2,346.44 +8.66 (+0.37%)
S&P 500 1,306.26 +3.37 (+0.26%)
10-Yr Bond 4.835 +0.25 (+0.52%)

NYSE Volume 241,090,000
Nasdaq Volume 284,486,000

09:40 am : As futures trade had presaged, the blue chip averages opened in rather subdued fashion. Traders appear to be taking a break after yesterday's rally. Yesterday's move was attributed to the belief that Tuesday's FOMC-related decline was overdone. We don't concur, though. Rising rates are not a good thing for the stock market, and uncertainty over the length of the Fed tightening cycle persists. On that note, Treasuries are again under pressure. Yields across the curve are continuing to rise, and the benchmark 10-year note is presently at 4.83%. Rising costs of energy is another factor that continues to face the market. Crude is currently up marginally (at about $66.50 per barrel); geopolitical concerns continue, and the upcoming natural gas inventory report from the Energy Department may serve as another catalyst for the energy market today. Separately, there are a few items from the corporate front that are lending support. Among them are reports that GM is moving closer to selling a 51% stake in GMAC, and that regulators are finishing an agreement that will allow Boeing (BA) and Lockheed Martin (LMT) to merge their government rocket businesses. Also, Nokia (NOK) raised its 2006 forecast for handset growth, and Best Buy (BBY) raised its FY07 guidance. DJ30 -9.85 NASDAQ +3.40 SP500 -0.45

[Roland99]

43. "Nothing gold can stay"

[54anickel]

62. Banks' obsession with China may be overblown

http://money.cnn.com/2006/03/30/news/companies/china_banks/index.htm

Banks are flocking to claim a stake in the fast-growing market, but critics see potential losses in the cards.
By Shaheen Pasha, CNNMoney.com staff writer
March 30, 2006: 6:04 AM EST


NEW YORK (CNNMoney.com) - As China gets set to throw open its doors to foreign banks by the end of the year, there's a gold rush among global banks to claim their stake in China's fast-growing financial services market.

But analysts warn that banks in search of riches may find little more than fool's gold in China, given the country's tempestuous regulatory environment, the high cost of entry and the potential for significant loan losses due to the country's often unstable lending environment.

In the last year, China has seen an influx of about $15 billion from foreign banks with large players such as Bank of America (Research) and Goldman Sachs (Research) investing over $3 billion each to buy small 10 percent stakes in two of the Big 4 Chinese banks. And JPMorgan Chase (Research), which actively sought to buy a controlling stake in troubled Chinese broker Liaoning Securities before the Chinese government rejected the deal, is on the hunt for other acquisition targets in China, according to the company's chief executive Jamie Dimon at a speech before the Detroit Economic Club earlier this week.

The promise of wealth
Richard Bove, analyst at Punk & Ziegel, said global banks are being lured by the promise of wealth in a country that has averaged about 9 percent annual growth over the last several years. And as part of China's entry into the World Trade Organization, China will allow foreign banks to operate in any part of the country -- opening up the possibility for global banks to expand within a market made up of 1.3 billion people.

more...

[UpInArms]

66. 10:34 EST Land of LaLa has caught a clue

Probably a fluke and they'll throw it back :eyes:

Dow 11,227.06 +11.36 (+0.10%)
Nasdaq 2,342.74 +4.96 (+0.21%)
S&P 500 1,306.75 +3.86 (+0.30%)
10-Yr Bond 4.825 +0.15 (+0.31%)

NYSE Volume 542,166,000
Nasdaq Volume 601,119,000

10:00 am : The market has advanced. The tech-heavy Nasdaq is continuing to outperform after hitting a five-year high yesterday. On a related note, it's the Tech sector (+0.5%) that is leading early trade. There are various pockets of strength. Semiconductors drove yesterday's advance, and that area of the market is enjoying follow-though buying interest. Better than expected earnings results from ATI Tech (ATYT 16.85 +1.12) is helping to keep the rally going. Communication-related stocks are also advancing. A driving factor is Nokia (NOK 21.29 +1.7), which upped its 2005 handset guidance to 15% from "10% or more." Cisco (CSCO 21.75 +0.18), which is one of our recommended holdings for active investors, is adding momentum following Bank of America's target increase.DJ30 +1.28 NASDAQ +6.65 SP500 +2.23 NASDAQ Dec/Adv/Vol 1075/1435/360.3 mln NYSE Dec/Adv/Vol 1176/1580/208.1 mln

[UpInArms]

68. US Senate panel delays CFIUS reform bill meeting

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-30T153117Z_01_N30368939_RTRIDST_0_SECURITY-INVESTMENT.XML

WASHINGTON, March 30 (Reuters) - The Senate Banking Committee postponed a bill-writing session until Thursday afternoon as lawmakers negotiate over proposals to overhaul U.S. reviews of foreign acquisitions of American companies, a committee spokesman said.

The banking panel, which had been scheduled to meet at 10 a.m. ET (1600 GMT), will now assemble at 2 p.m. (2000 GMT), said Andrew Gray, spokesman for the committee.

Members of the committee are under heavy pressure from Wall Street and big U.S. corporations, which oppose major changes in the review process by the the Committee on Foreign Investment in the United States (CFIUS). The business community is especially concerned about draft legislation before the committee that would lengthen the CFIUS review process.

...more...

Corporate Murka doesn't give a flip about security, unless it's a commodity they can sell.

[54anickel]

72. Well, if Bushco would follow the stinkin' laws and rules that are already

on the books to begin with, there wouldn't be a call to overhaul the process to begin with. Don't get me wrong, I'm not siding with Corporate Murka on this...just saying
IMPEACH THE BASTARD WHO THINKS HE'S KING AND BE DONE WITH IT!

[54anickel]

100. Gold: There's No Free Lunch

There just seems to be an awful lot of rocks and hard places surrounding us these days.

http://www.gold-eagle.com/editorials_05/ing032906.html

In his State of the Union address, George W. Bush warned that "America is addicted to oil". Mr. Bush then vowed to reduce America's reliance on Middle East oil by 75 percent despite importing 60 percent of its oil from Canada, Mexico and Saudi Arabia in that order. The Organization of Petroleum Exporting Countries (OPEC) reacted by warning that investment in Gulf production could be jeopardized.

In point of fact, America is not only addicted to oil but also to cheap financing. America's addiction to cheap oil helped cause the burgeoning US trade deficit to balloon to a record $805 billion in 2005 or almost 7 percent of GDP increasing US indebtedness to almost $9.5 trillion. America is in the difficult position of having to import $3 billion a day in foreign capital just to fund its deficits. Moreover, between 2004 and 2005, America's household savings declined from 2.5 percent to a negative savings rate. This decline allowed households to consume more but caused record levels of indebtedness.

Lured by low interest rates, consumers racked up mortgages of nearly $3 trillion from the end of 2000 to the end of 2004. It has been estimated that over the next two years, almost $2.5 trillion of mortgage debt must be refinanced at levels more than twice of what they were since interest rates have increased 14 times.

How things change. Today, the US government's desperation for cash caused it to reintroduce the 30 year bond and is applauded for incurring more debt. At one time, deficits were considered bad because governments had to borrow more which would raise interest rates. The bond vigilantes would demand lower prices and these investors were a form of discipline. However today, deficits and increased government borrowing are not feared, they don't seem to matter. Part of reason is that with the markets awash with liquidity, the bond vigilantes have been replaced by foreign investors seemingly unfazed by higher deficits and the prospect of increased government spending.

Higher Interest Rates Usher In a New World
President Bush unveiled a whopping budgetary deficit of $423 billion and is expected to issue almost $90 billion of new debt in this quarter alone. Heightened economic activity in Europe and Japan is also pushing up interest rates. In Europe, rates jumped a quarter percent following a similar rise in December. Rising interest rates overseas has narrowed the differential and reduced the "carry" trade which saw investors borrow funds in low yielding currencies investing in higher yielding securities such as condos, commodities, and treasuries. In Japan, monetary policy at long last has changed with the reversal of that country's deflationary spiral ending the five-year policy of "quantitative easing", the zero interest rate policy and the infamous yen "carry" trade.

