STOCK MARKET WATCH, Thursday September 4

[ozymandius]

Source: DU

STOCK MARKET WATCH, Thursday September 4, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 139
DAYS SINCE DEMOCRACY DIED (12/12/00) 2783 DAYS
WHERE'S OSAMA BIN-LADEN? 2508 DAYS
DAYS SINCE ENRON COLLAPSE = 2799
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

AT THE CLOSING BELL ON September 3, 2008

Dow... 11,532.88 +15.96 (+0.14%)
Nasdaq... 2,333.73 -15.51 (-0.66%)
S&P 500... 1,274.98 -2.60 (-0.20%)
Gold future... 808.20 -2.30 (-0.28%)
30-Year Bond 4.32% -0.04 (-1.01%)
10-Yr Bond... 3.70% -0.05 (-1.31%)






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

Be Careful What You Wish For
BY CHRIS PUPLAVA

Despite all of the negative fundamentals facing the U.S. economy, the unthinkable has happened: the dollar has staged a significant rally. Since bottoming in July the USD has risen 9.6% to over 78 after grinding out a bottom since May. Have the long term underlining fundamentals changed for the U.S. economy over the recent months? Have the unfunded social security and Medicare liabilities been erased? The answer to both is a resounding NO, but nothing in financial markets move in a linear fashion. The dollar is staging a cyclical rally within the context of a secular bear market, and while many cheer the dollar rally, there are both positive and negative implications that are highlighted below.

....

The value of a country’s currency is determined by several economic fundamentals such as interest rates, inflation rates, and overall economic activities. Collectively these factors effect a country's capital and trade flows and thus the supply and demand for a country’s currency. The same goes for other countries, and so the economic fundamentals between two countries influence the exchange rate between them. This helps explain the strong move in the dollar in 2005 and the strong decline over the past two years. Central banks respond to economic activity by managing interest rates where they lower interest rates to stimulate growth and raise rates to slow overheated economies and curb inflation.

....

Movements in the USD Index generally reflect the difference in economic fundamentals between the US and the countries that make up the USD Index. It should come as no surprise then that the USD is rallying currently as the economic activity of foreign countries are now recoupling with the US economy, dispelling the whole notion of the global economy decoupling with the US.

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

[ozymandius]

2. Today's Reports

08:15 ADP Employment Aug
Briefing.com NA
Consensus -30K
Prior 9K

08:30 Initial Claims 08/30
Briefing.com 415K
Consensus 420K
Prior 425K

08:30 Productivity-Rev. Q2
Briefing.com 3.5%
Consensus 3.5%
Prior 2.2%

10:00 ISM Services Aug
Briefing.com 50.0
Consensus 49.5
Prior 49.5

10:35 Crude Inventories 08/30
Briefing.com NA
Consensus NA
Prior -177K

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

[UpInArms]

18. U.S. August ADP employment index falls 33,000: report

47. U.S. August ADP employment index falls 33,000: report
8:16 AM ET, Sep 04, 2008

if this "always wrong" report says -33,000, it's got to be even bloodier

[Dr.Phool]

38. You got that right. Probably in the 120,000 range.

[UpInArms]

19. Inital Claims @ 444,000 - last wk rev'd up 4,000

40. U.S. continuing claims highest since Nov. 2003
8:30 AM ET, Sep 04, 2008

41. U.S. continuing jobless claims up 6,000 to 3.44 mln
8:30 AM ET, Sep 04, 2008

42. U.S. 4-week avg. jobless claims down 3,250 to 438,000
8:30 AM ET, Sep 04, 2008

43. U.S. weekly initial jobless claims up 15,000 to 444,000
8:30 AM ET, Sep 04, 2008

[UpInArms]

20. U.S. Q2 productivity revised up to 4.3% vs 2.2% prev. est.

38. U.S Q2 unit labor costs revised to down 0.5% vs up 1.3% prev
8:30 AM ET, Sep 04, 2008

39. U.S. Q2 productivity revised up to 4.3% vs 2.2% prev. est.
8:30 AM ET, Sep 04, 2008

scared employees are working twice as hard just to keep their jobs

[UpInArms]

22. U.S. Q2 productivitiy revised higher, unit labor costs lower

http://www.marketwatch.com/news/story/us-q2-productivitiy-revised-higher/story.aspx?guid=%7B6CC6C5D8%2DEF4B%2D4F50%2DBC2D%2D20D202CEAB10%7D&dist=hplatest

WASHINGTON (MarketWatch) -- The productivity of U.S. nonfarm businesses was revised higher in the second quarter than previously estimated, the Labor Department reported Thursday. Productivity, which is defined as output per hour worked, rose at a 4.3% annual rate in the quarter, revised from 2.2% in the earlier estimate a month ago. Unit labor costs -- a key inflation gauge - fell 0.5%, revised down from a gain of 1.3%, the biggest decrease since the third quarter of 2007. For the last year, productivity increased to 3.4% from the previously reported 2.8%. This is the fastest annual increase in productivity in four years. Unit labor costs rose 0.6% year-over-year, compared with the previous estimate of 1.5%. Low unit labor costs should dampen concern about wage growth pressure from high oil and commodity prices.

[Hugin]

26. Based on your vast experience, are all of these revisions posted months later normal...

or are they being manipulated or gamed somehow to make the current numbers look better...

Are they larger revisions? Smaller? Higher in frequency?

I can understand a decimal revision... But, to leap by almost double the amount? They need to seriously
check into their data gathering methods.

[UpInArms]

30. vast experience?

whoa!

but, I will say (in my very humble opinion) that this revision is utter bullshit

here's the graph on the past

[Hugin]

32. All the way back to 1947?

Wow.

Okay, will you settle for "More experience than Prag"? ;)

[UpInArms]

33. no - I do not go all the way back to

1947 - the graph does!

:chuckle:

[Hugin]

35. Exactly!

^5!

[Ghost Dog]

56. One would have thought that unit labor costs are something most businesses

keep a very sharp eye on, and that are not so very complicated.

So this particular revision, which probably accounts for most of the revised productivity figure, could certainly do with some explaining by someone somewhere...

[Hannah Bell]

123. higher productivity = more unemployment.

low unit labor cost = lower wages.

[Ghost Dog]

135. There ya go.

Recommend Union and General Strike.

[UpInArms]

37. U.S. business productivity up but jobs scarce

http://www.reuters.com/article/bondsNews/idUSN0448223720080904?sp=true

WASHINGTON, Sept 4 (Reuters) - U.S. businesses boosted their productivity strongly in the second quarter but it was at the expense of weakening labor market, government reports on Thursday showed.

The Labor Department said business productivity surged at a revised 4.3 percent annual rate, nearly double the 2.2 percent gain previously reported and well ahead of forecasts for a 3.5 percent increase.

Companies have cut payrolls in each of the first seven months this year and an intently awaited report on Friday is expected to show that they did so again in August.

A separate report from the Labor Department confirmed a steadily weakening labor market as the number of U.S. workers filing new claims for jobless benefits jumped by 15,000 last week to a seasonally adjusted 444,000.

That was much higher than the 425,000 claims that analysts surveyed by Reuters had anticipated and sent stock futures prices down. But prices for U.S. Treasury debt extended gains as investors bet it meant that the Federal Reserve will keep interest rates low.

...more...

[InkAddict]

66. See #60 below for more Ohio hot air job marketing plans of yet

Another multi-level plan with no more jobs than the salesmen to sell it.

[UpInArms]

31. U.S. August ISM nonmanufacturing index 50.6 vs 49.3 expected (will be rev'd downward next month)

01. U.S.Aug. ISM services index 50.6% vs 49.5% in July
10:04 AM ET, Sep 04, 2008

02. U.S. August ISM services new-orders index 49.7% vs. 47.9%
10:04 AM ET, Sep 04, 2008

03. U.S. August ISM nonmanufacturing index 50.6 vs 49.3 expected
10:03 AM ET, Sep 04, 2008

[UpInArms]

52. Petroleum Inventories Report:

01. U.S. distillate supply down 400,000 brls: Energy Dept.
11:02 AM ET, Sep 04, 2008

02. U.S. crude supply down 1.9 mln barrels last wk: Energy Dept.
11:01 AM ET, Sep 04, 2008

03. U.S. gasoline supply down 1 mln barrels: Energy Dept.
11:01 AM ET, Sep 04, 2008

[Ghost Dog]

3. Rate decisions ahead, global stocks stable as dollar slips

Thu Sep 4, 2008 4:15am EDT

LONDON (Reuters) - Global equities stabilized on Thursday after hitting a two-year low while the dollar trimmed recent gains ahead of European interest rate decisions and the British pound touched a trade-weighted 12-year low.

MSCI's main world stock index was flat to slightly weaker. It dropped to its lowest level since September 2006 late on Wednesday.

The European Central Bank and Bank of England were both meeting to discuss monetary policy, although both were expected to leave rates steady at 4.25 percent and 5.0 percent, respectively.

Differing economic and rate prospects have been driving the dollar higher in recent weeks as the U.S.-triggered economic downturn spreads to the euro zone and Britain.

The dollar, however, slipped on Thursday against a basket of major currencies and was weaker against both the euro and pound.

The euro brought $1.4532, a gain of around 0.3 percent, and the pound fetched $1.7832, a gain of about half a percent.

Britain's currency woes continued, however, as sterling hit a 12-year low against a trade-weighted basket of currencies.

"Sterling still has a downside, data has been poor, and people are speculating that the BoE will cut rates this year," said Paul Robson, strategist at RBS.

...

Downbeat sentiment continued to play on world equity markets.

The FTSEurofirst 300 index of pan-European shares was down 0.1 percent. Japan's Nikkei average earlier fell 1 percent to a five-month low.

"There are many worrying factors in the market, such as the global economic outlook and the credit crunch."" said Katsuhiko Kodama, senior strategist at Toyo Securities.

Oil prices firmed slightly to around $109.50 a barrel as traders weighed concerns over slowing demand from major consumer countries against further hurricane threats to the U.S. oil sector.

...

Euro zone government bond yields rose as investors braced for the ECB rate decision.

Two-year Schatz yielded 4.186 percent 6 basis points more than in late Wednesday trade, while 10-year Bund yields were also 6 basis points higher at 4.197 percent.

"The post-meeting press conference will be watched closely for any signs of a shift in the ECB's hawkish rhetoric in response to rapidly slowing economic activity across the euro zone," said Elwin de Groot, economist at Rabobank.

