STOCK MARKET WATCH, Wednesday June 6

[ozymandius]

Source: DU

Wednesday June 6, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 593 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2345 DAYS
WHERE'S OSAMA BIN-LADEN? 2057 DAYS
DAYS SINCE ENRON COLLAPSE = 2018
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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

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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 June 5, 2007

Dow... 13,595.46 -80.86 (-0.59%)
Nasdaq... 2,611.23 -7.06 (-0.27%)
S&P 500... 1,530.95 -8.23 (-0.53%)
Gold future... 675.10 -1.20 (-0.18%)
30-Year Bond 5.07% +0.05 (+0.90%)
10-Yr Bond... 4.98% +0.05 (+0.95%)






GOLD, EURO, YEN, Loonie and Silver

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PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

Read more: DU

[ozymandius]

1. Today's Market WrapUp

Will the Real Slim Shady Please Stand Up!
BY FRANK BARBERA, CMT

Another day, another set of stock market NEW HIGHS, as the ticker on CNBC flashes the “points above/below the new record” every few moments. That has been the scene in the market over the last few weeks, with certain market averages, namely the DJIA and the S&P 500, moving to a parade of nominal new highs. We say ‘nominal’ because, with the exception of the Dow, the new highs in the S&P have been really marginal. Consider that the old high for the S&P was set back on March 24th, 2000 at 1527.57, we have seen four days thus far, where the S&P marginally surpassed that record and those were May 30th, last Wednesday, a close of 1530.23, Thursday May 31st, a close of 1530.62, Friday the 1st of June, a close of 1536.34, and yesterday, Monday, June 4th, a close of 1539.18.

Does anyone really get worked up and go running out to buy stocks because the S&P closed a measly 11.61 index points above the old high set SEVEN YEARS AGO? Most of those points evaporated in one day -- today. It just seems so ridiculous, the media barrage of harping on new highs. First, with the DJIA, and now with the S&P, idle prattle and more prattle.

-cut-

In addition, while there are those who believe, as I do, that the Fed may be forced into an easing stance later this year, the current cycle is loaded with one-off circumstances that have not been seen in many years. The Housing Bust for example, continues unabated, and remember that Housing accounts for at least a quarter of US Economic growth. At the present time, Home Sales are down over 30% in places like Florida, Arizona, and California, with cancellations running 40 to 50% in some markets. Some took solace in last month's report on New Home Sales which advanced 16% in May. Yet, the historical data clearly shows that quite often months showing a large percentage gain have been reversed out the following month with five out of the last ten double digit gains in New Home Sales evaporating within one or two months. What’s more, the real reason new home sales bounced in May was the fact that builders slashed prices to move out inventories which remain at record levels. In the month of May, New Home Prices plunged by 10.90% to a median price of $229,100, down from $257,600 in March. The decline was the largest monthly price decline seen in many years and leaves the Median New Home Price below the Median Existing Home price for the first time in more than a decade. In addition, the surge in home foreclosures continues, running at a rate 127% higher in May 2007, versus the equivalent period one year earlier.

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

[ozymandius]

2. Today's Reports

8:30 AM Productivity-Rev. Q1
Briefing Forecast 1.0%
Market Expects 1.0%
Prior 1.7%

10:30 AM Crude Inventories 06/01
Briefing Forecast NA
Market Expects NA
Prior -1956K

http://biz.yahoo.com/c/e.html

[UpInArms]

18. 8:30 report:

06. U.S. 1Q manufacturing productivity up 2.4%
8:30 AM ET, Jun 06, 2007 - 5 minutes ago

07. U.S. 1Q nonfinancial productivity up 0.6%
8:30 AM ET, Jun 06, 2007 - 5 minutes ago

08. U.S. unit labor costs up 2.2% year-over-year
8:30 AM ET, Jun 06, 2007 - 5 minutes ago

09. U.S. productivity up 1% year-over-year
8:30 AM ET, Jun 06, 2007 - 5 minutes ago

10. U.S. productivity revision close to expectations
8:30 AM ET, Jun 06, 2007 - 5 minutes ago

11. U.S. 1Q unit labor costs revised higher to 1.8% vs. 0.6%
8:30 AM ET, Jun 06, 2007 - 5 minutes ago

12. U.S. 1Q productivity revised lower to 1% vs. 1.7%
8:30 AM ET, Jun 06, 2007 - 5 minutes ago

[ozymandius]

3. Oil markets little changed in Europe

VIENNA, Austria - Oil markets were little changed Wednesday but prices appeared positioned for an increase as traders traced the path of the strongest storm to hit the Arabian Peninsula in 60 years.

While the storm appeared headed for Iran, a major oil producer, and the oil-rich Persian Gulf, expectations that the latest snapshot of U.S. stocks will reveal further inventory increases of gas and oil kept a low ceiling on markets.

"Uncertainty about the cyclone in the Middle East is holding the crude oil futures market steady, with prices fluctuating a little as traders watch storm developments," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

-cut-

Light, sweet crude for July delivery slipped 2 cents to $65.59 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. Brent crude for July gained 13 cents to $70.58 a barrel on the ICE Futures exchange in London.