Higher yields everywhere are thus in the cards with the greenback a casualty. Fresh fears over the unsustainability of America's structural deficits was the prime cause for the dollar's three year slide has once again led to another ratcheting up in yields and a lower dollar. The dollar must fall further as the competition for scarcer funds increases. Gold will be a good thing to have.

more...

[UpInArms]

74. 11:00 EST Game of Hot Potato in Progress

Dow 11,193.84 -21.86 (-0.19%)
Nasdaq 2,337.51 -0.27 (-0.01%)
S&P 500 1,303.22 +0.33 (+0.03%)
10-Yr Bond 48.43 +0.33 (+0.69%)

NYSE Volume 702,932,000
Nasdaq Volume 773,295,000

10:25 am : Buyers remain in control. At this point, all ten economic sectors are trading on positive turf. The Materials sector has taken over the leadership position. It's now up 1.5% and benefiting from advances across the commodity board. Several metals continue to trade at or near historic highs. Silver is leading the charge and registering a 3% gain. Gold has jumped over 2%, and copper is doing well. Speaking of copper, Phelps Dodge (PD 81.56 +4.54) was upgraded at Morgan Stanley to Overweight from Equal Weight. The firm has a $100 price target on the stock, which is one of our recommended holdings. PD and many other metal-related issues are attracting solid buying interest. Currently, the diversified metals and minerals industry is leading the S&P's 139 groupsDJ30 +29.53 NASDAQ +10.71 SP500 +5.62 NASDAQ Dec/Adv/Vol 1059/1584/508.7 mln NYSE Dec/Adv/Vol 1120/1754/314.2 mln

[54anickel]

75. Wal-Mart Begins Quest for Generals in P.R. War

Wouldn't it be easier if they just clean up their act? Polishing a turd is hard work. :eyes:

http://www.nytimes.com/2006/03/30/business/media/30walmart.html?_r=2&oref=slogin&oref=slogin

Wanted: two people to help defend the nation's largest retailer against critics. Requirements: plenty of experience managing a crisis.

Wal-Mart Stores has begun circulating two senior-level job postings — both in public relations — and if the language used to describe the positions is any indication, the giant discount retailer is on the P.R. equivalent of war footing.

One job includes "opposition research," presumably into Wal-Mart's major critics: Wal-Mart Watch and Wake Up Wal-Mart. The other requires the ability to "mobilize resources" during a "crisis situation."

The two jobs reflect how much life has changed at Wal-Mart, which has come under withering criticism over its wages, health benefits and treatment of workers. The company barely had a public relations department in the early 1990's, but now has a staff of dozens, including a public relations war room full of former political operatives who dispute the assertions of its opponents.

The job postings, which were circulated by Crowe-Innes & Associates, an executive search firm, were given to The New York Times by Wal-Mart Watch, a group backed by unions and foundations that is pressing Wal-Mart to enhance its wages and benefits.

more...

[specimenfred1984]

81. Translation:

Lying hicksville and repuke company seeks 2 bootlicking conpigs to spread corporate propaganda. Must be willing to lie 24/7, smear at will and, must possess sociopathic ability to not care one bit about selling America to China or destroying entire U.S. communities. Past experience in discrimination helpful and a history of banning books would be a major plus.

Qualified candidates will be fat, have Devo-type haircut and no noticable upper lip.

[54anickel]

76. Commodities boom raises fears

http://news.ft.com/cms/s/09f7ef24-bf68-11da-9de7-0000779e2340.html

The commodity price boom of the past three years has aroused investor attention on an unprecedented scale, with most investors placing their funds into passively managed commodity indices.

About $80bn is estimated to be in funds tracking the main commodity indices – the Goldman Sachs Commodity Index, AIG-Dow Jones, the Reuters/Jefferies CRB index and the Deutsche Bank Commodity Index – up from $15bn three years ago.

This has been spurred by record-breaking runs for oil prices, natural gas, copper and zinc, together with long-term highs for gold, sugar, aluminium and silver.

The funds tied to commodity indices swamp the estimated $10bn that pension and mutual funds have allocated to actively managed commodity hedge funds.

More funds may be on the way: consultants such as Mercer and Watson Wyatt are advising UK pension funds to allocate more money to commodity funds.

Yet fund managers and analysts are concerned that the index funds may eventually be a victim of their own success: the weight of money they have funnelled into commodity markets has contributed to severe price distortions.

more...

[54anickel]

78. U.S. Finance Chiefs Top Pay List

American CFOs are paid much more than their counterparts in other countries, but CFO pay and responsibilities are on the rise around the globe.

That a way, globalization at it's finest...get those CFO pays up around the globe so people quit bitching about the US. Meanwhile labor pay in the developed world is in a race to the bottom. Just trying to level the playing field. A rising tide lifts the big boats while cap-sizing the little ones. Fools, how the hell do they think they'll get back to port once all us little tugboats are sunk!

http://www.cfo.com/article.cfm/6740418/c_6740638?f=home_todayinfinance

U.S. finance chiefs take in an average of nearly $325,000 in total cash compensation a year, or more than five times the amount heir counterparts in India earn, according to new research by Mercer Human Resource Consulting.

Finance directors in Canada and the United Kingdom averaged $263,000 and $237,000, trailing their U.S. peers at the top of Mercer's findings of executive pay in 14 countries. In its survey of 11,600 companies, the consultancy defines annual total cash compensation as yearly base salary plus guaranteed cash plus the short-term incentive amount taken in a given year.

At the bottom of the list, finance directors in India and Hungary make about $64,000 and $77,000 a year, respectively. Mercer defines finance directors as executives who put together strategies, policies, and procedures involving sales, costs, taxes, assets, budgets, credit, and cash flow.

The elevation and broadening of the finance chief's role in the United States over the last decade or so has apparently taken hold overseas. “In many organizations, finance directors are the second highest paid individuals, receiving only slightly less than the CEO. The scope of their role has widened in recent years as new regulatory burdens and risk management responsibilities make them increasingly accountable for company governance,” said Mark Edelsten, a London-based Mercer consultant.

The consulting firm also released pay data on marketing and human-resource directors. Annual total cash payout for marketing heads ranged between $261,000 in the United States and $47,000 in India. In the number two and three slots were the United Kingdom, with $217,000 and Italy, with $201,000. “The high levels of pay for marketing directors in some countries reflect the fact that marketing and brand management are now considered key to enhancing company performance,” Edelsten said.

more...

[UpInArms]

79. 11:16 EST exits getting crowded

Dow 11,159.67 -56.03 (-0.50%)
Nasdaq 2,332.69 -5.09 (-0.22%)
S&P 500 1,300.17 -2.72 (-0.21%)
10-Yr Bond 4.851 +0.41 (+0.85%)

NYSE Volume 810,391,000
Nasdaq Volume 881,541,000

11:00 am : The stock market has given up gains. Rising bond yields and advancing energy prices appear to be giving buyers reason to pause. The lack of change in the FOMC's policy statement, which leads to an understanding that more rate hikes are on the horizon, set the bearish tone for Treasuries this week. That market remains on the defensive today. Some components of the Q4 GDP report (i.e., a revision to core prices; corporate profit) did not help matters, but bond traders' attention is still occupied by prevailing interest rate uncertainty. At this point, the benchmark 10-year note is at its worst point of the session. It's down 10 ticks and up to a 4.845% yield. The back end of the curve is again faring worst, with the 30-year down 22 ticks and offering 4.89%. With respect to energy prices, today's changes aren't (at this point) all that dramatic, yet crude remains over $66 per barrel, and heating oil and natural gas futures are rising. A greater than expected drawdown in natural gas supply will help support prices today, although it's gasoline supply (which dropped much more than expected yesterday) that is shifting into focus. DJ30 -15.13 NASDAQ +0.11 SP500 +0.28 NASDAQ Dec/Adv/Vol 1474/1277/752.5 mln NYSE Dec/Adv/Vol 1402/1557/460.4 mln

[54anickel]

80. The High Cost of Inflation (Willie ranting!?!)

http://www.321gold.com/editorials/willie/willie033006.html

A rant is due, on the eve of the latest screwball USFed rate hike. While the USEconomy boasts of being advanced, sophisticated, and developed, the last three decades have seen a crippling dependence upon inflation for the generation of wealth. The cost of this inflation has begun to show itself as extreme, widespread, and overbearing on the middle class. The natural backlash comes in the form of economic decay, lost jobs, and reduced standard of living. The undue reliance of the financial engineering has as its central core power pack the monetary inflation machinery, which has undermined our national sovereignty. The pathogenesis of inflation as a disease has been motivated since the 1970 decade by an insistence on a "guns & butter" agenda. It has required an ongoing justification based upon shifting chapters of economic mythology to sustain its dishonest foundation, new definitions on what prosperity means, and even the means of how wealth is generated.

