STOCK MARKET WATCH, Friday October 10

[ozymandius]

Source: du

STOCK MARKET WATCH, Friday October 10, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 102
DAYS SINCE DEMOCRACY DIED (12/12/00) 2817 DAYS
WHERE'S OSAMA BIN-LADEN? 2542 DAYS
DAYS SINCE ENRON COLLAPSE = 2833
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 October 9, 2008

Dow... 8,579.19 -675.97 (-7.30%)
Nasdaq... 1,645.12 -95.21 (-5.47%)
S&P 500... 909.92 -75.02 (-7.62%)
Gold future... 886.50 -20.00 (-2.21%)
30-Year Bond 4.12% +0.06 (+1.40%)
10-Yr Bond... 3.83% +0.12 (+3.20%)






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. Stocks are on track for their worst year since 1937

WASHINGTON — Fear and foreboding took hold Thursday on Wall Street, as the market again plunged and investors became convinced that the nation is on the verge of a deep and prolonged recession. The decline continued in Asia, where stocks plummeted in early trading today.

The government took steps toward an extraordinary public investment in U.S. banks and General Motors' stock fell to its lowest price since 1950 on fears it will not be able to weather the downturn. Share prices fell across every industry and for each of the 30 stocks in the Dow Jones industrial average, which was down 678.91, or 7.3 percent, at 8,579.19. The declines came on the one-year anniversary of the Dow's closing high.

...

Press secretary Dana Perino said Bush would "assure the American people that they should be confident that economic officials are aggressively taking every action to stabilize our financial system."

While the stock market was the most visible sign of the distress, a more significant one may have been a rise in interest rates for short-term lending among banks. The spike came despite Wednesday's cut in the target interest rate of the world's major central banks, suggesting that banks are more fearful than ever of lending to each other.

Credit markets provided modest good news, however, as the interest rates dropped on commercial paper, a form of debt that companies use to finance short-term cash flow. The Federal Reserve announced a new program to take on that debt Tuesday.

http://www.chron.com/disp/story.mpl/nation/6050283.html

---

Thanks Bush and Perino. Hail to thee. I'm sure your words will fix everything just like they've fixed everything else.

[ozymandius]

10. Swagger turns to shudder a year after market high

SAN FRANCISCO - Just a year ago, investors were swaggering as the stock market surged to an all-time high. Now, almost everyone on Wall Street and Main Street seems to be shuddering amid a frightening reversal of fortune that has erased $8.3 trillion in shareholder wealth in the past 366 days.

...

In a series of moves aimed at avoiding the mistakes that culminated in the Great Depression nearly 80 years ago, the government already has committed to spend more than $1 trillion to prop up ailing banks and other lenders during the past month of turmoil.

But none of it seems to be working, which only seems to be scaring people even more, especially after the nation's leaders spent nearly two weeks painting a gloomy picture of the economic outlook to persuade Congress to approve a $700 billion bailout of the banks.

...

In this week alone, the Dow Jones has plummeted by 17 percent, bringing the total decline to 39 percent since the stock market's most famous bellwether peaked at 14,164.53 on Oct. 9 a year ago.

http://news.yahoo.com/s/ap/20081010/ap_on_bi_ge/meltdown_stock_market_fear

[Demeter]

147. 8.3 Trillion? Is that Domestic or Global?

How many trillion more do we have to erase before parity with reality is reached?

[NeoConsSuck]

11. Even the CNBC knuckle draggers

said it was a mistake for bush to open his mouth today, and they wished he would keep his mouth shut.

[ozymandius]

12. Wow. That's really a stunning remark given their fetish for everything Bush.

Clowns have moments of clarity every once in awhile too, I guess.

[Wednesdays]

52. About short-term lending among banks...TED Spread is 4.41

Was up to 4.46 for a moment. :scared:

[TalkingDog]

59. Dana Perino should DIAF. Her solution: all those unemployed folks

should go out and find a job.

That will fix things. Yes, indeed.

To curse her with references to anything in the animal kingdom does a disservice to everything from slime mold to jackasses. She and her ilk are literally beneath contempt.

[Hugin]

61. DIAF?

Huh?

[TalkingDog]

76. Die In A Fire

Hopefully a very hot one that will continue well into her afterlife....

[Tandalayo_Scheisskopf]

69. I love people like that.

What people like her do is look at the papers and the online job listings and say "See! Lots of jobs". Well, there is a catch to that:

1. Papers: papers have, for some time now, been running "boilerplate" ads in a lot of areas. Why? To make it look like things are better than they are. I got that straight from a person in the state department of labor. Also, some of those job listings, especially with the laundry-list of necessary qualifications, are merely dodges, to satisfy requirements needed to give the job to an H1-B. That one makes state labor department people cross their eyes chronically.

2. Online Job Services: A lot of those listings, especially an craigslist, but all are affected, are email address spam collection dodges. When you are applying for jobs online, always use an email address you can drop when things get bad with the spam, because they will. I have not gotten one solid job possibility from online applications and jeebus, I have sent out a lot of resumes and apps.

Ms. Perino needs and deserves a long period of joblessness. Along with the sustained social derision that comes with such a state of affairs.

[Hugin]

74. In my geographic area...

Classified Ads are used as resume farms. A Contracting Firm bidding on a Government Contract collects a bunch
of resumes as a way of showing they are qualified to bid on some research job.

When they win the contract... Those resumes are then discarded and they go out and hire the cheapest workers
they can find. (or often their relatives or cronies.)

The contract typically has a 20% profit built in, even if they don't achieve their mission and anything they
save by hiring unqualified staff is cream on top of that figure.

My proof? See the entire Bush Administration... It's the very definition of a Spoils System hiding under the guise
of pay-for-performance.

[ozymandius]

2. Treasury Weighs Next Step to Stem Crisis

WASHINGTON -- The Treasury Department has begun canvassing financial executives to gauge their interest in participating in a program that would inject capital into banks, highlighting how quickly officials are shifting gears as the financial turmoil deepens.

Treasury is trying to determine how to structure capital infusions into healthy banks so that the institutions can begin lending again. One possible option is to take equity stakes, such as buying preferred stock, under terms that are favorable to the institution.

While details are still being discussed, the program would most likely be voluntary and aimed at encouraging healthy institutions to participate. Under one scenario, banks could come to Treasury and ask for an injection rather than having Treasury determine which banks would get an infusion. Treasury is also discussing a plan in which the government would inject capital into firms that raise a certain amount of money on their own from the private sector.

....

Consideration of equity stakes is a shift for Treasury Secretary Henry Paulson, who had promoted the government's $700 billion plan to get bad loans off the books of financial institutions as the main tool to relieve the credit crisis. Treasury considered and discarded the equity-stakes idea as it drew up its initial plans. But Mr. Paulson's asset-relief plan has done little to comfort the markets, which increasingly view the plan as too little, too late. With credit markets frozen and the stock market plunging, Mr. Paulson has been forced to look for alternatives to alleviate the financial strain.

http://online.wsj.com/article/SB122359597433321245.html?mod=googlenews_wsj

[54anickel]

145. Why does that line, "under terms that are favorable to the institution"

make me think of the old CEO pay rationalization of "we must remain competitive and be allowed to recruit the best talent available"?

Guess there's not much left to do but bend over.....

[ozymandius]

3. Money-Market Rates in Europe to Rise as Cash Injections Misfire

Oct. 10 (Bloomberg) -- Money-market rates may rise as record cash injections and interest-rate cuts by 10 major central banks fail to unlock a credit freeze that put stocks on course for their worst week in 30 years.

The cost of borrowing in dollars for three months rose as high as 5 percent today, from 4.75 percent yesterday, according to Charles Diebel, head of European rates strategy at Nomura International Plc in London. The corresponding rate in Tokyo increased to the highest since March 1998 even as the Bank of Japan added more than $30 billion to the banking system. The Libor-OIS spread, a gauge of cash scarcity, climbed to a record 359 basis points.

....

Stock exchanges in countries including Russia and Austria delayed the opening of trading today and Indonesia extended a two-day halt as valuations plunged on concern more financial institutions will fail. Iceland yesterday suspended trading until Oct. 13 after the government seized Kaupthing hf, the nation's biggest lender. Banks in South Korea stopped giving credit to importers.

....

The ECB yesterday offered banks as much cash as they required for six days at its benchmark interest rate of 3.75 percent, bringing forward new measures to soothe money markets. It also loaned banks a record $100 billion in overnight dollar funds, allotting most of the cash at 5 percent, 350 basis points above the Federal Reserve's benchmark rate.

The BOJ has pumped more than 25 trillion yen into the system in the past three weeks, the most in at least six years, after lending growth at Japanese banks slowed in September for the first time in nine months as companies cut earnings forecasts. Loans, excluding those by credit associations, rose 1.8 percent in September from a year earlier, after increasing 2 percent in August, the Bank of Japan said today.

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

[ozymandius]

4. Bond Risk Soars to Record as Turmoil Triggers Default Concern

Oct. 10 (Bloomberg) -- The cost of default protection on corporate bonds soared to records around the world on investor concern the deepening credit crisis will trigger rising failures as companies struggle to finance their businesses.

