STOCK MARKET WATCH, Tuesday November 18

[ozymandius]

Source: du

STOCK MARKET WATCH, Tuesday November 18, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 63
WHERE'S OSAMA BIN-LADEN? 2581 DAYS
DAYS SINCE ENRON COLLAPSE = 2872
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 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.
$1 USD = EUR 1.06678
$1 USD = JPY 116.6200

In recognition of those prescient of the Dow's precipitous return of Bush values (9/29/08): JuneBourder and AnneD

AT THE CLOSING BELL ON November 17, 2008

Dow... 8,273.58 -223.73 (-2.70%)
Nasdaq... 1,482.05 -34.80 (-2.29%)
S&P 500... 850.75 -22.54 (-2.58%)
Gold future... 742.00 -0.50 (-0.07%)
30-Year Bond 4.21% -0.02 (-0.57%)
10-Yr Bond... 3.68% -0.07 (-1.76%)






GOLD,EURO, YEN, Loonie and Silver

---

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. Market WrapUp

Clarity: Shrouded In Double-Speak
BY ROB KIRBY

It was back on Oct. 3rd, 2008 that Rep. Brad Sherman (D-Ca) reported from the floor of the House (C SPAN) the disingenuous nature of the (then) proposed Bail-Out Bill by revealing that dissenting voices had been “threatened” of imminent, dire consequences if the bill was not passed in its proposed form (see link: http://www.youtube.com/watch?v=gnbNm6hoBXc).

Then last week, on Nov. 13, 2008, we learned from Treasury Secretary Hank Paulson that there had in fact been a material change-of-heart in the manner in which the 700 billion Bail-Out Bill funds would be deployed.

....

Whether or not Secretary Paulson purposely misled Congress – you will have to judge for yourself; but it does appear that both the Treasury and Federal Reserve are doing everything in their power to obfuscate the true nature of and exactly "who" the ultimate recipients are of these Bail-Out funds...

....

Then again, perhaps these failures to provide the promised transparency should surprise no-one, since it is a matter of historical record, as told by (then) Federal Reserve Vice-Chairman, Alan Blinder on national television,

"The last duty of a central banker is to tell the public the truth."

Ahhh, some clarity at last!

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

[Viva_La_Revolution]

46. What's the timeline? Seems the plan changed AFTER the election. nt

[Demeter]

47. Not Really

The first plan started to evolve before it even passed, and Europe gave Paulson a big kick in the pants shortly after it did, and it's never been stable, except for the cash giveaway to Paulson's buddies.....

[ozymandius]

2. Today's Reports

08:30 Core PPI Oct
Briefing.com 0.0%
Consensus 0.1%
Prior 0.4%

08:30 PPI Oct
Briefing.com -2.0%
Consensus -1.8%
Prior -0.4%

09:00 Net Foreign Purchases Sep
Briefing.com NA
Consensus $17.5B
Prior $14.0B

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

[UpInArms]

U.S. October core PPI up 0.4% vs. 0.1% gain expected

03. U.S. October PPI down record 2.8% vs. 1.6% loss expected
8:30 AM ET, Nov 18, 2008

04. U.S. October core PPI up 0.4% vs. 0.1% gain expected
8:30 AM ET, Nov 18, 2008

05. U.S. October energy PPI down 12.8%
8:30 AM ET, Nov 18, 2008

06. U.S. October food PPI down 0.2%
8:30 AM ET, Nov 18, 2008

07. U.S. PPI up 5.2% in past year
8:30 AM ET, Nov 18, 2008

08. U.S. October crude energy PPI down 24.9%
8:30 AM ET, Nov 18, 2008

[UpInArms]

33. October producer prices fall record 2.8%, gasoline plummets

http://www.marketwatch.com/news/story/October-producer-prices-fall-record/story.aspx?guid=%7BD0726BC9%2D242D%2D4469%2DA9AE%2D2D839CACB9C7%7D

WASHINGTON (MarketWatch) -- U.S. producer prices fell a record 2.8% in October, the most since 1947, as gasoline prices plummeted a record 24.9%, the Labor Department reported Tuesday. Overall finished energy goods prices fell 12.8%, the most since 1986, while food prices declined 0.2%. Excluding food and energy, core producer prices rose 0.4% in October. Analysts polled by MarketWatch were looking for a decrease of 1.6% in overall PPI, and a 0.1% increase in the core rate. Producer prices are up 5.2% over the past 12 months. Further back in the production pipeline, prices for intermediate goods fells a record 3.9% in October, while prices for crude goods fell a record 18.6%.

[Roland99]

37. And the markets will focus on the overall PPI instead of the core. Just the opposite...

of when overall PPI worsens greatly but core is little changed.


"How conveeenient."

[UpInArms]

39. WTF!? Inflows at $143.7 Billion (vs 21.4 B in Aug and -25.1 B in July)

http://www.reuters.com/article/bondsNews/idUSN1814445320081118

 WASHINGTON, Nov 18 (Reuters) - Treasury Department
international capital (TIC) data release, in billions of
dollars except where noted. Figures are not seasonally
adjusted.
                      Sept       Aug    July
Monthly Net
TIC Flows              $ 143.4     21.4   -25.1
  Private              $ 126.9     24.1   -43.4
  Official             $  16.4     -2.7    18.3
Net foreign buys of
long-term securities   $ 52.7       8.1     3.9
  Stock swaps, other   $-13.5     -12.9   -14.5
Long-term securities
  transactions         $ 66.2      21.0    18.4
Domestic Securities,
purchased net          $ 30.9      -1.6   -15.7
  Private              $ 35.7       8.7   -10.9
  Official             $ -4.8     -10.2    -4.9
Total net foreign buys of:
Treasuries               20.74    34.71    34.29
Agencies                  6.17   -22.15   -40.11
Equities                 11.52    -0.98    -5.78
Corporates               -7.56   -13.13    -4.14
Holdings of major foreign
 holders of Treasuries:
China                   585.0     541.4    518.7
Japan                   573.2     586.0    593.4
United Kingdom          338.4     308.1    291.5
Caribbean banking ctrs  185.3     148.9    133.7
Oil exporters           182.2     180.6    173.9
Brazil                  141.9     146.2    148.4

okay - this is just too freakin' weird

:shakesheadindisbelief:

[Ghost Dog]

45. September. Private buying, mostly, and

those 'Caribbean banking centers' jumped quite a bit...

Those seeking the mythical "Safe Haven"?

[dixiegrrrrl]

77. What is Paulson promising Japan and China

in return for their propping up our Treasuries?
never mind that the dollar/peso devaluation continues...

[ozymandius]

3. Oil lingers near $55 as investors mull recession

SINGAPORE – Oil prices lingered near $55 a barrel Tuesday in Asia as investors mulled more dire news pointing to a prolonged recession in developed countries and continuing weakness in demand for crude.

Light, sweet crude for December delivery was up 36 cents to $55.31 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract Monday fell $2.09 to settle at $54.95, the lowest since January 2007. Prices have fallen about 62 percent since reaching a record $147.27 in mid-July.

Stock markets, which oil investors use to gauge sentiment about the global economy, fell on mounting evidence that U.S. consumers are cutting spending as big corporations shed tens of thousands of staff.

....

The Organization of Petroleum Exporting Countries, which accounts for about 40 percent of world crude supply, will have an informal meeting later this month, and some members are calling for another production cut on top of the 1.5 million barrels a day reduction the group announced last month.

....

In other Nymex trading, gasoline futures rose 1.02 cent to $1.18 a gallon. Heating oil gained 2.40 cents to $1.81 a gallon while natural gas for December delivery increased 1.4 cents to $6.56 per 1,000 cubic feet.

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

[UpInArms]

35. Saudi FM: oil supertanker hijacking 'outrageous'

http://news.yahoo.com/s/ap/20081118/ap_on_bi_ge/eu_piracy_saudis

ATHENS, Greece – Saudi Arabia's foreign minister condemned the "outrageous" hijacking of a Saudi oil supertanker by Somali pirates and said Tuesday that his nation would join the international effort to eradicate piracy.

The MV Sirius Star was seized Saturday far off the Kenyan coast and was being taken to the Somali port of Eyl, one of the African country's main pirate ports.

In the Saudi government's first public comments on the attack, Prince Saud Al-Faisal said piracy is a complex problem that requires an international response.

"This outrageous act by the pirates, I think, will only reinforce the resolve of the countries of the Red Sea and internationally to fight piracy," he said during a visit to Athens. "Piracy is against everybody. Like terrorism it is a disease that has to be eradicated."

The tanker's owner says the ship is fully loaded with crude — a cargo worth about $100 million. Its owners say the ship's 25 crew members are safe.

...more...