/... http://www.reuters.com/article/marketsNews/idINHKG27370820080904?rpc=44&sp=true

[Ghost Dog]

4. Europe stocks extend losses ahead of rate decisions

Thu Sep 4, 2008 5:44am EDT

LONDON, Sept 4 (Reuters) - European shares extended losses by mid-morning on Thursday as banks added to early declines and Sanofi-Aventis (SASY.PA: Quote, Profile, Research, Stock Buzz) led drug stocks lower.

At 0941 GMT, the FTSEurofirst 300 index of top European shares was down 0.4 percent at 1,177.45 points, ahead of rate verdicts from the Bank of England at 1100 GMT and the European Central Bank at 1145 GMT.

HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) took most points off the index, down 2 percent.

BP (BP.L: Quote, Profile, Research, Stock Buzz) helped to limit the index's losses, as it reached an agreement on BP-TNK, its troubled joint venture in Russia. BP was up 3.9 percent. Other oils also gained, including Total (TOTF.PA: Quote, Profile, Research, Stock Buzz), up 1.4 percent, as oil prices rose.

/. http://www.reuters.com/article/marketsNews/idCAL413973120080904?rpc=44

[Ghost Dog]

5. FTSE gains as commodities outweigh weak banks

Thu Sep 4, 2008 6:46am EDT

LONDON, Sept 4 (Reuters) - The UK's top share index drifted higher in late morning trade on Thursday ahead of the Bank of England's interest rate verdict, as gains in commodity stocks and food producer Unilever (ULVR.L: Quote, Profile, Research, Stock Buzz) offset weakness in banks.

By 1022 GMT, the FTSE 100 .FTSE was up 22 points, or 0.4 percent at 5,521.7, reversing some of the previous session's 1.2 percent fall.

Energy stocks were in demand after recent battering and after crude prices CLc1 rose by a dollar to above $110 a barrel.

BP (BP.L: Quote, Profile, Research, Stock Buzz) advanced 3.5 percent, also aided by a deal with the Russian oligarch co-owners of TNK-BP venture, ending months of increasingly hostile dispute.

Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), Tullow Oil (TLW.L: Quote, Profile, Research, Stock Buzz) and Cairn Energy (CNE.L: Quote, Profile, Research, Stock Buzz) put on between 0.1 to 2.7 percent.

BG Group (BG.L: Quote, Profile, Research, Stock Buzz) strengthened 4.8 percent with traders citing market talk of bid interest from Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz). BG declined to comment.

Miners also gained, tracking higher metal prices. BHP Billiton (BLT.L: Quote, Profile, Research, Stock Buzz), Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz), Anglo American (AAL.L: Quote, Profile, Research, Stock Buzz), Xstrata (XTA.L: Quote, Profile, Research, Stock Buzz) and Ferrexpo (FXPO.L: Quote, Profile, Research, Stock Buzz) rose between 0.9 and 3.2 percent.

Unilever, however, topped the FTSE 100 gainers, rising 6.3 percent as investors cheered the food producer's announcement of appointing Paul Polman, a consumer goods veteran, as its new chief executive.

All eyes are on the Bank of England's interest rate decision due at 1100 GMT. Analysts expects the central bank to leave rates unchanged at 5 percent but expectations are rising that a stuttering economy will force it to cut rates before the end of the year.

/... http://www.reuters.com/article/marketsNews/idCAL469870020080904?rpc=44&sp=true

[Ghost Dog]

6. Bank of England maintains its Bank rate unchanged at 5.00%

FXstreet.com (Barcelona) – The Bank of England has decided to leave its official bank rate by unchanged at 5.00% for the fifth consecutive month, after their monthly policy meeting.

This decision is taken in a context of stagnant economic growth and with private consumption declining for the second consecutive quarter.

/.. http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=957b68e1-2717-4065-b684-8e9fd3e596df

[Ghost Dog]

27. FTSE stays firm on commodities, Unilever post BoE

LONDON, Sept 4 (Reuters) - The UK's top share index rose 0.5 percent by midday on Thursday after the Bank of England kept interest rates unchanged as expected, while commodity stocks tracked firmer raw material prices though banks weighed.

Unilever (ULVR.L: Quote, Profile, Research) topped the FTSE 100 .FTSE gainers, rising 6.5 percent as investors cheered the food producer's announcement of appointing Paul Polman, a consumer goods veteran, as its new chief executive.

By 1132 GMT, the FTSE 100 was up 25.8 points at 5,525.7, after hitting its day's high of 5,541.7 minutes before the rate decision.

The Bank of England left rates on hold at 5.0 percent for a fifth month running, but expectations are rising that recession worries could prompt a cut befor the end of the year.

"The decision for the Bank to sit on its hands once more was no surprise, however, evidence is rapidly mounting that the UK is edging ever closer to recession," said Martin Slaney, head of derivatives at GFT Global Markets in an e-mail.

"Everywhere you look the economic reality is becoming more and more grim: the falling housing market, the weakening pound, climbing unemployment and a struggling service sector."

Britain's economy failed to grow in the second quarter of this year for the first time since the early 1990s and many analysts believe the country has already tipped into recession.

A survey showed on Thursday British house prices fell for the seventh month running in August to stand a record 12.7 percent lower than a year earlier.

Sterling, meanwhile, hit a record low versus euro.

/... http://uk.reuters.com/article/londonMktRpt/idUKL420793120080904?sp=true

[Ghost Dog]

82. FTSE dips 2.5% on economy fears; ECB weighs on banks

LONDON, Sept 4 (Reuters) - Britain's leading shares index fell sharply in late trade on Thursday as comments by the European Central Bank and increased economic fears weighed on banks, while the Bank of England held borrowing rates steady.

The FTSE 100 <.FTSE> was down 137.6 points, or 2.5 percent at 5,362.1 -- its biggest daily fall since July 11 -- after earlier touching a high of 5,541.7 in the session.

...

UK banks accounted for over 40 negative index points, with Barclays , HBOS , Lloyds TSB and HSBC down 3.3-6.8 percent.

[Ghost Dog]

7. Recession fears rise on 8th German orders fall

BERLIN, Sept 4 (Reuters) - German manufacturing orders unexpectedly fell for an unprecedented eighth consecutive month in July, fuelling concerns about recession and the global outlook for trade in the world's biggest exporter of goods.

Adjusted for seasonal swings, orders fell by 1.7 percent month-on-month, according to preliminary Economy Ministry data on Thursday. A rise of 0.4 percent had been forecast.

A day after a senior official conceded Europe's biggest economy might already be in a recession, the ministry expressed concern about foreign demand for the country's goods.

BayernLB economist Joerg Angele said the outlook for German manufacturers was the worst since a 1992/1993 recession.

"The notion that the German economy is more robust now is going up in smoke," Angele said. "Things are going dramatically downhill for industry. Recession looks more and more probable."

/... http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=ddcaad0a-aa54-42e7-89a6-b0667c314c8b

[Ghost Dog]

9. ECB Leaves Interest Rates at Seven-Year High to Fight Inflation

Sept. 4 (Bloomberg) -- The European Central Bank kept interest rates at a seven-year high to fight inflation even as the euro-region economy teeters on the brink of a recession.

ECB policy makers meeting in Frankfurt today left the benchmark lending rate at 4.25 percent, as predicted by all but one of 53 economists in a Bloomberg News survey. The bank will wait until at least March next year to lower borrowing costs, another survey shows.

The ECB wants to prevent a wage-price spiral as workers demand compensation for higher food and energy costs. It raised rates in July and council members Axel Weber and Lucas Papademos said last week another increase may be necessary if inflation risks increase. At the same time, the economy contracted in the second quarter and inflation slowed after oil prices retreated from a record.

``Growth isn't weak enough to damp inflation risks,'' said Stefan Bielmeier, an economist at Deutsche Bank AG in Frankfurt. ``That's why the ECB will keep rates on hold.''

President Jean-Claude Trichet holds a press conference at 2:30 p.m. to explain today's decision. In addition to commenting on monetary policy, Trichet may announce changes to the ECB's collateral requirements for lending to banks. Separately, the Bank of England kept its key rate at 5 percent.

Wage Threat

While crude oil prices have retreated 26 percent from a record $147.27 a barrel on July 11, they're still up 46 percent over the past year. Euro-region inflation slowed to 3.8 percent in August from a 16-year high of 4 percent in July. The ECB aims to keep the rate below 2 percent.

Some labor unions are already pushing through bigger wage increases to compensate workers for the higher cost of living. Deutsche Lufthansa AG, Europe's second-largest airline, last month agreed to a 5.1 percent raise for some ground staff and cabin crew after a strike forced the cancellation of hundreds of flights.

In Italy, hourly wages rose 4.3 percent in July from a year earlier, the biggest increase in a decade. IG Metall, Germany's biggest union, starts wage negotiations this month for 3.2 million metal, electronics and car workers. The union has said it will demand a bigger pay increase than the 6.5 percent it asked for last year.

/... http://www.bloomberg.com/apps/news?pid=20601170&refer=special_report&sid=aRxMl82bGzj0

[Ghost Dog]

10. FACTBOX-Recent Swiss National Bank comments

ZURICH Sept 4 (Reuters) - Aug 22 (Reuters) - The Swiss National Bank left its target rate for the 3-month Swiss franc LIBOR unchanged at 2.75 percent at its quarterly policy meeting in June.

Following are comments from SNB board members since the SNB meeting on June 19:

SNB CHAIRMAN JEAN-PIERRE ROTH, AUG 19:

"What has happened since (June) is that we have seen some correction in the oil price and we see that economic activity is slowing down even more than we thought. So everything is in place according to our forecast," Roth said in an interview with the Financial Times.

"Altogether the system should be flexible enough to contain the second round effects at an acceptable level," he said.

"If we come to the conclusion in the second part of the year that it is not in fact the case and that core inflation could remain elevated for a longer period of time, we might have to take the necessary monetary decision to fulfil our responsibility for ensuring price stability," Roth said.

/... http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=66cc32dd-df18-4a2c-b3ed-00539756c46a

[Ghost Dog]

23. European Bonds Advance as ECB's Trichet Says Economy Is `Weak'

Sept. 4 (Bloomberg) -- European government bonds advanced after European Central Bank President Jean-Claude Trichet said the region's economy is undergoing an ``episode of weak activity.''