The consequences of debt export has only recently revealed a highly explosive, reckless, and delicate situation whereby foreign entities have embarked on asset acquisition, typical in any master creditor demanding liquidation and seizure. We will have to stay on watch for national foreclosures (see Detroit). The entire landscape must be recognized for what it contains, money which is no longer constitutionally valid. That is right, the USDollar would be rejected as invalid before the Supreme Court if any legitimate body had the stones to challenge it. Why bother? Because the fallout and disastrous path we find ourselves on is a direct result. In physics, we acknowledge that every action invites an equal and opposite reaction. Tainted money and heavy reliance upon inflation invite erosion and degradation of the entire economy and financial system. That is the reaction.

snip>

JUSTIFICATION
Necessary dogma: The path of the Rambling Wreck from Financial Tech requires heretical counselors, pied piper cheerleaders, and the cast of a thousand erratic elves. The USEconomy policy makers have been driven by a sequence of nonsensical lunacy, one chapter more absurd than the previous, addressed in "Economic Mythology" in Sept2004. Giving infected policy its impetus, if not permission much like promulgated defective dogma, has been a full generation of badly trained economics professionals. My bio reads "unencumbered by the limitations of economics credentials" meant as humorous but at the same time a solid true advantage.

Hordes of bad economists: Numerous personal conversations with economics degree holders over the years have revealed to me an absolutely shocking display of ignorance regarding risk from debt in commerce, risk from debt in currency, lost control from foreign debt ownership, wreckage from pursuit of low-cost foreign solutions, insane reliance upon consumption instead of investment, acceptance of the entire lexicon of FedSpeak, and benign dismay of economic statistics. These people have been co-workers in industry, colleagues of friends, and acquaintances socially. One sure path to acceptance of chronic bad policy is to have it blessed by badly educated economics counselors. In fact, a full generation of badly educated economics professionals litters the WashDC and academic landscape. In a sense, the United States has "re-invented" economic theory. The movement coincides with the advent and growth of financial engineering, which is just a nice glib catch phrase for inflation & leverage. We have degraded into a nation of people who prefer the sweat-free work in the paper pushing game to the hard work in factories. We call this progress and the result of evolution. No way! It is evidence of financial cancer.

Cheer leaders reassure: The USFed justifies and denies the sickness with regular routine pronouncements, usually in talk of the next Soft Landing, despite never having fostered one. They serve as cheer leaders much like a mad scientist reassures his or her backer, worried sick over the monster being created in the lab downstairs, complete with nightly groans and wails. It is all progress, evidence of our sophistication. Horse puckies! We are being led down a path replete with insurmountable challenge and ongoing crisis to the point where crisis is considered normal.

more...

[54anickel]

83. Money Illusions

http://www.321gold.com/editorials/schmidt/schmidt033006.html

snip>

Financial fragility is the vulnerability of financial institutions to a change in the economic status quo. Financial institutions are today at the "maximum" exposure to the risks of the Mortgage Bubble bursting. Yes, they look nice and stable. Yet their financial fragility, or risk of loss, due to the mortgage bubble is at the highest. They have been maximizing their exposure to the most profitable investments and loans of the past decade mortgages and real estate related. Kind of the reverse of "its looks the darkest before the dawn."

The graphs so far discussed make evident that the foundation of the Mortgage/Housing Bubble is starting to crack. Investors need to understand how this unwinding will play out. That unwinding has three phases. At the end of this natural and often repeated progression, housing prices in the U.S. will be 50-75% below current levels, or the government will own the housing stock. That loss in value will be split between those that own the loans and those that borrowed the money.

The economy will be in shambles at the end. Loans for any purpose will be near impossibly to obtain. Dollar denominated investments will have been ravaged. Foreign investors will be attempting to flee them. Financial asset prices will be dramatically lower. Interest rates in the U.S. will be rising dramatically. When bonds are sold the dollar value or price declines, which causes the interest rate, yield-to-maturity, on the bonds to go up. The dollar, both of them, will plunge in value on foreign exchange markets. $Gold will be appreciating daily. Let us consider the various phases so all will understand the coming chain of events.

First is the Humpty Dumpty Phase. If you have ever read this book you likely saw a picture of Humpty sitting on a wall. The wall is not very tall, and Humpty did not take a really big fall. His landing was the problem. In the early phase of the housing crumble, the falls are not really that big. But eggs are broken, and eggs cannot be put back together again. Individuals and businesses are financial damaged. Financial contagion develops as one person's financial problems become someone else's when the bills cannot be paid. We are in the Humpty Dumpty phase at the present. Little falls are being taken and small eggs are being broken. In Florida, the manifestation of this phase is evident in builders walking away from contracts they cannot afford to do and buyers walking away from contracts that now look like losers.

The Loan Loss Phase comes second. In this phase the banks come to realize that no matter how many phone calls they make or how many letters they write, the borrower does not have the money to pay the loan. The banks take the houses and businesses. A modest amount of that is in process at the present. At first the banks take the property, hoping for a full recovery of the loan's value. Initially the bank tries to avoid selling at a loss. But if they lent money to the speculator in the example above, they are going to lose money. Slowly the banks realize that the loan value and the market value of the house are far apart. The banks start to write down the value of the loan, a loan loss. That hurts, in ways we talk about later.

Finally, the Auditors' Mentality Phase develops. In short, this phase is an attitudinal one. The lenders freeze up...

more...

[AnneD]

101. Great article...

he nailed the phases. It took longer for Houston to recover because banks wouldn't loan even on good risks. THese folks need to learn manuel underwritting of loans. They have been too lazy and greedy.

[UpInArms]

85. What an apt description of the Orwellian Hell we occupy:

Hordes of bad economists: Numerous personal conversations with economics degree holders over the years have revealed to me an absolutely shocking display of ignorance regarding risk from debt in commerce, risk from debt in currency, lost control from foreign debt ownership, wreckage from pursuit of low-cost foreign solutions, insane reliance upon consumption instead of investment, acceptance of the entire lexicon of FedSpeak, and benign dismay of economic statistics. These people have been co-workers in industry, colleagues of friends, and acquaintances socially. One sure path to acceptance of chronic bad policy is to have it blessed by badly educated economics counselors. In fact, a full generation of badly educated economics professionals litters the WashDC and academic landscape. In a sense, the United States has "re-invented" economic theory. The movement coincides with the advent and growth of financial engineering, which is just a nice glib catch phrase for inflation & leverage. We have degraded into a nation of people who prefer the sweat-free work in the paper pushing game to the hard work in factories. We call this progress and the result of evolution. No way! It is evidence of financial cancer.

[54anickel]

87. Hey, like we've discussed before - they've been working on this

"re-edumacation" for a quite a long time. The Contract on America finally put all that new thinking to work.

[Roland99]

90. We've been Enroned.

[clar8130]

82. Plunge Protection Team?

I haven't heard much about the PPT in years. Does it still exist? Did it EVER exist? What role will it play in the coming debacle?

[specimenfred1984]

96. Read the Article in Post #1

The PPT is used quite frequently, only now it's used for pure market manipulation.

[AnneD]

97. We see what we think is their handiwork.....

on some days They haven't let the market drop past 11000 in a while. We call them the faeries. If you know what to look for, you can spot their handy work.

[54anickel]

86. Incompetent Design

http://www.truthout.org/docs_2006/032706J.shtml

Last week, George W. Bush got up before a gaggle of reporters and washed his hands of the mess in Iraq. The question of how long an American presence will remain in that country "will be decided by future presidents and future governments of Iraq," said Bush. To be fair, he isn't the only one. The entire administration appears to have become bored with the whole process.