[ozymandius]

4. Top salesmen for financial bailout face grilling

WASHINGTON – The two top salesmen for a $700 billion financial bailout are in for a grilling by Capitol Hill lawmakers just one week after the administration officially ditched the original strategy behind the rescue.

Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson are expected to provide greater insights into the shift when they testify Tuesday before the House Financial Services Committee.

.....

Last week, Paulson changed course and announced that the government would not use any of the $700 billion to buy rotten mortgages and other bad assets from banks. That had been the centerpiece of the plan when Paulson and Bernanke originally pitched it to lawmakers.

.....

The idea behind the capital injection program is for banks to use the money to rebuild reserves and lend more freely to customers. However, banks do have the leeway to use the money for other things, such as buying other banks or paying dividends to investors. That has touched a nerve with some lawmakers.

http://news.yahoo.com/s/ap/20081118/ap_on_bi_ge/financial_meltdown

---

Grilling? I wonder if they mean Joan of Arc style.

[Demeter]

7. Good Morning Ozy! We Should Be So Lucky

The French are good at solutions,aren't they?

If no success with the JOA grilling, then resort to the FR severance package!

Sorry I missed yesterday's wild and crazy ride--I cleaned so much house that I can't sleep for the pain. And I only got maybe 15% of it done, but it was half of the least favorite, most painful part--vacuuming. When I can afford it, I'm going wood floors. I hate carpets, vacuuming, and carpet cleaning....if it can't go in the washer or be resolved with a bucket of soapy water, I'm against it.

Simplicity is all. Maybe we could agitate for simplicity in financial matters, and not the master/slave style preferred by the current "masters". More on the order of Liberté, égalité, fraternité, French style yet again!

[ozymandius]

10. No quarter!

When these people are installed in office - do they take a solemn oath to continue the Bush administration's bait-and-switch policies? When has anyone connected to Bush ever followed the letter and intent of legislation passed on their behalf?

[Demeter]

15. Now That I Think About It

The Joan of Arc grilling was England and the Church, not the French. Hence the barbarity of the burning.

[ozymandius]

16. That's true. I knew what you meant.

The English were fond of political grilling almost as much as the Church was fond of spiritual fire cleansing.

[Demeter]

18. And the Guillotine Was Actually Designed as a More Humane Form of Capital Punishment

less prone to operator error, less dependent on operator skill, and providing a quick and (relatively) easy death. Still horrible, though. Enough for the blood thirsty, at least.

[ozymandius]

8. Treasury pays $33.56B to 21 banks

WASHINGTON – The government said Monday it has supplied $33.56 billion to 21 banks in a second round of payments from the $700 billion rescue program, and announced a deadline for another 3,800 banks to apply for funds.

The Treasury Department said a category of privately held banks will have until Dec. 8 to apply for the government to purchase shares of their stock as a way to bolster their balance sheets. The deadline for the larger publicly traded banks was Nov. 14.

The new Dec. 8 deadline will apply to about 3,800 banks that are so-called C-Corps institutions for the part of the tax code that applies to them. Another 2,500 S-Corps institutions also will be able to apply for money, but Treasury has not set the deadline for their applications.

The new deadline was announced as Treasury confirmed a second round of government stock purchases that follow the initial $125 billion it allocated to nine of the country's largest banks. The rescue program now has earmarked payments of $158.56 billion to banks.

http://news.yahoo.com/s/ap/20081117/ap_on_bi_go_ec_fi/meltdown_banks

[ozymandius]

5. Asia stocks sink as layoffs add to global gloom

HONG KONG – Asian stock markets sank Tuesday after Wall Street retreated and global financial firms announced another round of massive layoffs, adding to gloom about the world economy. European markets traded lower.

Tokyo's Nikkei 225 stock average fell 194.17 points, or 2.3 percent to 8,328.41, a day after confirmation Japan, the world's second largest economy, had slipped into a recession. Hong Kong's Hang Seng Index shed 4.5 percent to 13,131.23.

Investors were discomforted by news the financial sector, still struggling more than a year after the subprime crisis erupted in the U.S. and spread to Europe, continues to hemorrhage thousands of jobs.

....

The Shanghai Composite index slid 6.3 percent after advancing four straight days. Australia's main index declined 3.6 percent and South Korea's Kospi fell 3.9 percent.

http://news.yahoo.com/s/ap/20081118/ap_on_bi_ge/world_markets

[ozymandius]

6. Stocks finish lower as recession worries deepen

NEW YORK – Wall Street finished sharply lower Monday as investors pored over more signs of economic weakness, including a huge round of layoffs in the financial sector.

After a turbulent week that sent the Dow Jones industrials down nearly 340 points, investors found little solace in the latest news. Stocks zigzagged throughout the session, finally giving way to a stream of late-day selling that left the Dow Jones industrials lower by 223 points.

In a signal that banks are still struggling in the wake of massive losses tied to bad mortgage debt, Citigroup Inc. is cutting another 53,000 jobs in the coming quarters. The company said that in addition to job cuts, it plans to lower expenses by about 20 percent and has reduced its assets by more than 20 percent since the first quarter of the year.

.....

Analysts believe the market is still searching for a bottom after last month's huge losses, and that the pattern of volatility will continue for some time. Woody Dorsey, president of financial forecasting firm Market Semiotics, said the market is trapped in a seesaw pattern.

"It is a very technical trade," he said. "The difficulty is there is no dominant positive or negative story that the market is operating on. ... There's nothing here that people can grab on to."

In the meantime, investors are still facing a barrage of bad economic news.

http://news.yahoo.com/s/ap/20081117/ap_on_bi_st_ma_re/wall_street

[ozymandius]

12. U.S. stock futures point to further losses

LONDON (MarketWatch) -- U.S. stock futures dropped sharply Tuesday as investors continued to adjust to the swift deterioration in the economy and in particular the troubled times in the financial sector.

S&P 500 futures dropped 15.4 points to 835.40 and Nasdaq 100 futures fell 21.75 points to 1,136.70. Dow industrial futures fell 122 points.

....

Equity strategists at HSBC said Paulson may have snatched defeat from the jaws of victory after his recent reversal on the TARP plan, which they noted put an end to one of the few positive trends, the declines in the three-month dollar LIBOR rates.

http://www.marketwatch.com/news/story/US-stock-futures-point-further/story.aspx?guid={5944A0D3-4AA6-4B58-90C4-DB08D1DC0A44}

[Roland99]

28. 7:47am - Futures Update....still bleak

DJIA INDEX 8,133.00 -126.00
S&P 500 835.00 -16.00
NASDAQ 100 1,135.50 -23.00

[Ghost Dog]

9. Recession fears hit European shares; banks slip

Tue Nov 18, 2008 5:27am EST LONDON, Nov 18 (Reuters) - European shares fell in morning trade on Tuesday, as commodity stocks slipped tracking a retreat in metals and crude prices and banks weakened on concerns about a deep global recession in major economies.

By 0942 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 1.9 percent at 820.8 points after being as high as 843.21 points earlier in the session.

News that British annual consumer price inflation tumbled to 4.5 percent in October from 5.2 percent the previous month did little to lift the mood.

...

Across Europe, the FTSE 100 .FTSE index was down 1.9 percent, Germany's DAX .GDAXI was 1.9 percent lower and France's CAC 40 .FCHI fell 2 percent.

/... http://www.reuters.com/article/marketsNews/idCALI55053820081118?rpc=44

[Ghost Dog]

11. New-New Deal AND Progressive Tax Increases Needed ...!

...snip...

At a recent Reuters Global Finance Summit former Goldman Sachs chairman John Whitehead was interviewed. He was also Ronald Reagan's Deputy Secretary of State and a former chairman of the N.Y. Fed. He says America's problems will take years and will burn trillions.

He sees "nothing but large increases in the deficit ... I think it would be worse than the depression. ... Before I go to sleep at night, I wonder if tomorrow is the day Moody's and S&P will announce a downgrade of U.S. government bonds." It'll get worse because "the public is not prepared to increase taxes. Both parties were for reducing taxes, reducing income to government, and both parties favored a number of new programs, all very costly and all done by the government."

Reuters concludes: "Whitehead said he is speaking out on this topic because he is concerned no lawmakers are against these new spending programs and none will stand up and call for higher taxes. 'I just want to get people thinking about this, and to realize this is a road to disaster,' said Whitehead. 'I've always been a positive person and optimistic, but I don't see a solution here.'"

We see the Great Depression 2. Why? Wall Street's self-interested greed. They are their own worst enemy ... and America's too.

/... http://www.marketwatch.com/news/story/Well-Great-Depression-2-2011/story.aspx?guid={B28B49B5-EFD1-4941-B57E-A2BA1545BA09}

(See also: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4484018 )

[ozymandius]

14. Basic ideas:

Gut the Pentagon. That institution has wasted trillions already on boondoggle defense (against what?) plans. Put those service personnel to work helping to rebuild our crumbling national infrastructure. Brains intent on destroying things should now be put to work on building peaceful energy sustainability.