The gains pushed the yield on the two-year note down from its highest level in a month as the European Central Bank kept its main refinancing rate at 4.25 percent, in line with the predictions of 52 out of 53 economists surveyed by Bloomberg. Trichet said ``uncertainty'' about economic growth is ``particularly high'' and ``downside risks prevail,'' in comments made after the bank's rate decision.

``With respect to growth, Trichet's comments are bit more dovish than expected,'' said Daniel Pfaendler, head of interest- rate strategy at Dresdner Bank AG, the investment bank recently sold to Commerzbank AG. ``This should remain a positive environment for government bonds.''

The yield on the two-year note fell 4 basis points to 4.08 percent by 2 p.m. in London, after earlier rising to 4.20 percent, the highest level since Aug. 7. The 4.75 percent note due June 2010 rose 0.06, or 60 euro cents per 1,000-euro ($1,447) face amount, to 101.10.

The yield on the 10-year German bund, the region's benchmark government security, fell 4 basis points to 4.09 percent. Yields move inversely to bond prices.

...

European bonds have outperformed U.S. Treasuries in the second half of the year on bets the region is entering a recession. German bonds have handed investors a 3.4 percent return since the end of June, compared with a 2.4 percent return for U.S. Treasuries, according to Merrill Lynch & Co.'s German Federal Governments and U.S. Treasury Master indexes.

/... http://www.bloomberg.com/apps/news?pid=20601009&sid=amY2V8ioCvJs&refer=bond

[Ghost Dog]

24. European stocks fall further on Trichet's remarks

PARIS, Sept 4 (Reuters) - European stocks extended losses on Thursday afternoon, led by banks, on remarks by European Central Bank President Jean-Claude Trichet on the outlook for the euro zone economy and on new collateral rules.

At 1326 GMT, the FTSEurofirst 300 index of top European shares was down 0.9 percent at 1,171.43 points, after being flat before Trichet's press conference that followed the ECB's decision to keep interest rates on hold at 4.25 percent.

"It's the language he's using at the moment....there's clearly not much growth this side of the pond as well, and it looks as if the economy is not going to pick up," said a trader.

Trichet said the euro zone economic data point to a weakening in growth at mid-year but inflation remains high and risks are to the upside.

Societe Generale (SOGN.PA: Quote, Profile, Research, Stock Buzz) was down 2.4 percent and UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) down 2.3 percent.

The European Central Bank also raised its forecasts for euro zone consumer price inflation in 2008 and 2009.

Trichet said new measures to come in 2009 will require some counterparties to bring forward extra collateral.

/.. http://www.reuters.com/article/marketsNews/idCAL429249420080904?rpc=44

[Ghost Dog]

28. Biennial review of the risk control measures in Eurosystem credit operations

PRESS RELEASE
4 September 2008 - Biennial review of the risk control measures in Eurosystem credit operations

Every two years the ECB conducts a review of the risk control measures for Eurosystem credit operations. These risk control measures are applied to the assets deposited by the Eurosystem’s counterparties as collateral for the credit the Eurosystem gives through its open market operations and the marginal lending facility, as well as in the form of intra-day credit for payment systems purposes (see Section 6.4 of “The implementation of monetary policy in the euro area – General Documentation on Eurosystem monetary policy instruments and procedures”, commonly referred to as the “General Documentation” <1>).

The Eurosystem’s collateral framework has proven robust and efficient over the years, and during the recent episode of financial market turbulence. In particular, the acceptance of a wide range of collateral contributes to the resilience of euro area financial markets.

While fully preserving this feature, following its biennial review the ECB has incorporated some technical refinements in its risk control framework for Eurosystem credit operations. These technical refinements, which are set out below, reflect, inter alia, improvements in the methodological framework, the assessment of market and liquidity risk characteristics of eligible assets, the actual use of eligible assets by counterparties and new developments in financial instruments.

(1) With regard to the risk control measures applied to marketable assets, a new liquidity category for marketable assets will be introduced ...

...

As can be seen from the table above, assets in new liquidity category V (former liquidity category IV) will be subject to a haircut of 12% regardless of their residual maturity and coupon structure. This corresponds to the level of haircuts that was previously assigned to assets in this liquidity category with a fixed coupon and a residual maturity of over ten years. Furthermore, assets in this liquidity category that are given a theoretical value (in accordance with Section 6.5 of the “General Documentation”) will be subject to an additional valuation haircut. This haircut will be applied directly to the theoretical value of the asset in the form of a valuation markdown of 5%, which corresponds to an additional haircut of 4.4%.

(2) The definition of “close links”, as given in Section 6.2.3 of the “General Documentation”, will be extended to include situations in which a counterparty submits an asset-backed security as collateral when it (or any third party that has close links to it) provides support to that asset-backed security by entering into a currency hedge with the issuer or guarantor of the asset-backed security or by providing liquidity support of more than 20% of the nominal value of the asset-backed security.

(3) With regard to the Eurosystem Credit Assessment Framework (see Section 6.3 of the “General Documentation”), for an asset to be eligible as collateral, the related credit assessment issued by an eligible external credit assessment institution (ECAI) must be based on a public rating. In the case of asset-backed securities, ratings must be explained in a publicly available credit-rating report (either a detailed pre-sale report or a new issue report)...

...

Finally, it is recalled that the Eurosystem has the possibility to limit or exclude the use of certain assets as collateral for its credit operations, also at the level of individual counterparties, if required, to ensure adequate risk protection of the Eurosystem in line with Article 18.1 of the Protocol on the Statute of the European System of Central Banks and of the European Central Bank.

All the above-mentioned changes to the risk control framework for Eurosystem credit operations will enter into force on 1 February 2009 and will be reflected in the forthcoming update of the “General Documentation”.

/... http://www.ecb.int/press/pr/date/2008/html/pr080904_2.en.html

[TalkingDog]

54. GhostDog, Dude...you are smokin' today!!!! n/t

[Ghost Dog]

58. Shredded workers rolled up into big fat cigars...

Actually, I've been working all day setting electrical wiring, switches and sockets into the concrete floor and walls of the new part of the house here. I just take a look at the economies and check out the DU tubes now and then between phases of the job, honest.

Now if you'll excuse me I must go and shoot a moose, sorry, goat.


PS. I hope you're getting a clear enough picture of what's happening in European economies. Let me know if it's too much info. Note that, when you see a line like '``Growth isn't weak enough to damp inflation risks,'' ... ``That's why the ECB will keep rates on hold.''', what's really being said is that the recession isn't deep enough yet to throw enough workers onto the scrap heap to discourage unions from demanding, and obtaining, wage increases approaching, even, the real-life inflation rate. :smoke:

[TalkingDog]

65. Yummm... Curried Goat....

I'll have to get mine out of the deep freeze and cook it up with some masala.

Sautee some okra with a mild curry, steam some brown rice. Dag. Is it time for lunch?

[Ghost Dog]

85. European Stocks Drop Most in Seven Weeks; Banks, Siemens Fall

Sept. 4 (Bloomberg) -- European stocks tumbled the most in seven weeks after European Central Bank President Jean-Claude Trichet said policy makers remain focused on inflation even as the economy slows.

Barclays Plc slumped 6 percent and Banco Santander SA sank 4 percent as the ECB said it will tighten its lending rules to stop them being exploited by financial institutions stung by the yearlong credit crisis. Siemens AG, Europe's biggest engineering company, retreated 4.8 percent as German factory orders unexpectedly fell and Dresdner Kleinwort downgraded the shares. Saab AB slid 20 percent after the Swedish maker of the Gripen fighter plane reduced its profit forecast.

The Stoxx 600 lost 2.6 percent to 278.18, the steepest drop since July 11, as the ECB and the Bank of England kept borrowing costs on hold. The measure is down 24 percent this year as the global economy cooled and financial firms posted writedowns and credit-related losses of more than $500 billion.

``I have remained doubtful that the central banks have any appetite to cut rates, especially the ECB at the moment,'' said Jane Coffey, head of equities at Royal London Asset Management, which oversees about $63 billion. ``The ECB has always maintained this stance, unlike the U.S. they see inflation as their main mandate.''

...

``The general sentiment is that we are heading lower for equity markets,'' said Joshua Raymond, market strategist at City Index Ltd. in London. ``Concerns over growth remain in focus.''

...

National benchmark indexes decreased in all 18 western European markets. France's CAC 40 lost 3.2 percent, and Germany's DAX sank 2.9 percent. The U.K.'s FTSE 100 slipped 2.5 percent.

...

Siemens fell 4.8 percent to 70.74 euros. Dresdner Kleinwort downgraded shares of European component makers on a potential ``collapse'' of sales growth in domestic and U.S. markets. Siemens was cut to ``add'' from ``buy'' by analyst Colin Grant.

...

Industrial-goods companies were the worst performers in the Stoxx 600 today, falling 3.9 percent. ThyssenKrupp AG, Germany's biggest steelmaker, slipped 4.5 percent to 30.36 euros.

/... http://www.bloomberg.com/apps/news?pid=20601084&sid=aDUBUpZKLAw8&refer=stocks

[Ghost Dog]

11. Russia c.bank estimates Aug capital outflow at $5bln

MOSCOW, Sept 4 (Reuters) - Russia's central bank estimates that capital outflows in August totalled roughly $5 billion, its chief was quoted as saying on Thursday.

"According to very preliminary estimates, the outflow totalled around $5 billion," Russia news agencies quoted central bank chairman Sergei Ignatyev as saying.

Foreign investors fled Russia last month, spooked by the military conflict with Georgia and the subsequent souring of relations with the West.

/. http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=17728bc6-ed7d-45d5-9e05-f7290113b294

[Ghost Dog]

12. Russian rouble sets fresh low, c.bank not seen

MOSCOW , Sept 4 (Reuters) - The Russian rouble set a new trough versus its euro-dollar currency basket on Thursday and, with the central bank seemingly offering the currency no support, analysts forecast further weakness to come.

The rouble has been hurt by the outflow of foreign capital from Russia, with foreign investors spooked by the military conflict with Georgia and the subsequent souring of relations with the West. A fall in oil prices <CLc1> has also weighed.

On Wednesday, the currency weakened past 30.10 roubles versus the 0.45 euros and 0.55 dollars basket, the level at which the central bank had stepped into the market in August.

On Thursday, it fell further to as low as 30.41, a fresh trough since the current composition of the basket was set 1-1/2 years ago. But dealers said there were still no bids from the central bank.