Take Daniel Speckhard, for example. Speckhard is Director of the US Iraq Reconstruction Management Office, which is in charge of rebuilding Iraqi infrastructure ravaged by war and depredation lo these last three years. Speckhard is quoted in a report in last week's USA Today: "The Iraqi government can no longer count on U.S. funds and must rely on its own revenues and other foreign aid, particularly from Persian Gulf nations. 'The Iraqi government needs to build up its capability to do its own capital budget investment,' said Speckhard."

Really. They have no police or military to speak of, the hospitals are trashed, the lights won't stay on, the flow of potable water is screwed, roads and bridges are bombed out, hundreds of buildings are wrecked, the so-called "elected" government is totally powerless to contain or control the chaos within the country, headless bodies are popping up left and right, a dozen people die every day from bombings and executions, the entire country is careening towards civil war ... and somewhere in all this, Bush and his people expect the Iraqi government to "do its own capital budget investment."

I am going to find a china shop somewhere in the city and walk in with a free-swinging baseball bat. My goal, which will be clearly stated, will be to improve upon the place. I will spend the next three years meticulously destroying everything I see inside, from the cash registers to the display cases to the nice Royal Albert tea sets in the corner. Along the way, I will batter the brains out of any poor sod unfortunate enough to get in my way. When I am done, I will claim with as much self-righteousness as I can muster that none of the mess is my responsibility. I will then, of course, refuse to leave.

more...

[UpInArms]

88. SEC charges Global Crown Hedge Fund with falsifying performance

11:27 AM ET 3/30/06 SEC SAYS GLOBAL CROWN MGRS CONCEALED TRADING LOSSES

11:26 AM ET 3/30/06 SEC CHARGES HEDGE FUND MGRS WITH FALSIFYING PERFORMANCE

http://www.globalcrowncapital.com/hedge_fund_services.html

GCC offers a comprehensive and flexible suite of hedge fund services for Hedge Fund Managers who are interested in accessing the highest quality standard products and services along with sophisticated extras, like actionable fundamental research and technical analysis, tailored reports and regulatory compliance services. With an experienced and knowledgeable customer service staff, as well as technology that is unsurpassed in the industry, GCC is an ideal choice for Fund Managers seeking a complete suite of first-class services on fair and competitive terms.

GCC's partners are seasoned industry executives who know what Fund Managers, managing funds of various sizes, need to build successful track records, develop competitive advantages, and grow their businesses. We are committed to customizing solutions, anticipating needs and developing long-term relationships with our select clients. Our firm's reputation has been built on its consistency in service, technology, reporting, reliability, integrity and dedication to clients. Currently, the firm's clients include sophisticated institutions and asset managers worldwide.

[Roland99]

89. No...say it ain't so!

[UpInArms]

94. here's the blurb

SEC charges Global Crown with falsifying hedge fund returns

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B3A8BF1B4%2D35D5%2D4BCC%2D9A50%2D595CF559BDB2%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission on Thursday charged the managers of securities broker and investment adviser Global Crown Capital LLC with fraudulently concealing from investors the trading losses of hedge fund Cogent Capital Management. The agency alleges that the principals of Global Crown sent misleading account statements to investors in the San Francisco-based hedge fund that falsely inflated the fund's performance. A hearing on the matter will be scheduled before an administrative law judge to determine whether remedial actions are appropriate, the SEC said.

Ah, yes, another fine example of that group that should not be regulated (per the WUHBPH)

[UpInArms]

107. more info

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B2C82836F%2D2A3F%2D46CE%2DA573%2D682DAB3EF0BB%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission on Thursday charged securities broker and investment adviser Global Crown Capital LLC with fraudulently hiding from investors the trading losses of hedge fund Cogent Capital Management.

The agency alleges that Rani Jarkas and Antoine Chaya, principals of San Francisco-based Global Crown, sent misleading account statements to investors in the Cogent hedge fund that falsely inflated the fund's performance.

<snip>

Rather than disclose the losses to investors, Jarkas and Chaya added an unfunded "reserve" of over $200,000 to Cogent's balance, the SEC alleges.

They then provided investors with quarterly account statements that used this additional sum to calculate the investors' purported return on capital. But Jarkas and Chaya did not put any actual cash into the fund at that time, the SEC claims.

They also didn't disclose that the returns had been inflated by this unfunded "reserve."

That meant the account statements sent to investors understated the fund's actual trading losses by as much as 90%, the SEC alleged.

...more...

[54anickel]

102. Prelude to Stocks Disaster and Gold Opportunities

This guy is way out there on a few things, but also raises some interesting concerns.

http://www.kitco.com/ind/Wiegand/mar302006.html

snip>

The following points are my opinions and I stand ready to argue about them all day. You may disagree with me, but try to keep an open mind and carefully review this market fundamentals list. Also, think about the implications of these market viewpoints.

(1) Government news and policy is either wrong, damaging or both. Smart traders most always go opposite the news. M-3 measurement of cash is now unpublished. Why is this? We think to simply hide the scary numbers. 2. Oil is not plentiful and prices are going higher. Supply is not going down. Usage is going up. (3) Iraq was all about oil. Iran and Syria are next on the oil hit list. Syria is a walk-over, but Iran is formidable. (4) The US Dollar is going down in the long term, up in the short term. (5) Interest rates are mildly up in the short term and then are flat to down. (6) We have both inflation and deflation right now. Confusion reigns as observers do not know which one has the power. Answer-They both do for today. Either we get an inflationary blow-off followed by deflation or we get deflation. The end game is depression. Is the world ending? No it is not. It’s just getting a bit nasty for a few years until this big mess goes through its historical cycle then life goes on.

(7) Swiss Francs and Canadian Dollars are going up. The Euro is going up then down, and then disappears. (8) Gold and silver are going up. (9) Inflationary daily life will become much tougher. (10) All government from the lowest to the highest will not belt tighten like us little folks. They will grab for more and take more. (11) If the grabbing becomes too pushy, consumers will push back. (12) Crime will sky rocket as will unemployment. (13) Cash becomes king while debt a millstone on your neck. Then, gold and silver will become the king of kings. 14) Paper of all kinds, notes, mortgages, loans, etc. become worthless or worth less. (15) Today’s events are like the 1930’s. The Nasdaq implosion was identical to 1929. Today, we are preparing for the next wave of selling after a bear market bounce. We will get at least two more head fake bear market rallies in the race to the bottom for mainstream stocks. Next will resemble 1937 in market action which was negative.

(16) Professional stock market people are dumping securities with both hands into each buying rally. (17) The Sheeple are encouraged to buy the dips so the pros can use the rallies to sell out. (18) Overpaid CEO’s are selling stock with both hands and running with the money. Many then retire for “family and personal reasons.” (19) Even small accounts can make big winnings if you are on the right side of the trade. (20) Loose lips sink ships. Don’t sink your ship. Act poor and live comfortably.

(21) GM has lost over $10 billion for 2005. Their cash flow is a negative $3 billion and they lost $8 billion net excluding accounting problems. Their annual healthcare expenditure equaled the net loss of $8 billion. WSJ reports they must downsize and close four plants. Now they say 12 plants. They offered buyouts to retire 35,000 employees. They need to shed 45-85,000 jobs and 25 plants but the unions will not permit it. They will be headed to bankruptcy court in late 2006 or 2007 when union contract talks enter stalemate. Annual healthcare costs are $10,000 per current or retired employee. All corporations will be seeking to escape health care expenses partially or entirely. Look for repudiated pensions and healthcare liabilities to be dumped on the federal government. The government’s pension bail-out fund is now broke. They will just print more cash to cover accelerating costs.

more...

[54anickel]

103. 14 plus biggies hit the repo market today

http://www.321gold.com/fed/temp_bank_res.html

[UpInArms]

105. looks like they will try to auction some T-Bills today also

4 wk, 13 wk, 26 wk per their "tentative schedule"

http://www.treas.gov/offices/domestic-finance/debt-management/auctions/auctions.pdf

will see if I can find the results for those auctions after 1:00 EST (that's when they normally do that)

[UpInArms]

104. U.S. House leader says pension bill stalled - GM/Ford are real issue

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-30T172432Z_01_N30571_RTRIDST_0_CONGRESS-PENSIONS-UPDATE-1.XML

WASHINGTON, March 30 (Reuters) - A final version of a U.S. pension reform bill is stalled and unlikely to be completed before Congress leaves for a two-week spring recess, U.S. House Majority Leader John Boehner said on Thursday.