Close the War on Drugs. And while we're there - check the bank balances and transaction histories of some retired DEA officials. Close private for-profit prisons after they're emptied of non-violent drug users. Treat them as patients with a disease instead of as the disease itself. Billions more saved.

War on Terror: same. Only this time check the bank balances and transaction histories of war materiel suppliers. (Especially those with juicy no-bid contracts.)

Tax those people who make their living on Wall Street the same as anyone else who works for a living in a different job. Capital gains tax cuts means that anyone who only makes a living through stock deals will pay considerably less in taxes compared to a person, in the same tax bracket, who makes their living in another industry.

I'll bet you will see some of those deficit balances come down when these ideas are fleshed out and enacted.

[Demeter]

20. End the Illegal Occupation of Iraq and the Protection of Afghanistan's Poppy Fields

Kill off insurance firms with universal Govt. paid healthcare

Large infrastructure projects, both the traditional, and "green" ones.

And my favorite, asset stripping of white collar crooks as we prosecute the Bushbots and the Wall Street Fraudsters.

[Tansy_Gold]

23. Re your capital gains suggestion:

You wrote:

"Capital gains tax cuts means that anyone who only makes a living through stock deals will pay considerably less in taxes compared to a person, in the same tax bracket, who makes their living in another industry."

Um, I'm not sure there is ANYONE "who makes their living in another industry" that's in the same tax bracket as the bloodsuckers making billions through stock deals. They, in fact, should be in a HIGHER tax bracket.

Isn't that the way capital gains used to be? If you held onto something for a long time (what, six months? a year?) you paid less tax on the income than when you just traded stuff back and forth?



What would I know? I have no capital gains.




Tansy Gold

[ozymandius]

25. Good point.

Every trade is a line on the W-2. Yet, they're taxed less than if that person were making the same amount of money elsewhere. Nonsensical. Are winnings in Vegas and Atlantic City taxed at the capital gains rate? It's the same kind of income.

[tclambert]

24. Halliburton must be trembling in their socks

for fear of January 20th.

[Demeter]

48. Halliburton Already Split for Dubai, There's No Flies on Them

They just lose one customer, who hasn't any cash or credit anyway.

[JNelson6563]

27. Simple, effective solutions.

Washington will never go for it but you have my vote.

I would also add legalize, regulate and tax marijuana just like alcohol.

I sure hope today doesn't go as badly as the futures currently indicate.

Cheers,
Julie

[Tansy_Gold]

36. What I was told back in the 60s regarding legalization of weed

It's been so long ago that I couldn't begin to tell you where I heard this, but it's something that stuck in my head.

The tobacco industry is or was supposedly behind the continuing war on marijuana legalization. The reason is that it takes a lot of CAPITAL to grow and cure tobacco and make it into a marketable product. They're protecting their INCOME, because anyone can plant a few seeds of marijuana in a coffee can and grow their own weed, dry it, roll it, and smoke it. HUGE transfer of wealth is eliminated, and they don't want that. (Also that most tobacco was/is grown in the South and it was very labor-intensive and it was a good way to keep them "uppity" folks at, ahem, slave wages.)


Just sayin'



Tansy Gold

[Ghost Dog]

26. Phase IV of Global Systemic crisis: Breakdown of Global Monetary System by summer 2009 (LEAP)

Phase IV of the Global Systemic crisis: Breakdown of the Global Monetary System by summer 2009
- Public announcement GEAB N°29 (November 17, 2008) -

...snip...

The G20-meeting held in Washington on November 14/15, 2008, is in its essence a historical indicator that the Western - above all Anglo-Saxon - monopoly on global economic and financial governance, is coming to an end. Nevertheless, according to LEAP/E2020, this meeting also clearly demonstrated that this kind of summits is doomed to inefficiency because they concentrate on curing the symptoms (banks’ and hedge funds’ financial difficulties, derivative markets’ explosion, financial and currency markets’ dramatic volatility, ...) rather than the fundamental root of the current crisis, i.e. the collapse of the Bretton Woods system based on the US Dollar as sole pillar of the global monetary system. Without a complete overhaul of the system inherited from 1944 by summer 2009, the failing of the current system and that of the United States at the center, will lead the whole planet to an unprecedented economic, social, political and strategic instability, and more specifically to a breakdown of the global monetary system by summer 2009. In light of the technocratic jargon and calendar of the declaration released after this first G20-meeting (totally disconnected from the speed and scope of the unfolding crisis (1)), it is more than likely that the disaster will have to happen for the fundamental problems to be seriously addressed and for the beginning of a reply to be initiated.

Four key-factors are now pushing the Bretton Woods II (2) system to collapse in the course of the year 2009:

• Fast weakening of the central players: USA, UK
• Three visions of the future of global governance will be dividing world’s largest players (United-States, Eurozone, China, Japan, Russia, Brazil) by spring 2009
• Unbridled speeding-up of the last decade’s (de-)stabilizing processes
• Increasing number of more and more violent backlashes.

...

The agitation that has seized global leaders since the end of September 2008 indicates that panic has struck at the highest level. Worldwide political leaders have now understood that the house is on fire. But they have not yet perceived something obvious: that the very structure of the building is involved. Improving fire-regulations or reorganizing emergency services will not be sufficient.

...

Today’s leaders, who all belong to the collapsing world (including Barak Obama (3)), cannot possibly imagine how to solve the problem, just like central bankers in 2006/2007 could not possibly imagine the scope the unfolding crisis could reach (4). It is their world which is disappearing under their eyes, their beliefs and their illusions (sometimes similar) (5). According to our team, a 20 percent renewal of worldwide leaders is required to begin to see sustainable solutions (6) appear. This is indeed, according to LEAP/E2020, the « critical mass » needed to permit any fundamental change of perspective in a complex not very hierarchical human group. Today we are still far from reaching this critical mass: in order to contribute to finding solutions to the crisis, those new leaders must accede power in full awareness of the crisis’ specific nature.

According to LEAP/E2020, if global leaders fail to realize that in the next three months and to take actions in the next six months, as explained in GEAB N°28, the US debt will « implode » by summer 2009 under the shape of the country’s defaulting or the Dollar’s dramatic devaluation. This implosion will follow closely a number of similar episodes affecting less central countries (see GEAB N°28), including the United Kingdom whose already huge debt is ballooning at the same pace as Washington’s (7). In the same way as the US Federal Reserve saw, month after month, its « Primary Dealers » (8) being swept away by the crisis before it was itself confronted to a real problem of capitalization and therefore survival, the United States in the coming year will witness the implosion of all countries too-closely integrated to their economy and finance, and of their allies financially too-dependent on them (9).

...

The role the Europeans can play in the matter is essential (10). The Eurozone in particular must send out a strong message towards Washington: « The United States will fall into an economic and financial pitfall in 2009 if they cling to their past « privileges ». Once the world has given up on the Dollar, it will be too late to negotiate ». With more than 550-billion USD, the Eurozone owns the third largest reserve (ex-aequo with Russia who is not very accurate on that aspect) after China and Japan, and before the Gulf oil-monarchies (see table above). It therefore has the diplomatic weight, the financial weight, the economic weight, the commercial weight and the monetary weight required to compel Washington to face realities (11). The EU altogether will follow because non-Euro EU countries are all on the verge of a severe crisis of their currency or economy or both (12). Without the Euroland, their outlook is very gloomy in the short and medium term. As a matter of fact, the Euro is the only currency a growing number of initially reluctant (Iceland, Denmark…) or skeptical (Poland, Czech Republic, Hungary…) countries now wish to join (13).

Sign of the times, the Financial Times has started to list the US federal state’s tangible assets: military bases, national parks, public buildings, museums, etc… everything has been evaluated for a total amount of approximately 1,500-billion USD, i.e. more or less the probable amount of the budget deficit in 2009 (see the detail of these assets in the chart below). No wonder why Taiwan, despite its dependence on the security provided by Washington, decided to stop buying one of the three great components of the US public deficit, the Fannie Mae and Freddy Mac securities (despite the fact that they were « rescued » by the government (14)); or why Japan is now a net-seller of US T-Bonds.

/More... http://www.leap2020.eu/GEAB-N-29-is-available!-Phase-IV-of-the-Global-Systemic-crisis-Breakdown-of-the-Global-Monetary-System-by-summer-2009_a2435.html

[Ghost Dog]

32. Keynes is innocent: the toxic spawn of Bretton Woods was no plan of his

The economist's dream was blocked for an IMF serving the rich. Reforms proposed by G20 leaders are too little, too late

o George Monbiot
o The Guardian, Tuesday November 18 2008

Poor old Lord Keynes. The world's press has spent the past week blackening his name. Not intentionally: most of the dunderheads reporting the G20 summit that took place over the weekend really do believe that he proposed and founded the International Monetary Fund. It's one of those stories that passes unchecked from one journalist to another.

The truth is more interesting. At the UN's Bretton Woods conference in 1944, John Maynard Keynes put forward a much better idea. After it was thrown out, Geoffrey Crowther - then the editor of the Economist magazine - warned that "Lord Keynes was right ... the world will bitterly regret the fact that his arguments were rejected." But the world does not regret it, for almost everyone - the Economist included - has forgotten what he proposed.

One of the reasons for financial crises is the imbalance of trade between nations. Countries accumulate debt partly as a result of sustaining a trade deficit. They can easily become trapped in a vicious spiral: the bigger their debt, the harder it is to generate a trade surplus. International debt wrecks people's development, trashes the environment and threatens the global system with periodic crises.

As Keynes recognised, there is not much the debtor nations can do. Only the countries that maintain a trade surplus have real agency, so it is they who must be obliged to change their policies. His solution was an ingenious system for persuading the creditor nations to spend their surplus money back into the economies of the debtor nations.

He proposed a global bank, which he called the International Clearing Union. The bank would issue its own currency - the bancor - which was exchangeable with national currencies at fixed rates of exchange. The bancor would become the unit of account between nations, which means it would be used to measure a country's trade deficit or trade surplus.

Every country would have an overdraft facility in its bancor account at the International Clearing Union, equivalent to half the average value of its trade over a five-year period. To make the system work, the members of the union would need a powerful incentive to clear their bancor accounts by the end of the year: to end up with neither a trade deficit nor a trade surplus. But what would the incentive be?

Keynes proposed that any country racking up a large trade deficit (equating to more than half of its bancor overdraft allowance) would be charged interest on its account. It would also be obliged to reduce the value of its currency and to prevent the export of capital. But - and this was the key to his system - he insisted that the nations with a trade surplus would be subject to similar pressures. Any country with a bancor credit balance that was more than half the size of its overdraft facility would be charged interest, at a rate of 10%. It would also be obliged to increase the value of its currency and to permit the export of capital. If, by the end of the year, its credit balance exceeded the total value of its permitted overdraft, the surplus would be confiscated. The nations with a surplus would have a powerful incentive to get rid of it. In doing so, they would automatically clear other nations' deficits.

When Keynes began to explain his idea, in papers published in 1942 and 1943, it detonated in the minds of all who read it. The British economist Lionel Robbins reported that "it would be difficult to exaggerate the electrifying effect on thought throughout the whole relevant apparatus of government ... nothing so imaginative and so ambitious had ever been discussed". Economists all over the world saw that Keynes had cracked it. As the Allies prepared for the Bretton Woods conference, Britain adopted Keynes's solution as its official negotiating position.

But there was one country - at the time the world's biggest creditor - in which his proposal was less welcome. The head of the American delegation at Bretton Woods, Harry Dexter White, responded to Keynes's idea thus: "We have been perfectly adamant on that point. We have taken the position of absolutely no."

/More... http://www.guardian.co.uk/commentisfree/2008/nov/18/lord-keynes-international-monetary-fund

[tama]

66. Very interesting

but ever return to orthodox Keynesianism would be now mere tinkering. What is in crisis and destined to collabse is the whole growth paradigm that destroys the carrying capacity of our Earth. Something that even LEAP2020 does not fully understand, what Club of Rome said and predicted in "Limits of Growth".

[Ghost Dog]

69. Yes.

...And how to explain that to people, to whole populations, who expect to continue to be able to think of themselves primarily as endless "consumers" as the raison d'être of their entire sense of 'well-being'?

Edit to add: I suppose attempting to deal with that little problem would be on the agenda of the one-world-government-of-bankers-and-such-that-shall-not-be-mentioned.

:pondering:

[tama]

70. Well

What will happen - and is happening - is that the limits of growth will explain themselves to whole populations in no uncertain terms, soon enough. Many will interpret that explaining as Wrath of God etc., and who is to say they are wrong.

And those of us suffering from the Cassandra syndrom will not find any satisfaction in the "told ya so" - or perhaps some, but even those very little.

Anyhow, I still feel it's important to keep talking about common sense, there is allways a chance that a critical mass will wake up from the consumerist hypnosis and start living, bringing about a change radical enough. Ignorance of exact timetables is bliss - in a hellish way, since it leaves some hope. But even more important that talking and explaining is to start living in practice as well as one can, as well as circumstances allow, from moment to moment. And I feel that living well can only start from forgiveness, however difficult that is. Forgiving ones self all the bad habits, and then the rest of the gang.

[Ghost Dog]

73. Absolutely. I trained in environmental sciences in the early 'seventies

and have been 'preaching' (and studying and trying to live in an 'exemplary' way - but find paid work in other fields, mostly) ever since, so I'm right with you there.

This recent comment (interview) in Truthout came to mind in the above context:

http://www.truthout.org/111308R

...snip...

The European Union has been much less damaged by Reagan/Thatcher capitalism than the United States.

The politicization of social movements is still strong in Europe, while my sense is that American social movements are less global - in both senses of the word - less political and less progressive.

The oligarchy is less powerful in Europe than in the United States. Europe still enjoys effective social protections such as health care, social security, unemployment benefits and pensions.

In Europe, the state is not seen as the enemy of society. It is still considered an authority that may and should be good for society overall. The legitimacy of government intervention in health, education and other social issues remains strong and has been strengthened by the financial crisis - which has also had that effect in the United States.

The great paradox, however, is that it's the United States which has just elected perhaps the most progressive politician of all, one who is certainly ahead on social and environmental issues and supports the oligarchy less than European leaders Sarkozy, Merkel, Berlusconi and Brown. This is part of why we believe Obama may make a very positive difference in Europe.

The last major difference, however, and a crucial one, is that Europeans have far lower per-capita energy consumption than Americans and their environmental consciousness - even in France, Germany and the UK - seems far more advanced than here. Europeans are well aware and generally accept that we need to change the habits of our daily lives. There is a more general acceptance and consensus in favor of bicycle use, support for public transportation, organic farming, waste reduction than I have seen on my visit here.

-------

<1> "How the Rich Are Destroying the Earth," Hervé Kempf; Chelsea Green Publishing, White River Junction, Vermont, 124 pages.

And, let me add, I have of course seen some very good work done along the right lines in the USA, with a hell of a lot more yet to be done, everywhere...

[tama]

61. Thanks for posting

LEAP2020 has been mostly right about it's predictions, even though they are often very detailed.

I wonder what they say in the non-public only for payers papers... any case, bunch of stinking elitists, how ever right they may be... :)

[Ghost Dog]

65. .

:)

[Festivito]

13. Debt: 11/14/2008 10,617,806,584,635.20 (UP 39,167,432,944.10) (39B back UP.)

(Friday dump before last we saw 56B was borrowed, next Friday dump 39B comes back to US, next day we borrow that 39B that we had just bought back yesterday. Weird. Anyway, good morning.)

= Held by the Public + Intragovernmental(FICA)
= 6,360,691,569,969.19 + 4,257,115,014,666.08
UP 39,714,906,312.49 + DOWN 547,473,368.35
(NOTE: Excel 2007 cannot handle ten-trillion plus to the penny. It zeroes the penny.)

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

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

(So, this couple in their mid-sixties renovate their house and find a bottle. Out pops a genie. Says he'll grant each of them a wish. The wife, tired of her husband's renovating immediately sighs that she'd love to travel. SMOKE fills the room and when it clears, there in her hands, two tickets. The husband, who wants to finish his project says he'd like a wife 30 years younger than himself. SMOKE fills the room and when it clears--he's 95 years old. Good day.)

ANALYSIS:
There were 23 reports in the last 30 to 31 days.
The average for the last 23 reports is 14,060,943,271.03.
The average for the last 30 days would be 10,780,056,507.79.
The average for the last 31 days would be 10,432,312,749.48.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 31 reports in 45 days of FY2009 averaging 19.13B$ per report, 13.18B$/day.

PROJECTION:
GWB** must relinquish the presidency in 67 days.
By that time the debt could be between 10.7 and 11.5T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
11/14/2008 10,617,806,584,635.20 GWB (UP 4,889,610,788,453.63 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 593,081,687,722.80 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
10/24/2008 -000,913,156,317.59 ---
10/27/2008 -000,114,166,180.08 --- Mon
10/28/2008 -000,028,404,616.62 ----
10/29/2008 +000,066,775,718.47 ------------*******
10/30/2008 +008,339,266,330.60 ------------*********
10/31/2008 +045,215,290,348.09 ------------**********
11/03/2008 -000,572,269,490.77 --- Mon
11/04/2008 +000,314,469,904.16 ------------********
11/05/2008 -000,077,530,396.02 ----
11/06/2008 +056,540,493,221.63 ------------**********
11/07/2008 -000,129,624,570.02 ---
11/10/2008 -000,178,876,517.33 --- Mon
11/12/2008 +000,116,562,137.90 ------------********
11/13/2008 -037,830,308,231.82 -
11/14/2008 +039,714,906,312.49 ------------**********
(Corrected from having a really dumb mistake that had added too many dashes.)
110,463,427,653.09 Total of 15 above reports.