The weaker rouble is adding to inflationary pressures in Russia where consumer prices are already up 9.7 percent for the year to date.

But on the flip side, the greater volatility is bringing the central bank a small step closer to its medium term aim of moving to an inflation-targeting regime from one focused on the exchange rate.

"The central bank is now allowing much more volatility in the rouble than it used to do," said Lars Rasmussen, analyst at Danske Bank in Copenhagen.

"The market will try to push the rouble weaker because the sentiment is that way, and they will try to test where the central bank will intervene. I would not be surprised to see a few more percent weakness."

Thursday's sell-off in the rouble came despite a modest recovery in Russia's benchmark RTS stocks index <.IRTS> which had shed 4.25 percent the previous session.

...

But with $582.5 billion roubles of reserves still in hand, there is still plenty of scope for the central bank to intervene, meaning its lack of action is likely due to choice.

/... http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=36d607c1-419c-4dce-a775-2ce63f6d040e

[Demeter]

76. That's What Happens When You Are an Aspiring World Power

The hot money gets nervous.

[tama]

127. Good riddens

wise know that hot burns. And that "foreign capital" just sucks the fruits of labor away.

[Ghost Dog]

8. Boeing workers vote to strike, but walkout delayed

SEATTLE (Reuters) - Boeing Co's largest labor union said its members rejected the plane maker's contract offer and voted to strike, but the union agreed to postpone a walkout for 48 hours to allow more time for negotiations.

The International Association of Machinists leadership announced the extension, which means Boeing employees will stay on the job until Friday, after saying that 87 percent of its members voted to start a strike at midnight on Wednesday.

If a deal for a new three-year contract is not struck by Friday, nearly 27,000 Boeing workers will start a strike that would cost the company about $100 million in revenue per day as customers' planes sit idle on production lines.

Even though its workers voted overwhelmingly to strike, Boeing stopped short of promising anything specific or committing to improve on its last offer.

/... http://www.reuters.com/article/topNews/idUSN0327687420080904

[ozymandius]

13. Oil edges higher ahead of US inventory report

Oil prices edged up to almost $110 a barrel Thursday as the dollar weakened slightly and investors waited for a weekly U.S. crude inventory report for evidence that slowing economic growth has cut demand.

By midday in Europe, light, sweet crude for October delivery was up 64 cents to $109.99 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 36 cents overnight to settle at $109.35.

In London, October Brent crude gained 68 cents to $108.74 a barrel on the ICE Futures exchange.

The U.S. Energy Department's Energy Information Administration is scheduled to release its report on U.S. oil stocks for the week ended Aug. 29 later in the day. The petroleum supply report was expected to show that oil stocks rose by 500,000 barrels, according to the average of analysts' estimates in a survey by energy information provider Platts.

....

In other Nymex trading, heating oil futures rose 1.81 cents to $3.0969 a gallon, while gasoline prices rose 2.96 cents to $2.7964 a gallon. Natural gas for October delivery gained 3.7 cents to $7.301 per 1,000 cubic feet.

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

[ozymandius]

14. Many retailers report sluggish August sales

NEW YORK - Many of the nation's retailers struggled with a sluggish back-to-school season, though Wal-Mart posted higher August sales Thursday as shoppers focused on buying essentials amid persistent worries about high gas and food prices.

As merchants announced their August sales results, Wal-Mart Stores Inc., the world's largest retailer, reported a solid gain that beat Wall Street forecasts as consumers stick to low-price operators. But mall-based apparel stores such as Wet Seal Inc. and Limited Brands Inc. remained in the doldrums. And high-end retailers Saks Inc. and Nordstrom Inc. posted weaker results as their affluent customers start to feel pinched.

http://news.yahoo.com/s/ap/20080904/ap_on_bi_ge/retail_sales

[ozymandius]

15. Toll Brothers posts 3Q loss as revenue falls

HORSHAM, Pa. - Toll Brothers says it swung to a loss in its third quarter as its sales fell amid the housing slump. But the home builder says it sees signs that the market is stabilizing.

Toll Brothers Inc. said Thursday it lost $29.3 million, or 18 cents per share, in the three months ended July 31. That's a reversal from a profit of $26.5 million, or 16 cents per share, a year earlier.

http://news.yahoo.com/s/ap/20080904/ap_on_bi_ge/earns_toll_brothers

[ozymandius]

16. Have a nice day everyone.

:donut: :donut: :donut:

[Hugin]

21. Hey, if I saw the moon once...

Does that mean I'm an ASTRONAUT?!?!? :bounce:


(Based on the cartoon for today. Nothing else... Just thinking out loud. No political reference here at all. :D )

[TalkingDog]

57. hehehe...reminds me of a puckish moment

A friend of the Spousal Unit cornered him after basketball one evening and started talking up this computer-based sales "opportunity". Being a not-quite-fully-recovered nice Catholic boy, he agrees to let the friend and said purveyors of said opportunity come by and pitch their thing-thing.

About a third of the way into the pitch, I realize that this is just an AmWay pig dressed up in computer-based lipstick. I can see from the SU's eyes that he probably caught on long before I did.

Not wanting to be rude (as the SU likes his social connections) and bursting to say something, anything, I did the whole "Gosh, I'm just a hillbilly." routine and started asking all sorts of tangential questions about the products and the process.

But when they got to the "inspirational" part of the pitch where: "You can be ANYTHING you WANT to be, you can HAVE anything you WANT to have." My little twitchy hand shot up (yet again) and I squealed: "Ooooo, I've always wanted to be an ASTRONAUT!!! Can I be an ASTRONAUT?"

Unfortunately, they said I could not. And really gave no explanation why.

Maybe it's because I'm too chatty.

[Hugin]

61. You're an astronaut too!

:bounce:

[Ghost Dog]

69. Uh huh. (Taps side of forehead, nodding sagely, finger tracing circle).

http://www.metrolyrics.com/slimiloquy-lyrics-sesame-street.html

[UpInArms]

17. dollar watch

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

Last trade 78.119 Change +0.031 (+0.04%)

A Contraction In Services Coincides With Bullish EURUSD Technical Outlook

http://www.dailyfx.com/story/special_report/special_reports/A_Contraction_In_Services_Coincides_1220517391810.html

The U.S. service sector is expected to have remained in contraction for a third straight month as a weak labor market and inflation is expected to have curbed demand. The reports employment component will be of particular interest as it is a leading indicator for the upcoming Non-farm payrolls report.

Aug 28

US ISM Non-Manufacturing (12:30GMT; 8:30EDT)

Expected: 49.5
Previous: 49.5

Fundamental Outlook

The U.S. service sector is expected to have remained in contraction for a third straight month as a weak labor market and inflation is expected to have curbed demand. The reports employment component will be of particular interest as it is a leading indicator for the upcoming Non-farm payrolls report. An ECB rate decision may already have Euro Bulls out in full force, if President Trichet doesn’t signal a future rate cut. The EURUSD technical outlook is calling bullish momentum and the fundamental outlook agrees calling for a long EURUSD position. However, a significant rebound in services would generate significant Bullish dollar momentum as the sector accounts for 70% of GDP.



...more...

BoE Leaves Benchmark Rate Unchanged, Will Trichet Follow Suit?

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Market_Brief_for_Sept_4th_1220525785757.html

The BoE left their benchmark rate unchanged at 5.00% as the upside risks to inflation remain a prohibitive factor in allowing the central bank to turn its attention toward promoting growth. The pound was finding support throughout overnight trading as the result was expected. The Sterling would rally on the news and has climbed back above the 1.7800 price level. Since, there was no policy action the central bank doesn’t release a statement until September 17, when we will see how close the committee came to reducing rates. The prolonged housing slump and credit crisis has brought the economy to the brink of a recession, but recent measures by the central bank to provide assistance to the economy may keep them on hold as they asses their impact.

After reaching as high as 1.4547 the Euro has given back most of its gains as the ECB rate decision looms at 7:45 EST. The central bank leader’s comments are expected to be more hawkish than the previous meeting as several committee members including Axel Weber have stressed that they haven’t abandoned their focus on price stability. Therefore, expectations are that the central bank will leave rates unchanged at 4.25%. However, giving the recent weakness in the Euro, traders may be second guessing the tone of the rhetoric.

Indeed, German factory orders falling 1.7% in July demonstrates that the European economy is clearly deteriorating and the last rate hike may need to be reversed to prevent a full blown recession.

The U.S. calendar will provide event risk in the form of ADP employment change and ISM Non-manufacturing. The employment report is not an accurate indicator for Friday’s NFP release, nonetheless it typically generates some price action as traders tried to find insight into the labor market and the expected 30,00 loss in private sector jobs could weigh on the dollar. The ISM Non-manufacturing release will provide a better gauge as its employment component is far more predictive. Expectations are that the service sector contracted for a third month, remaining unchanged with a reading of 49.5, below the 50 boom/bust level. An inline result will only reinforce the gloomy outlook for the U.S. economy that was generated by yesterday’s Beige Book report which showed, housing conditions deteriorating, inflation rising and credit markets tightening. However, the upcoming comments from President Trichet may have the ultimate impact on the greenback’s direction today.

...more...

[UpInArms]

25. Justice Department looks into J.P. Morgan over swaps sales

or "How the Banks Bankrupted Jefferson County"

http://www.marketwatch.com/news/story/justice-department-looks-jp-morgan/story.aspx?guid=%7B22CC5261%2DA2BE%2D4D67%2DB24F%2DAE46DA208EF5%7D&dist=hplatest

NEW YORK (MarketWatch) -- At least seven former bankers from J.P. Morgan Chase & Co. (JPM: 39.49, -0.22, -0.5%) are under Justice Department scrutiny over the sales of swaps to municipalities, according to a published report. Bloomberg reported Thursday that J.P. Morgan led a group of banks that charged Jefferson County, Ala. $120 million for swaps and other derivatives deals -- $100 million too high, according the county's former adviser. The financing, which local officials said they didn't understand, suffered due to the credit crisis, and has increased borrowing costs -- costs that Jefferson County can't afford. J.P. Morgan was sued last week by the school district of Erie, Penn., over undisclosed fees on swaps, said Bloomberg, which added that J.P. Morgan may also face a Securities and Exchange Commission lawsuit relating to a derivatives investigation.

background:

Jefferson County, Alabama sewer debt grew into crisis

Sunday, March 09, 2008
JEFF HANSEN
News staff writer

Before the disaster, it started simply enough.