"I do expect that when we return after the Easter recess we'll probably have a better shot," Boehner, an Ohio Republican, told reporters.

<snip>

However, a private meeting of key Republican negotiators late Tuesday failed to resolve whether to make companies with poor credit ratings -- such as two of the Big Three U.S. automakers -- put more money in their pension plans.

General Motors (GM.N: Quote, Profile, Research) and Ford Motor Co. (F.N: Quote, Profile, Research), both of which have had their debt ratings cut to "junk status," would be hurt by the stricter treatment of companies with poor credit ratings that was in the pension bill passed by the Senate.

A third of the Senate last week urged negotiators to scrap the credit rating provision, saying it could "further push troubled companies toward bankruptcy."

...more...

[ozymandius]

108. something just pulled the 'oh shit' lever

12:51
Dow 11,149.74 -65.96 (-0.59%)
Nasdaq 2,338.11 +0.33 (+0.01%)
S&P 500 1,300.72 -2.17 (-0.17%)
10-Yr Bond 48.63 +0.53 (+1.10%)
NYSE Volume 1,189,060,000
Nasdaq Volume 1,233,016,000

12:30 pm : The Dow remains well below the flat line. There is a trio of components providing leadership there, but their gains are being offset by the majority's declines. Microsoft (MSFT 27.38 +0.36), General Electric (GE 34.57 +0.64), and Alcoa (AA 31.04 +0.33) are the advancers. Those stocks are up 1.3%, 1.9%, and 1.1%, respectively. On the other side of the coin, there are 24 issues levying losses. Of those decliners, 3M (MMM 76.59 -0.97), Altria (MO 71.96 -0.86), and General Motors (GM 21.85 -0.30) are weighing most heavily. Those stocks have fallen -1.3%, -1.2%, and -1.4%, respectively. DJ30 -40.99 NASDAQ +4.11 SP500 +0.39 NASDAQ Dec/Adv/Vol 1475/1406/1.17 bln NYSE Dec/Adv/Vol 1588/1518/768.4 mln

[54anickel]

111. Drums of war?

http://www.defensenews.com/story.php?F=1654792&C=america

U.S. To Test 700-Ton Explosive

By AGENCE FRANCE-PRESSE


The U.S. military plans to detonate a 700 ton explosive charge in a test called “Divine Strake” that will send a mushroom cloud over Las Vegas, a senior defense official said March 30.
”I don’t want to sound glib here but it is the first time in Nevada that you’ll see a mushroom cloud over Las Vegas since we stopped testing nuclear weapons,” said James Tegnelia, head of the Defense Threat Reduction Agency.
Tegnelia said the test was part of a U.S. effort to develop weapons capable of destroying deeply-buried bunkers housing nuclear, chemical or biological weapons.
”We have several very large penetrators we’re developing,” he told defense reporters.
”We also have — are you ready for this — a 700-ton explosively formed charge that we’re going to be putting in a tunnel in Nevada,” he said.


I googled Divine Strake and it looks like this was cooked up back in 2001. http://budget.state.nv.us/clearinghouse/Notice/2006/E2006-222.pdf See Section 1.2 Purpose and Need. This shouldn't be any sort of breaking news to the Markets, should it? I thought they were pretty up on stuff like this. :shrug:


Whoops, ETA link to LBN discussion:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2197796

[UpInArms]

109. 1:00 blather

Updating for that shiny coin headbump with Ozy :hi:

1:00 pm : Selling pressures have increased over the past half hour. About 15 minutes ago, Crude futures broke through the $67 per barrel mark for the first time since February. At this point, oil is standing at $67.05 per barrel, which reflects a 0.9% gain on the day. Supply worries, continue to be fed by ongoing geopolitical tensions, are supporting prices. The Department of Energy's latest inventory reports, which yesterday covered crude, gasoline, and distillates, and today covered natural gas, are underpinning those supply worries. Aside from energy price issues, worsening conditions within the Treasury market are taking a toll on stocks. The 10-year is at a new low of the day. It's down 16 ticks and its yield is up to 4.87%. DJ30 -68.68 NASDAQ -0.98 SP500 -2.84 NASDAQ Dec/Adv/Vol 1543/1357/1.27 bln NYSE Dec/Adv/Vol 1691/1438/851.7 mln


12:51 EST
Dow 11,145.90 -69.80 (-0.62%)
Nasdaq 2,337.17 -0.61 (-0.03%)
S&P 500 1,300.04 -2.85 (-0.22%)
10-Yr Bond 4.867 +0.57 (+1.19%)

NYSE Volume 1,196,689,000
Nasdaq Volume 1,239,989,000

12:30 pm : The Dow remains well below the flat line. There is a trio of components providing leadership there, but their gains are being offset by the majority's declines. Microsoft (MSFT 27.38 +0.36), General Electric (GE 34.57 +0.64), and Alcoa (AA 31.04 +0.33) are the advancers. Those stocks are up 1.3%, 1.9%, and 1.1%, respectively. On the other side of the coin, there are 24 issues levying losses. Of those decliners, 3M (MMM 76.59 -0.97), Altria (MO 71.96 -0.86), and General Motors (GM 21.85 -0.30) are weighing most heavily. Those stocks have fallen -1.3%, -1.2%, and -1.4%, respectively. DJ30 -40.99 NASDAQ +4.11 SP500 +0.39 NASDAQ Dec/Adv/Vol 1475/1406/1.17 bln NYSE Dec/Adv/Vol 1588/1518/768.4 mln

12:00 pm : The market's attempt to build from yesterday's broad-based rally is, at this point, fading. Continued buying interest across the Technology, Materials, and Energy sectors had helped the major average rise this morning, and those areas of the market are helping to limit the broader market's decline. But rising yields and rising energy prices are coming back into focus, and they appear to be giving buyers reasons to pause.

Trade within the stock and bond markets has been divergent over the last few days. Equity traders adopted the more hopeful view that the end of the Fed's tightening cycle is near, while Treasury traders focused on the fact that interest rate uncertainty persists. The lack of language modification in the FOMC's policy directive set the bearish tone for bonds this week, and the lack of a fresh catalyst has left that market with little distraction. Although the stock market chose to set interest rates aside yesterday, and has lately demonstrated resilience to rate concerns, it cannot continue to overlook the fact that market rates are rising. Higher rates undermine valuation models as well as produce slower economic and earnings growth, and the duration of the Fed's tightening remains unknown and data-dependent.

At this point, the benchmark 10-year note is yielding 4.85%. The back end of the curve, which is the most sensitive to inflation, is again faring worst. It's down 24 ticks and up to a 4.89% yield. Treasury action is, today, starting to have an effect on the particularly rate-sensitive areas of the market. The Financial sector is facing broad-based selling and levying a 0.3% loss. Industries from banks to REITs to insurance to mortgage are declining. Brokers, for their part, continue to demonstrate relative strength, but it's not enough to turn the sector around. The Utilities sector (-0.8%) and homebuilding industries, which are two other especially rate-sensitive pockets, are also declining.

Rising energy prices is the other overhanging factor that the stock market has recently overlooked. Supply concerns, underpinned by the Energy Department's inventory report, led to spikes across the complex yesterday. That action did not deter buyers. Today, energy prices continue their streak. Crude is pushing $67 per barrel, and a less than expected drawdown in natural gas supply is adding momentum. Follow-up reports indicating that the UN Security Council approved a statement demanding Iran halt its uranium enrichment keeps geopolitical concerns in focus, and those concerns continue to support prices. The bright side is that the Energy sector is benefiting and thus lending some support to the broader market. Its 0.5% gain isn't quite enough to offset other areas of weakness, though.