Credit-default swaps on Europe's benchmark Markit iTraxx Crossover index rose 64 basis points to 737, according to JPMorgan Chase & Co. prices at 10:10 a.m. in London. Credit indexes in Australia and Japan also rose after the CDX North America Investment Grade index surged in New York late yesterday.

Credit markets are frozen as banks hoard cash amid concerns the worsening crisis will spur the failure of more financial companies and drive the global economy into a prolonged recession. Stock markets from Tokyo to London plunged and gold jumped to the highest in 10 weeks as investors sought bullion as a safe haven.

.....

Money market rates continued to rise even after a raft of cuts in borrowing costs by global central banks. The London interbank offered rate for three-month loans rose to 4.75 percent yesterday, the highest level since Dec. 28, as banks avoid lending to each other.

``Cutting interest rates doesn't necessarily change the underlying problem in the credit markets,'' said Sharada Selvanathan, a currency strategist at BNP Paribas SA in Hong Kong. The real problem is that rates measuring the risk of trading with banks aren't declining, she said.

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

[ozymandius]

5. Oil Plunges More Than $4 as Equities Slump on Credit Freeze

Oct. 10 (Bloomberg) -- Oil tumbled more than $4 a barrel, headed for its biggest weekly drop since 2004 and pacing a slump in commodities, on concern the deepening financial crisis will push the global economy into a recession.

Oil in New York fell to its lowest price in a year and copper dropped to a 2 1/2 year low as plunging share prices in Asia and Europe left the MSCI World equity index headed for its worst week since 1970. Gold rose to the highest in nearly 11 weeks as investors sought the metal as a haven.

...

Crude oil for November delivery fell as much as $4.59, or 5.3 percent, to $82 a barrel on the New York Mercantile Exchange. The contract traded at $82.84 at 9:37 a.m. in London. Crude futures are down more than 12 percent this week, and have dropped 44 percent from a record $147.27 a barrel reached on July 11.

...

U.S. fuel demand averaged about 18.7 million barrels a day during the past four weeks, the lowest since June 1999, according to an Energy Department report on Oct. 8. The figure is down 8.6 percent from the year-earlier period.

The U.S., which consumes 24 percent of the world's oil, is now in a recession, according to a Bloomberg News survey of economists. The economy probably shrank at a 0.2 percent annual pace in the third quarter and 0.8 percent in the last three months of 2008, according to the median estimate of 52 economists surveyed Oct. 3 to Oct. 8.

http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=avCYW4DAHkQ4

[UpInArms]

47. November crude down $3.80 to $82.79 a barrel on Globex

02. November crude down $3.80 to $82.79 a barrel on Globex
8:02 AM ET, Oct 10, 2008

[UpInArms]

70. November crude down $6.81 to $79.77 a barrel on Globex

01. November crude down $6.81 to $79.77 a barrel on Globex
9:10 AM ET, Oct 10, 2008

[AnneD]

146. Morning Marketeers....

:donut: and lurkers. UTMB in Galveston is having a massive layoff. One of the biggest employers on the island (It is a Med School)-it leaves the island without proper health care for the foreseeable future. but the thing is-once you furlough medical folks. esp Nurses-they don't come back so easily. That combined with the precipitous drop in oil prices had hubby and I going over our budget last night in a manner that I haven't done since 1987.

We are frugally cutting items because Houston will finally be experiencing the crappy economy. A 5 dollar a month savings on insurance is not too little these days. My Christmas present-a round trip ticket to see my baby in Valencia.....OVER THANKSGIVING. It will be hand made and homemade this year. Any money goes in the form of a gift card at Walgreen's,Kroger's, Fiesta or CVS for older relatives. As I have said before-we are and have been so blessed-But I can read the writing on the wall. We are in good shape because we live under our means, but it is about to get bad.

Hubby was just talking to one of his friends minutes ago and called to tell me the market is tanking this week.:rofl::spray: he works nights and was panicked. (our conversation)Sweetheart-I asked-You remember when I was asking all those budget questions last week and yesterday-well, I just wanted to make sure that we weren't overspending. :evilgrin: Of course we have some stock exposure but most of our stuff is indexed. Yes dear-I took care of all that stuff 2 years ago, we are in great shape. Yes honey tell your friend we are ok and enjoy another cup of coffee-in fact-you buy the coffee for the two of you. Remember-this is why you married me-I'm the detail person. Yes honey, we can have dinner out tonight and I will explain this to you again....no, I brought my lunch today like I usually do. Tell you what, take one of those small silver ingots and put it in your pocket-you'll feel better.:rofl:

When hubby starts losing students-things will bad-his is a discretionary income side job. He will go back in the studio and record and sell records and preform. We are surrounded by family and friends so no one will go hungry if things really go south. I recommend you start cultivating a safety net-because it is community that will help you survive.

[ozymandius]

6. Wells Fargo's $12 Billion Bid Beats Citi to Wachovia (Update1)

Oct. 10 (Bloomberg) -- Wells Fargo & Co. will become the largest U.S. bank by branches with an $11.7 billion offer for ailing rival Wachovia Corp. that trumped a competing bid by Citigroup Inc.

Wells Fargo, based in San Francisco, and Wachovia said late yesterday they will stick to the terms of the all-stock deal they struck Oct. 3, four days after Citigroup's offer. The bid values the Charlotte, North Carolina-based lender at about $5.43 a share, 51 percent more than Wachovia's closing price of $3.60 in New York trading.

....

Citigroup, based in New York, dropped the legal battle it waged to prevent the merger. The bank, led by Chief Executive Officer Vikram Pandit, still plans to sue Wells Fargo for $60 billion in damages, saying news of the competing bid caused its own share price to tumble.

Fed Cease-Fire

A torrent of back-and-forth court filings over the deal generated so much publicity that the Federal Reserve, concerned about its effect on U.S. financial markets, insisted on a cease- fire to allow the two suitors to settle their differences. The pause lasted until late yesterday, when Citigroup said it had ended talks with Wells Fargo.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aUpv3.YOFyRU&refer=home

[aquart]

39. Wait. Citi is suing to prevent free market competition?

Come again?

[TalkingDog]

60. I'm just north of Charlotte and watching this with keen interest.

The more stable of the suitors is Wells-Fargo. They would leave the largest number of jobs in the local economy and they would benefit by expanding their territory.

Citi has not been in the banking business up until this point. They need Wachovia because of their pool of credit and cash accounts.

Given legal precedents, Citi will lose this. They are only suing because they think they can get a "go-away" settlement and they are desperate. You know, the drunken uncle who won't leave your party til you give him some booze money.

[Hugin]

65. Yes, Citi is Desperate. (With a capital D)

More evidence...

I learned the other day, much to my anger, that Verizon now sends out all of it's rebates in the form of
Citi Debt Cards.

As usual, it was an unannounced change in policy for Verizon. Which fits Verizon's MO of always using little
'gotchas' to increase it's revenue stream. I guess they think the immunity they were granted extends to screwing
their own customers. They really need to revisit their business model. It's sooo 15th Century Serf based.


So, thus ends my association with Verizon.

[Demeter]

148. I'd Like to See Them Try to Talk a Judge and Jury into $60B Settlement

It should be better than a sitcom....

[ozymandius]

7. London stocks slump by more than 10%

The British capital's FTSE 100 index of leading shares nosedived as low as 3,873.99 points -- the first time below 4,000 points since July 3, 2002.

http://news.yahoo.com/s/afp/20081010/wl_uk_afp/stockseuropebritain

[livelongandprosper]

8. Trading stopped in Vienna. DAX down by 10% at the opening

FTSE falls below 4000.
CAC sharply lower.
Hang Seng down by 8%.
Kospi down 4.31%
ASX 200 down more than 8%.

I'm just reading the scroll on CNN International

This is big shit, folks. Investors lost their collective mind.

[ozymandius]

9. Asian markets plunge; Nikkei sinks nearly 10 pct.

TOKYO - A massive sell-off on Wall Street and escalating fears of a global recession sent world stocks plunging Friday, with Japan's key index shedding nearly 10 percent to close out its worst week in history.

Despite recent moves by the world's central banks to thaw frozen credit markets and boost investor confidence, their efforts have fallen flat as markets hurtled toward a global equity crisis.

"Selling is unstoppable in New York and Tokyo," said Yutaka Miura, senior strategist at Shinko Securities Co. Ltd. in Tokyo. "Investors were gripped by fear."

....

In Australia, where the S&P/ASX200 plummeted a record 8.3 percent, market watchers were calling it "Black Friday."

...

Key indices in Hong Kong, India and Singapore were all down about 7 or 8 percent. Mainland China's Shanghai Composite Index posted a more moderate decline of 3.6 percent.

...

As Europe opened, major markets also plunged. Britain's FTSE 100 index slid about more than 5 percent, while Germany's DAX was down 7 percent.

http://news.yahoo.com/s/ap/20081010/ap_on_bi_ge/world_markets

[ozymandius]

21. Damn! Look at the chart! Straight down!

[UpInArms]

48. Global crisis claims Japan insurer, markets panic

http://news.yahoo.com/s/nm/20081010/bs_nm/us_financial_japan

TOKYO (Reuters) - The global credit crisis claimed its first Japanese financial institution on Friday and the government looked to prop up smaller banks, as Tokyo shares suffered their biggest rout since a 1987 crash.