In 1996, Jefferson County agreed to take over sanitary sewers from 21 cities, make improvements to plants and 3,100 miles of sewers, and stop the multiple discharges of raw sewage into streams.

The estimated cost was acknowledged to be daunting - perhaps as much as $1.2 billion - but small increases in sewer rates would cover that.

Twelve years later, those simple hopes have vanished. Outstanding sewer debt has exploded to $3.2 billion. Risky county debt instruments are failing to the point of technical default. Sewer rates have pushed through the roof. And county finances are headed down the drain.

Jefferson County's long-term debt - sewer, school and general obligation bonds - is now about $7,012 for every man, woman and child.

That's 30 times Mobile's long-term per capita debt of $236, and 38 times Montgomery's $186 per capita debt.

In amassing this debt, Jefferson County relied upon a limited group of financial advisers, buttressed by decisions county commissioners made that went bad.

As a result, the county issued extremely complex refundings of sewer debt in 2002 and 2003 that involved sophisticated interest-rate setting mechanisms and esoteric interest rate swap agreements.

...more...

[UpInArms]

42. JPMorgan exits municipal swaps business (criminals scurry for cover)

http://www.reuters.com/article/newsOne/idUSBNG18065920080904?sp=true

NEW YORK (Reuters) - JPMorgan Chase & Co said it is shuttering a unit that structured interest rate swaps for municipal borrowers, as regulators scrutinize the bank's role in the business.

The municipal bond market has been rocked by an antitrust probe and the near bankruptcy of Alabama's most-populous county.

The move to close down the business comes as the U.S. Justice Department and the Securities and Exchange Commission investigate JPMorgan over the sale of certain derivatives and investment contracts to municipal issuers. A JPMorgan spokeswoman declined comment on the investigations.

In a memo to employees, Matt Zames, JPMorgan's head of rates, foreign exchange and municipal bonds, said the returns from the business "no longer justify the level of resources we have allocated to it."

As part of the shake-up, JPMorgan is also tightening controls around its broader tax-exempt capital markets unit including reducing external counsel and enhancing credit standards and compliance policies. The municipal swaps business is part of that unit.

<snip>

Sales of derivatives to cities, towns and school districts provided banks with fees as earnings from arranging sales of tax-exempt bonds used to build schools, roads and other public works.

...more...

[Ghost Dog]

71. eerie.

[UpInArms]

73. check out the AIG/JP Morgan swap story in post #72

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3469991&mesg_id=3470572

[Tandalayo_Scheisskopf]

29. After the overnight

CLV08.NYM Crude Oil Oct 08 109.38 8:53am ET Up 0.03 (0.03%)
HOV08.NYM Heating Oil Oct 08 3.0725 8:53am ET Down 0.0063 (0.20%)
NGV08.NYM Natural Gas Oct 08 7.171 8:53am ET Down 0.093 (1.28%)
PNV08.NYM Propane Gas Oct 08 1.65 8:12am ET 0.00 (0.00%)
RBV08.NYM RBOB Gasoline Oct 08 2.7801 8:52am ET Up 0.0133 (0.48%)

Anyone want to open a book on when the Attempted Ike Dividend starts?

[Hugin]

34. I say it starts when whatever Tropical Depression it is...

Becomes a Named Storm.

Retro-active pools are kind of boring... ;)

You know how they like to 'price things in'.

[UpInArms]

36. Valley National: Market value of GSE preferreds halved (Oopsie!)

http://www.reuters.com/article/bondsNews/idUSBNG18932020080904

Sept 4 (Reuters) - Valley National Bancorp (VLY.N: Quote, Profile, Research, Stock Buzz) on Thursday said the market value of its investments in Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) preferred stock more than halved in the third quarter, leading to a potential impairment charge.

Investors have been concerned over the fate of holders of Fannie and Freddie preferred stock because a possible bailout of the government-sponsored enterprises could partly or wholly wipe out the value of investments if bondholders are put first.

In a regulatory filing, Wayne, New Jersey-based Valley said the fair value of the preferred securities declined by about $40 million from June 30. The bank held securities with a cost basis of about $79 million in the second quarter.

The decline in value, if recognized, could lead to a impairment loss of $25.7 million, or about 19 cents a share, in the third quarter, Valley National said.

The company also said it was reviewing potential sale-leaseback transactions of certain owned properties with the assistance of various third parties.

Valley National owns about 100 real estate properties, that have an estimated fair market value of about $200 million in excess of their book basis, the company had disclosed earlier.

...more...

[UpInArms]

39. Pimco: Treasury needed to stop asset deflation

http://www.reuters.com/article/bondsNews/idUSNYG00123620080904

NEW YORK (Reuters) - To stop a sell-off of debt and other assets, the U.S. government will have to bring in new policies to open up the Treasury Department's balance sheet, said the manager of the world's biggest bond fund on Thursday.

"If we are to prevent a continuing asset and debt liquidation of near historic proportions, we will require policies that open up the balance sheet of the U.S. Treasury," wrote Bill Gross, chief investment officer of Pacific Investment Management Co, or Pimco, in his September Investment Outlook.

"To ultimately stop this asset/debt deflation, a fresh and substantial new source of buying power is required," Gross wrote.

Across financial markets, liquidity is drying up and investors' risk appetites are "anorexic." Despite a recent resurgence in the stock market, asset prices are mostly falling, including those of commodities, Gross noted.

...more...

[DemReadingDU]

104. Really?

Or is Gross, who bought a lot of this toxic stuff, looking for a bailout for himself?


Add a link to Karl Denninger's essay today
http://market-ticker.denninger.net/archives/2008/09/04.html

[Demeter]

133. When Is an Asset NOT an Asset?

When it has no intrinsic value!

Use that peper for confetti, or to decorate a room, guys.

[UpInArms]

40. Oiling the Press: Fed adds $5.0 bln in temporary reserves via 14-day repo

http://www.reuters.com/article/bondsNews/idUSNYD00027120080904

NEW YORK, Sept 4 (Reuters) - The U.S. Federal Reserve said on Thursday it added $5.0 billion of temporary reserves to the banking system through a 14-day repurchase agreement.

Federal funds traded in the market at 2.0625 percent after the operation, above the 2.00 percent target rate the Fed sets.

[UpInArms]

70. US Treasury to sell $20 bln cash management bills

http://www.reuters.com/article/bondsNews/idUSWEQ00015220080904

 WASHINGTON, Sept 4 (Reuters) - The U.S. Treasury Department
announced the following details on its debt offering on
Thursday.

               6-day cash management bill

 Amount           $20 billion
 Auction date     Sept. 8
 Competitive bids
  deadline        1130 ET/1530 GMT
 Noncomp deadline 1100 ET/1500 GMT
 Settlement       Sept. 9
 Maturity date    Sept. 15
 CUSIP            912795S93

 Net Long Position Reporting

 Threshold     $7.00 bln
 NLP Exclusion
 Amount       $10.20 bln

[AnneD]

41. Morning Marketeers.....

:donut: and lurkers. I won't be bringing you a blow by blow of the RNC today. I went to the clubhouse to watch it and had a verbal fist de cuffs with what we call in Texas a guy as thick as a brick shit house.

I trumped him on several issues, waxed his ass on economics (they tend to ignore this), and countered some of his outright lies...but I walked away very discouraged. I don't do stupid too well. What I came away with was that Palin, until she screws up, has energized the fundie base and Obama will face an uphill climb. We will have to marshall every voter we can.

The other thing that I came away with is that these folks see the world in black and white. I see the world as shades of grey. To be absolute sets one up for failure. It is like this abstinence only teaching. As a single Mom, I worked my ass off teaching my daughter that 1) abstainace is great when you are young and it is what I believe 2) but should you every find yourself in a situation where you might not want to abstain.....always protect yourself. I keep the condoms in X place and we never count them so you have no excuse. By seeing the gray that is human nature, I let my daughter know that we are human and while we aspire to better-sometimes we don't make it.

How many times have we heard single Moms trashed, blamed, and held personally responsible when their kids screwed up and got pregnant or impregnated. Now, held before us is a child that had TWO parents and still wound up pregnant and that is LAUDED? I busted my ass, my kid is struggling to get funding to make a career and life for herself and has managed to be off drugs, un pregnant, organized numerous charity and political events (nets for African families, voter registration drives). I know I am asking the choir here....but WHO has the family values. I think Barack Obama's Mom and I would have been BFF if we had met. You can tell a tree by the fruit it bears. Am I trashing the kid...no. I see shades of grey remember and I know kids are kids. But let's not make this family out to be saints just because the ovaries work. And if you see the world in black and white-let's apply those rules equally.

This is why the legalistic views of the old testament are doomed to failure...because we ARE human, fragile, complicated, prone to screw ups human. That was and is the true beauty of the new testament. It is an acceptance of our shortcomings and forgiveness of our character and a challenge to overcome our nature.

Happy hunting and watch out for the bears.

[UpInArms]

43. beautifully stated, as always AnneD

:grouphug:

p.s. none of us at the SMW "do stupid well"

[Dr.Phool]

50. It's getting harder and harder to do stupid each day.

I guess because things are getting worse by the day, and these idiots keep walking around with dark glasses on, and their fingers in their ears screaming la-la-la-la.

I had a fundie salesman at the house yesterday. They called the night before about solar powered hot water and pool heaters. I told them I already have solar for the pool, but might be interested in the hot water system. I've been thinking about completely converting to solar power, but right now it's too expensive for me. And I've been doing a lot of research.

In our conversation, I started picking up on what he was. I mentioned the complete solar conversion, and he started telling me that "uranium power" was better and cheaper. And that a PV unit just to heat a water heater would cost over $15k versus his plastic $6k do-dad ($6,000 for a fricken hot water system?

:wtf: ) He showed me pictures (didn't have any literature) and it's pretty much the same system, but smaller as my pool system. But, a lot more expensive. I'm not buying anything from this clown.

I mention I bought the wife a new Prius for Valentines Day, and he tells me that hybrids are unsafe, and not economical, and with the deals right now, you're better off buying an Expedition! :crazy: :crazy: Real Einstein material here. Also, that if people cut back on gas consumption, the government will go broke, because the government makes more money off of gas taxes than the oil companies, and he can't understand why people are complaining. :argh:

So, I show this idiot to the door (I wasted good bar time listening to this clown), before I strangle him.