As mentioned above, there are some areas of the market(along with Energy) that continue to attract buyers. Several metal commodities remain at or near historic highs. Silver is leading the charge, and gold, platinum, and copper are also doing well. Speaking of copper, Phelps Dodge (PD 81.35 +4.33) was upgraded at Morgan Stanley to Overweight from Equal Weight. The firm has a $100 price target on the stock, which is one of our recommended holdings. PD and many other metal-related issues are attracting solid buying interest and lifting the Materials sector (+0.6%).

Technology is helping to keep the Nasdaq out of the red. With strong follow-through momentum in semiconductors, the sector had been the morning's best source of support. That influential industry has erased its gain, however, and its fall has taken the steam out of the sector. Communication equipment is an area that is sustaining gains. Upped handset guidance from Nokia (NOK 20.98 +0.76) and Bank of America's target increase on Cisco (CSCO 21.90 +0.33) are driving factors. Tech is sustaining a modest gain, which is supportive, but also not currently enough to take the blue chip averages higher. Separately, Google (GOOG) is getting some added attention today, after the company filed to sell 5.3 million new shares.DJ30 -42.35 NASDAQ +1.58 SP500 -0.09 NASDAQ Dec/Adv/Vol 1509/1363/1.10 bln NYSE Dec/Adv/Vol 1575/1484/710.6 mln

[UpInArms]

113. Another GOP Loving Xtian Fundie (Falwell) Caught in Fraud Case

my thanks to this DU thread :hi:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x793599

The January 2005 conversation was between Lynchburg Mayor Carl Hutcherson and Jerry Falwell Jr.

Federal agents secretly taped a telephone conversation between Lynchburg Mayor Carl Hutcherson and Jerry Falwell Jr. last year to determine Falwell Ministries' role in the mayor's federal fraud case, according to a motion filed Tuesday.

The result, the government says, is clear evidence that when Falwell Ministries donated $32,500 to Hutcherson's charity, it did so with the belief that the money was not a direct personal loan to the mayor.

<snip>

In the early stages of the investigation, Hutcherson told investigators that Falwell Ministries donated the money to Trinity to help Lynchburg's inner city, but he soon changed his story to say he had solicited $80,000 from Falwell Ministries to pay his tax debt, documents show.

Finally, the motion claims, Hutcherson, who also owns a funeral home, told agents it was Jerry Falwell Jr.'s idea to "funnel the money through Trinity CDC to make a payment on the Funeral Home's debts."

Adding to that the fact that Hutcherson has a vote on the Lynchburg City Council, the government decided to investigate "the possibility that Mayor Hutcherson may have solicited a bribe in exchange for his influence and votes," the motion states.

On Jan. 27, 2005, FBI Special Agent Christian Pettyjohn recorded a conversation between Hutcherson and Falwell Jr. with only the mayor's knowledge.

...more...

[UpInArms]

114. 1:33 EST Oopsie! Bottom has gotten lower!

Dow 11,118.92 -96.78 (-0.86%)
Nasdaq 2,331.53 -6.25 (-0.27%)
S&P 500 1,296.82 -6.07 (-0.47%)
10-Yr Bond 4.880 +0.70 (+1.46%)

NYSE Volume 1,377,209,000
Nasdaq Volume 1,392,918,000

[Roland99]

115. Faeries! Oh, Faeries! Wherefore are thou, Faeries?

[UpInArms]

117. 1:52 EST Reporting for Duty!

Dow 11,137.33 -78.37 (-0.70%)
Nasdaq 2,337.45 -0.33 (-0.01%)
S&P 500 1,299.18 -3.71 (-0.28%)
10-Yr Bond 4.871 +0.61 (+1.27%)

NYSE Volume 1,457,180,000
Nasdaq Volume 1,456,860,000

1:30 pm : The market continues to deteriorate. The Dow is still faring worst, and, at this juncture, it's erased all of yesterday's gain. The broader market lacks leadership. Two sectors (Tech and Materials) are clinging to gains, but they're very modest and trumped by the other eight sectors' losses. Rate-sensitive areas are weighing most heavily, and the Financial sector's 0.5% loss is the muscle behind the indices' drops. The Consumer Discretionary sector is also feeling the heat of rising interest rates, not to mention rising energy prices. The homebuilding industry is currently the S&P's worst faring. That, plus weakness across the retail spectrum, is dragging the sector. Utilities, another especially rate-sensitive sector, is now 1.0% lower.DJ30 -71.53 NASDAQ -1.80 SP500 -3.09

[Roland99]

118. Must have been a three-martini lunch. They were unavoidably detained

;)

[UpInArms]

120. US debt clock running out of time, space

http://news.yahoo.com/news?tmpl=story&cid=1519&e=2&u=/afp/20060328/bs_afp/afplifestyleusbudgetclock

NEW YORK (AFP) - Tick, 20,000 dollars, tock, another 20,000 dollars.

So rapid is the rise of the US national debt, that the last four digits of a giant digital signboard counting the moving total near New York's Times Square move in seemingly random increments as they struggle to keep pace.

The national debt clock, as it is known, is a big clock. A spot-check last week showed a readout of 8.3 trillion -- or more precisely 8,310,200,545,702 -- dollars ... and counting.

But it's not big enough.

<snip>

The elder Durst, who died in 1995, originally thought of the idea in the early 1980s as the US budget deficit started to mount during the presidency of Ronald Reagan, but the technology was not immediately available to realise his vision.

The original 11 foot by 26 foot (3.3 meter by 8.9 meter) clock was eventually erected a block from Manhattan's Times Square in 1989 when the national debt stood at 2.7 trillion.

<snip>

He only had to wait two years as the Bush presidency coincided with an upsurge in borrowing. The curtain was raised in 2002 and the digital readout flickered back to life showing a national debt of 6.1 trillion dollars with the numerals whizzing round faster than ever.

...more...

[54anickel]

121. Delta Pilots March Through Atlanta Airport

http://biz.yahoo.com/ap/060330/delta_pilots.html?.v=4

ATLANTA (AP) -- Almost 275 Delta Air Lines Inc. pilots marched through the world's busiest airport Thursday to vent their anger over the company's effort to throw out their contract so it can impose up to $325 million in long-term pay and benefit cuts.

The pilots for the nation's third-largest carrier have stepped up picketing at airports around the country and other demonstrations of unity despite a warning to turn down the noise issued by the arbitration panel considering the company's contract rejection request.

The panel chairman, Richard Bloch, told both sides after hearings in Washington ended March 23 to get a consensual deal done, saying if the panel is left to decide it could be disastrous to Atlanta-based Delta and its 5,930 pilots.

The pilots have said they will strike if their contract is voided.

"You can consider today's actions an exercise and you can stand by for the real thing," Lee Moak, chairman of the pilot union's executive committee, said as he led the line of 273 uniformed pilots who quietly filed through Hartsfield-Jackson Atlanta International Airport.

more...

[54anickel]

123. Security Council Rejects Calls for Sanctions on Iran

http://www.nytimes.com/2006/03/30/international/europe/30cnd-diplo.html?ei=5094&en=ee286fd80b7951e0&hp=&ex=1143781200&adxnnl=1&partner=homepage&adxnnlx=1143748817-l9fqKSd7kk0Wa4gwjXNwSw

BERLIN, March 30 — A day after the United Nations Security Council approved a heavily compromised statement criticizing the Iranian nuclear program, Secretary of State Condoleezza Rice today raised the idea of imposing sanctions on Iran for the first time with the permament members of the council but received a decidedly cool reaction from China and Russia.

During a news conference after a three and one-half hour meeting here today, Dai Bingguo, China's vice minister of foreign affairs, rejected the idea of sanctions and offered a thinly veiled criticism of the war in Iraq when he said, "The Chinese side feels there has already been enough turmoil in the Middle East. We don't need any more turmoil."

The Security Council approved the statement on Wednesday after three weeks of debate, and Ms. Rice praised it, even though it was far weaker than the one the United States had originally proposed. It calls on the International Atomic Energy Agency to report within 30 days on Iran's progress toward curtailing its nuclear development work.

Ms. Rice noted that Russia had wanted to strip out the language calling for a referral to the Security Council but had relented under American pressure.

As it is, both Russia and China bluntly declared that they had no interest in imposing sanctions or taking any further action against Iran, though both countries did express concern about the nuclear program. Both countries said they wanted to refer the issue back to the atomic energy agency.

more...