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

[UpInArms]

4. dollar watch

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

Last trade 81.886 Change -0.006 (-0.01%)

Charting Economic Surprises - May 2007

http://www.dailyfx.com/story/charting_center/charting_economic_surprises/Charting_Economic_Surprises___May_1181116232083.html

In May we wrote, “The bear case is well known. Collapse of housing leads to slowdown in consumer spending and an eventual contraction in the overall economy. Indeed the GDP for Q1 printed at woeful 1.3%. But the US economy has shown remarkable resiliency, generating jobs despite the problems in the housing sector and as long as employment holds up, dollars problems May be contained.” Not only was the greenback slide halted, but the dollar actually picked up 200 points on the euro as doomsdayer’s predictions did not come true. Nevertheless, the buck faces serious challenges ahead. The weather may be getting hot but the economy is cooling and unless US growth picks up dollar’s gains are likely to be capped.





...more...

Canadian Dollar: How Much More Can it Rise?

http://www.dailyfx.com/story/topheadline/USD_CAD__How_Low_Can_it_1181072291451.html

The Canadian dollar has been on a tear. In the past three months, the currency has appreciated over 11 percent against the US dollar, putting parity within reach. At the beginning of the year, an exchange rate of 1.0 for USD/CAD seemed like a far fetched target, but now it has become a realistic one.

The Canadian dollar is trading not far from its 30 year highs (or conversely 30 year lows for USD/CAD), which means that the burning question in the minds of Canadian dollar traders is “How Low Can it Go?” Sentiment has become very one-sided and technicals indicate that the currency pair is extremely oversold. Yet fundamentally, the Canadian economy has been performing extremely well. At some point, the strength of the Canadian dollar will reverse the fundamental outlook and in order to figure out when that may happen, it is important to understand what is behind the latest move.

Is it Oil? No.

For once, the move is not driven by oil. The chart below illustrates the divergence in performance between oil prices and USD/CAD. Since March, which was the month when USD/CAD started to seriously breakdown, oil prices rallied, but have remained relatively range bound. Although it is trading not far from its year to date highs, it is still $13 off its all time high. The lowest level that USD/CAD reached when oil was at its record high was 1.0932. If this move was driven by oil, then oil prices would need to be very near if not above its prior high.



So If It Is Not Oil, What is Driving Canadian Dollar Strength?

The true catalysts behind the Canadian dollar’s strength are two primary factors; fundamental growth and acquisition flow.

Impressive Growth: No one believed that the Canadian economy would be this strong for this long. Despite the pullback in the US economy, Canada’s largest trading partner, Canadian growth has outperformed even the best analyst expectations. Annualized GDP growth hit 3.65 percent in the first quarter, the best pace of growth since the third quarter of 2005. Domestic spending which accounts for 60 percent of GDP picked up significantly thanks to a strong labor market. In seven out of the past eight months, Canadian companies added more workers onto their payrolls, illustrating not only the robust pace of growth that the country is seeing, but also the growth they expect to see in the months to come. Economists have been predicting that the strength of the currency would take a big toll on the export sector and we have seen many traders lay on long USD/CAD positions on this prediction. Yet each piece of incoming economic data has only confirmed the strength of economy, forcing these traders to quickly liquidate.

...more...

[mojavekid]

21. Daily Pfennig 6/5/07: When Is Money Supply Not Inflation?

http://www.kitcocasey.com/displayArticle.php?id=1421

Good day... Well... There seems to be a bit of a row going on in the European Central Bank (ECB), but that won't stop the ECB from hiking rates on Thursday... What it might do is cause some questioning regarding rate moves in the future... I guess traders aren't too scared, because they have moved the euro up over the 1.35 handle once again.

I'll get to the row in the ECB in a minute... But first a recap of yesterday's session. The dollar softened yesterday across the board, except... Against the Icelandic krona and of course the Japanese yen. There was a huge sell-off in the Chinese stock market the night before, but still no budging on the lack of Risk Aversion... What's it going to take to cause a pullback? Apparently, a Chinese stock market sell-off isn't going to cut the mustard...

Kiwi sure had a nice performance yesterday and then again last night, pushing the currency to trade over 75 cents! That's a 15-year high! WOW! Kiwi was helped along with a report by ANZ Bank, which said that the Reserve Bank of New Zealand (RBNZ) will raise rates to 8% this week... They are the first to say something like that, as most economists were forecasting unchanged rates after the RBNZ meets tomorrow night. So... If the RBNZ doesn't come through with a rate hike, this strong move by kiwi will probably be reversed with a case of "buy the rumor, sell the fact"!

Pound sterling is closing back in on the "2" figure... I talked yesterday about how traders had come out with a case of cold feet, regarding whether or not the Bank of England (BOE) hikes rates this week, but had finally warmed up to the idea... Yes, there are not many out there that believe the BOE will follow up last month's rate hike with another one... But I have been on that bandwagon ever since the BOE disappointed me with a 25 BPS hike last month... To my way of thinking... They had more work to do! So... Why not come right back and finish your business?

more...