Sure enough. Right there on his car was the telltale "Choose Life" license plate.

I hope he didn't separate his shoulder masturbating to the Sarah Palin speech last night.

[TalkingDog]

62. You and the Rude Pundit....

Not that you'd have so many beer bottles laying around to use (unless you drink at home instead of the bar) but this makes a great Solar Water Heater:

http://www.ibabuzz.com/beer/2008/05/12/the-greening-of-the-common-beer-bottle-a-solar-heater/

[Dr.Phool]

64. You know, I could do that.

And if I put my mind to it, in a week, tops.

Unless I fall off the roof.

[Ghost Dog]

75. All right!

[DemReadingDU]

80. Need to start drinking beer!

So I can gets me lots of free bottles for that Solar Water Heater

:P

[Pale Blue Dot]

44. Checked in during my prep period to see the market diving off a cliff.

Those employment numbers are terrible - but I think what they're really scared of is that the productivity numbers mean that there is very little "fat" left to trim.

I really believe we're in the end game now. The only thing left to figure out is the timing of the collapse: Do the powers that be want to take a chance on McCain, or do they want to pull a Shock Doctrine-type takeover now?

[Warpy]

46. There's a bigger question

Do they take a chance on having the total collapse prevented by allowing token reforms or are they all sufficiently terrified of prison to want to continue along the road to total collapse?

My own guess is that they're more frightened of total collapse at this point, will allow token reforms, but will inform the reformer of the rules of the game early on and make sure most of those reforms are window dressing. A few of the worst might see Club Fed, but that, too, will be window dressing since the hired help will go while the bosses hunker down in their pleasure palaces.

[Ghost Dog]

79. that the reformer will be informed of the rules of the game early on

and the rest sure looks like it can be taken for granted, doesn't it. :(

[DemReadingDU]

84. I think it has more to do with all the central banks

Doesn't each country have a central bank? Well, whatever countries have those central banks, I think they have been playing the swap game - swap their good treasuries for the toxic waste. When one of the central banks runs out of their good treasuries, it ceases to play the swap game, and their market crashes, following soon by the other central banks and their markets will crash. I just don't think anyone can say for sure it will be the U.S. to light the fire.

But, whoever stands to gain the most, have definitely been informed and have themselves protected.


P.S. Thanks for all your articles about the European markets. Lots going on around the world that we should be kept informed.

[ozone_man]

48. I've got 9/23 in the pool.

Red Tuesday. :)

[Dr.Phool]

55. Wow! 140pt drop in the time it took me to feed the dog.

I'm betting on a Shock Doctrine. Cheney's stirring up too much shit right now, to leave anything to chance.

I'd better finish the last couple of chapters this afternoon. Hope it has a happy ending.:mad:

[InkAddict]

60. Looks like Strickland is preparing more bureaucratic JOB nonsense too.

http://www.dispatchpolitics.com/live/content/business/stories/2008/09/04/econ_plan.ART_ART_09-04-08_C12_KAB7BQA.html?adsec=politics&sid=101

But where does it say anything about actually hiring workers? Looks like he's also given up on technology?

[Dr.Phool]

67. I could be wrong, but isn't Vedder the guy who said the way to increase revenues,

Is to eliminate the state income tax?

[catzies]

138. ACK! That's the scariest thing I've read today - and I've read a lot

"Do the powers that be want to take a chance on McCain, or do they want to pull a Shock Doctrine-type takeover now?" :scared:

[UpInArms]

45. 10:56 EST market meets reality?

Dow 11,318.10 214.78 (1.86%)
Nasdaq 2,292.65 41.08 (1.76%)
S&P 500 1,254.28 20.70 (1.62%)
10-Yr Bond 3.673% 0.024

NYSE Volume 1,335,441,000
Nasdaq Volume 616,757,687.5

10:00 am : The tone during early trade has worsened. All ten sectors are now in the red.

The session's downturn is most pronounced in the industrial sector (-1.4%). However, the most negative influence is coming from technology (-1.2%), which is the largest economic sector.

The ISM Service Index came in at 50.6 for August. Economists were expecting a reading of 49.5, which is what was registered the month before. DJ30 -117.16 NASDAQ -25.32 SP500 -10.23 NASDAQ Adv/Vol/Dec 632/243 mln/1611 NYSE Adv/Vol/Dec 665/130 mln/2040

09:40 am : The major indices have opened markedly lower. Only two of the ten economic sectors are in positive ground.

A modest uptick in oil prices is translating into gains for the energy sector. Oil futures are up just 0.1% and trading near $109.40. Energy is up 0.7%.

Meanwhile, the defensive-oriented utility sector is showing a gain of 0.3%. Exelon (EXC 73.00 +1.09) is up after tightening its guidance for 2009. The firm initially projected profits between $4.00 and $4.40 per share, but now expects earnings to range from $4.15 to $4.30 per share. Exelon also announced it will be using $1.5 billion to help fund stock repurchases.DJ30 -98.03 NASDAQ -17.35 SP500 -7.68 NASDAQ Adv/Vol/Dec 620/65 mln/1461 NYSE Adv/Vol/Dec 686/59 mln/1867

09:16 am : S&P futures vs fair value: -6.4. Nasdaq futures vs fair value: -11.5. Sentiment remains generally bearish ahead of the session's opening bell. The threat of a worker strike continues to loom at Boeing (BA). Coverage of Broadcom (BRCM) was initiated with an Outperform grade at Credit Suisse. Credit Suisse also initiated Marvell Technology (MRVL) at Neutral. Deutsche Bank lowered its rating on MRVL to Hold from Buy. According to Dow Jones, Goldman Sachs removed U.S. Steel (X) from its Conviction Buy list.

09:00 am : S&P futures vs fair value: -6.4. Nasdaq futures vs fair value: -11.5. The major indices remain on track to open with losses. Fashion apparel retailer Guess (GES) posted a profit of $0.57 per share on sales of $515.2 million for its second quarter. Not only did the company's marks exceed the consensus forecast, but it induced management to raise its guidance for 2009. Tax and accounting service provider H&R Block (HRB) announced after yesterday's close it generated a loss of $0.40 per share for its latest quarter. The loss came as revenue slipped 11% year-over-year to $339.6 million. Both the top and bottom line results were short of expectations. Meanwhile, the much smaller Jackson Hewitt (JTX) posted a loss of $0.69 per share after revenues dropped 28% from the prior year to $4.3 million. Earnings per share were on par with estimates, but revenues were a bit short of expectations.

[SpiralHawk]

51. Confidence vote on the republiconomics of McCain-Palin

FAIL

[UpInArms]

53. updating blather

11:05 am : The major indices have fallen to their worst level of the session. Losses are steep as four sectors trade with losses in excess of 2%.

Financials are among the worst performing sectors, currently down 2.4%. According to Bloomberg.com, Merrill Lynch (MER 26.91, -1.42) is having difficulty selling assets due to price debates. Meanwhile, AIG (AIG 21.85, -0.73) is mulling a spinoff to hold certain troubled securities from its balance sheet, according to New York Post.

The appetite for Treasuries has increased as investors flee to safety. The 10-year Note is up 9 ticks. The real return on Treasuries is also helped by lower inflationary pressures, which were present in the second quarter productivity data.DJ30 -221.05 NASDAQ -41.69 SP500 -20.80 NASDAQ Adv/Vol/Dec 519/652 mln/2016 NYSE Adv/Vol/Dec 487/310 mln/2430

10:35 am : Stocks continue to chop along in negative territory as investors focus on negative data. In turn, the session's action is more independent of oil prices than previous sessions. Crude prices are down 0.3% to $109 per barrel.

The latest batch of initial jobless claims climbed from the prior week to a higher level than expected. Continuing claims made a slight advance. The trend in payrolls portends a softer August payroll number. The ADP report indicated some 33,000 private payrolls were cut during August, but official numbers from the government are not due until tomorrow.

The news hasn't been entirely bad, though. Positive inflation news arrived with news that labor costs ticked 0.5% lower in the second quarter and productivity increased to 4.3% from the previously stated 2.2%.

Retailers are seeing mixed same-store sale results. As a result, the group is down 1% this session. Hardest hit are apparel companies, which are trading 4.7% lower, collectively. Limited Brands (LTD 21.23, -0.83) saw comparables drop 7%; Abercrombie & Fitch (ANF 52.05, -2.66) saw comparables drop 11%; Gap (GPS 19.36, -0.61) saw comparables slide 8%.DJ30 -149.16 NASDAQ -29.30 SP500 -14.00 NASDAQ Adv/Vol/Dec 657/433 mln/1743 NYSE Adv/Vol/Dec 658/210 mln/2149

[UpInArms]

47. Merrill's bad debt sale to South Korea agency stalls (info on Lehman's)

http://www.reuters.com/article/ousiv/idUSBNG34510420080904

(Reuters) - Merrill Lynch & Co's (MER.N: Quote, Profile, Research, Stock Buzz) talks to sell bad loans to Korea Asset Management Corp (KAMCO) faced a deadlock due to a disagreement over price, the South Korean state agency said on Thursday.

Bloomberg reported earlier, citing KAMCO chief executive Lee Chol-Hwi, that the sale was faltering over differences in assessing the value of assets.

"We have been in talks with Merrill but couldn't narrow the price gap," said a KAMCO spokesman, confirming Lee's comments. "Now we'll drop the discussion so far and start a new round of negotiations."

KAMCO declined to give size and other details about Merrill's assets it seeks to buy.

The government debt clearer is also "keeping channels" with other U.S. institutions to buy distressed assets, the spokesman said, without elaborating.

Failure to strike a deal may indicate Merrill, which has been battered by more than $50 billion of credit market losses, and Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) might have to cut prices for assets they are trying to sell.

<snip>

In July, Merrill agreed to sell $30.6 billion of collateralized debt obligations, a kind of repackaged debt, to an affiliate of private equity fund Lone Star Funds, for just $6.7 billion, or about 22 cents on the dollar.

...more at link...

[Ghost Dog]

49. IMF welcomes Argentina decision to pay Paris Club

WASHINGTON, Sept 4 (Reuters) - The International Monetary Fund on Thursday welcomed Argentina's decision to repay Paris Club creditor nations and said an IMF mission hoped to visit the country shortly to assess its economy.

...

Argentina's President Cristina Fernandez said this week her government would tap central bank reserves to repay $6.7 billion of the Paris Club debt in default since a 2001-2002 economic crisis.