[54anickel]

126. Why is the US making India a counterpoint to Iran?

http://www.dnaindia.com/report.asp?NewsID=1021126

snip>

The National Intelligence Council of the US set up a committee to study the war in Iraq. The committee read something like 1,000 position papers on it and came to the conclusion that the Iraq War has turned Iraq into an incubator for Islamic terrorists. Iran has made things worse. It will make Iraq look like a Sunday picnic.

What are these developments doing to Islam? Are they fostering the idea of radical Islam?

Islam has not changed but people’s perceptions are changing. People in Pakistan today are more anti-American than anti-Indian. Feelings are running high among Muslims all over the world. They believe that in the name of the war on terror, the US has launched a war on Islam. And events bolster this thesis. Why doesn’t the US attack North Korea, for instance? North Korea is a tyranny and has bombs and missiles. The same ingredients as Iran. A recent US poll fund that 52 per cent people believe that Islam is violent. These people are falling into the trap set by Osama Bin Laden. He wants a clash of civilisations.

You’re painting a grim picture. Does India have a role to play?

By going with the US on the Iran vote in the IAEA, India has spoilt its case. Iran’s policy has been to pursue good relations with China, Russia and India to balance US hegemonistic ambitions. Iran hasn’t pushed India on Kashmir. So it came as a big shock to Iran when India decided to vote along with the US last September. Now the US is making India and Iran counterpoints. It praises India for its democracy and criticises Iran for tyranny. It praises India for being a responsible state with nuclear weapons and attacks Iran for its irresponsible nuclear programme. India and Iran are being compared and contrasted. This makes it difficult for India to play any kind of role in the current crisis.

Do you think the Indo-US nuclear agreement is part of this policy?

more...

[54anickel]

128. Min. Farrakhan leads delegation on successful and much anticipated Cuba vi

Man, Google the News for Louis Farrakhan - totally different views on his vist. Hardly any US coverage aside from NewsMax which makes him a quite the villian while the Cuban papers rip on the Pittsburgh Tribune-Review account. I suppose the truth is in there somewhere. :shrug:

Min. Farrakhan leads delegation on successful and much anticipated Cuba visit

http://www.finalcall.com/artman/publish/article_2516.shtml


(FinalCall.com) - On March 19, 2006, Min. Louis Farrakhan led a twenty-three member delegation to Havana, Cuba to study disaster relief preparedness. Min. Louis Farrakhan and the delegation embarked on the nine-day fact-finding mission in the wake of the horrifying and abysmal response of the U.S. government to the devastation and despair caused by Hurricane Katrina. The slow response and lack of preparation of the U.S. government contributed to the unnecessary deaths of over 3,000 Louisiana residents.

Min. Farrakhan expressed outrage and disappointment upon learning that the U.S. government rejected Cuba’s offer to provide over 1,600 doctors to aid in the Hurricane Katrina relief efforts. The delegation learned how the Cuban government implements life-saving, rapid-response strategies in the face of impending disasters.

During an approximately one-hour-long press conference on March 27, 2006, in Havana, Cuba, Min. Farrakhan stated, “That’s why the whole world is turning against America. You need a new government. We need regime change in America. We need a better policy, a better domestic policy and a better foreign policy, so that the greatness of America can be felt by all her neighbors.”

During the mission, the Cuban government provided the delegation with unfettered access to the officials in various governmental departments to impart how the various agencies work together to minimize and/or eliminate human casualties during, and immediately after natural disasters.

more...

[54anickel]

129. U.S. cuts off contacts with Hamas-led government

http://www.alertnet.org/thenews/newsdesk/L29259315.htm

(Reuters) - The United States ordered its diplomats and contractors on Wednesday to cut off contacts with Palestinian ministries after a Hamas-led government was sworn in, the State Department said.

At the same time, U.S. President George W. Bush expressed support for the Palestinian people but repeated his position no U.S. funds should go to the Hamas leadership they elected.

"I think that aid should go to suffering Palestinians, but nor should it go to a government, however, which has expressed its desire to destroy its neighbor," Bush said during a question-and-answer session after he delivered a speech on Iraq.

snip>

"We support the election process, we support democracy, but that doesn't mean we have to support governments that get elected as a result of democracy," Bush said.

snip>

The no-contact policy was more sweeping than many had expected because it applies not just to Hamas members but to independents and technocrats in the new government.

more...

[UpInArms]

130. 3:37 EST Looking better as it heads toward closing

Dow 11,171.99 -43.71 (-0.39%)
Nasdaq 2,342.24 +4.46 (+0.19%)
S&P 500 1,302.16 -0.73 (-0.06%)
10-Yr Bond 4.855 +0.45 (+0.94%)

NYSE Volume 1,954,022,000
Nasdaq Volume 1,930,560,000

3:00 pm : With the bond market off of its lowest levels, the stock market is managing (for now) to also stay off of its session lows. Still, its only support is a 0.2% gain in Technology and marginal advances in the Energy, Industrials, and Materials sectors. Without leadership, and considering the fact that the influential Financial sector is exerting a 0.6% loss, the indices are stunted. One a brighter note, the S&P and Nasdaq are still managing to sustain much of the gains they registered yesterday. At this point, the S&P is retaining more than half of that advance, while the Nasdaq has erased hardly any of the 33 points it notched.DJ30 -73.88 NASDAQ -0.01 SP500 -3.70 NASDAQ Dec/Adv/Vol 1614/1371/1.73 bln NYSE Dec/Adv/Vol 1976/1249/1.24 bln

2:30 pm : Although it's off of its lows, the stock market remains submerged. As we've noted, the Treasury market has re-assumed much of the equity market's spotlight. Deterioration there has somewhat subsided, but bonds remain on the defensive and are serving as a dismal backdrop for stocks. Treasury traders are focused on the FOMC policy statement and the insinuation that more rate hikes are on their way. Feeding concerns today was the core deflator, embedded in the GDP data, which rose 2.4%. At this point, the 10-year is down 11 ticks and yielding 4.85%. Yesterday, it was at 4.80% at the close of equity trade. A week ago, it was yielding 4.73%. The 30-long end of the curve continues to fare worst. Older maturities are more sensitive to inflation, and political issues are adding to the long end's troubles. Specifically, comments that the pension reform bill will be sidelined while congress goes on their spring break is contributing to 30-year's (-23/32) 4.89% yield. DJ30 -68.19 NASDAQ -0.77

[54anickel]

134. Hurrah for the NASDAQ!!! RUH ROH!!! (What a joke)

[54anickel]

133. Twist and Hate: The Smearing of Paul Craig Roberts

http://www.dissidentvoice.org/Mar06/Frank21.htm

It is questionable whether or not responding to the neocons’ assault on sanity is worth the energy. They don’t take well to reason and they certainly aren’t capable of dealing with truth. In fact, the reality in which they dwell is a manifestation of propaganda and isolated conspiracy theories.

Yeah, they think we are out to get them and that we’ll destroy their comfortable way of life. And what seems to be driving their delusional tendencies is the teaming up of traditional conservatives, libertarians and lefties -- all of whom oppose the neocon wars.

Take FrontPageMag.com, which recently went after the conservative, yet rational, Paul Craig Roberts, former contributing editor to the National Review and the Wall Street Journal. As FrontPageMag editor Ben Johnson wrote in disgust of Roberts’ common sense which ran in LewRockwell.com:

Roberts has declared the war in Iraq lost, not to mention criminal. Abu Ghraib and Guantanamo Bay are “torture centers,” and Bush would be “prosecuted” … His pessimism about winning the War on Terror dates literally to its inception. Two days after 9/11, Roberts wrote, “a guilt-ridden people are no match for fanatical opponents who believe in their cause” … His writings also seemingly justify terrorist attacks against innocent Americans, because, like Ward Churchill, he believes there are no innocent Americans. “Americans are complicit in the deaths of tens of thousands of Iraqi women and children as ‘collateral damage,’” he writes. So what is difference between a military target and a “complicit” family of four in Des Moines?

As if being anti-neocon somehow implies that Roberts is also anti-American. Johnson also distorted a recent column written by Roberts in which he relayed several conspiracy theories passed along to him by readers which explained how Bush might start a war with Iran.

more...

Paul Craig Roberts has an article called "Israeli Electorate Rebukes Bush" today. Sorry, can't link to it - you'll have to google.

Israeli elections this week swept the right-wing Likud Party from power and installed a center-left government committed to peaceful coexistence with Palestine. Ehud Olmert, the leader of the new Israeli government, told the new Palestinian government that "we are ready to compromise and evacuate, under great pain, Jews living there in order to create the conditions that will enable you to fulfill your dream and live alongside us."

Olmert declared that "the time has come to act" and to agree on borders for Israel and Palestine, establishing two mutually recognized states and bringing to an end Palestinian terrorism and Israeli oppression.

Israeli voters have thus done what they can to bring peace to the Middle East before the Bush regime can further fan the flames of war by attacking Iran.

If the Israelis can change their government in the direction of peace, perhaps there is some hope that Americans can do likewise.

[54anickel]

135. Making the World Safe for Christianity (Ron Paul)

http://www.freemarketnews.com/Analysis/110/4307/2006-03-29.asp?wid=110&nid=4307

snip>

The obvious shortcomings of our regime change and occupation of Afghanistan are now readily apparent. The Taliban was ousted from power, but they have regrouped and threaten the delicate stability that now exists in that country. Opium drug production is once again a major operation, with drugs lords controlling a huge area of the country outside Kabul. And now the real nature of the government we created has been revealed in the case of Abdul Rahman, the Muslim who faced a possible death sentence from the Karzai administration for converting to Christianity. Even now that Mr. Rahman is free due to western pressure, his life remains in danger.

Our bombs and guns haven’t changed the fact that the new puppet Afghan government still follows Sharia law. The same loyalty to Sharia exists in Iraq, where we’re trying so hard to stabilize things. And all this is done in the name of spreading democracy.

The sad fact is that even under the despicable rule of Saddam Hussein, Christians were safer in Iraq than they are today. Saddam Hussein’s foreign minister was a practicing Christian. Today thousands of Christians have fled Iraq following our occupation, to countries like Jordan and Syria. Those Christians who have remained in Iraq fear for their lives every day. That should tell us something about the shortcomings of a policy that presumes to make the world safe for democracy.

The Muslim world is not fooled by our talk about spreading democracy and values. The evidence is too overwhelming that we do not hesitate to support dictators and install puppet governments when it serves our interests. When democratic elections result in the elevation of a leader or party not to our liking, we do not hesitate for a minute to undermine that government. This hypocrisy is rarely recognized by the American people. It’s much more comfortable to believe in slogans, to believe that we’re defending our goodness and spreading true liberty. We accept this and believe strongly in the cause, strongly enough to sacrifice many of our sons and daughters, and stupendous amounts of money, to spread our ideals through force.

more...

[ozymandius]

136. closing numbers and blather

Dow 11,150.70 -65.00 (-0.58%)
Nasdaq 2,340.82 +3.04 (+0.13%)
S&P 500 1,300.25 -2.64 (-0.20%)
10-Yr Bond 48.55 +0.45 (+0.94%)
NYSE Volume 2,261,198,000
Nasdaq Volume 2,194,357,000

Latest Updates
4:20 pm : Two factors to which the stock market turned a blind eye yesterday came back into focus today. A re-acknowledgement of rising yields and rising energy prices gave buyers reasons to break this morning. As Treasuries came under increased pressure and crude hurdled $67 per barrel, investors began to sell. By the close of trade, each of the indices had recovered from their lows. Still, a lack of leadership left the Dow and Nasdaq with losses.

Due to conflicting views over the Fed's tightening cycle, action within the stock and bond markets had been divergent over the last few sessions. Whereas equity traders espoused a more hopeful view that the end is near, Treasury traders have concentrated on the fact that interest rate uncertainty persists. The lack of language modification in the FOMC's policy directive set the bearish tone for bonds this week, and the lack of a positive catalyst has left that market with little distraction. Although the stock market has lately demonstrated resilience to rate concerns, and while it opted to shrug off rising yields yesterday, it could not continue to overlook the fact that rates are rising. Higher interest rates undermine valuation models as well as produce slower economic and earnings growth, and higher market rates serve as a bearish backdrop for the equity market.

The FOMC event remained the bond market's focal point, but two other factors fed the flames today. First, the core deflator, which was embedded in the Q4 GDP report, rose 2.4%. Second, comments that the pension reform bill will be sidelined while congress goes on recess added to the long end of the curve's troubles. Intra-day, the benchmark 10-year note's yield was near a four-year high. By the close of equity trade, it had settled to 4.86%. The improvement helped the major indices recover from their lows, but the fact remains that the 10-year is at a level not seen since June of 2004. Accordingly, rate-sensitive areas felt the heat. The Financial sector, which accounts for more than a fifth of the S&P 500, weighed heavily. Industries from banks to REITs to insurance to mortgage suffered. A notable bright spot was Bank of New York (BK 35.92 +1.50), though, which rose upon reports that it's close to selling $4 billion in branches to JP Morgan (JPM 41.53 -0.15). The market's other particularly rate-sensitive areas, like the Utilities (-1.0%) sector and homebuilding industry, also fell.

Energy prices also went under the market's radar yesterday. A reminder of ongoing geopolitical tensions and more data from the Energy Department helped them continue their streak - and brought them back into focus. Specifically, The UN Security Council approved a statement demanding Iran halt its uranium enrichment. The OPEC producing country has 30 days to freeze its enrichment. Concerns over Iran, especially as the weekend approaches, and data reflecting a more than expected drop in natural gas supply sent crude to $67.20 per barrel. In the early going, the bright side to that action had been a supportive gain in the Energy sector. That was fleeting, though, and the sector closed 0.1% lower. Facing both rising energy prices and interest rates, the Discretionary sector (-0.3%) also closed lower. A separate factor behind its decline was GM (21.06 -1.09). Afternoon reports indicated that Delphi is expected to ask a federal judge to cancel its union contracts Friday. A potential strike is more bad news for the struggling auto maker, it fears of it overshadowed news that it's closer to selling a controlling stake in GMAC.

There were some areas of the market that survived today's selling. Several metal commodities remained at or near historic highs. Silver surged 5%. Gold gained close to 3% at hit a 25-year high. Platinum and copper are also did well. Speaking of copper, Phelps Dodge (PD 81.48 +4.46) was upgraded at Morgan Stanley to Overweight from Equal Weight. The firm has a $100 price target on the stock, which is one of our recommended holdings. It and many other metal-related issues attract solid buying interest. The diversified metals and minerals industry led the S&P's 139 groups and lifting the Materials sector 0.3%. Morgan Stanley also raised its target on General Electric (GE 34.65 +0.72). That stock supported the Dow, and it helped keep the Industrials sector (+0.2%) on positive ground.

As a result of strength in its software and communication equipment industries, Tech sustained a modest (+0.3%) gain. Microsoft (MSFT 27.23 +0.21), which received U.S. government backing in an EU antitrust dispute, drove the former group. Upped handset guidance from Nokia (NOK 21.28 +1.06) and Bank of America's target increase on Cisco (CSCO 21.97 +0.40) were factors behind the latter area's advance. Early on, the Tech sector had been the market's best source of support. Semiconductors were its muscle. Better than expected earnings results from ATI Tech (ATYT 17.05 +1.32) had helped spark some follow-through buying interest, but the influential industry could not sustain gains today. Its return to the red took the steam out of the sector and contributed to the broader market's decline. Separately, Google (GOOG 388.44 -6.54) received some added attention today, after the company filed to sell 5.3 million new shares. That stock declined, but the Nasdaq still managed to (modestly) build off of the five-year high it hit yesterday.DJ30 -65.00 NASDAQ +3.04 SP500 -2.65 NASDAQ Dec/Adv/Vol 1516/1519/1.86 bln NYSE Dec/Adv/Vol 1844/1399/1.60 bln

[54anickel]

137. Heh, and check the buck's new low for the day

Last trade 89.33 Change -0.58 (-0.65%)

Settle Time 15:06 Open 89.89

Previous Close 89.91 High 90.25

Low 89.29