Government ministers played down the risk of contagion from the collapse of an unlisted, small insurer in Japan, which has been a safe haven in a global crisis that has destroyed banks across the United States and Europe.

But spooked investors stampeded for cash before a long weekend, freezing one of the last functioning money markets in the industrialized world and pummeling stocks.

The Nikkei share average tumbled 9.6 percent, taking its losses for the week to 24 percent, following a dizzying slide on Wall Street.

"This is panic. New York, the currencies -- there's nothing left for us to trust," said Takashi Ushio, head of investment strategy at Marusan Securities.

"Investors are scurrying to convert to cash. A lack of confidence is coupling with panic."

...more...

[ozymandius]

13. Financial turmoil, weaker sales batter GM shares

NEW YORK - Investors were watching to see whether General Motors Corp. shares will fall for a seventh straight session Friday as financial turmoil and a weakening global auto market have heightened worries that the automaker may be unable to pull out of its nosedive before it runs out of cash.

The company's shares lost nearly one-third of their value Thursday, plunging to their lowest level in more than 58 years, after Standard & Poor's Ratings Services said the automaker's credit could fall further into junk status, making it even tougher to borrow money.

....

GM announced a plan in July that calls for cutting $10 billion in costs and raising another $5 billion through asset sales and borrowing through 2009.

The Detroit automaker had $21 billion in cash and $5 billion available through credit lines at the end of June for total liquidity of $26 billion, but it has been burning through cash at a pace of more than $1 billion a month and needs about $11 billion to $14 billion on hand to keep operating.

GM shares plummeted $2.15, or 31.1 percent, to close Thursday at $4.76 after falling as low as $4.65. That low marked the automaker's lowest trade since March 15, 1950, according to the Center for Research in Security Prices at the University of Chicago. At that time, the Korean War was three months away from beginning, and gasoline cost 27 cents a gallon.

http://news.yahoo.com/s/ap/20081010/ap_on_bi_ge/auto_stocks

[ozymandius]

14. Jeebus! I can't move an inch in any direction without bumping into disastrous news.

Anything good to be found today?

[ozymandius]

15. Krugman: Two kinds of problems

(excerpt)

The most acute problems involve the run on the financial system. This has to be brought under control if we want to avoid a 1931-style collapse. And things like homeowner workouts quite simply won’t deliver enough relief to bank capital, and certainly not fast enough, to help significantly on that front. So there’s a financial relief imperative, which mainly involves injection of capital and guarantees of liquidity.

Now, on top of that we’ve got the economy’s slide into recession, which will continue even if the high-speed financial crisis is brought under control.

http://krugman.blogs.nytimes.com/2008/10/09/two-kinds-of-problem/

---

It's quite brief. Therefore Krugman's comments cut to the chase in naming what he feels must be addressed right now.

[Hugin]

22. Here is where Krugman and I part ways in our thinking...

He says, "Now, on top of that we’ve got the economy’s slide into recession"

I submit that the WORKING part of the economy has been in a recession for quite some time (at least since 2002)...
There's no 'sliding'. The so-called recovery between then and a year ago was only 'confidence building' driven
by hot air A.K.A. lies.

Ergo, the only truly sound way out of this is to inject confidence into the workforce. A living wage would be
a good start. Good banks will come as a result of people having enough extra to save. There is no such thing
as a healthy bank without depositors who can be counted on to provide stability.

[ozymandius]

27. I concur, Prag.

The real economy, defined by sustained growth without leveraging, on par with growth expectation prior to the bubble schemes developed twenty years ago, has been in recession for years.

[Hugin]

35. I was quite pleased to hear...

Sen. Obama say something along those lines Tuesday night. It was refreshing.

[ozymandius]

36. He's a pragmatist. Plus he's not insane.

So refreshing it is to see our next leader tossing old ideas to the curb. As the President sets the national agenda - Obama's ideas show little indication that supply-side economics (despite too many University of Chicago economists are on his team) have any traction after this disastrous course of events.

[Hugin]

40. Sanity is an admirable quality in a candidate.

It gives me much confidence to see it.

[Tandalayo_Scheisskopf]

75. Even U. of Chicago Economists...

Disciples of Yog-Sothoth that they are, can occasionally look around and see that their Friedman-esque philosophies work about as well as windshield wipers on a duck's ass.

It will be a grand, grand day for the republic when they raze that temple to greed to the ground and salt the earth it stood upon with plutonium, to make it uninhabitable for millions of years.

[aquart]

41. So where are the bills to outlaw leveraging?

Injecting money isn't restoring confidence. We don't trust people not to do the same damn thing. When are we going to be assured they CAN'T do the same damn thing? When do we restore Glass Steagal? Outlaw derivatives? Bundling?

[Hugin]

43. That needs to be done as well and soon!

We were discussing at what economic level any money injection needs to happen. It's certainly not
into the Event-Horizon of the Banking Black Hole as is currently the practice.

[Robbien]

55. They keep saying the problem is banks don't want to lend to each other

Banks are sitting on piles and piles of cash but won't lend it out. They have been saying that for a couple of months now.

What they are not saying is that every bank knows that all other banks are corrupt and untrustworthy which is the basis for their reluctance to hand any other bank any cash.

They just keep saying the problem is banks don't want to lend to each other and leave it at that.

[Ghost Dog]

16. 'Morning all! See some discussion of Roubini's ALERT proposals (01:00 GMT) here:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4208211

[ozymandius]

19. From your post

... At this point severe damage is done and one cannot rule out a systemic collapse and a global depression. It will take a significant change in leadership of economic policy and very radical, coordinated policy actions among all advanced and emerging market economies to avoid this economic and financial disaster. Urgent and immediate necessary actions that need to be done globally (with some variants across countries depending on the severity of the problem and the overall resources available to the sovereigns) include:

* another rapid round of policy rate cuts of the order of at least 150 basis points on average globally;

* a temporary blanket guarantee of all deposits while a triage between insolvent financial institutions that need to be shut down and distressed but solvent institutions that need to be partially nationalized with injections of public capital is made;

* a rapid reduction of the debt burden of insolvent households preceded by a temporary freeze on all foreclosures;

* massive and unlimited provision of liquidity to solvent financial institutions;

* public provision of credit to the solvent parts of the corporate sector to avoid a short-term debt refinancing crisis for solvent but illiquid corporations and small businesses;

* a massive direct government fiscal stimulus packages that includes public works, infrastructure spending, unemployment benefits, tax rebates to lower income households and provision of grants to strapped and crunched state and local government;

* a rapid resolution of the banking problems via triage, public recapitalization of financial institutions and reduction of the debt burden of distressed households and borrowers;

* an agreement between lender and creditor countries running current account surpluses and borrowing, and debtor countries running current account deficits to maintain an orderly financing of deficits and a recycling of the surpluses of creditors to avoid a disorderly adjustment of such imbalances.

At this point anything short of these radical and coordinated actions may lead to a market crash, a global systemic financial meltdown and to a global depression. The time to act is now as all the policy officials of the world are meeting this weekend in Washington at the IMF and World Bank annual meetings.

---

I like all his suggestions. Can you see any flaws?

[Ghost Dog]

23. In the circumstances, looks like a good comprehensive plan

to my eye. Prof. Roubini appears to be the right kind of realist the decision-makers are surely now (at last) listening to.

[Hugin]

25. The only addition I'd make is some sort of provision...

Restricting the foxes from re-entering the hen-house.

Don't have the same organizations who caused the problem at the table developing the solution for the very
fact that some of the decisions made may not be too popular with them.

[ozymandius]

29. Again, Prag, I concur.

No atheists in foxholes. No chaos capitalists writing regulations.

[Demeter]

37. One BIG Flaw--Bush Is Still There

If we could get him to abdicate to Obama early.....then change, meaningful, purposeful, effective change could start.


Or barring that, following Iceland's lead and establishing a domestic national bank to deal with all things interior, and bank holiday for the stock markets, might stem the blood loss....

[progressive_realist]

50. I think he understates the case.

"...may lead to a market crash, a global systemic financial meltdown, and to a global depression."

The first two have already occurred. Only the third still has a question mark behind it.

As far as his policy prescriptions, I like most of them. But lowering the benchmark interest rates seems counterproductive. To stop the hoarding of capital, it would seem like RAISING the interest rates would be more likely to achieve the desired result. With super-low interest rates, everyone wants to borrow and no one wants to lend. Isn't that precisely the problem?

[Tansy_Gold]

63. Can I see any flaws? Yes.

He doesn't address "the economy," which is people making and doing things, getting paid for it, buying other things that someone else makes, etc., etc., etc.

The "financial system," "the markets," and "the banks" are NOT "the economy." Until these ivory tower economists get their thinking -- if not their flabby little bodies -- out in the real world, nothing's going to change and six days or six weeks or six months later they're all going to be scratching their beards or rubbing their fashionably bald little (pointed) heads and wondering why their "models" failed and why "no one can understand how this happened" and "none of us saw this coming."

It happened, you friggin' asswipes, because you forgot that at the bottom of your lovely little pyramid are supposed to be the loyal, faithful, hard-working "people" who loyally and faithfully toil in your factories and fields, accept your largesse with appropriate deference and gratitude, and then spend it in a steady trickle-up AND trickle-down perpetual recycling of wealth and goods and services.

IF YOU FORGET THE WORKERS, morons, your system collapses.

And fellas, you done forgot the workers.




Tansy Gold, working

[radfringe]

17. conspicuous by it's absence

haven't seen any blatherhead mention this, even in passing.

there is blather about a lack of confidence in the markets - but none about lack of confidence and trust in our leaders (i.e. bush-cheney)

at this point is doesn't matter what bush/cheney say and is also applies to anyone in their misadminstration - no one is listening to them. It's every person for themselves and chaos is reigning.

so for the next 25 days - we hold our breath and hope

[ozymandius]

20. From my perspective, having worked in the news bidness, the media outlets

are obliged to report public statements. Should Barney Frank make this claim of "no confidence" then it will be reported as part of that public statement obligation from a high-ranking government official. Otherwise, scant reporting of Bush's statement will be a de facto editorial on Bush's relevance in this matter. The news media can vote with its feet just like everybody else.

So I doubt you'll be disappointed in this regard. There's bigger stories today than empty platitudes from the Grand Master Piehole.

[ozymandius]

18. Today's Reports

08:30 Export Prices ex-ag. Sep
Briefing.com NA
Consensus NA
Prior NA

08:30 Import Prices ex-oil Sep
Briefing.com NA
Consensus NA
Prior NA

08:30 Trade Balance Aug
Briefing.com -$58.0B
Consensus -$59.0B
Prior -$62.2B

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

[UpInArms]

58. 8:30 reports:

01. U.S. Aug. exports down 2%, biggest since June '04
8:33 AM ET, Oct 10, 2008

02. U.S. Aug. exports down 2%, biggest since June '04
8:33 AM ET, Oct 10, 2008

03. U.S. Aug. auto imports lowest since March '05
8:33 AM ET, Oct 10, 2008

05. U.S. Aug. trade gap narrows 3.5% to $59.1 bln
8:31 AM ET, Oct 10, 2008

07. U.S. September import prices ex-fuels fall 0.5%
8:30 AM ET, Oct 10, 2008

08. U.S. September import prices ex-petroleum fall 0.9%
8:30 AM ET, Oct 10, 2008

09. U.S. September petroleum import prices fall 9%
8:30 AM ET, Oct 10, 2008

10. U.S. 12-month import prices rise 14.5%
8:30 AM ET, Oct 10, 2008

16. U.S. September import prices fall 3% vs. 2.9% fall expected
8:30 AM ET, Oct 10, 2008

[ozymandius]

24. Morgan Stanley Put on Watch for Possible Downgrade by Moody's (Update: Goldman on Negative Outlook)

Story from the NY Times:

Much of the concern centered on Morgan Stanley’s deal to raise $9 billion from Mitsubishi UFJ of Japan. Despite repeated assurances from Mr. Mack and Mitsubishi executives, some investors worry that the decline in Morgan Stanley’s share price, coupled with the steep sell-off in the Japanese stock market this week, might prompt Mitsubishi to reconsider its investment. Morgan Stanley hopes closing the Mitsubishi deal will help ease the burden on its shares the way Warren E. Buffett’s $5 billion infusion helped stabilize Goldman Sachs.

Fears that the deal would not close were evident in the bond market, where Morgan Stanley’s 10-year debt sank to 64 cents on the dollar on Thursday, down from 96 cents a month ago. The price of insuring Morgan Stanley’s debt soared to record heights....

And now here's the excellent rant from Yves Smith:

Now I am really going to rant. What is going on here? The financial system is on the verge of a meltdown, we have the Lehman credit default swaps settlement tomorrow, which is a huge test that has investors on Defcon One. Markets are as unhinged as they can be and still be functioning around the margin. So Moody's decides NOW to put out a possible downgrade alert for Morgan Stanley?

After their DECADES of being slow to downgrade, of almost religiously administering downward revisions after the bond markets had already re-rated the credit on their own, Moody's decides to become true believers in timeliness when that can have the effect of driving a knife into the markets and giving a twist?

If an investment bank is downgraded beyond a certain level, counterparties stop trading with it because they will get downgraded automatically by virtue of their exposure, Thus concerns over a possible downgrade can lead dealers to start directing business away from a firm that appears to be weakening, creating the beginnings of a run. Morgan Stanley is bigger than Lehman was. After the havoc the collapse of Lehman wrought, Morgan Stanley will not be permitted to fail. But to have that hanging over the markets at this juncture is the worst timing imaginable.

There's so much more there. Is Moody's trying to claw its way back to being relevant?

[Demeter]

38. I Suspect the Long Knives Are Out

And somebody's doing some revenge work there.

[antigop]

45. I've wondered about that as well, Demeter.

A lot of these guys know one another...and I'm wondering when they are all going to turn against each other.

[OakCliffDem]

26. K & R

[Roland99]

28. To consider a possible reason behind yesterday's late and massive selloff: Lehman CDS auction....

Forgive any holes in my argument...I'm barely awake at the moment. :)


Everything dropped yesterday. Treasuries, Stocks, Commodities.... It's all going to cash.


http://www.rgemonitor.com
What Is Really Bothering Markets: Lehman's CDS Settlement on October 10 With A $360bn Expected Payout


Comments here:
http://bigpicture.typepad.com/comments/2008/10/lehman-cds-unwi.html


$360 billion in assets held by whoever is holding the CDSs are about to be written down to 10% of that, if that. And considering investment banks and the like were allowed to be over-leveraged from 9:1 to as much as 33:1. In 2004 the SEC rules changed re: leverage ratios. The leverage ratios at the end of 2007 were: Goldman Sachs 26:1, Lehman Brothers 30:1, Merrill Lynch 28:1, Morgan Stanley 33:1 and Bear Stearns 33:1.

Now, what's happening tomorrow that might have triggered yesterday's late-day panic?

That Lehman auction.

The only question that remains is just how will it pan out? Will it trigger a run on hedge funds and on banks and cause many banks to fail, putting incredible pressure on the FDIC to payout the insured deposits, forcing the Fed to print vast sums of more money, forcing inflation to unprecedented levels in the U.S.?

Or will the uncertainty surrounding this event settle down once the auction is over and LIBOR settles down and credit opens back up and a calm can wash over the global markets?

No one knows...NO ONE.

And the really scary thing? This is just one big bunch of contract expirations from one investment bank. The total value of all derivatives, as we all know, is over $500 TRILLION. Just wait for the next batch to unwind, then the next, and the next, and....

[ozymandius]

30. Here's another spooky pre-Halloween tale.

We've yet to hear from the Asian banks about how much of Big Shitpile resides on their books.

Can Asian banks really foment a rescue of everyone else when no one knows how much garbage they've bought?

[Hugin]

33. Very interesting.

I must admit a lack of knowledge into the inner most workings of these things.

Armed with your clear description, I can see a little more of what's happening.

What if there's an auction and nobody bids? Maybe that's what Paulson is intending to do is to be
the bidder of last choice. Will that blow forth the Hyper-Inflation we've all been fearing?

Someone here on the SMW a few months ago was wondering aloud if Paulson et al felt that Hyper-inflation
was easier to bring under control than some of the other emerging issues. (If true, it's another of
Paulson's theories I don't share.)

Thanks for the fine example of Critical Thinking, Roland99. :)

[Robbien]

62. That does seems to be the fear ruling the market this gloomy Friday

The majority of Lehman's bonds are trading in the area of 12 to 13 cents on the dollar indicating the swaps will only recover in that area.

But the fear is they won't even receive that.

If more protection sellers than buyers choose to use the auction to settle the contracts, there will be a net open interest to sell bonds, which can push down the recovery.

"With so much uncertainty over currency, coupon and maturity, we feel most protection sellers will opt for cash settlement," said Tim Backshall, chief strategist at Credit Derivatives Research in Walnut Creek, California.

"We also feel that protection buyers are probably dominated by traditional managers who owned the bonds but bought some protection at the end to hedge," he said. And these investors are likely to choose to settle the contracts by physically delivering the bonds, instead of using the auction, he added.

This could send recovery levels down even lower than currently expected.

"This will leave the auction with a net open interest of bond sellers putting some downward pressure on physical bonds, and potentially leading to a lower recovery rate," Backshall said.

http://www.reuters.com/article/bondsNews/idUSN0932589620081009?sp=true

[Demeter]

149. Can Anybody Translate That to English For The Accounting-Impaired?

[ozymandius]

31. Yamato Life Files for Bankruptcy, Citing Investments (Update3)

Oct. 10 (Bloomberg) -- Yamato Life Insurance Co., a 98- year-old Japanese insurer, filed for court protection from creditors in the nation's first bankruptcy in the industry in seven years, with debts exceeding assets by 11.5 billion yen ($116 million).

A decline in the value of securities holdings widened losses at the Tokyo-based company, whose debts total 269.5 billion yen, as value of its investments widened amid the global market meltdown, Yamato Life said at a press briefing in Tokyo.

....

The firm, which had 1,019 employees as of March, had shifted its assets to alternative investments, which accounted for about 30 percent of the total portfolio as of the end of September, to boost returns. The move ended up hurting the company as global markets collapsed, Nakazono said.

....
Yamato's failure comes after Japan's corporate bankruptcies jumped 34 percent last month, the fastest pace in eight years, as exports slumped and the credit-market turmoil engulfed the world's second-largest economy. Bankruptcies rose to 1,408 cases in September from a year earlier, according to Tokyo Shoko Research Ltd.

http://www.bloomberg.com/apps/news?pid=20601101&sid=a3ai_Qgp6uNI&refer=japan

[Buttercup McToots]

71. Ozy...Transamerican Life

I have a fixed annuity in Transamerican Life...have you heard anything about them?
I tell ya , I am getting nervous now...
Bills coming fast and furious...
Hubby's work at a dead halt with forced time off...
Groceries, utilities...all thru the roof...
My stomach is roiling...:puke:

[n2doc]

32. Black Friday

BLACK FRIDAY (Steely Dan)

When Black Friday comes
I'll stand down by the door
And catch the grey men when they
Dive from the fourteenth floor

When Black Friday comes
I'll collect everything I'm owed
And before my friends find out
I'll be on the road
When Black Friday falls you know it's got to be
Don't let it fall on me

When Black Friday comes
I'll fly down to Muswellbrook
Gonna strike all the big red words
From my little black book
Gonna do just what I please
Gonna wear no socks and shoes
With nothing to do but feed
All the kangaroos
When Black Friday comes I'll be on that hill
You know I will

When Black Friday comes
I'm gonna dig myself a hole
Gonna lay down in it 'til
I satisfy my soul
Gonna let the world pass by me
The Archbishop's gonna sanctify me
And if he don't come across
I'm gonna let it roll

When Black Friday comes
I'm gonna stake my claim
I'll guess I'll change my name

[Festivito]

34. Debt: 10/08/2008 10,245,247,740,307.58 (UP 20,995,547,365.10) (19B$/d)

(Sixth day in FY2009. Up again. All that money in the Federal Reserve keeps it out of circulation and would lower stock values and make credit difficult, would it not?)

= Held by the Public + Intragovernmental(FICA)
5,974,095,384,099.93 + 4,271,152,356,207.65
UP 30,103,147,900.03 + DOWN 9,107,600,534.87
(FICA changes mostly around each end of month. Makes sense, that's when checks go out.)

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

HISTORICAL:
President's term ends/begins: Jan 20
01/20/1993 4,188,092,107,183.60 BC Inaugural
01/22/2001 5,728,195,796,181.57 BC (UP 1,540,103,688,997.97)
10/08/2008 10,245,247,740,307.58 ** (UP 4,517,051,944,125.93 so far since Bush took office)

Fiscal Year ends: Sep 30
(Guess who might want to hide the Reagan Bush years.)
Borrowed in FY1993: (OLDER DATA IS MISSING)
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: 220,522,843,395.10 so far, five days.

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

Last 30 calendar days debt increases:
09/09/2008 23,918,156,944.65
09/10/2008 -7,970,334,420.54
09/11/2008 -2,675,615,210.93
09/12/2008 _1,202,155,851.51
09/15/2008 -49,228,687,329.80
09/16/2008 _5,701,201,112.39
09/17/2008 _7,355,794,627.06
09/18/2008 17,484,342,704.07
09/19/2008 62,377,816,635.27
09/22/2008 58,856,546,016.06
09/23/2008 _5,703,078,765.55
09/24/2008 -3,488,582,847.72
09/25/2008 61,169,304,555.69
09/26/2008 39,949,565,065.16
09/29/2008 56,378,700,532.51
09/30/2008 79,146,664,930.81
10/01/2008 99,500,170,215.20
10/02/2008 24,524,216,956.50
10/03/2008 37,519,723,115.00
10/06/2008 _1,485,340,209.70
10/07/2008 36,497,845,533.60
10/08/2008 20,995,547,365.10

SUBTOTAL 576,402,951,326.84 added to debt, last 30 days.
per 30 days 19,213,431,710.89 average per day, last 30 days. (19.2B$/day)

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.)
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3534990&mesg_id=3535055

[Festivito]

150. Debt: 10/09/2008 10,266,382,646,543.62 (UP 21,134,906,236.10) (21B$ avg-in-30-days)

(Seventh day in FY2009. Average for last 30-day's work days 26,073,622,755.38. Average for last 30 calendar days 19,120,656,687.28.)

= Held by the Public + Intragovernmental(FICA)
5,994,929,606,697.25 + 4,271,453,039,846.37
UP 20,834,222,597.32 + UP __,300,683,638.72

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

HISTORICAL:
President's term ends/begins: Jan 20
01/20/1993 4,188,092,107,183.60 BC Inaugural
01/22/2001 5,728,195,796,181.57 BC (UP 1,540,103,688,997.97)
10/09/2008 10,245,247,740,307.58 ** (UP 4,538,186,850,362.03 so far since Bush took office)

Fiscal Year ends: Sep 30
(Guess who might want to hide the Reagan Bush years.)
Borrowed in FY1993: (OLDER DATA IS MISSING)
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: 241,657,749,631.20 so far.

For a prettier and more explanitory 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:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3536821&mesg_id=3536902

[UpInArms]

42. dollar watch

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

Last trade 81.500 Change +0.103 (+0.13%)

US Dollar Up Despite Dismal Jobless Claims, Wholesale Sales - What Will Friday's G7 Meeting Bring?

http://www.dailyfx.com/story/bio1/US_Dollar_Up_Despite_Dismal_1223590449767.html

The US dollar ended the day on a stronger note as an end-of-day selloff in the US stock markets triggered yet another round of flight-to-safety. More specifically, the DJIA ended the day down 7.33 percent while the S&P 500 finished down 7.62 percent, while the CBOE’s VIX Volatility Index hit a fresh record high of 64.92. Furthermore, US economic data was far from optimistic, as the 4-week moving average of initial jobless claims (which helps to smooth out the volatility associated with the week-to-week figures) jumped to 482.5K from 474.25K, marking the highest reading since at least January 2002. Meanwhile, US wholesale inventories jumped 0.8 percent in August, as foreign and domestic demand wanes. Indeed, the ratio of inventory to sales hit 1.1, the highest since March as nearly every component showed building supply levels along with weaker sales. Overall, economic data points toward recession for the US, which could be confirmed by GDP figures for Q3 and Q4.

Will the US go the way of the UK by recapitalizing banks in exchange for shares? It looks like the idea may be gaining traction. According to Treasury Secretary Henry Paulson, the $700 billion rescue bill passed last week allows the government to do so in addition to buying troubled assets. This was the method used by Sweden back in the early 1990s when they faced their own financial crisis, in which shareholders were not compensated and only some banks were included in the plan, chosen with a microeconomic model that determined which were most likely to survive. While any sort of action by the Treasury is likely to take weeks, the announcement of such a plan could provide a boost for investor confidence. The next big question mark for the markets is this Friday’s G7 meeting in Washington. Treasury officials have said that no joint initiatives will be announced at the meeting following the coordinated rate cuts on Wednesday, but this could change depending on market conditions. Nevertheless, a lack of strong statement or plan is likely to take a toll on the markets when they open in Asia on Sunday, so the pressure is on for G7 officials to do or say something meaningful.

...more...

US Dollar Pullback (Decline) May Accelerate

http://www.dailyfx.com/story/bio2/US_Dollar_Pullback__Decline__May_1223562677590.html


The EURUSD is holding above a short term support line. Staying above there keeps the recovery scenario firmly on track. “The decline from 1.4871 is an impulse (5 waves). Expectations were that the ensuing advance would prove corrective and it has. However, the advance is extremely shallow when compared with the preceding decline, having not even reached the 38.2% (which would be near 1.39).”


The USDJPY has reached the 38.2% of the most recent 5 wave drop. Not shown is the break above a short term trendline. This development suggests that a larger correction, perhaps to the 61.8% (103.44) is underway.

...more...

[Demeter]

44. The Triumph of Hope over Experience

The rest of the world really thinks that somebody with brains in the US will save their bacon? But we can't get those brains in office for 3 months! There won't be any bacon left by then!

[Marie26]

46. Fasten your seat-belts,

it's going to be a bumpy ride...

[UpInArms]

49. GE meets lowered outlook as profit drops 22%

http://www.marketwatch.com/news/story/ge-meets-lowered-outlook-profit/story.aspx?guid=%7BB42CB19B%2DF05F%2D4685%2DAC87%2D3103A78F9994%7D&dist=hplatest

LONDON (MarketWatch) -- General Electric (GE: 19.01, -1.64, -7.9%) on Friday posted third-quarter results in line with the lowered outlook it gave in September. GE's net income dropped 22% to $4.31 billion, or 43 cents a share. From continuing operations, it earned 45 cents a share; GE had guided for earnings between 43 cents and 48 cents a share. Revenue rose 11% to $47.23 billion. GE said industrial growth should continue, and said the total orders backlog is up 20% to $170 billion. It added it's on track to earn roughly $20 billion this year.

[UpInArms]

51. 3-mth interbank rates high as crisis deepens money mkt freeze

http://www.reuters.com/article/usDollarRpt/idUSLA66672520081010?sp=true

LONDON, Oct 10 (Reuters) - The interbank cost of borrowing three-month dollar, euro and sterling funds remained high on Friday, as plunging stock markets around the world deepened the financial crisis and ensured money markets remained frozen.

The coordinated interest rate cuts from major central banks around the world earlier this week and myriad other steps from authorities to shore up the banking system have so far failed to get banks lending again or instill confidence.

The cost of borrowing overnight sterling and euros, however, were indicated close to the European Central Bank and Bank of England new target rates.

But overnight dollars were still indicated significantly above the Federal Reserve's new target rate, reflecting financial institutions' demand for greenbacks to cover dollar positions, exposure and fund dollar assets.

In early London trading on Friday interbank rates for three-month sterling deposit rates were last indicated around 6.3 percent <GBP3MD=>, hugging the highs of the week.

Three-month euro rates were indicated around 5.35 percent <EUR3MD=> and three-month dollars at 6.4 percent <USD3MD=>, also near the week's highs.

...more...

[UpInArms]

53. Freaky Friday Potpourri: Chicken Little Skinned!

http://www.minyanville.com/articles/C-Paulson-citigroup-Credit-WB-volatility/index/a/19434

So, did I miss anything while observing the holiday?

The wheels officially wobbled off the financial wagon as equity markets catch up with the deep freeze in credit. The supply was harsh, relentless and all consuming as margin calls and redemption notices mixed for a toxic combination into the closing bell.

While we’ve long warned that such an occurrence would arrive when faith in the system waned and the credibility of our leaders was called into question, reality bites when perception and reality intertwine.

There’s no crying in baseball and no hiding in the ‘Ville. As such, I’ll offer a heartfelt mea culpa for adopting a more constructive stance on a trading basis earlier this week. I was wrong—even if I’m proven early—so I’ll humbly raise my hand and say “my bad!”

The trick to trading—much like dieting—is that we can sometimes slip but we mustn’t fall. When I consciously opted to add exposure as a function of price rather than stopping out my risk with the trade below S&P 1000, the stumble ensued.

With two profitable upside exceptions--March 17th and July 16th--I’ve been hoarding cash for a long time and taking shots on the downside. As such, I have dry powder to pick my spots and extend my risk leash while the rest of the world runs for the hills. I’m not post-rationalizing, I’m simply communicating with hopes that my missteps morph into lessons as we together find our way.

...more...

[UpInArms]

54. Op-Ed: The Second Great Depression?

http://www.minyanville.com/articles/print.php?a=19357

This country has been living in false prosperity since the early 1980s: The huge McMansions, luxury cars, high tech gadgets, granite kitchens, second homes and exotic vacations were all purchased with debt. These “assets” are depreciating rapidly, and consumers and companies are selling them desperately to pay down their suffocating debts.

The psychology of this country has begun to change from conspicuous consumption to forced liquidation and saving. The most recent flow of funds data shows that total credit market debt is $51 trillion; our GDP is $14.3 trillion. Debt as a percentage of GDP is now 356%; during the Great Depression, it was 260%. This massive buildup of leverage is just beginning to unwind; the pain will be tremendous when it gains momentum.

Coming Depression?

There's no consensus regarding the causes of the Great Depression, but some common themes are clear. I will try to evaluate today’s environment versus the conditions that existed in the 1920s.

1. Expansion of the money supply during the 1920s

According to the Austrian School of Economics, the Great Depression was mainly caused by the expansion of the money supply by the Federal Reserve in the 1920s, leading to an unsustainable credit driven boom. Both Friedrich Hayek and Ludwig von Mises predicted an economic collapse in early 1929. In the Austrian view, it was this inflation of the money supply that led to an unsustainable boom in both asset prices (stocks and bonds) and capital goods.

Alan Greenspan reduced interest rates to 1% for over a year in 2003. This act led to a speculative frenzy in real estate, $3 trillion of equity withdrawal by consumers and tremendous overconsumption built upon a foundation of debt. This speculative frenzy was exacerbated by the “Masters of the Universe” on Wall Street, with their CDOs, MBSs, and other magic potions that made bad loans appear good.

The Bush administration’s decision to not enforce any existing oversight of the banks also contributed greatly to the current situation. Realistically, the current conditions are worse than they were prior to the Great Depression, based on the speculation that has occurred in the last 8 years in stocks and real estate.

2. Excessive debt leading to false prosperity

By 1929, the richest 1% owned 40% of the nation’s wealth. The top 5% earned 33% of the income in the country, while the bottom 93% experienced a 4% drop in real disposable income between 1923 and 1929. The middle class comprised only 20% of all Americans.

...more...

[UpInArms]

56. OMG! here's a part of the problem we haven't even known about!

from the article linked above:

Ben Bernanke, a self-proclaimed expert on the Great Depression, concluded that missteps by the Fed in 1930 and 1931 caused the Depression. After the stock market crashed, speculators began selling dollars for gold in 1931. This caused the value of the dollar to plummet. The Fed raised rates and reduced the money supply by 30% to prop up the dollar. Investors began withdrawing their dollars from banks.

[DemReadingDU]

57. Columbus, Oh - National Century Trial, Thursday's updates

10/9/08 Poulsen attorney: Investor partially to blame for losses
by Kevin Kemper
Thursday, October 9, 2008 - 5:40 PM EDT

When National Century Financial Enterprises Inc. collapsed into bankruptcy in 2002, as much as $2.84 billion of investor money was lost.

Thursday afternoon, a former investment manager argued with an attorney representing National Century’s former CEO over whether or not losses were the fault of investors who didn’t do enough research, or National Century executives who sent money out the door without collateral.

“The experts that we all relied on were given information they believed was true, but it turns out it wasn’t,” said Terrence Glomski, a former principal of Lincoln Capital Management, an investment firm whose clients lost $49.8 million when National Century collapsed.

Glomski was testifying as a government witness Thursday in the criminal fraud trial of Lance Poulsen, a former owner and chief executive of National Century.

Under cross examination by Poulsen attorney Peter Anderson, Glomski said that when he made the decision to invest his clients’ money in National Century’s bonds, he had relied on the opinion of ratings agencies who gave the bonds their safest and highest ratings possible.

When Glomski testified at a similar trial against other National Century executives in February, he told the jury that Lincoln Capital and its successor, Lehman Brothers Inc., were able to recover just 6 cents on the dollar of its clients’ investments, or about $2.9 million. Lehman Brothers filed for Chapter 11 bankruptcy protection in September and was subsequently sold to Barclays Plc.

Although Glomski relied on the ratings of National Century bonds to help make investments, Anderson suggested he should have done more. He asked Glomski if he had fully researched National Century by reading all of its governing documents, or researched the individual companies whose debt National Century was securitizing into bonds.

To both questions, Glomski answered that he had not. With all of your experience and expertise, Anderson said, you could have done far more due diligence.

“I wish I had,” Glomski responded.

National Century was a financier of last resort for health-care providers such as hospitals and urgent-care centers. It purchased accounts receivable from the providers at a discount in exchange for quick cash the providers could use to pay bills. National Century then packaged the receivables as bonds which it sold to investors.

The government has alleged the investor funds were only allowed to be used to purchase accounts receivable, but National Century executives used some of that money instead to give no-collateral funding to health-care providers owned by Poulsen and other National Century executives.

The government has called that funding a fraud, and accused Poulsen of running it. Poulsen is standing trial in U.S. District Court in Columbus on charges of conspiracy, securities fraud and wire fraud, among others. He has pleaded not guilty to all charges.
http://www.bizjournals.com/columbus/stories/2008/10/06/daily33.html


10/10/08 Poulsen OK'd illegal loans, witness says
Friday, October 10, 2008 3:08 AM
By Kathy Lynn Gray

By the time Lance K. Poulsen left National Century Financial Enterprises, the company had advanced $1 billion to health-care companies with no collateral for the loans.

That was the testimony yesterday of Sherry Gibson, a former vice president of National Century and the star prosecution witness in Poulsen's fraud trial in U.S. District Court in Columbus.

Those kinds of loans were not allowed under National Century's rules, Gibson said. But she said Poulsen approved them anyway as the company's chief executive.

Gibson testified late yesterday and is scheduled to return to the stand again today for extensive questioning in front of Judge Algenon L. Marbley.

FBI Special Agent Jeffrey Williams testified Tuesday that his investigation uncovered $1.3 billion in unsecured loans that National Century had provided for companies in which senior executives had financial stakes.

Earlier yesterday, Terry Glomski recounted how his company, Lincoln Capital Management, lost nearly $47 million for his investors because of National Century, a Dublin health-care-financing company.

Glomski's company invested in National Century beginning in 1999 on behalf of clients that included pension systems and churches. He said he learned through phone conversations and letters from Poulsen in the fall of 2002 that the bonds Lincoln had bought from National Century were in default.

"At that point, I was shocked," Glomski said.

Despite the problems, Poulsen urged him to continue to invest in National Century. Glomski refused.

Defense attorney Pete Anderson tried to paint Poulsen as a victim of "watchdog" companies such as banks that, he said, should have been making sure that National Century was solvent. He said Glomski should have checked out National Century more extensively.

"Once the problems hit, it's in everyone's best interests to point the finger," he said as he cross-examined Glomski. "You could have done more due diligence."

Glomski countered that Poulsen should have known about the financial integrity of his own company.

When National Century went bankrupt, Glomski said his investors got 6 cents on the dollar for their money.

"You're here because it's a way to settle the score, isn't that right?" Anderson asked Glomski.

Glomski shot back: "My point here is to help provide the truth."
http://www.columbusdispatch.com/live/content/business/stories/2008/10/10/natcentury10.ART_ART_10-10-08_C10_7FBIF3E.html?sid=101



link backwards to Wednesday's articles, and older
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3534990&mesg_id=3535078

[RUMMYisFROSTED]

64. Might as well get it out of the way...

[Efilroft Sul]

112. Rummy, that pic was the first real laugh I've had in days. Thanks. n/t

[dweller]

66. They Warned Us About the Mortgage Crisis

By Robert Berner and Brian Grow

More than five years ago, in April 2003, the attorneys general of two small states traveled to Washington with a stern warning for the nation's top bank regulator. Sitting in the spacious Office of the Comptroller of the Currency, with its panoramic view of the capital, the AGs from North Carolina and Iowa said lenders were pushing increasingly risky mortgages. Their host, John D. Hawke Jr., expressed skepticism.
Roy Cooper of North Carolina and Tom Miller of Iowa headed a committee of state officials concerned about new forms of "predatory" lending. They urged Hawke to give states more latitude to limit exorbitant interest rates and fine-print fees. "People out there are struggling with oppressive loans," Cooper recalls saying.

Hawke, a veteran banking industry lawyer appointed to head the OCC by President Bill Clinton in 1998, wouldn't budge. He said he would reinforce federal policies that hindered states from reining in lenders. The AGs left the tense hour-long meeting realizing that Washington had become a foe in the nascent fight against reckless real estate finance. The OCC "took 50 sheriffs off the job during the time the mortgage lending industry was becoming the Wild West," Cooper says.

This was but one of many instances of state posses sounding early alarms about the irresponsible lending at the heart of the current financial crisis. Federal officials brushed aside their concerns. The OCC and its sister agency, the Office of Thrift Supervision (OTS), instead sided with lenders. The beneficiaries ranged from now-defunct subprime factories, such as First Franklin Financial, to a savings and loan owned by Lehman Brothers, the collapsed investment bank.

Some states, including North Carolina and Georgia, passed laws aimed at deterring rash loans only to have federal authorities undercut them. In Iowa and other states, mortgage mills arranged to be acquired by nationally regulated banks and in the process fended off more-assertive state supervision. In Ohio the story took a different twist: State lawmakers acting at the behest of lenders squelched an attempt by the Cleveland City Council to slow the subprime frenzy.

http://biz.yahoo.com/bizwk/081010/0842b4104036827981.html">more

dp

[Wednesdays]

67. TED Spread up to 4.51

And here I thought yesterday's chart was high.

http://www.bloomberg.com/apps/quote?ticker=.TEDSP:IND

[Pale Blue Dot]

68. Futures are plunging before the open. -352 as of 9:02.

http://www.bloomberg.com/markets/stocks/futures.html

[blueclown]

73. 4.51?

:wow:

[Robbien]

72. Oil broke eighty dollars. It is at 79.49 at 8:20a cst

Only bright spot

Well bright depending where one is sitting.

[dweller]

77. ugg... am i reading this right??

Dow drops 868.56 on opening??
http://finance.yahoo.com/?u

i'm going to soak my head, can't watch.
dp

[TalkingDog]

82. 935: down 431. I thought I was reading yesterday's chart... Loooong Day......n/t

[dweller]

89. -1,096 at this moment

dp

[Imperialism Inc.]

78. Not a good start. Down 400 already at 9:35 n/t

[Imperialism Inc.]

83. Ummm, make that down 580 at 9:36

wow

[Hugin]

79. ~09:31 EMT: OMG! Just to make sure I refreshed twice...

Dow 8,396.79 -861.31 (-9.30%)
Nasdaq 1,598.63 -46.49 (-2.83%)
S&P 500 895.34 -14.58 (-1.60%)

10y bond 3.85% -0.02 (-0.52%)

~09:34

Dow 8,206.04 -373.15 (-4.35%)
Nasdaq 1,579.58 -65.54 (-3.98%)
S&P 500 873.50 -36.42 (-4.00%)

10y bond 3.83% -0.03 (-0.78%)

[dweller]

81. i saw it too

and it changed at the blink of my eyes.

dp

[progressive_realist]

104. That first number doesn't make any sense.

Dow closed at ~8600 yesterday, so it was only down 200 at that point, not 800+.

[Hugin]

105. The only thing I can think of is there was a huge sell off with the light opening volume.

The big sell hit first... Institutional sell? But, it hadn't been added into the Index as a whole yet.

What I learned from this is that the Spot value isn't added/subtracted immediately into the Index. There's a lag.

That's why the closing numbers are a better indicator.

[UpInArms]

80. 9:34 Dow off 350 points

Dow 8,229.69 349.50 (3.78%)
Nasdaq 1,576.03 69.09 (4.20%)
S&P 500 873.50 36.42 (4.00%)
10-Yr Bond 3.865% 0.031

NYSE Volume 286,141,375
Nasdaq Volume 116,041,601.562

09:01 am : S&P futures vs fair value: -45.00. Nasdaq futures vs fair value: -45.30. Stocks are set to tumble at the open, after declining for seven consecutive sessions. S&P 500 just hit session lows and Nasdaq 100 futures trade near session lows, when they were down 53.75 points below fair value. Morgan Stanley (MS) is getting hammered in premarket trading, down 28% to $9.02-- which would mark a fresh multi year low. Goldman Sachs (GS) has fallen 17.8%. Crude prices are falling for the third straight session, down 4.6% to $82.65 per barrel. Gold prices are up 2.4% to $908.10 per ounce and the dollar is up 0.6%.

08:33 am : S&P futures vs fair value: -19.10. Nasdaq futures vs fair value: -31.30. Futures are off their worst levels, but a sharply lower open is still expected. Just hitting the wires, September import prices fell 3.0% month-over-month, compared to the expected decline of 2.8%. Prices are up 14.5% year-over-year, versus the expected increase of 12.2%. Export prices are down 1.0% month-over-month and are up 6.8% year-over year. Separately, the August trade deficit narrowed to $59.1 billion from $61.2 billion, compared to the expected deficit of $59.0 billion.

[Hugin]

85. ~09:36: Dow 0.23 away from breaking 8,000 the hard way...

Dow 8,000.23 -578.96 (-6.75%)
Nasdaq 1,557.01 -88.11 (-5.36%)
S&P 500 851.44 -58.48 (-6.43%)

10y bond 3.83% -0.03 (-0.78%)

[UpInArms]

86. 2 minutes later - off almost 700 points - at 7,890

Dow 7,890.15 689.04 (7.44%)
Nasdaq 1,553.06 92.06 (5.60%)
S&P 500 839.80 70.12 (7.71%)
10-Yr Bond 3.859% 0.025

NYSE Volume 462,128,625
Nasdaq Volume 174,992,375

[spotbird]

84. -673 @ 9:38 nt

[Rockholm]

87. All I can think of right now is a line from "Babe"....

when Ferdinand the duck runs screaming "Carnage."

[uppityperson]

88. oh. shit. eom

[UpInArms]

90. 9:41 - down 1,000 points!

Dow 8,212.96 1,045.14 (11.29%)
Nasdaq 1,599.28 45.84 (2.79%)
S&P 500 856.81 53.11 (5.84%)
10-Yr Bond 3.849% 0.015

NYSE Volume 633,409,750
Nasdaq Volume 244,528,718.7

[UpInArms]

91. numbers don't make sense

at 1,000 of, it reads 8200 (or thereabouts) and when it was 700 off, it read 7890

:wtf:

[Hugin]

96. It's taking the physical system a while to stabilize.

Don't panic, yet.

[Hugin]

92. The chart I'm reading is stuck at around -300 on the Dow. n/t

[RUMMYisFROSTED]

94. I'm showing -124

Odd.

[Frank Cannon]

101. That's what I've got

WTF is going on?

[Renew Deal]

95. I don't think that's correct.

Weird.

[dweller]

93. has it been halted?

no graphs available on the page i watch
http://finance.yahoo.com/?u

dp

edit, charts back...whew...

[BelgianMadCow]

97. - 10 % is the first halt level imho, yes

[uppityperson]

98. No, now @8330.6

[RUMMYisFROSTED]

102. thwop, thwop, thwop

[Tandalayo_Scheisskopf]

99. 8:52AM Update. The Kasino Kuties will be dancing on the Main Stage, for your enjoyment.

Be sure to tip the bartenders and waitresses.

PETROLEUM ($/bbl)
PRICE* CHANGE % CHANGE TIME
Nymex Crude Future 82.58 -4.01 -4.63 08:52
Dated Brent Spot 74.22 -5.84 -7.29 09:23
WTI Cushing Spot 81.90 -4.69 -5.42 09:01


PETROLEUM (¢/gal)
PRICE* CHANGE % CHANGE TIME
Nymex Heating Oil Future 230.23 -11.63 -4.81 08:52
Nymex RBOB Gasoline Future 192.85 -9.88 -4.87 08:52


NATURAL GAS ($/MMBtu)
PRICE* CHANGE % CHANGE TIME
Nymex Henry Hub Future 6.68 -.14 -2.05 08:52
Henry Hub Spot 6.69 .10 1.52 10/09
New York City Gate Spot 7.03 .12 1.74 10/09


ELECTRICITY ($/megawatt hour)
PRICE* CHANGE % CHANGE TIME
Mid-Columbia, firm on-peak, spot 51.94 -1.23 -2.31 10/09
Palo Verde, firm on-peak, spot 45.16 -5.02 -10.00 10/09
Bloomberg, firm on-peak, day ahead spot/West Coast 53.79 -3.93 -6.81 10/09


Can someone speak to the spread between present RBOB market prices and prices at the pump and how they compare historically?

[Roland99]

100. Wow...what an heart-stopping opening! I missed it all.

glad I did!

[wellst0nev0ter]

103. *sigh*

[Joanne98]

106. I love that picture

[TalkingDog]

108. ditto n/t

[mmonk]

110. Cruel. Us regular people have money in the markets also.

[Pooka Fey]

130. My new desktop wallpaper.

Thanks for posting the image. :cry:

[mmonk]

107. Wow, Dow up now.

[Hugin]

109. ~10:07 EDT: "No telling where the money went..."

Dow 8,539.04 -40.15 (-0.47%)
S&P 500 906.06 -3.86 (-0.42%)

Nasdaq 1,648.26 +3.14 (0.19%)
10y bond 3.87% +0.01 (0.26%)

The Chatter has it this is a PPT action.

[dweller]

121. and Fairies

lot's and lot's of gold-glittered fairies... and i soaked my head... liquidity abounds.

dp

[Robbien]

111. With just $6 billion in assets left, of what once totaled $83 billion, Reserve Throws in the Towel

For all intents and purposes, Reserve Management is now out of business. Given its longtime vow to guarantee investors safety - and its spectacular failure to do that with the Sept. 16 implosion of its flagship Primary Fund - industry watchers say the company's demise is not surprising, and also warranted.

"The first rule of investing is to allow investors to redeem," said Peter Crane, principal of Crane Data. "If you don't do that, investors will do it for you."

During a meeting Wednesday night, the Reserve's board of trustees voted to liquidate the assets of the Reserve Yield Plus Fund, as well as 17 additional municipal money market funds, Reserve announced late Thursday.

. . .

On Thursday, Reserve Management formally applied for the Treasury Department's Temporary Money Market Fund Guarantee Program on behalf of all of its 21 funds.

If Treasury approves Reserve's application for the guarantee, investors should be able to receive their money back in full; otherwise, their money will remain frozen until the capital markets return to normal trading. As to whether Treasury will approve the firm's application for the money funds guarantee, industry watchers say the government might do so for the investors' sake.

http://www.onwallstreet.com/asset/article/714861/reserve-throws-towel.html?pg=

[UpInArms]

113. 10:11 EST Pay No Attention to that Man Behind the Curtain! It's all Better Now! Party!!!!

Dow 8,612.56 33.37 (0.36%)
Nasdaq 1,664.05 18.93 (1.15%)
S&P 500 913.12 3.20 (0.35%)
10-Yr Bond 3.88% 0.046

NYSE Volume 1,882,005,250
Nasdaq Volume 712,148,750

10:00 am : The major indices are posting large declines but have cut their opening declines by more than half. The Dow, Nasdaq and S&P 500 were down as much as 8.1%, 6.0% and 7.7%, respectively.

The financial sector led the recovery effort, rebounding from a loss of 6.6% to a gain as high as 5.0%. It is currently up 1.9%, led by regional banks (+5.1%) and diversified financials (+5.1%) -- JPMorgan Chase (JPM 39.40, +2.72), Citigroup (C 13.38, +0.45) and Bank of America (BAC 20.50, +0.87).

Tech stocks (+0.1%) are also showing relative strength , helping the Nasdaq Composite outperform on a relative basis.

The Dow Jones broke below the 8000 level, hitting as low as 7882.51 -- 44.5% below its all-time high of 14198.10 that was reached a on Oct. 2007.

Oil prices are down 6.9% to $80.18 as global economic fears take a toll on commodities (-3.3%). Gold, however, is bucking that trend, gaining 2.6% to $906.00 per ounce as the precious metal is seen as a safe-haven.

President Bush will be speaking about the economy in about a half hour.DJ30 -255.35 NASDAQ -20.86 SP500 -26.06 NASDAQ Adv/Vol/Dec 611/372 mln/1838 NYSE Adv/Vol/Dec 394/309 mln/2248

[Hugin]

115. Gee, what a coincidence...

Just in time for the Pie Hole. :eyes:

[Gen. Jack D. Ripper]

114. What has accounted for this huge rebound?

Some good news for banks? What was that news?

[Lochloosa]

Bush speaking in 10 mins.

:sarcasm:

[Roland99]

126. "We can solve this crisis. And we will."

going on about the Fed injecting hundreds of billions.

now about rate cuts.

[Roland99]

129. going about monitoring for fraud and manipulation of the markets

Uhh...that mean they're going to look in a mirror?

[Roland99]

132. He's still slurring certain words. Esp. with "s" sounds. Must be drunk constantly now to deal.

[htuttle]

116. I think our tax dollars did it

Well, at least they used to be our tax dollars.

Now they're somebody else's dollars.

[Roland99]

117. Some good news leaking out of the Lehman CDS auction? PPT effect?

[Gen. Jack D. Ripper]

122. Yeah, that could be

I'm just amazed. For the markets to gain back nearly 700 points in that short amount of time, in financials no less, is baffling.

[UpInArms]

119. life support

for the markets - can't have the sheeple get too restless - gotta get the bonuses back for Masters of the Universe, ya know?

:hi:

[Hugin]

120. Rumor has it...

An invisible hand did it.

Or the chatter says that sells were blocked.

[Cassius23]

124. Computer set auto-purchases

Basically what's been happening is that a lot of people have a set up so that when certain stocks get to a certain level they buy them automatically. Most of them will most likely go away fairly soon.

Lates

[Gen. Jack D. Ripper]

128. That makes sense n/t

[RUMMYisFROSTED]

118. Up 28!

We're saved!

[Roland99]

123. Greenspan sees 1st half 2009 U.S. housing recovery

Greenspan sees 1st half 2009 U.S. housing recovery
http://www.reuters.com/article/ousiv/idUSTRE4994T720081010

ugh

[Tansy_Gold]

139. IS HE FUCKING NUTS??????????????

:rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl:

[Hugin]

141. Yes.

In a nutshell.

:pleasantsmile:

[MilesColtrane]

144. He gave this interview in between yelling for his farina from Andrea,

...and asking her to change the channel to "Matlock" and find his slippers, so take it for what it's worth.

[RUMMYisFROSTED]

125. Piehole up at -66...

[RUMMYisFROSTED]

127. -109...

[Zenlitened]

131. Wow! The Bush "Administration" is going to prosecute itself!

That's what Dubya meant, isn't it? He just said that people who engage in illegal financial activities will be prosecuted.

So... the massive political and ideological fraud that led to the crash of the US and global financial systems... how much time do you think he'll serve for that?

[UpInArms]

133. 10:35 EST down 173

Dow 8,405.95 173.24 (2.02%)
Nasdaq 1,618.35 26.77 (1.63%)
S&P 500 889.93 19.99 (2.20%)
10-Yr Bond 3.892% 0.058

NYSE Volume 2,570,954,000
Nasdaq Volume 941,662,562.5

[Cassius23]

136. They might throw people in jail?!?!?

NOOOO!!!!

SELLSELLSELLSELLSELLSELLSELLSELL!!!!!!!!

AHH!!!

BUYCANNEDFOODSTOREWATERGETBIGGUNSPAAANNNIIICCC!!!!

[RUMMYisFROSTED]

134. -242..

Atta boy, Chimp!

[Duppers]

135. C-span callers are ranting like crazy

like investors, they know where the blame lies.

[RUMMYisFROSTED]

137. "Cut his mike! Cut his mike!"

[UpInArms]

138. spew:

01. Bush: Americans can have confidence in economic future
10:34 AM ET, Oct 10, 2008

03. Bush: U.S. financial rescue plan is 'big enough to work'
10:33 AM ET, Oct 10, 2008

05. Bush: U.S. acting aggressively to stabilize markets
10:27 AM ET, Oct 10, 2008

[MilesColtrane]

140. I assume the ban on shorting has been extended.

SEC web site says the ban won't go beyond 30 days from Oct. 2nd, but surely their plans have been overtaken by events on the ground.

Ironic if this is fueling the freeze. All the bully boys in hedge funds may be bailing now cause they can't short.

[Roland99]

143. It expired two nights ago, actually.

[UpInArms]

142. Made that "executive decision" and started Thread #2 - link here

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3537255