/.. http://www.afxnews.com/about488/index.php?lg=en&c=00.00&story=2583782

[Demeter]

136. Will Argentina Let the IMF Cross the Border?

After going to all the pain to kick them out in the first place?

[Roland99]

59. 11:31am - Still heading south

DJIA 11,287.65 -245.23
S&P 500 1,249.76 -25.22
NASDAQ 2,287 -46.33
30-year 42.81 -0.37

[Hugin]

63. ~11:45 ET: Look for a subliminal message in today's Market Theme...

Index Last Change % change
• DJIA 11296.44 -236.44 -2.05%
• NASDAQ 2288.01 -45.72 -1.96%
• S&P 500 1250.71 -24.27 -1.90%


Especially, a young gentleman who recently flew to St. Paul, MN.


http://video.google.com/videosearch?q=Smashmouth+Padrino&hl=en&emb=1#

"Padrino" - Smashmouth

"Life imitates the game of chess
You can be the rook or the pawn
If you have the strategy that's best
You can be the king or in this case the don
It's easy to get knocked out of the game
Depending on which way you want to play
You've got to have eyes in the back of your head
Now that we have that out of the way

-Chorus:-
Rev up the Lincoln
And lets get to drinking some caffeino
Lets go to nicolettis
Cause he makes a mean spaghetti sauce
I'm a connoisseur of the finer things in life
I'll take any flick with al pacino
I'm a man of respect and I prefer to be addressed as padrino

If you're the type that likes to spill the beans
You could be a stone in someone's shoe
You'll receive a kiss on each cheek
Then you'll know that pretty soon the stone will be removed
Everyone knows that crime does not pay
It doesn't pay the taxes anyway
You've got to be slick if you don't want it to stick
Now that we have that out of the way

-Repeat Chorus-

I know it's not a wise thing to do
Writing funny songs about the mob
But if it's all the same to you
I don't see it as a gang but a club
Where men sit like gentlemen
Plotting their events about
Things I shouldn't understand comprehend or care
Like...oh, I don't know maybe I shouldn't go there
After all it is a family affair

Stay out of the papers
Don't get caught
Leave the singing to Sinatra and always keep your big trap shut
Capice?

The underworld is like an undertow - if you don't respect it
It will surely bring you down - when you least expect -
Hey expect it from all sides
Once you're in it it's for life
Don't be famous be infamous and you will live to see another day
Be wise about with whom you discuss
Now that we have that out of the way

-Repeat Chorus-"

[Hugin]

68. ~12:15 ET: Stabilizing?

Index Last Change % change
• DJIA 11300.84 -232.04 -2.01%
• NASDAQ 2294.69 -39.04 -1.67%
• S&P 500 1252.03 -22.95 -1.80%

Maybe 11,300 is the New PISL? Anyone?

[UpInArms]

72. Let's Play: Hot Potato! AIG may park toxic assets in new company: report

http://www.reuters.com/article/bondsNews/idUSN0442778220080904?sp=true

NEW YORK (Reuters) - American International Group (AIG.N: Quote, Profile, Research, Stock Buzz) is considering forming a separate company to hold risky credit assets that have caused record losses for the insurance company in the past three quarters, the New York Post reported on Thursday.

AIG, the world's largest insurer, is working with investment bank JPMorgan Chase to arrange the structure of the company that would hold credit default swaps that have triggered record losses over the past three quarters, the Post said, citing people familiar with the matter.

An AIG spokesman called the report "pure speculation based on an unnamed source."

Standard & Poor's analyst Catherine Seifert, in a research note, said shedding the troublesome assets could give AIG a boost, and raised her price target for AIG shares by $3 to $26 on Thursday. However, she warned that such an arrangement could also cost AIG.

"We think AIG would need to raise additional capital to support it," said Seifert. She rates AIG shares "hold" and said the company seems to have a larger exposure to mortgage assets than its peers.

"We do not see a quick or easy resolution to this issue," she said.

AIG's stock has fallen more than 60 percent this year, with shareholders rattled by the much-larger-than-expected hit the company has taken on credit default swaps it sold on mortgage-backed assets.

...more...

or is it: Hide the salami!

[Hugin]

74. That was standard practice back in the '80s...

Dump all the losers in a single 'diversified' Division of the corporation and load it down with debt...

Then... Cut it loose!

I can cite references if necessary.

[AnneD]

97. More like....

turd in the punch bowl.

[Hugin]

77. ~13:00 EMT: Still Ooogly.

Index Last Change % change
• DJIA 11276.65 -256.23 -2.22%
• NASDAQ 2281.46 -52.27 -2.24%
• S&P 500 1246.88 -28.10 -2.20%

[Hugin]

86. ~14:00 EMT: Ow... Ow... Ow...

Index Last Change % change
• DJIA 11246.12 -286.76 -2.49%
• NASDAQ 2272.87 -60.86 -2.61%
• S&P 500 1243.79 -31.19 -2.45%

[NeoConsSuck]

78. Hey, if we elect McSame

we can expect to have many more days like this!

Eight years of republicans in power: not one, but TWO recessions!

[Ghost Dog]

81. It's all good. Praise the Fish. n/t

[NeoConsSuck]

83. EIA says not aware of oil data probe

The Energy Information Administration said on Thursday it is unaware of any investigation by federal market regulators of the agency's weekly report on oil inventory levels.

The Wall Street Journal reported on Thursday that the Commodity Futures Exchange Commission is investigating whether companies are reporting false oil inventory levels to benefit their trading positions.

The Wall Street Journal, quoting people familiar with the probe, said the CFTC is taking testimony on periods when there have been big moves on the oil futures market, including July 2007.

The commission is concerned that companies may have tried to manipulate short-term pricing on oil markets through physical oil sales and purchases, the Journal reported.

According to the report, companies could also theoretically push prices higher by under-reporting oil inventory and then sell their oil at a premium.

The paper said the CFTC probe is a part of a larger investigation by the commission into possible manipulation of futures markets.

http://biz.yahoo.com/rb/080904/usa_cftc_investigation.html

[Tandalayo_Scheisskopf]

124. Oh man.

This will be endlessly entertaining if they untie this Gordian Knot.

[Hannah Bell]

126. i've wondered...eia reports have diverged from other data several times i've noted,

including their own statistical tables, once.

i stopped trusting they were impartial...maybe that gut check will be vindicated...

[UpInArms]

87. 2:07 EST Dow down almost 300 points

Dow 11,238.96 293.92 (2.55%)
Nasdaq 2,272.18 61.55 (2.64%)
S&P 500 1,242.93 32.05 (2.51%)
10-Yr Bond 3.638% 0.059

NYSE Volume 3,189,435,750
Nasdaq Volume 1,434,107,000

2:00 pm : Oil prices have pared some of their losses but remain 1% lower. After opening with showing a solid gain of more than 1% early on, crude futures sank to trade with a loss as much as 2.6%.

Energy has come off of its session low, though only by a bit. Energy opened the session higher, following oil prices, and sported a 0.9% gain. For some time it was the only sector trading with a gain. Energy is now trading 2.4% lower after being down as much as 2.9%.

All ten sectors are in the red.DJ30 -279.02 NASDAQ -59.64 SP500 -30.66 NASDAQ Adv/Vol/Dec 550/1.41 bln/2204 NYSE Adv/Vol/Dec 511/667 mln/2569

1:30 pm : Stocks' downward trend continues to take the major indices to new lows. Even stocks on the global stage have fallen out of favor.

The Dow Jones World Index is down 2.4%. Excluding the U.S., the Dow Jones World Index is also down 2.4%. Year-to-date, the world index is down 19.4%. Excluding the U.S., the world index is still down 23%.

Small-cap and mid-cap stocks have been unable to hid from the waves of sellers. The Russell 2000 is off nearly 3% and the S&P 400 is down 2.5%. They are down 6.0% and 8.9% year-to-date, respectively.DJ30 -289.28 NASDAQ -62.62 SP500 -32.68 NASDAQ Adv/Vol/Dec 523/1.28 bln/2201 NYSE Adv/Vol/Dec 512/606 mln/2566

[Hugin]

88. My theory is... "They don't want to hold stocks over the weekend."

:lol:

[Hugin]

89. ~14:30 EMT: Went down another approx 25-30...

Dow 11,208.26 -324.62 (-2.81%)
Nasdaq 2,264.99 -68.74 (-2.95%)
S&P 500 1,238.85 -36.13 (-2.83%)

10y bond 3.63% -0.04 (-1.09%)

[TalkingDog]

90. I think they need to change the battery. It seems to be broke. n/t

[Warpy]

91. Some days it's just not worth chewing through the restraints.

I guess Wall Street is voting on Palin.

[Ghost Dog]

114. The executively experienced Sarah "Earmarks" Palin, you mean?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3923030

[ozone_man]

92. Oil's down, so what's the problem?

Everyone knows that's good for the markets, right? ;)

Crude futures fall to close below $108 a barrel
By Myra P. Saefong

Last update: 2:55 p.m. EDT Sept. 4, 2008
SAN FRANCISCO (MarketWatch) -- October crude fell $1.46, or 1.3%, to close at $107.89 per barrel on the New York Mercantile Exchange Thursday. It's fallen each trading session since Aug. 27, down 8.7% since that day's close of $118.15. The U.S. government reported a decline in crude and motor gasoline supplies for last week, but a slowdown in oil demand remained a concern.

http://www.marketwatch.com/news/story/crude-futures-fall-close-below/story.aspx?guid={4D7A11C8-E20B-4B82-B31C-D79FA8283D6C}&dist=morenews

[Ghost Dog]

116. _Everything's_ down,

mostly, around the world. Except the Yen and some bond prices...

And Obama/Biden.

[Dr.Phool]

93. 3:00pm- Down approx. 300 pts.

Calling Dr. Howard, Dr. Fine, Dr. Howard.....

Calling Dr. Howard, Dr. Fine, Dr. Howard.....

Calling Dr. Howard, Dr. Fine, Dr. Howard.


AKA the PPT


For the young'uns, an old 3 stooges skit.

[skoalyman]

94. 11,252.07 -280.81 -2.43% ppt back from lunch

:crazy:

[Dr.Phool]

96. Looks like it!

[Hugin]

98. Here's a thought to ponder...

If a dead cat bounces and nobody sees it... Was it really a bounce?