Heavy borrowing seems to start 10/18/2008.
US borrowed $953,174,781,376.13 in last 57 days.
That's 953B$ in 57 days.
More than any year ever, except last year, and it's 94% of that highest year ever only in 57 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 57 DAYS NOT 365.

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

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) YESTERDAY'S POST LINK:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3605098&mesg_id=3605103

[DemReadingDU]

44. Maybe what they are doing

Maybe the TARP was setup as a diversion. Everyone gets upset that billions of our tax money is being used to bailout the banks, but only half of the $700B was even used anyway.

But while everyone is arguing over the TARP, maybe what is really going on, is that the Fed is taking in all trillions of the banks toxic assets, and moving them onto our national debt?

Is one of these graphs show what the Fed is doing?
http://tinyurl.com/5z9oo3

edit to add
11/17/08 ABCPMMMFLF Spells Fed Relief for JPMorgan, Citi Shadow Banking

The U.S. Federal Reserve's emergency lending programs, intended to thaw commercial paper and money markets, are also helping banks limit losses from some of their $4 trillion in off-the-books guarantees and loan commitments.

A Fed program to buy as much as $1.8 trillion of short-term debt from U.S. companies means they don't have to tap backup credit lines provided by banks, which would have forced JPMorgan Chase & Co., Citigroup Inc. and other financial institutions to record the loans on their balance sheets and raise more capital. Another Fed program, with the acronym ABCPMMMFLF, aims to shore up the $1 trillion market for asset-backed commercial paper issued by off-the-books financing vehicles guaranteed by banks.
more...
http://www.bloomberg.com/apps/news?pid=20601109&sid=aAmfkLEyMPYM&refer=home

[Festivito]

75. They pulled 950B, only needed 100B for operating.

The M3 tracked by another group saw a commensurate increase in the Fed money supply as the debt borrowing increased. I don't follow it enough to know who is and who is not reliable.

The paper I saw was from:
Michael Shaout Oscar Gruss & Son Inc
US Condition of All Federal Reserve Banks Total Assets (FARBAST Index)
on 1 Oct 2008.

I don't know why 600B went into the Fed instead of our operating funds. Maybe we did not want it in a bank account. Funny, but in this case a possibility.

My conspiratorial side still says that they are reducing the money supply, which is the way in which that old quote of warning from, I forget, either Jefferson or Franklin, that from boom and bust Americans would lose the land their forefathers fought and died to give them.

The trick from the money-changers in the temple that set one Jesus 2000 years ago to throw the tables over and then to say that the love of money is the root of all evil. The trick is to hoard the needed money, in Jesus case the shekel, so the value of the shekel rises. Then it rose in terms of Roman coin(Roman coins were not allowed in the temple, only shekels), today it rises in terms of land and business, that is the cost of land in dollars goes down, or the money becomes more valuable in terms of land purchasing.

So, now they have the money out of the money supply waiting for Obama to spend it months from now, while the banks use the money they have to buy up the property they want at a low price because there is so little money floating around to try bidding against them.

The rest of the credit swaps sit out there waiting to be dumped on any good move Obama might make, whenever and wherever the bad guys might like to dump it to make Obama's numbers look bad, i.e. make Obama look bad.

I bet no one noticed the joke I hid in the middle of my daily post.

Byyyyyyyye

[DemReadingDU]

78. They're playing some money games

Not sure exactly what they are doing, but they never do what they say. It's either a diversion, or bait and switch. It will be interesting to see who Obama picks for the Treasury Secretary.

P.S. I did see the genie joke yesterday morning.
:)

[Festivito]

79. Time will tell. We'd best keep watching.

Thanks ;)

[Festivito]

74. Debt: 11/17/2008 10,618,466,094,057.00 (UP 659,509,421.80) (Little change.)

(Little has changed in a couple of weeks. Good day all.)

= Held by the Public + Intragovernmental(FICA)
= 6,359,522,811,655.01 + 4,258,943,282,402.05
DOWN 1,168,758,314.18 + UP 1,828,267,735.97
(NOTE: Excel 2007 cannot handle ten-trillion plus to the penny. It zeroes the penny.)

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

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 21 reports in the last 30 to 31 days.
The average for the last 21 reports is 13,536,171,193.09.
The average for the last 30 days would be 9,475,319,835.16.
The average for the last 31 days would be 9,169,664,356.61.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 32 reports in 48 days of FY2009 averaging 18.55B$ per report, 12.37B$/day.

PROJECTION:
GWB** must relinquish the presidency in 64 days.
By that time the debt could be between 10.7 and 11.4T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
11/17/2008 10,618,466,094,057.00 GWB (UP 4,890,270,297,875.43 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 593,741,197,144.60 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
10/27/2008 -000,114,166,180.08 --- Mon
10/28/2008 -000,028,404,616.62 ----
10/29/2008 +000,066,775,718.47 ------------*******
10/30/2008 +008,339,266,330.60 ------------*********
10/31/2008 +045,215,290,348.09 ------------**********
11/03/2008 -000,572,269,490.77 --- Mon
11/04/2008 +000,314,469,904.16 ------------********
11/05/2008 -000,077,530,396.02 ----
11/06/2008 +056,540,493,221.63 ------------**********
11/07/2008 -000,129,624,570.02 ---
11/10/2008 -000,178,876,517.33 --- Mon
11/12/2008 +000,116,562,137.90 ------------********
11/13/2008 -037,830,308,231.82 -
11/14/2008 +039,714,906,312.49 ------------**********
11/17/2008 -001,168,758,314.18 -- Mon

110,207,825,656.50 Total of 15 above reports.

Heavy borrowing seems to start 10/18/2008.
US borrowed $953,834,290,797.93 in last 60 days.
That's 954B$ in 60 days.
More than any year ever, except last year, and it's 94% of that highest year ever only in 60 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 60 DAYS NOT 365.

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

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) YESTERDAY'S POST LINK:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3606744&mesg_id=3606764

[ozymandius]

17. Ford Sells $540 Million of Mazda Stock to Ease Crunch

Nov. 18 (Bloomberg) -- Ford Motor Co., reeling from plunging U.S. car sales and a sinking share price, will raise about $540 million selling part of its stake in Japanese affiliate Mazda Motor Corp. to ease cash concerns.

The automaker will sell 20 percent of Mazda tomorrow, reducing its holdings to 13 percent, Ford said in a statement today. Hiroshima-based Mazda will buy back up to a 6.9 percent stake for as much as 17.9 billion yen ($186 million), it said separately. The remainder of the shares will be bought by unidentified ``strategic business partners.''

....

Ford's U.S. sales plunged 28 percent in October, as the industry heads to the lowest annual tally in 15 years. Ford Chief Executive Officer Alan Mulally, GM's Richard Wagoner and Chrysler's Robert Nardelli are scheduled to testify today at a Senate Banking Committee hearing.

http://www.bloomberg.com/apps/news?pid=20601080&sid=aCfhpjH__de0&refer=asia

[Demeter]

19. If Detroit Can Unwind, Why Can't the Banks?

Could it be because they hold their own worthless paper? (gleeful chuckles)

Granted, GM has a lot of worthless paper of its own in its "financial" branch...which is full of termites!

[ozymandius]

21. The more I read thoughts against an auto industry bailout

the more it resonates with these thoughts:

(a) Punish them for making bad business decisions. If the '70s taught them nothing then they'll never learn.
(b) This is a chance to squeeze those greedy unions and those union-negotiated pension and healthcare plans dry.

These ideas which I've seen floating as detritus in conservative op-ed pieces are pure bunk that willfully ignore the greater issue here. Item the first: Millions of jobs lost. That should stop any discussion against federal aid in its tracks right there. Even under the rosiest scenarios in which Ford, GM and Chrysler declare Chapter 11 bankruptcy - they would lose supplier services. Without suppliers this scenario would quickly erode into Chapter 7 bankruptcy, the worst-case scenario, that is total liquidation of assets.

What seems to make the most sense, to me, is a similar plan like that afforded Chrysler in 1979. Chrysler was guaranteed loans in exchange for the U.S. government being named the first receiver should the company fail. The debt was secured. Another caveat for federal aid focused on the radical restructuring of Chrysler's corporate and marketing plans.

I think that if we follow the framework of the Chrysler plan from 1979 then we will avoid a massive infrastructure meltdown in our manufacturing sector.

[Demeter]

22. Agreed. Chrysler Was Saved by Iacocca

whose new approach successfully negotiated breathing room for the company.

Put new blood into Ford, GM and Chrysler, fund them with loans that maintain the industry and modernize the products, and get real ROI for America. Can the bankers make the same claim?

Paulson's going to regret he ever agreed to serve....

[Roland99]

31. Giving unions and workers a hard time is what I touched on in a similar post yesterday.

Listening to the Repuke talking points one can easily see that is their agenda.

Spend $350 billion to save their fat-cat cronies and campaign contributors but screw the foundation of our economy.

[MilesColtrane]

43. Yes, the big three's nearing bankruptcies are being spun as the fault of the unions...

...just as the whole banking crisis is the fault of the Community Reinvestment Act and not Gramm-Leach.

Bastards.

I'm down with guaranteed govt. loans for the auto companies. Unfortunately, there's so much bad feeling still circulating against the EESA, I think even loans will be seen as a "handout".

[UpInArms]

29. dollar watch

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

Last trade 86.996 Change -0.032 (-0.04%)

US Dollar Strength May Be Tempered By Near-Term Resistance

http://www.dailyfx.com/story/currency/eur_fundamentals/US_Dollar_Strength_May_Be_1226705589936.html

For weeks we’ve been discussing how risk appetite, or the lack of it, has been driving price action throughout the forex markets to the benefit of the lowest yielding major currencies: the US dollar and Japanese yen. The strength of the greenback has been all the more surprising given the dismal status of the US economy, but since the currency has managed to hold on to its status as a “safe haven” asset, fundamentals frankly do not matter at this juncture. Nevertheless, economic indicators are still worth watching since they have been impacting the US stock markets and will likely play into future rate decisions by the Federal Reserve.

Following comments from Fed Chairman Ben Bernanke, who said on Friday that “monetary policy actions have not resolved the ongoing strains in financial markets, including interbank funding markets…Central bankers and other policymakers around the world must continue to work together to address disruptions in credit markets and to promote a vibrant global economy,” Credit Suisse overnight index swaps are fully pricing in a 50bp reduction on December 16. News on November 19 may shake up these forecasts, though, as US CPI and the Federal Open Market Committee (FOMC) meeting minutes from October 29 will both hit the wires. At 8:30 ET, CPI is anticipated to plunge 0.8 percent during the month of October, which would mark the sharpest drop since 1949, while the annual measure is projected to slip to a 5-month low of 4.1 percent. However, the FOMC meeting minutes at 14:00 ET could draw more attention, especially if they highlight the downside risks to growth and declining inflation expectations. Since risk trends have been the primary driver of price action lately, it will likely be best to watch for the stock market’s reaction as pessimistic turn in sentiment could lead equities lower, and thus lead the US dollar higher given their negative correlation.

From a technical perspective, the US dollar’s trade-weighted index faces heavy resistance at 87.90/88.00, where the 78.6 percent fib of 92.63-70.67 looms. Meanwhile, EUR/USD has had difficultly breaking below 1.2400, suggesting that the US dollar may not be able to make significant headway in the near-term.



...more...

US Dollar Remains Inversely Linked to Stocks, But Correlations Don't Hold Forever...

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_Remains_Inversely_Linked_1226965588470.html

Don’t let today’s volatility fool you: the US dollar remains in consolidation mode. The US dollar’s strong open on Sunday was followed by weakness throughout the European and US trading sessions, but for what it’s worth, the Canadian dollar and British pound were really the only currencies to make headway against the greenback. Looking at the data on hand today, a surprising 1.3 percent surge in industrial production for the month of October was offset by a drop in the New York Fed's Empire Manufacturing index to a record low of -25.4 in November. Meanwhile, Citigroup announced that the bank will eliminate 52,000 jobs over the next year, representing roughly 15 percent of the firm’s workforce. This is a large amount by every measure, and with the US unemployment rate already at a 14-year high of 6.5 percent and climbing, it is clear that downside risks for economic growth loom large.

That said, US fundamentals have had little bearing on US dollar price action given the solid correlation between EUR/USD and the Dow Jones Industrial Average. Indeed, in recent weeks it has been more useful to look at economic releases, watch for their impact on the stock markets, and subsequently trade the US dollar accordingly. The issue is that the market remains risk averse, as investor confidence remains low while banks remain concerned about counterparty risk. True, overnight interest rates have fallen significantly over the past few weeks, but conditions remain treacherous. In fact, Moody’s reported that the number of companies with low liquidity have reached the highest level since 2002 in October. This suggests that the lack of credit availability is taking a toll on everything ranging from banks to businesses to consumers, and until these conditions improve they will remain a burden on investor sentiment going forward.

Looking ahead to Tuesday, the release of the US Producer Price Index shouldn’t have a huge impact on the greenback, as the markets are already well-aware that inflation pressures are cooling dramatically. As a result, traders may be better off keeping an eye on risk trends. It is also worth keeping in mind, though, that correlations have a tendency to fall apart once everyone catches wind of it. A quick search of wsj.com shows at least two articles discussing the link between stocks and EUR/USD, signaling that traders should stay on their toes as the correlation could easily break down.

...more...

[Roland99]

30. Home Depot profit drops 31% (HP posts higher profit)

Which one do you think will drive market action more early on? Home Depot, a bellweather retailer with wide-reaching relationships to the economy or Hewlett Packard, one of a gazillion PC mfgrs?

http://www.marketwatch.com/news/story//story.aspx?guid=%7BBADEE527%2DB0DA%2D45F8%2DAB48%2D24E10387CD3B%7D

LONDON (MarketWatch) -- Home Depot Inc., the world's largest home improvement retailer, said Tuesday that its fiscal third-quarter profit fell 31% after the declining economic outlook led consumers to curtail big-ticket and other discretionary spending.

Home Depot joined smaller rival Lowe's Cos. and a slew of other retailers in seeing demand for their products being hurt by the macroeconomic backdrop of rising job losses, tightening credit and declining value of retirement funds that have all but frozen consumers' desires to spend.

Net income at the Atlanta-based company fell to $756 million, or 45 cents a share, for the third quarter ended Nov. 2, down from $1.09 billion, or 60 cents, earned in the same period last year.

Quarterly sales generated by the Atlanta-based home-improvement retailer fell to $17.78 billion from the prior year's $18.96 billion, as comparable-store sales sank 8.3%.

banner headling: HEWLETT-PACKARD SHARES GAIN AS BLUE CHIP POSTS HIGHER QUARTERLY PROFIT, REVENUE

[Roland99]

38. 9:15am - Oh....lookee there! HP helps cut futures losses (and overall PPI, too)

DJIA INDEX 8,235.00 -24.00
S&P 500 844.30 -6.70
NASDAQ 100 1,156.00 -2.50

More cherry-picking of positive data as core PPI was up 0.4%! But, hey, just because the focus is on overall PPI when it's not up much but core is up a lot doesn't mean we have to stick to it.

Constant cherry-picking.

No wonder the VIX is haywire.

[UpInArms]

34. 30 reasons for Great Depression 2 by 2011

http://www.marketwatch.com/news/story/Well-Great-Depression-2-2011/story.aspx?guid=%7BB28B49B5%2DEFD1%2D4941%2DB57E%2DA2BA1545BA09%7D&dist=SecMostRead

ARROYO GRANDE, Calif. (MarketWatch) -- By 2011? No recovery? No new bull? "Hey Paul, why do you keep talking about a bigger crash coming by 2011?" Readers ask that often. So here's a sequel to my predictions of 2000 and 2004, with a look three years ahead:

First. Dot-com crash

We pinpointed the dot-com crash at its peak, in a March 20, 2000 column: "Next crash? Sorry, you won't see it coming." Bulls-eye: The dot-com bubble popped. The economy went into a 30-month recession. The stock market lost $8 trillion. And today, over eight years later, the market is still roughly 40% below its 2000 peak. See previous Paul B. Farrell.

Factor in inflation and the average stock has lost well over 50% of its value. Stocks have proven to be a very big loser, a bad investment for Americans, thanks to Wall Street's selfish greed, plus the complicity and naiveté of politicians, press and public.

Second. Subprime meltdown

We reported on warnings of another crash coming as early as 2004, wrote a sequel, also titled "Next crash? Sorry, you won't see it coming." Yes, we were early, but in good company. We wrote many more warning columns. Few listened.
Subsequent events, notably former Fed Chairman Alan Greenspan's admission of his failures in congressional testimony, prove that if he and other Reaganomic ideologues weren't so myopic and intransigent about proving their free-market deregulation theories, they could have acted earlier and prevented today's colossal mess. Instead, their ideology kept the bubble blowing, delayed the pop, making matters worse.

So once again, as history proves over and over, ideology trumps common sense, reality and the facts. Greed drives ideologues to blow bubbles. They pop. Crashes happen. The public is collateral damage.

Third. Megabubble cycles

We also detailed the broader, accelerating macroeconomic sweep of cycles last summer in columns like "20 reasons new megabubble pops in 2011." We summarized a long list of major warnings from financial periodicals -- Forbes, Fortune, the Wall Street Journal, Economist -- and from the voices of Warren Buffett, Bill Gross, a sitting Fed governor and a former Commerce secretary. Multiple warnings "hiding in plain sight," beginning with a Fed governor warning Greenspan in 2000 about subprime risk.

But the big shocker came from the new Treasury secretary two years before the meltdown: Bloomberg News reports that shortly after leaving Wall Street as Goldman Sachs' CEO, Henry Paulson was at Camp David warning the president and his staff of "over-the-counter derivatives as an example of financial innovation that could, under certain circumstances, blow up in Wall Street's face and affect the whole economy."

Yes, they knew. And still both Paulson, a Wall Street insider, and Greenspan's successor, Ben Bernanke, a Princeton scholar of the Great Depression, stayed trapped in denial and kept happy-talking the public for months after the meltdown began in mid-2007. Get it? While they could have put the brakes on this meltdown years ago, our leaders were prisoners of their distorted, inflexible views of conservative Reaganomics ideology.

As a result, once again the "best and the brightest" failed America and now they and their buddies in Washington and Corporate America are setting up the Crash of 2011.

...more...

[Ghost Dog]

41. See also #11

(same article) and replies... :hi:

[UpInArms]

71. oops!

sorry :blush:

:hi:

[UpInArms]

40. Paulson and Bernanke do the Liar's Shuffle

17. Paulson, Bair clash on aid to homeowners facing foreclosure
9:30 AM ET, Nov 18, 2008

18. Paulson: Key to housing turnaround lower mortgage costs
9:30 AM ET, Nov 18, 2008

19. Paulson: There was no playbook for market rescue
9:30 AM ET, Nov 18, 2008

20. Paulson defends handling of TARP program
9:30 AM ET, Nov 18, 2008

21. Bernanke sees some improvement in credit markets
9:30 AM ET, Nov 18, 2008

22. Bernanke: Credit conditions still 'far from normal'
9:30 AM ET, Nov 18, 2008

[antigop]

42. Pension group to Congress: protect plan participants

http://financialweek.com/apps/pbcs.dll/article?AID=/20081118/REG/811189984/1036

The Pension Rights Center wants Congress to change federal pension laws to protect participants in single-employer defined benefit plans in response to asset declines caused by the financial crisis.

“As Congress considers new actions to address the economic crisis—by rescuing financial institutions, bailing out the auto industry, and aiding homeowners who face foreclosure—we urge you to also address the equally important issue of erosion in retirement financial security,” said a letter sent to congressional leaders.

The organization urged Congress to block funding relief to plans that have frozen benefits and to make relief contingent on an employer’s promise to not freeze plans for five years following the period of funding relief.

The letter also called for extending the amortization period for funding unfunded liabilities to 10 years from seven and reinstating a pre-Pension Protection Act rule for companies facing bankruptcy, to make the effective date the day the company terminates the plan, not the date the employer files for bankruptcy protection. The current system allows bankrupt plan providers to “retroactively strip employees of benefits” when the bankruptcy filing date precedes the termination of the plan by several years.

The center also wants to ensure that deferred compensation for management and high-paid employees be frozen along with any DB plan freezes.

Morning, Marketeers. I've been away for a couple of days in rightwing hell at a family event. Sorry if this info has been posted.

I've bitched about the so-called Pension "Protection" Act before on DU.

Kudos to the Pension Rights Center for its work.

[AnneD]

49. Morning Marketeers.....

:donut: and lurkers. I'm writing an oped piece for this thread today so bear with me.


How America Got It's Cool Back And Saved The World

I remember the first time I recognized cool. It was in 1962. I remember listening to the radio-playing the usual fop. Suddenly out poured the sounds of Booker T and the MG's playing Green Onion. Even at the tender age of 8-I could recognize Cool. That's with a capital C.

And then I started looking around. There was cool oozing every where. We had a cool president and a first lady so cool as to be a moving violation against the laws of nature. Cool oozed from almost every thing he touched be it the Peace Corp or NASA. Things were going good-we had it made. But then the cool was gone.

Why am I taking this trip down memory lane. I finally got around to seeing the 60 Minutes piece about Barack Obama. I was listening as he answered the questions with composure and deference-and a wicked sense of honest humour. As I settled down for a more leisurely viewing- I pulled out one favorite film I haven't seen in a while 'Get Shorty'. The credits no sooner began to role when I had an epiphony.... Obama is a political Chili Palmer. He knows who he is and what he is and he is honest about it. He can read others like an electron microscope. Although he has been tested many times-he has yet to crack under pressure. He always manages to stay several steps ahead of the game and never even breaks a sweat. The man oozes cool out of every pore. Yess sir, the grownups are in charge and America again has it's cool back. And this time, we may not only save ourselves-but the world too.

Happy hunting and watch out for the bears.

[TalkingDog]

51. Hi AnnieD and all

I watched the 1st half of the program....the family chat puff stuff is not my cup of tea. "Where will the girls sleep?" Do I freakin' care?

Can the man do his job?... is the one that has been answered to my nearly complete satisfaction.

And his cool is refreshing. As is the calm surface with the mechanisms solidly moving just beneath the surface.

I will wager anybody, anywhere, any amount of money, that given 5 minutes with any politician and I can assess their leanings without even talking shop. Republicans unfailingly give me a body sensation of slime-mold mixed with sand, crawling under my skin.....absolutely maddening.

Which is why I've never watched Shrub for more time than it takes to grab the remote.

Lurking when I can (computer woes) and always in admiration of the breadth of knowledge here....

Later

TD

[Roland99]

55. Look at me. Look at me. No....look at me.

:)

[AnneD]

60. Yeah I was a loan shark once......

but I was never really that into it.

The movie industry is so tough, I'm going back to loan sharking to get a vacation.

What's the point of living in LA if you aren't going to be in the movies?

I got a idea for a movie.....

I asked a writer once what paid the most-he said 'ransom notes'.

No one watches your films-I've seen better film on teeth.

[Roland99]

64. I'm the guy who's telling you how it is.

[AnneD]

67. Well, aren't you gonna offer me whatever it is you taste like?

after Bo's balcony rail gives way, pitching Bo over the side to the bottom of the canyon
Chili Palmer: How do you think that happened?
Bear holds up a handful of screws and nuts
Bear: Beats the shit out of me.

You're trying to tell me you fucked up without sounding stupid, and that's hard to do.


How did you get in here?
It was easy. I told 'em I was you, I acted real stupid and they believed me.


Edited to add...Stay Cool

[Roland99]

68. "Harry, for God's sake. *He's* the shylock!"

[Roland99]

50. DJIA up big but the Adv/Dec split is exactly 50/50 on the NYSE

And volume isn't the heaviest either.

[Ghost Dog]

52. GLOBAL MARKETS-And a wonderful day at the anglo-saxon races, sorry, bourses

GLOBAL MARKETS-Oil, stocks rise after HP tempers recession fears
By Herbert Lash

Tue Nov 18, 2008 1:03pm EST NEW YORK, Nov 18 (Reuters) - U.S. and European shares rebounded on Tuesday, as Hewlett-Packard's reassuring results and outlook boosted sentiment, but strength in the dollar and government debt prices suggested fear of a global slowdown has not ebbed.

Oil rose after touching a 22-month low of $54.13 a barrel as it hitched onto a wider market rally, and the dollar climbed versus the yen, defying expectations of future slower growth.

...

"Any better-than-expected news out of the equity world, such as HP, could be a data point that we are not cascading into a deep recession," said Chris Jarvis, senior analyst at Caprock Risk Management in Hampton Falls, New Hampshire.

The upbeat profit forecast from HP (HPQ.N: Quote, Profile, Research, Stock Buzz), a Dow component, tempered worries about the global slump and uncertainty about how Congress will address the ailing U.S. automakers. The Dow jumped 1.7 percent, while Britain's top share index rose 1.9 percent and the leading index of European shares gained almost 1 percent.

...

Credit spreads widened as the record drops in U.S. producer prices and UK consumer prices added to worries about recession.

/ (if you can stand more... http://www.reuters.com/article/marketsNews/idINN1847072620081118?rpc=44&sp=true

Heavy :sarcasm:

[TheWatcher]

53. SO, let's see after this morning's "Well The Economy Sucks, but HPQ had a great Pro Forma Quarter,

so everything is fine" rally, along with yet more Fake PPI numbers, and Paulson's dazzling of Congress with his bullshit speech which amounts to something along the lines of "Sure, we stole the money and have no intentions of doing anything we said we'd do, but can't you see how that has HELPED the Crisis and it's working?" nonsense, I am now eagerly awaiting the next act in the Circus.

Things have spiked down to about -80, so within the next 15 minutes let's see if the Black Boxes and Fed Fairies go into overdrive and give us another Miracle Stick Save Rally to the HOD, which would be about +204 (based on normal, technical, Free Market buying of course, as well as savvy investors jumping on another opportunity of a lifetime. Remember, Manipulation and Artificial Propping of financial Markets is not possible in this country, so please take all that talk to the dungeon. :sarcasm: )

Or perhaps it will be another Fairy Free Day that reflects a smidgen of reality.

Who Knows?

The Free Market is just so unpredictable!

[AnneD]

63. Reguarding the next circus act....

"we've cleaned out all the jails for miles around. It's time to use the gladiators"

"We who are about to die salute you."

[Roland99]

54. 2:49pm - Reality setting in (or else the profit taking after the slight pump?)

DJIA 8,119.86 -153.72 -1.86%
Nasdaq 1,433.32 -48.73 -3.29%
S&P 500 828.38 -22.37 -2.63%
Global Dow 1,382.19 -28.42 -2.01%
Dow Util 354.91 -10.42 -2.85%
NYSE 5,190.53 -132.83 -2.50%
AMEX 1,274.51 -33.87 -2.59%
Russell 2000 433.32 -17.98 -3.98%
Semcond 732.70 -9.30 -1.25%
30-Year Bond 4.14% -0.07 -1.55%
10-Year Bond 3.53% -0.15 -4.15%

[TheWatcher]

56. Well, the key times for Fairy Activity seem to be 3PM, 3:30, and 3:45

So we will have to see what transpires in the Barnum And Bailey Hour.

[Tace]

57. TOON: The Radical Fringe -- Wealthy-Fare Department (Dory Hippauf)

Artist's Bio: Dory Hippauf, born and raised in Massachusetts, now lives in the Back Mountains of Northeastern Pennsylvania with her partner, their three dogs and five cats. Her talents as a graphic artist and passion for progressive politics shine in her cartoons, illustrations, and other artwork.

http://www.worldnewstrust.com/wnt-reports/commentary/toon-the-radical-fringe-wealthy-fare-department-dory-hippauf.html

[TheWatcher]

58. Well, once again, another Synthetic, Orchestrated, EOD Miracle based on nothing, as expected.

It's getting so very predictable, it's almost boring.

Fairies arrive with their Magic at 3:30 PM, and we magically end with yet another Futures Led Symphony Of Bullshit to end near the highs of the day.

Don't say you weren't warned. :)

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3606744&mesg_id=3607472

Banging the Close so it can't be sold is the only thing they have left.

[Roland99]

59. Bad news galore but DJIA soars. Rusell and NASDAQ lag.

DJIA 8,424.67 +151.09 +1.83%
Nasdaq 1,483.27 +1.22 +0.08%
S&P 500 859.11 +8.36 +0.98%
Global Dow 1,405.26 -5.35 -0.38%
Dow Util 366.00 +0.67 +0.18%
NYSE 5,365.62 +42.26 +0.79%
AMEX 1,306.60 -1.78 -0.14%
Russell 2000 447.51 -3.79 -0.84%
Semcond 732.70 -9.30 -1.25%
30-Year Bond 4.14% -0.06 -1.47%
10-Year Bond 3.54% -0.15 -4.04%

[Ghost Dog]

62. Bubble double, boil and fuddle...

then fail definitively. :smoke:

[dweller]

76. makes one wonder if they are pulling

the rabbit from the hat by the tail or by the ears.

guess it matters more to the rabbit as long as it fools the crowd either way?
dp

[UpInArms]

72. whoopdie doo numbers and blather

Dow 8,424.75 151.17 (1.83%)
Nasdaq 1,483.27 1.22 (0.08%)
S&P 500 859.12 8.37 (0.98%)
10-Yr Bond 3.535% 0.149

NYSE Volume 6,832,561,500
Nasdaq Volume 2,444,109,500

4:25 pm : Stocks rose 1.0% in a volatile session as traders digested testimony from the head of the Federal Reserve, Treasury and FDIC, upside earnings guidance from Hewlett-Packard and speculation regarding the future of U.S. automakers.

The S&P 500 climbed to a gain 1.8% at midday, dropped to a loss of 2.8% in the final hour of trade before a surge in buying interest sent the S&P 500 back into positive territory. Seven of the ten economic sectors posted a gain. Small- and mid-cap stocks underperformed, with the Russell 2000 (-0.8%) and S&P 400 (-0.3%) both declining.

Fed Chairman Bernanke, Treasury Secretary Paulson and FDIC Chairman Bair were called to testify about the $700 billion financial relief package before the House Financial Services committee. Bernanke said there are some signs that credit markets are improving, although they remain strained. Treasury Secretary Paulson defended scrapping the original plan to buy troubled assets, saying that direct capital injections were more effective given the sharp deterioration in financial markets. Paulson believes the economy will not recover as fast as anyone would like, but will recover at a quicker pace because of the relief package.

On a related note, the Treasury bought $33.6 billion in preferred stock from 21 banks, including $6.6 billion in US Bancorp (USB 25.73, -0.07) and $3.6 billion in Capital One Financial (COF 29.25, -0.62). This brings the totaled preferred stock purchases in banks up to $158.6 billion. The financial sector fell 0.8%.

In corporate news, Hewlett-Packard (HPQ 33.58, +4.24) announced preliminary fourth quarter earnings that topped estimates and issued fiscal year 2009 earnings guidance that was above expectations.

Yahoo! (YHOO 11.48, +0.85) gained after announcing that cofounder Jerry Yang will step down as CEO as soon as a replacement is found, raising speculation that Microsoft (MSFT 19.62, +0.43) may show renewed interest.

The 14.5% gain in HPQ and 8.0% increase in YHOO helped the tech sector (+1.9%) outperform. More than half of tech stocks posted a loss, however, as investors were aware that the upside HPQ guidance was largely a company specific story, and not indication of overall strength.

In earnings news, Saks (SKS 3.27, -0.58) tumbled after missing third quarter earnings expectations, while Home Depot (HD 20.71, +0.71) rose after topping estimates. Both retailers were cautions about the near-term outlook. Retailers a whole fell 0.2%.

Shares of General Motors (GM 3.09, -0.09) and Ford (F 1.68, -0.04) fell to multi-decade lows. The automakers, along with Chrysler and the United Auto Workers, testified before the Senate Banking Committee regarding possible aid for the struggling U.S. auto industry.

In economic news, domestic producer prices in October dropped by a larger-than-expected amount due to the sharp decline in energy prices. Specifically, October PPI dropped 2.8% month over month, compared to the expected decline of 1.9%. Core PPI, which excludes food and energy, rose 0.4%, which was larger than the expected increase of 0.1%. DJ30 +151.17 NASDAQ +1.22 NQ100 +0.3% R2K -0.8% SP400 -0.3% SP500 +8.37 NASDAQ Adv/Vol/Dec 1088/2.41 bln/1719 NYSE Adv/Vol/Dec 1153/1.60 bln/1975

3:30 pm : Stocks recover some losses, but remain in the red going into the final half hour of the session.

The Senate Banking Committee hearing on automakers is currently underway. Ford (F 1.61, -0.11) and GM (GM 2.84, -0.34) both fell to multi-decade lows this session.

General Electric (GE 15.61, -0.50) plans to cut $2 billion in costs from GE Capital in 2009 and reduce some of the unit's 75,000 positions, according to reports. DJ30 -38.15 NASDAQ -30.50 SP500 -11.52 NASDAQ Adv/Vol/Dec 652/1.85 bln/2135 NYSE Adv/Vol/Dec 663/1.04 bln/2461

3:00 pm : Stocks drop to fresh intraday lows as all ten sectors trade at their worst levels.

The financial sector (-5.0%) is leading the way lower, falling to its lowest intraday level since 1996. Financials are down 61.4% this year and down 70.3% from their all-time high reached in May 2007.

The small-cap Russell 2000 Index (-4.0%) falls to its lowest level since 2003. It is down 43.6% this year.DJ30 -136.28 NASDAQ -48.21 SP500 -21.60 NASDAQ Adv/Vol/Dec 560/1.61 bln/2218 NYSE Adv/Vol/Dec 471/910 mln/2652

2:30 pm : Stocks retest session lows and then pare some losses.

At the S&P 500's current level of 840.37, it is poised to close at its lowest level since March 2003, eclipsing the Oct. 27 low of 848.92. The index is still 2.9% above its multi-year intraday low reached on November 13.DJ30 -27.32 NASDAQ -29.13 SP500 -9.67 NASDAQ Adv/Vol/Dec 688/1.44 bln/2058 NYSE Adv/Vol/Dec 639/809 mln/2448