[mojavekid]

22. Fleckenstein: The damage of the dollar glut

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/TheDamageOfTheDollarGlut.aspx

Money printing to prop up the U.S. economy has spawned more of the same around the world, fueling a global boom and an inflation spiral.

We're in the midst of a leveraged-buyout mania and a worldwide stock frenzy, running the gamut from just plain wild to completely out of control.

From time to time I find myself wondering: How did we get here? So today, I'm sharing my thoughts on that subject because if you don't know how you got to where you are, it's hard to be prepared for what may happen next.

In the beginning . . .
To make a long story short: The process was started by money printing in America to bail out the last bubble.

That induced money printing in much of the world because so many countries had linked their currencies to the dollar. More importantly, the very regions that were primed to grow -- think Asia, India and the Middle East -- exploded, in no small part, thanks to money printing. Thus, America's housing boom kept our economy growing. Growth in the other parts of the world I just mentioned, together with the attendant commodities boom, conspired to create the worldwide growth (and inflation) that we have experienced.

A lot of what's transpired has been a function of absurdly low interest rates, given the level of inflation around the world, and the collapse in risk premiums, aided by ratings-agency alchemy, which has allowed debt -- from moderately risky to total garbage -- to be spun into high-quality credit structures. In other words, the debt markets have acted as unindicted co-conspirators in the frenzy.

more...

[mojavekid]

26. Daily Pfennig 6/6/07: ECB Lifts Rates...

http://www.kitcocasey.com/displayArticle.php?id=1423

The ECB lifted interest rates today, but the euro was little changed as the move was widely expected. The markets are now waiting on Trichet's speech, which may signal further rate increases in order to keep economic growth from fueling inflation. A report released this morning showed German factory orders fell 1.2% from March, but were up over 11.7% from a year ago. Recent reports show Europe is growing faster than expected, easily outpacing the U.S. Trichet's recent comments indicate he will sound hawkish in his speech today, which should give the euro further strength and put it back on the road towards $1.40.

We now are waiting on the BOE, which may just surprise us with a larger-than-expected increase tomorrow. The pound sterling continued to hold on to its recent gains and is within "spitting distance" of the $2.00 figure. UK consumer confidence reached the highest level in 18 months in May as Britons became more optimistic about their jobs and the economy, a survey showed today. While Chuck went out on a limb pretty early with his call for raise in rates, a majority of economists still expect the central bank to keep rates on hold. I side with Chuck and expect at least a 25 bps rate increase as the BOE tries to deal with inflation, which has stayed stubbornly above 3%, a full 1% over the BOE's target. Any increase in rates should move the pound back above $2.00 where it is likely to stay.

Chuck left me his thoughts on the G-8 meeting that is happening this week over in Europe: "I mentioned yesterday that there will be a G-8 meeting this week, and how they have turned these things into boondoggles in recent times... However, there are rumors going around, someone's underground... But wait... There are rumors going around that Treasury Sec. Paulson is going to make a speech ahead of the G-8 meeting to touch on progress with China... I find this to be interesting given the fact that there are two bills working their way to the floor regarding China.

more...

[ozymandius]

5. Auto industry execs to visit Congress

WASHINGTON - The heads of the domestic auto industry are pressing congressional leaders to revisit a plan to increase fuel efficiency standards that automakers say could hurt their industry.

Leaders of General Motors, Ford and the Chrysler Group on Wednesday were to discuss the impact of health care, trade and energy policies on their companies, and urge Senate leaders at a private luncheon meeting to consider an alternative to a proposed overhaul of Corporate Average Fuel Economy standards for vehicles.

-cut-

The Senate is expected to vote next week on a proposal to raise CAFE standards to a fleet average of 35 miles per gallon for a manufacturer's cars and trucks by 2020, an increase of about 10 mpg over current levels. From 2020-2030, the auto industry would face 4 percent annual increases.

Auto industry officials have called the Senate bill unworkable and resisted attempts to increase the requirements in the past. But they concede that Congress is likely to impose higher standards this year as consumers deal with $3-plus gasoline prices and remain worried about global warming and want to help shape any new requirements.

http://news.yahoo.com/s/ap/20070606/ap_on_bi_ge/fuel_economy

[ozymandius]

6. Stocks point toward lower opening

NEW YORK - Stocks pointed toward a lower opening Wednesday ahead of data on U.S. worker productivity.

The market anticipates the Labor Department's reading on first-quarter productivity, scheduled to be released at 8:30 a.m., to come in at 1.0 percent, down from the previous estimate of 1.7 percent.

Sharp declines in European stocks ahead of the European Central Bank's decision on interest rates also weighed on U.S. stock futures. Britain's FTSE 100 was down 1.08 percent, Germany's DAX index was down 1.52 percent, and France's CAC-40 was down 0.89 percent. The ECB is expected to hike its key interest rate by a quarter of a percentage point to 4 percent, and investors will be looking for hints about possible future increases.

Further rate increases for the euro could dampen the already weakening U.S. dollar.

http://news.yahoo.com/s/ap/20070606/ap_on_bi_st_ma_re/wall_street

[UpInArms]

7. Send in the Clowns: Bernanke expects economic rebound

http://news.yahoo.com/s/ap/20070605/ap_on_bi_go_ec_fi/bernanke

WASHINGTON - Federal Reserve Chairman Ben Bernanke predicted Tuesday the economy will rebound from its anemic start of the year even if the housing slump persists. Wall Street slid, taking the news as a sign the Fed won't lower interest rates.

Economic growth in the year's first three months nearly stalled, logging just a 0.6 percent pace. It was the worst quarterly showing in more than four years.

However, Bernanke said he believes some forces that figured prominently in that poor performance — including a bloated trade deficit, cutbacks by businesses in inventory investment and weak federal defense spending — "seem likely to be at least partially reversed in the near term."

Bernanke made his comments via satellite to an international monetary conference in Cape Town, South Africa. In his talk, he stuck to the Fed's forecast that the economy in coming quarters will advance "at a moderate pace, close to or slightly below the economy's trend rate of expansion." A copy of his prepared remarks was made available in Washington.

Some economists put the economy's trend, or normal growth rate, at around 3 percent to 3.25 percent.

On Wall Street, stocks fell as investors took Bernanke's remarks to suggest the Federal Reserve has little reason to lower interest rates any time soon. The Dow Jones, having slid more than 100 points earlier in the session, closed down 80.86 points to 13,595.46.

...more...

[ozymandius]

12. keeping up appearances as usual

When did "hack" become a prerequisite for Fed chief?

[Roland99]

16. Nice admission there, though. "weak federal defense spending".

So, NOT feeding The Beast had a sizable effect on our entire nation's GDP.

What's that tell us boys and girls?

[UpInArms]

8. American Trade Specialist Resigns

http://www.nytimes.com/2007/06/06/business/worldbusiness/06fobriefs-trade.html?ex=1338782400&en=1c5a739be4e3ed58&ei=5088&partner=rssnyt&emc=rss

Franklin L. Lavin, under secretary of commerce for international trade, who prodded China to reduce trade barriers by backing new tariffs on Chinese goods, announced his resignation yesterday. Mr. Lavin plans to leave on July 13, less than two years after taking the post. He is joining the Washington office of Cushman & Wakefield, the real estate services company. He led negotiations for the United States at the World Trade Organization over how to rework trade laws.

[ozymandius]

9. U.S. mortgage applications decline in week: MBA

NEW YORK (Reuters) - U.S. mortgage applications declined last week, dragged down by sinking demand for home refinancing with long-term interest rates at their highest level since October, an industry group said on Wednesday.

The Mortgage Bankers Association's mortgage application index slipped 1.7 percent to a seasonally adjusted 625.3 in the week ended June 1.

A rise in applications to buy homes was overshadowed by the drop in refinancing applications.

The MBA's seasonally adjusted purchase index rose 1.5 percent to 433.6, but the refinancing gauge fell 6.1 percent to 1,757.1 in the June 1 week. The refinancing measure has not been lower since 1,640.4 at the end of last year.

http://news.yahoo.com/s/nm/20070606/bs_nm/usa_economy_mortgages_dc

[ozymandius]

10. HUD chief urges action on loan proposal

WASHINGTON - President Bush's housing chief urged Congress on Monday to quickly enact legislation that he said could help stave off future distress for homeowners with high-risk mortgages without spending government money.

Mortgage delinquencies and foreclosures have been surging, especially for people with tarnished credit or low incomes who took out high-priced home loans, known as subprime mortgages, during the housing boom that has turned into a slump.

Nearly 2 million adjustable-rate mortgages are resetting to higher rates this year and next, setting up a potential wave of foreclosures that has put policymakers on edge.

Alphonso Jackson, the secretary of housing and urban development, said, referring to the recent crisis in the high-risk mortgage market: "We knew that this was coming. We just didn't know it would come as quickly as it came."

http://news.yahoo.com/s/ap/20070605/ap_on_go_ca_st_pe/hud_secretary_mortgages_4

That hack - Greenscam - advised everyone to get themselves into ARMs. In other words: he advised everyone seeking to buy a home to become slaves to that home and to the mortgage bankers.

[UpInArms]

11. Auto industry execs to visit Congress (objecting to CAFE standards)

http://news.yahoo.com/s/ap/20070606/ap_on_bi_ge/fuel_economy

WASHINGTON - The heads of the domestic auto industry are pressing congressional leaders to revisit a plan to increase fuel efficiency standards that automakers say could hurt their industry. Leaders of General Motors, Ford and the Chrysler Group today are to discuss the impact of health care, trade and energy policies on their companies, and urge Senate leaders at a private luncheon meeting to consider an alternative to a proposed overhaul of Corporate Average Fuel Economy standards for vehicles.

"It looks like within the climate that's being experienced now, it's very likely there will be increases in CAFE," Rick Wagoner, General Motors Corp. chairman and chief executive, said Tuesday in Wilmington, Del. "I think our concern is, let's make sure that we also fix the real problems while we're doing that."

The Senate is expected to vote next week on a proposal to raise CAFE standards to a fleet average of 35 miles per gallon for a manufacturer's cars and trucks by 2020, an increase of about 10 mpg over current levels. From 2020-2030, the auto industry would face 4 percent annual increases.

Auto industry officials have called the Senate bill unworkable and resisted attempts to increase the requirements in the past. But they concede that Congress is likely to impose higher standards this year as consumers deal with $3-plus gasoline prices and remain worried about global warming and want to help shape any new requirements.

...more...

[UpInArms]

13. U.S. layoffs rise by 0.6 pct in May vs April-survey

http://www.reuters.com/article/bondsNews/idUSNAT00278220070606

NEW YORK, June 6 (Reuters) - Planned U.S. layoffs edged up by 0.6 percent in May, led by downsizing in the computer industry as businesses spent less on new technology, an independent report showed on Wednesday.

Announced layoffs totaled 71,115 in May, up from 70,672 in April, according to Challenger, Gray & Christmas Inc., an employment consulting firm. May's job cuts were up 32 percent from a year earlier, when they totaled 53,716.

Firms in the computer sector announced the elimination of 13,631 jobs in May, nearly double the 7,161 announced by the automotive industry, which ranked second in announced layoffs, Challenger said.

"Heavy job cutting in the computer industry reflects a slowdown in business spending on new technology," John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement. "We may continue to see heavy cuts in the months ahead with spending expected to remain soft in the near future."

...more...

[UpInArms]

14. Greyhound bus trip provides snapshot of U.S. poor

http://www.reuters.com/article/bondsNews/idUSN2324428920070606

NEW ORLEANS (Reuters) - Every morning at 7.30 a Greyhound bus loads up with passengers in New Orleans, climbs a ramp to Interstate 10 and slips into the rush hour traffic to start its journey to Atlanta.

The 12-hour ride provides an insight into the lives of America's poor as the bus crosses the Deep South states of Louisiana, Mississippi, Alabama and Georgia.

Given the choice, most Americans fly or drive across the country's vast distances. Bus travel is cheaper and people who lack the money to use other means of transport often go Greyhound.

<snip>

"I love to ride the bus. I used to ride the plane. My son tried to get me to take the plane but I haven't taken a plane since 9/11," said Williams, part-way through a journey that would take more than 24 hours.

Joseph Ulysses, who also sat alone on the bus, said he had just been released from jail in Louisiana after serving 12 years of a life sentence for murder in what he said was a drug-related incident.

...more...

[UpInArms]

15. GM CEO touts progress of $12 Billion Loss/34,000 job cuts at annual meeting

http://www.reuters.com/article/businessNews/idUSN0526995520070606?feedType=RSS

WILMINGTON, Delaware (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research is making progress in its turnaround effort, the automaker's chief executive said on Tuesday at its annual meeting, where all 10 shareholder proposals were rejected.

Speaking to investors CEO Rick Wagoner said GM, which lost more than $12 billion in the past two years, had made "major progress" in its restructuring -- a plan that includes slashing more than 34,000 jobs and closing 12 plants.

GM cut structural costs by $6.8 billion in 2006 and Wagoner told shareholders the automaker is on track to reach its target of cutting those costs by an additional $2.2 billion this year.

<snip>

GM's shares, which lost 50 percent of their value in 2005, rose 58 percent last year, the highest rise in the Dow Jones Industrial Average.

...more...

GM CEO takes home 10.2 million in 2006

General Motors Corp. (NYSE: GM) CEO Richard Wagoner earned $10.2 million in 2006, and will be receiving a raise in his $1.28 million salary, which was cut in half in February of 2006. While the $370,000 salary raise he's receiving is a pittance in the grand scheme of things for a company like GM, it does have important symbolic value.

This coming July, GM will begin negotiations for a new contract with the United Auto Workers Union. Here's the problem: Given the sacrifices that the workers have made over the past few years, how can anyone argue that they shouldn't receive a portion of what they gave up, just as Wagoner received 50% of his salary cut back for this year?

This looks remarkable short-sighted for Wagoner and the Board. Is the $370,000 raise (he earned $10.2 million including options and restricted stock in 2006) really worth the headache of hearing about during every negotiating session?

[UpInArms]

17. A Failed Experiment

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=103&topic_id=286285&mesg_id=286285

On January 20, 1981, in his first inaugural address, Ronald Reagan told the nation: "Government is not a solution to our problem, government is the problem."

Thus began a grand experiment: Release the American economy from the bonds of government regulation. Individual enterprise and initiative, the profit motive, the free market and open competition will usher in a new birth of freedom and a new era of unprecedented prosperity.

"It's morning in America."

Twenty-six years later, what do we have? A dismantled and "outsourced" industrial base, an impoverished work force, a nine trillion dollar debt burden upon future generations, a captive media that deprives the public of essential news as it issues outright lies, a degradation of education and scientific research, a trashing of the Constitution and its guaranteed Bill of Rights, a seemingly endless war with no prospect (or even definition) of victory, and the contempt of the peoples and governments of the civilized world.

The grand experiment has failed, and we are just beginning to realize the enormous costs of that failure.

How did it happen? It happened because the core dogmas of this so-called "conservatism" - the possibility and desirability of an ungoverned society, the superior "wisdom" of an unconstrained free market, the suitability of simple greed as a driving force of society - were fated from the start to fail the test of "real world" application.

...more...

with a hat-tip to CrisisPapers

[DemReadingDU]

19. Thanks for posting this here

Great article

[DemReadingDU]

25. No confidence? Jim Kunstler

snippet...
A basic rule of reality is that you can't get something for nothing. Sooner or later the financial sector will have to come to grips with this rule, meaning that that debt is not wealth and the revolving reallocation of debt in the form of credit does not amount to wealth creation. The US will arrive at a magic moment when the full force of this reality reasserts itself, and it is likely to make itself manifest in the collapse of the entity most closely associated the idea of wealth: the dollar. Assets vested in the dollar's legitimacy will follow its fate. The implication is that an awful lot of the presumed wealth held by Americans could vanish into thin air.

more...
http://kunstler.com/mags_diary21.html

originally posted by welshTerrier2
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x3303726

[UpInArms]

20. South Dakota: Local Manufacturer Announces 500 Job Cuts

http://www.keloland.com/News/NewsDetail6371.cfm?Id=0,57629

Hutchinson Technology announced today it will cut 500 jobs in four cities, including its plant here in Sioux Falls.

Hutchinson Technology employs almost 700 people at its Sioux Falls plant. But by the end of June, 90 employees will be out of work.

The company announced today that it will cut 500 jobs in Hutchinson and Plymouth Minnesota, Eau Claire, Wisconsin and right here in Sioux Falls. Company officials say they're losing money and fewer people are buying the disk drives they make for computers.

Hutchinson Technology Communications Officer Connie Pautz said, "We've lost money recently during the last quarter, and we are expecting a loss for the entire fiscal 2007 year."

Company officials tell us that eligible employees will receive severance pay.

"Employees who are eligible for our severance benefits will be offered a severance package consisting of 180 hours of base pay for employees who have up to four years of service and 60 hours of pay per year of service for those who have 4 or more years," Pautz said.

...more...

[TrogL]

23. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2007-05-07 Monday, May 7 0.907112 USD
2007-05-08 Tuesday, May 8 0.905141 USD
2007-05-09 Wednesday, May 9 0.903914 USD
2007-05-10 Thursday, May 10 0.903098 USD
2007-05-11 Friday, May 11 0.897989 USD
2007-05-14 Monday, May 14 0.903587 USD
2007-05-15 Tuesday, May 15 0.911079 USD
2007-05-16 Wednesday, May 16 0.906783 USD
2007-05-17 Thursday, May 17 0.911079 USD
2007-05-18 Friday, May 18 0.918864 USD
2007-05-21 Monday, May 21 0.921319 USD
2007-05-22 Tuesday, May 22 0.921319 USD
2007-05-23 Wednesday, May 23 0.924556 USD
2007-05-24 Thursday, May 24 0.922424 USD
2007-05-25 Friday, May 25 0.926441 USD
2007-05-28 Monday, May 28 0.926441 USD
2007-05-29 Tuesday, May 29 0.932923 USD
2007-05-30 Wednesday, May 30 0.929973 USD
2007-05-31 Thursday, May 31 0.934492 USD
2007-06-01 Friday, June 1 0.943218 USD
2007-06-04 Monday, June 4 0.945269 USD
2007-06-05 Tuesday, June 5 0.942951 USD


Current values

Loonie:

Last trade 0.9457 Change +0.0035 (+0.37%)
Previous Close 0.9423 Open 0.9435
Low 0.9433 High 0.9470


Other combinations:

AS.M07 AUSTRALIAN $/CANADIAN $ Jun (NYBOT) 0.88900 +0.00625
AU.M07 AUSTRALIAN $/US$ Jun (NYBOT) 0.83715 +0.00290
RA.M07 EURO/AUSTRALIAN $ Jun (NYBOT) 1.61585 -0.00175
HY.M07 CANADIAN $/JAPANESE YEN Jun (NYBOT) 114.105 -0.760
GB.M07 EURO/BRITISH POUND Jun (NYBOT) 0.6789 -0.0002
EP.M07 EURO/CANADIAN $ Jun (NYBOT) 1.4315 -0.0043
EJ.M07 EURO/JAPANESE YEN Jun (NYBOT) 163.40 -0.40
EU.M07 EURO/US$ (LARGE) Jun (NYBOT) 1.3534 +0.0007


Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The June Canadian Dollar was steady to slightly lower overnight as it consolidates some of Monday's rally. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. If June extends the rally off February's low, weekly resistance crossing at .9525 is the next upside target. Closes below the 10-day moving average crossing at .9345 would signal that a top has been posted. Overnight action sets the stage for a steady to lower opening in early-day session trading.

Analysis

Sorry no Loonie Watch yesterday even though the loonie bore watching.

DU was down for most of the day, then we had a tornado warning and they kicked us out of the building and told us to go home. (I would NOT want to be in this building during a tornado and there was sufficient warning for everybody to get home safely).

The blather is already wrong. It opened higher and it's been climbing steadily all morning, (chart here http://quotes.ino.com/chart/?s=CME_CD.M07&v=s) probably on expectations of the above.

The loonie has spent the last two days wobbling around $0.945 US but I'm going out on a short limb and predicting more upward movement. The US is releasing economic information today that's bound to be bad and will trigger a rise in interest rates. Canada will likely follow.

On a side note, an official from the Alberta government noted yesterday that for every cent rise in the loonie, they lose $100 million in income from oil royalties.

On another side note, the Aussie's doing well today but the Euro's got a headache. (http://quotes.ino.com/)

Euro Falls Against Yen
(RTTNews) - The euro dropped against the yen on Wednesday as the European Central Bank raised interest rates by a quarter-point to 4%. The euro reached a daily high at around 2 a.m. but then trended down until about 8 a.m. It slipped a little further around 10 a.m. The pair was at 163.39 at 11:45 a.m. ... more

Euro Choppy With Pound
(RTTNews) - The euro was down slightly amid choppy trading with the British pound on Wednesday. The European currency touched a daily high at around 0.6791 at around 6 a.m. but then fell sharply for the next several hours. That move took place as the European Central Bank raised interest rates by a quarter-point to 4%. Trading leveled off from there. Traders await the release of interest rates from the Bank of England on Thursday. ... more

Euro Down Against Dollar 11:32AM

[TrogL]

28. Canadian Dollar Mixed Against Major Counterparts

http://www.rttnews.com/FOREX/FXTopStory.asp?date=06/06/2007&item=27

Wednesday, June 06, 2007 1:23:34 PM - The Canadian dollar was mixed versus its major counterparts Wednesday in New York. The loonie gained ground against the greenback, euro, and sterling. Meanwhile, the Canadian currency retreated versus the yen. Traders considered data showing that Canadian building permits fell at a rate that was higher than expected in April. This came after building permits had surged higher during March.

...

Statistics Canada released its report on Canadian building permits in the month of April on Wednesday, showing that the value of building permits fell more than economists had expected after surging higher in the previous month. The report showed that the value of building permits fell 8.4% in April after a downwardly revised 26.5% increase in March. Economists had expected the value of permits to fall 5.0% compared to the 27.4% increase originally reported for the previous month. The pullback was partly due to a steep drop in the value of non-residential permits.

[mojavekid]

24. Ted Butler: It’s Alright, Ma (I’m Only Bleeding)

http://www.investmentrarities.com/06-05-07.html


Additional confirmation continues to roll in concerning the changing nature of the price-setting struggle between the dealers and the tech funds in COMEX gold and silver. Recently, I have taken to using analogies to the dinosaur world, writing about T. rex’s, raptors and their food supply, the plant-eating tech funds. I had attributed the declining asset base of the tech funds, due to losses and investor redemptions, as at the heart of the changes. Further, it was my hope that these changes might mark the end of the era of the silver price manipulation.

Recently published reports highlight this trend. Long-time readers know that I have repeatedly mentioned one tech fund in particular, John W. Henry & Co. (www.jwh.com), as a proxy for tech funds in general. On May 29, The Wall Street Journal reported that Henry’s major investor; Merrill Lynch was removing roughly $600 million in client assets from the fund at the end of the month. (http://online.wsj.com/article/SB118040164004016732.html). According to the article, this would leave Henry with approximately $500 million in assets under management. That would be down $2.7 billion, or 85%, from peak assets of $3.2 billion two years ago. (The most recent data from the Henry web site does not yet reflect the Merrill Lynch $600 million withdrawal). In any event, the tech fund food supply does seem to be shrinking dramatically.

snip...

Perhaps the greatest trade off in the weakening of the tech funds is that it just might remove the cause for why I’ve always felt silver was manipulated – dealer profits. Without the tech funds to skim, the big dealer shorts have lost their rationale to be short. Shorting to the tech funds was "safe" for the dealers, because they knew the funds would be selling their long positions at some point on price sell-offs. If buyers who are not tech funds buy in their place, the dealers can’t know if these new buyers will sell at lower prices. It is no longer a safe trade for the dealers.

more...

[TrogL]

27. Stocks Continue To Trade Near Lows For Wednesday's Session

http://www.rttnews.com/sp/sectorind.asp?date=06/06/2007&item=31&vid=0

6/6/2007 1:05:30 PM The major averages continue to trade near their lows for the Wednesday's session as trading entered the afternoon. The Dow remains down over 100 points, while the Nasdaq and S&P 500 also show significant declines for the second session in a row. Profit taking began during the early morning, as an economic report intensified fears that the Fed will not be cutting interest rates this year.

[specimenfred1984]

29. Suddenly the markets are all worried about interest rates, LOL.

Nothing to do with China, move along, nothing to see here.

[UpInArms]

30. Existing Homes Sales expected to fall 4.6% vs earlier report of 2.9%

18. Existing home sales expected to fall 4.6% vs. 2.9% earlier
10:12 AM ET, Jun 06, 2007 - 3 hours ago

19. Realtors lower U.S. housing forecasts for 2007, 2008
10:12 AM ET, Jun 06, 2007 - 3 hours ago

[UpInArms]

31. bloody closing numbers

Dow 13,465.67 129.79 (0.95%)
Nasdaq 2,587.18 24.05 (0.92%)
S&P 500 1,517.38 13.57 (0.89%)
10-Yr Bond 4.97% 0.006

NYSE Volume 2,964,193,000
Nasdaq Volume 2,163,381,000

A day after a worsening interest rate outlook sparked a wave of profit-taking activity, such concerns returned Wednesday, giving investors another excuse to keep reining in recent market gains.

At their lows of the day, the Dow, S&P 500 and Nasdaq were down 1.2% on average. Broad-based selling activity closed all 10 sectors sharply lower. Of the 147 S&P industry groups, 139 finished in negative territory.

One reason the focus was squarely on interest rates today is that the European Central Bank raised its benchmark rate 25 basis points to 4.00%. Even though the rate hike was widely anticipated, and 4.00% is still well below the 5.25% fed funds rate in the U.S., the upward trend in rates proved bothersome.

Separately, Morgan Stanley issued a "triple sell" rating on European equities for the first time since the dotcom bust due to rising rates among other things. The investment bank said it expects a 14% correction in European equities over the next six months.

That news sent Europe's three major bourses, which recently hit multi-year highs, plunging 1.8% on average and left investors in U.S. equities also questioning valuations.

As a reminder, the Dow and S&P 500 were in record territory just two days ago, yet rising interest rates have served as an effective profit taking catalyst for the overextended market.

Today's only scheduled economic report also failed to give investors any incentive to use intraday market dips as buying opportunities.

As expected, Q1 productivity was revised lower, checking in at 1.0% (consensus 1.0%) from a previous read of 1.7%. With high levels of resource utilization still a Fed focal point as having the potential to sustain inflationary pressures, unit labor costs tripling from the 0.6% rate initially reported exacerbated wage-based inflation worries.

Adding insult to injury was some hawkish Fed speak. Even though he's no longer a voting Fed member, Richmond Fed President Lacker said he sees no significant moderating trend yet in U.S. inflation and that it's difficult to gauge whether the housing market correction has bottomed. While his prepared remarks merely echoed comments made in late May, his words struck a nerve with an increasingly cautious market that has been pricing in the likelihood of a rate cut every since the Fed stopped tightening last summer. BTK -1.4% DJ30 -129.79 DJTA -1.8% DJUA -1.3% DOT -1.0% NASDAQ -24.05 NQ100 -0.9% R2K -0.8% SOX -0.9% SP400 -1.2% SP500 -13.57 XOI -1.5% NASDAQ Dec/Adv/Vol 2071/943/2.02 bln NYSE Dec/Adv/Vol 2607/679/1.37 bln

3:30 pm : Buyers may have been largely absent since the opening bell, but they haven't been completely forgotten. Or so their late-day heroics may lead some to believe. Either way, the market's focus shifting to interest rates is likely to act as an overhang so long as the yield on the 10-year note hovers near the psychologically important 5.00% level.

Further underscoring the market's increasingly cautious tone have been respective rallies of 8.7% and 5.6% on the VIX (CBOE Volatility Index) and VXN (CBOE Nasdaq Volatility Index). Known as the "investor fear gauges," both indexes spiking higher suggest investors are actively buying put options in anticipation of further downside in stocks. DJ30 -110.32 NASDAQ -19.78 SP500 -11.19 NASDAQ Dec/Adv/Vol 2191/808/1.73 bln NYSE Dec/Adv/Vol 2710/544/1.17 bln

3:00 pm : As has been the case so often of late, when stocks are posting losses heading into the final hour of trading, buyers are showing resolve. However, unlike Monday's late-day recovery that helped the major averages garner just enough momentum to finish with gains, today's paltry attempt leaves the bears well positioned to declare victory again.

The Dow is still on pace to log its worst one-day decline in nearly a month while the pullback on the S&P 500 pushes its year-to-date advance to 7.0%.DJ30 -131.90 NASDAQ -24.41 SP500 -14.34 NASDAQ Dec/Adv/Vol 2142/831/1.58 bln NYSE Dec/Adv/Vol 2708/548/1.07 bln

2:30 pm : More of the same for stocks as buyers are still all but completely absent. In fact, now only three of the 147 S&P industry groups are posting gains. With regard to the major averages, the Dow is now turning in the worst performance as 28 of its 30 components lose ground.