[Hugin]

95. ~15:15 EMT: Oof, gotsta get above -300.

Dow 11,243.84 -289.04 (-2.51%)
Nasdaq 2,272.42 -61.31 (-2.63%)
S&P 500 1,243.43 -31.55 (-2.47%)

10y bond 3.64% -0.03 (-0.82%)

[AnneD]

99. It started out as a cavity

and wound up a root canal....it happens.:shrug:

[Hugin]

100. Sooo...

I'm trying to come up with an outfit to wear for my day at the pool. (HINT: It's tomorrow.)

Ray-bans... Straw hat... Loud Hawaiian Hibiscus Print Shirt... Surfer-slippas...

or do they make me look fat?

[Demeter]

134. Prag, Didn't You Forget Something? Something Rather Essential for Swimming

commonly known as a swim suit?

[AnneD]

140. Not as fat as...

Karl Rove in speedos cleaning out your swimming pool.:spray:

Apologies to the eye injuries that statement caused. My bad.:evilgrin:

[nolabels]

101. Root canal? how much is that going to cost?

Crap i just got back from the dentist and he says he going to do the work to prevent me from needing a root canal. His estimate on the treatment plan $12,168.00 :wow:

[AnneD]

141. I'd say get a second opinion...

Sounds like your dentist is trying to make a boat payment.

[Roland99]

103. 3:42pm - Failed....and miserably

Dow 11,201.67 -331.21
Nasdaq 2,264.28 -69.45
S&P 500 1,238.77 -36.21
10-year 3.64% -0.05
Oil $107.89 -$1.46
Gold $803.20 -$5.00

[Hugin]

102. ~15:45 EMT: Oops... It did it again.

Dow 11,201.75 -331.13 (-2.87%)
Nasdaq 2,265.35 -68.38 (-2.93%)
S&P 500 1,239.43 -35.55 (-2.79%)

10y bond 3.63% -0.04 (-1.09%)

[Hugin]

105. ~15:55 EMT: Commence settling...

Dow 11,216.57 -316.31 (-2.74%)
Nasdaq 2,267.50 -66.23 (-2.84%)
S&P 500 1,241.12 -33.86 (-2.66%)

10y bond 3.63% -0.04 (-1.09%)

[Roland99]

106. 3:57pm -331

[Hugin]

107. ~15:58: EMT -336.

[Hugin]

108. Ding! Ding! Ding! -347...

Dow 11,185.14 -347.74 (-3.02%)
Nasdaq 2,259.04 -74.69 (-3.20%)
S&P 500 1,236.67 -38.31 (-3.00%)

10y bond 3.63% -0.04 (-1.09%)

[Roland99]

109. 4:02pm ... -345.54

[Hugin]

111. ~16:10 -344.

Ten minutes is kinda pushing the float don't you think?

[Hugin]

110. ~16:00 EMT: Suction! Sutures!

Dow 11,185.14 -347.74 (-3.02%)
Nasdaq 2,259.04 -74.69 (-3.20%)
S&P 500 1,236.67 -38.31 (-3.00%)

10y bond 3.63% -0.04 (-1.09%)

Nice job Dr. Howard, Dr. Fine, and Dr. Howard.

[Dr.Phool]

112. Ohhhh.....A wise guy....rufff..rufff

owwww:spank: :spank: :spank: :spank:

:hide:

[Hugin]

113. Yeeeeah... Watcha goin' do about it? *poink*

:woowoowoo:

:yoiks:

[Dr.Phool]

119. I think I'll drink vodka, and jump in the pool.

Hopefully, I'll pass out before McPalin comes on the tube.

:dilemma: :woohoo:

[Hugin]

120. Good plan.

Luckily, I'm in the middle of nowhere... Bad TeeVee reception... That's my excuse.

[xyouth]

115. Does anybody have next week to hit 10,578

Hi guys, I am usually a lurker,but I just wanted to say what a great job you all do on this thread. PEACE!!:grouphug:

[Hugin]

117. I have tomorrow...

:hi: to you! :)

[shrike]

121. Yeah, you guys rock

This is the place where I get most of my financial news.

[Hugin]

122. Well, if you ever come across anything you feel needs to be posted...

Dive on in.

:hi:

[UpInArms]

125. welcome to the SMW, xyouth!

glad to have you here - :hi:

:grouphug:

[Ghost Dog]

118. Music

YouTube - Rapture - Antony and the johnsons
Rapture - Antony and the johnsons. Added: January 17, 2008 ...
3 min 58 sec -

Rated 5.0 out of 5.0







http://www.youtube.com/watch?v=ahjUmQ5wZ3k


Rapture
Eyes are falling
Lips are falling
Hair is falling to the ground
Slowly, softly
Falling, falling
Down in silence to the ground
All the world is
falling, falling
All the blue
From me and you
Tear drops falling
to the ground
Tear drops
I'm talkin' 'bout
your tear drops
For instance
Oh my mama
She's been falling
Falling down for
quite some time
And oh my papa
He's been falling
Falling down for
quite some time
Oh my friends
I've watched them falling
Falling softly to the ground
Oh the leaves
The Leaves are falling
Down in silence to the ground
Is this the rapture?
Is this the rapture?
Why don't you tell me
Is this the rapture?
Is this the rapture?
Our father who aren't in heaven
For the kingdom, the
power, the glory,
yours
Now and forever

[Robbien]

128. Lehman May Shift $32 Billion of Mortgage Assets to `Bad Bank'

Sept. 4 (Bloomberg) -- Lehman Brothers Holdings Inc. may shift about $32 billion of commercial mortgages and real estate to a new company . . . The bad bank, nicknamed Spinco for now, would have about $8 billion of equity coming from Lehman . . . Spinco would borrow the remaining $24 billion from Lehman or outside investors.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aQjsXBJ4uN1Y&refer=home

Isn't Lehman basically saying here that they have a $24 billion dollar loss which they don't want to write off so they will just move it off into some dummy company.

[Dr.Phool]

129. Yep. But where are they going to find someone dumb enough to loan the $24 billion.

Calling Dr. Poulson, Dr. Bernanke, Dr. Phil.

Calling Dr. Poulson, Dr. Bernanke, Dr. Phil.

Calling Dr. Poulson, Dr. Bernanke, Dr. Phil.


3 more stooges.

[Robbien]

130. Merrill is trying to sell $40 billion plus of bad assets for under $200 million

However the potential Korean buyer is saying the price is still too high and wants a better deal.
http://www.hedgeco.net/news/09/2008/merrill-pushing-bad-debt-for-petty-prices.html

In Lehman's case, I just don't see how setting up a Bad Bank entity is going to help anyone. Who wins?

[AnneD]

142. BWAHHAHAHAHAHAH...

she said, in her patented evil cackle.
:thumbsup:

[Ghost Dog]

132. They sure did change the accounting (solvency) rules... n/t

[ozymandius]

131. Egads! What a mess. Everyone okay?

That was a hard hit.

Dow 11,188.23 Down 344.65 (2.99%)
Nasdaq 2,259.04 Down 74.69 (3.20%)
S&P 500 1,236.83 Down 38.15 (2.99%)
10-Yr Bond 3.643% Down 0.054
NYSE Volume 5,297,484,500
Nasdaq Volume 2,388,552,250

4:15 pm : The tone during Thursday trade was pessimistic from the start. Losses were wide and deep, worsening as the session progressed. The major indices closed near session lows, each shedding at least 3%. In turn, stocks marked the largest single session drop since late June.

Participants focused on the worst as mixed economic and sales data hit the wires.

The ISM Service Index came in at 50.6 for August, suggesting expansion since it is above 50. Economists were expecting a reading of 49.5. Still, the survey received little attention.

Jobless data trends continue to suggest a soft labor market as weekly claims climbed 15,000 to 444,000. Economists expect the employment report to show further weakening when it is released tomorrow. The ADP report offered a glimpse into that report, suggesting private payrolls fell by 33,000 during August.

On the upside, weak labor conditions help limit inflation. Yet that theme was ignored as labor costs inched 0.5% lower in the second quarter. Also helping stymie inflationary pressure, productivity increased 4.3%, up from the previously stated 2.2%.

Though soft labor conditions help diminish inflationary pressures, they can also eat into discretionary spending. Several apparel retailers posted a substantial downturn in their August same-store sales results. Limited Brands (LTD 20.71, -1.35), Pacific Sunwear (PSUN 6.45, -0.45), Abercrombie & Fitch (ANF 50.99, -3.72), and Gap (GPS 19.14, -0.83) all saw comparables slide.

However, Guess (GES 38.71, +0.46) gave an upside surprise when it posted better-than-expected earnings and sales results for its latest quarter. That reporting period included the mailing of fiscal stimulus checks. Still, the company opted to raise its guidance for 2009.

Bargain-shoppers continue to bolster sales at Wal-Mart (WMT 59.78, -0.01) and BJ's Wholesale (BJ 39.56, -0.25). Each put up healthy comparable sales increases.

The negative tone governing trade was exacerbated midday when Bill Gross, bond guru and manager of one of the world's largest bond investment companies, stated the global financial marketplace is in the process of deleveraging. He also implied in a television interview that he is waiting for the Treasury to step up its actions.

The comments weighed on an already depressed financial sector. Financials finished the session at their low, down 4.7%. Financials have shed more than 28% this year, which is more than any other sector in the S&P 500.

The stark negative tone led participants to overlook another retreat in oil prices. Oil was up early, but fell as much as 2.6% before finishing roughly 1.5% lower. Oil is down roughly 6.5% this week as a stronger dollar makes the price of imported commodities less costly.

The dollar's resurgence in recent sessions has been attributable to fears of slower global economic growth. It climbed 0.7% against a basket of major foreign currencies this session. That took it to its best level this year, or more than 2.5% higher year-to-date.

In the end the slide in stocks pushed all three of the major indices into bear market territory. Each are now down at least 20% from their respective highs reached last October.DJ30 -344.65 NASDAQ -74.69 NQ100 -3.2% R2K -3.1% SP400 -2.4% SP500 -38.15 NASDAQ Adv/Vol/Dec 557/2.34 bln/2256 NYSE Adv/Vol/Dec 532/1.30 bln/2585

[Dr.Phool]

137. Nikkei has the flu. 8:35pm down 353pts. 2.82%

Should be interesting tomorrow.

[skoalyman]

139. no doubt about it doc who knows we may see 10,???.?? tomorrow

:wow: