STOCK MARKET WATCH, Wednesday May 21

Source: du

STOCK MARKET WATCH, Wednesday May 21, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 245
DAYS SINCE DEMOCRACY DIED (12/12/00) 2677 DAYS
WHERE'S OSAMA BIN-LADEN? 2402 DAYS
DAYS SINCE ENRON COLLAPSE = 2693
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.

AT THE CLOSING BELL ON May 20, 2008

Dow... 12,828.68 -199.48 (-1.53%)
Nasdaq... 2,492.26 -23.83 (-0.95%)
S&P 500... 1,413.40 -13.23 (-0.93%)
Gold future... 920.20 +14.40 (+1.56%)
30-Year Bond 4.53% -0.04 (-0.94%)
10-Yr Bond... 3.78% -0.06 (-1.64%)






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 actionpost@legitgov.org

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

130+ a barrel and there dumping the dollar again.

They all looked so happy and buoyant when I logged on this morning.

LONDON, May 21 (Reuters) - Oil hit new record highs on Wednesday, spurring fears of global inflation and generally holding back gains on stock markets.

A bullish economic outlook for Germany briefly supported European stocks, hit the dollar and weakened demand for euro zone government bonds.

London Brent crude oil LCOc1 rose to a fresh record high of $128.45 a barrel and New York crude CLc1 was at $129.41. The New York June contract expired on Tuesday after hitting a new record of $129.60.

OPEC added pressure by reiterating its resistance to increasing supply to meet robust global demand.

"Market sentiment towards oil remains bullish, aided by the soft dollar and the recent trend for analysts to revise higher their oil price forecasts," said David Moore, commodity strategist of Commonwealth Bank of Australia, in a report.

Rising prices of oil and other commodities have stoked fears of inflation and posed problems for central banks under pressure to cut interest rates to stimulate slowing economies.

A report from Germany's Ifo economic research institute eased some immediate concerns about Europe, showing that corporate sentiment had unexpectedly improved in May.

It briefly supported European stocks but the FTSEurofirst 300 was flat.

"The current inflation cycle is holding back markets and it's the commodities that are the major problem," said Arthur van Slooten, an equity strategist at Societe Generale in Paris, adding that SocGen does not expect a wage-price spiral.

Earlier, Japan's Nikkei average .N225 slid 1.7 percent, or 233.79 points to close at 13,926.30. The broader Topix index fell 2.1 percent or 29.75 points to 1,370.09.

/... http://www.reuters.com/article/marketsNews/idINL2145644320080521?rpc=44&pageNumber=2&virtualBrandChannel=0&sp=true

Asian Stocks Fall the Most in a Week; Banks, BHP Billiton Drop

By Chua Kong Ho and Ian C. Sayson
Enlarge Image/Details

May 21 (Bloomberg) -- Asian stocks fell, dragging the benchmark index to its steepest slump in a week, on concern widening credit losses will erode bank earnings and slowing growth in Chinese demand will hurt raw-materials producers.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=avp3ZsuBZ4sE&refer=asia

http://www.marketwatch.com/news/story/oil-tops-132-data-show/story.aspx?guid={669DF1EA-D6C7-4D2E-8D75-316E5A7699AF}

On its first full day as a front-month contract, crude for July delivery climbed as high as $131.90 on the New York Mercantile Exchange, following the release of the supply data. It was last up $2.82, or 2.2%, at $131.80 a barrel.

Earlier Wednesday, crude surged to a record high of $132.08 in electronic trading.

Crude supplies fell by 5.4 million barrels to 320.4 million for the week ended May 16, according to the Energy Department Wednesday.

Supplies had climbed over 12 million barrels in the last four weeks, data showed. Analysts polled by Platts expected the numbers to reveal a rise of 900,000 barrels for the latest week.

S&P in Topping Mode
BY FRANK BARBERA, CMT

In reviewing the action in various markets over the last few days, it appears as though another juncture is rapidly approaching. Call it the start of “The Great Credit Bubble Phase II.” In Phase I, Sub-prime and Alt-A mortgage paper collapsed, Bear Stearns slid beneath the waves, and Gold soared above $1,000 per ounce. The Stock Market tumbled nearly 20% (18.48%) and the Dollar plunged to record lows. For the last few weeks, markets have enjoyed a pleasant hiatus with stock indices recovering and the Dollar strengthening. That is until the last few days, as Gold has revived, stocks have reversed lower as has the US Dollar. While we still believe there is a good chance that equities may not actually break down to new multi-month lows until the fall, there is nevertheless a high risk that prices are at present very close to a major interim peak.

Back on April 22nd in our piece entitled “Oreo Cookies and the Stock Market,” we opined,

“Thus, this 1380 to 1400 range becomes a very important zone. If the stock market as measured by the S&P 500 can press above this resistance in the weeks ahead, there is a good chance that prices will continue to extend the bear market rally over the next few weeks into the summer months. Under this outcome, prices could be moving up toward the 1440 level, which represent a .618 Fibonacci retracement of the prior decline.”

Since then, the indices have surpassed 1,400 and have managed to stagger their way higher with the S&P hitting a peak of 1440.24 just yesterday. In that same article, we placed a lot of emphasis on one of our favorite indicators, the Medium Term ARMS Index. At the time, the ARMS Index had NOT seen an overbought reading of any material sort, and as a result we concluded that the stock market advance probably had further to run.

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

"In fact, instead of the “worst being already over,” we lean heavily toward the idea that the ‘worst is still ahead."


So, given that I'm allowed to ask, admittedly, novice type questions:

In my readings here, I realize that the stock markets have become divorced from actual financial markets for various reasons; rampant speculation by online poker players small independent investors, "shenanigans" and outright fraud. But when stocks were a decent barometer of financial "health" were the three (DJI S&P NASDAQ) taken and read as a whole or is there one which seems to be better at relaying "symptoms" of fair or ill health?

although I do see the 'headline' mass psychology effect of the oft-quoted (and more easily manipulated) DJI 100.

:shrug:

10:30 Crude Inventories 05/17
Briefing.com NA
Consensus NA
Prior 176K

14:00 FOMC Minutes Apr 30

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

NEW YORK (Reuters) - U.S. crude oil futures roared to a new intraday record above $132 after U.S. government data showed domestic crude stocks fell last week, dashing analysts' expectations that supplies rose.

Gasoline futures also hit a new high as the latest report showed inventories fell, rather than increasing as forecast.

Heating oil futures climbed a new peak, too, with data showing supplies rose much less than expected.

On the New York Mercantile Exchange at 11:07 a.m. EDT, new front-month July crude was up $2.90, or 2.25 percent, at $131.88 per barrel, trading from $128.60 to a record $132.08.

In London, July Brent crude jumped $3.57, or 2.79 percent, at $131.41 a barrel, trading from $127.80 to a record $131.57.

The U.S. Energy Information Administration said that for the week to May 16, domestic crude stocks fell 5.4 million barrels to 320.4 million barrels, against the forecast for a 600,000-barrel build in a Reuters poll of analysts.

Crude oil imports fell sharply, by 696,000 barrels per day to 9.24 million bpd, while refinery runs rose 1.3 percentage point to 87.9 percent of capacity, helping reduce inventories.

Gasoline stocks fell 800,000 barrels to 209.4 million barrels, going against the forecast for an increase of 700,000 barrels.

Distillate stocks, which include diesel fuel and heating oil, rose 700,000 barrels, much less than the forecast for a rise of 1.3 million barrels.

Crude futures were already in fresh record territory before the EIA data was released, lifted by a further weakening of the dollar against the euro.

The Organization of Petroleum Exporting Countries is willing to act, if needed, to ensure adequate supply of oil, although record-high prices are being driven by factors beyond supply and demand, it said in a statement.

/... http://www.reuters.com/article/topNews/idUSSYD3274320080521?sp=true

Imports down but also 'stock draw'. But who's drawing on those stocks just now???

18. Less risk seen of economic meltdown: minutes
2:00 PM ET, May 21, 2008
1
9. Fed slashes forecast for growth in '08
2:00 PM ET, May 21, 2008

20. Fed forecast of inflation in '08 soars
2:00 PM ET, May 21, 2008

21. Fed dissenters: Any more cuts would prove costly
2:00 PM ET, May 21, 2008

22. Fed: Risk of slowdown, inflation more balanced
2:00 PM ET, May 21, 2008

23. Some on Fed argue against more rate cuts: minutes
2:00 PM ET, May 21, 2008

24. Last Fed rate cut a 'close call,' minutes of meeting show
2:00 PM ET, May 21, 2008

49. U.S. crude supply down 5.4 mln brls last week: Energy Dept.
10:32 AM ET, May 21, 2008

50. U.S. distillate supply up 700,000 brls: Energy Dept.
10:32 AM ET, May 21, 2008

51. U.S. gasoline supply down 800,000 brls: Energy Dept.
10:32 AM ET, May 21, 2008

BANGKOK, Thailand - Oil prices rose above $130 a barrel for the first time Wednesday in Asia as supply concerns mounted and the dollar weakened.

Light, sweet crude for July delivery swept to a trading record of $130.47 a barrel in electronic trade on the New York Mercantile Exchange after closing at $128.98 in the floor session. It later retreated to $130.36 a barrel, up $1.38.

The June contract, which expired Tuesday, settled overnight at $129.07 a barrel.

The dollar had become less of a factor as attention turned to supply and demand concerns, but that seems to have changed this week.

"We've seen an about-face turn on the dollar in the last couple of days," said Mark Pervan, senior commodity strategist at Australia & New Zealand Bank in Melbourne. "It looked like it was starting to recover, but I think there's a less certain outlook at the minute and ... enough reason to be buying commodities as a currency hedge again."

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

I've cut driving considerably, and that's not easy when you live in a car-dependent area like mine. Combining errands and delaying longer trips until absolutely necessary so their purposes can be combined, eliminating about 1/3 of social driving (to visit friends, etc.), re-evaluating "emergency" trips to town.

But I've also trimmed the grocery budget, which wasn't easy considering we eat almost no red meat as it is, almost no "convenience" foods, very little in the way of junk food. BF still has to have his ice cream and A&W root beer, though, and his Wheat Thins.

Have also cut back on water usage and electricity when possible, though these cutbacks don't show up as much on the overall budget. But it's the importance of breaking old bad habits and establishing new conservationist habits. BF is sloooooowly getting the picture.


Tansy Gold

So these have done quite well. I bought BTE in the $15 range last Fall. It is now over $30.

Don't take too much happiness from it though as too many family members are pinched because of the gas prices.

http://stocks.us.reuters.com/stocks/lookup.asp?symbol=Baytex%20Energy%20Trust&exactMatch=false

...about to go ex-dividend next week?

Hmm. http://www.fool.com/investing/general/2008/05/12/get-ready-for-the-fall.aspx

Nice one so far... Careful!

This (big) one puts you in Euros, you know: http://stocks.us.reuters.com/stocks/overview.asp?symbol=TOTF.PA

:evilgrin:

We get more oil news here in the UAE than you guys typically do back in the states.

Yes, Baytex... I bought for the dividend, but now the stock price have taken off.

02. July crude trades at $129.16/brl, up 18 cents
10:08 AM ET, May 21, 2008

Oil prices surged to a record intraday high above $132 a barrel Wednesday after the government said stockpiles of oil and gas decreased last week, surprising analysts expecting an increase.

http://money.cnn.com/2008/05/21/markets/oil_eia/index.htm?postversion=2008052111

04. July crude at $133.32/brl, up $4.34 in electronic trading
2:27 PM ET, May 21, 2008

And I have to go teach quite unexpectedly (one teacher's wife just went into labor). This is my time to prepare for exams - hence the large amount of free time for posting the past couple of days. Much of my work will be in the computer lab today - so I will have the facility. Time is a different issue. Nonetheless I will return when I can.

Ozymandius :hi:

:hi:

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

Last trade 72.033 Change -0.396 (-0.55%)

BoE Voted 8-1 To Keep Rates Unchanged

http://www.dailyfx.com/story/topheadline/BoE_Voted_8_1_To_Keep_1211359573548.html

The BoE voted 8 to 1 to keep the benchmark rate unchanged at 5.00% at their May 8th policy meeting due to inflation concerns. Perennial dove David Blanchflower was the only dissenter calling for a quarter point cut,

The BoE voted 8 to 1 to keep the benchmark rate unchanged at 5.00% at their May 8th policy meeting due to inflation concerns. Perennial dove David Blanchflower was the only dissenter calling for a quarter point cut, which was expected as he had publicly made statements calling for action to stem a U.K. recession. Inflation continues to remain a concern for the central bank as they believe that current record energy costs will filter through to consumer prices for the next twelve months. Governor Meryn King stated in the quarterly inflation report that he expects to have to write a letter of explanation to Chancellor Darling for several quarters as prices continue to grow above the 3% threshold. The majority recognized the significant growth risks to the economy from the declining housing market and property values, but felt that the slowdown was needed to rein in inflation and reach their 2% CPI target. The committee believes that further cuts would risk letting inflation get out of control and send the wrong signal to wage bargainers and companies. The expectation is that the MPC may not look to change interest rates until next year.

...more...

Are Higher Oil Prices Hurting or Helping the US Dollar?

http://www.dailyfx.com/story/bio1/Are_Higher_Oil_Prices_Hurting_1211314090225.html

Dollar weakness dominated the markets today with the greenback selling off against every major currency except for the Canadian dollar. Liquidation is the theme as the Dow Jones Industrial Average plunged approximately 200 points. Fear that rising oil prices will continue to push inflation higher was validated by the hawkish comments from Federal Reserve Vice Chairman Kohn. He said that “monetary policy appears to be appropriately calibrated for now to promote both rising employment and moderating inflation over the medium term.” Meanwhile headline producer prices fell short of expectations while core prices rose more than expected in the month of April. This reversal of patterns is fascinating because the primary driver of higher inflation has been food and energy prices. Although it isn’t a surprise to see core prices rise, the slower growth in headline prices should be nothing more than a correction within an overall uptrend. The US government has already increased their predictions for food price growth by half of a percentage point and the latest uptick in oil prices will only exacerbate inflationary pressures. This is undoubtedly a big problem for central banks, but the bigger question for currency traders is whether the uptrend in oil prices will hurt or help the US dollar. Taking a look at the oil shocks of the 1970s (1973 and 1979), we see that the trade weighted exchange index for the US dollar rallied for the first few months and then sold off. At that time, the Federal Reserve was aggressively raising interest rates to combat skyrocketing inflation which was initially positive for the dollar, but when the market realized that the combination of high inflation and high interest rates could cripple the economy, they began to sell the US dollar aggressively. Oil price shocks have caused or contributed to each of the recessions endured by the US economy over the past 30 years because each 10 percent rise in oil shaves 0.3% to 0.4% off of GDP. That is why the Federal Reserve’s job is exceptionally difficult. The uptrend in crude currently poses a bigger risk to inflation than growth. Economic data has been stabilizing, which buys the central bank time by allowing them to keep rates unchanged in June. However the uptrend in oil will start undermining the Fed's efforts when the strain is finally evident in the retail sales reports. If we start seeing a big contraction in consumer spending, the Fed will have to ease again, at which time the rise in oil prices will be big trouble for the US economy and the US dollar.

...more...

LONDON (Reuters) - The euro shot up to a one-month high against the dollar on Wednesday, after a surpringly strong reading of German business sentiment suggested the euro zone economy remains strong, easing speculation about a cut in rates.

The Ifo economic institute's business climate index came in at 103.5, far exceeding forecasts for a dip to 102.0. The data added to the view that the European Central Bank may not lower rates this year, which would help the euro to keep its rate advantage against the dollar.

The dollar hit a one-month low against a basket of currencies, also stung after oil prices rose to record highs.

This prompted selling in global stocks which cooled demand for riskier trades due to worries that higher fuel prices could stunt global economic growth further.

The euro <EUR=> shot up to $1.5738 <EUR=>, hitting its highest level since April 24. It also hit its strongest in a month against sterling around 80.00 pence <EURGBP=>.

"It will clearly fuel speculation that the ECB may hike rates later in the year -- we are already seeing that the spread between euro zone and U.S. is widening quite significantly," said Michael Klawitter, currency strategist at Dresdner Kleinwort in Frankfurt.

"All of that is clearly providing support for euro/dollar."

...

The strong Ifo reading comes a day after German think-tank ZEW's investor sentiment poll of current conditions rose to 38.6 from 33.2 in April, although the expectations index unexpectedly worsened for the second straight month

Despite dim expectations for the economy in the coming months, ZEW president, Wolfgang Franz, a member of the government panel of economic advisors, said that the ECB may lift rates soon from the current 4 percent.

/... http://www.reuters.com/article/hotStocksNews/idUST12868420080521?sp=true

Hmmm. German 'real people' (I dislike the term 'consumers', as I've said before) confidence reported very (& 'unexpectedly') low; German 'corporate' confidence reported relatively (& 'unexpectedly') high... Now in which country have I seen something similar recently?

http://news.yahoo.com/s/nm/aig_dc

(Reuters) - Maurice "Hank" Greenberg, former chief executive of American International Group Inc (AIG.N), may face civil charges for his alleged role in an effort to improperly boost the insurer's financials, the Wall Street Journal said on Wednesday.

Greenberg received a "Wells notice" from the U.S. Securities and Exchange Commission on Friday, indicating possible charges over his role in reinsurance transactions between AIG and Berkshire Hathaway's (BRKa.N) (BRKb.N) General Re Corp unit, the newspaper said.

A Wells notice indicates that the SEC is considering civil charges, and gives the recipient a chance to mount a defense.

Robert Morvillo, Greenberg's lawyer, did not immediately return a call seeking comment.

The newspaper quoted him as saying his client was confident of his position on the merits. An SEC spokesman also did not immediately return calls.

On Friday, U.S. District Judge Christopher Droney, who oversaw a trial that led to convictions of former AIG and General Re executives accused of helping AIG inflate reserves, said there was sufficient evidence to show a conspiracy started with a phone call from Greenberg.

The fraud accusations stem from a 2000 transaction in which AIG and General Re executives allegedly attempted to boost AIG's loss reserves to make the world's largest insurer look better to investors.

...more...

I hope they throw that asswipe in prison - he's the one that proclaimed there would be "no material impact" when all this came to pass.

Sure, more like a computer glitch which some programmer was paid handsomely to "accidentally" code into the program.

Funny that S&P and Fitch gave out the same AAA ratings to the same bad companies. That glitch sure got around.

Code can be only as good as the 'model' or 'methodology' it's designed to implement, and of course its behavior will depend on the commands and data (and 'tweaks')thrown at it...

...Problem discovered 1 year before it was fixed, the article appears to suggest.

http://news.yahoo.com/s/nm/20080521/bs_nm/moodys_cpdos_dc

LONDON (Reuters) - Moody's Investors Service, already under fire over its role in the U.S. mortgage crisis, took another blow on Wednesday as it launched an external investigation after a report that it wrongly assigned triple-A ratings to complex European debt products.

Shares of Moody's Corp (MCO.N) closed almost 16 percent lower, the most ever in a single day, after the Financial Times newspaper said a coding error in a Moody's computer model caused the products to be given a rating four notches higher than they merited.

Moody's said in a statement it recently hired law firm Sullivan & Cromwell and initiated a "thorough external review" of its rating process for the securities and would take any appropriate actions after the review is completed.

The FT reported that internal Moody's documents the newspaper had obtained showed the agency had discovered the error early in 2007.

Moody's corrected the coding glitch at that time and instituted changes to its methodology, the FT said. But the products, called constant proportion debt obligations, or CPDOs, kept their triple-A rating until January 2008, when turmoil in financial markets worldwide led to hefty downgrades, the newspaper reported.

Moody's said in a statement it rated 44 European CPDO tranches totaling about $4 billion.

A Moody's spokesman said the company hired the law firm to conduct the review after it heard the FT's story was in the works.

...more...

cows out - media alert - barn door open

Moody will now investigate itself

http://www.reuters.com/article/bondsNews/idUSBNG12144520080521?pageNumber=2&virtualBrandChannel=0&sp=true

May 21 (Reuters) - Countrywide Financial Corp (CFC.N: Quote, Profile, Research) Chief Executive Angelo Mozilo set off an online furore when he misdirected an e-mail characterizing as "disgusting" the way a borrower pleaded for help from the largest U.S. mortgage lender.

The company confirmed Mozilo's inadvertent response to the Los Angeles Times, which on Wednesday reported the e-mail and the subsequent online debate.

Countrywide and Mozilo have long been criticized by consumer advocates, politicians and regulators for the Calabasas, California-based company's lending practices, and the way it treats borrowers struggling to keep up with payments.

<snip>

Some of the language in Bailey's request to Mozilo came from a form letter at the website (http://www.loansafe.org), a service for troubled borrowers.

<snip>

"This is unbelievable," Mozilo wrote. "Most of these letters now have the same wording. Obviously they are being counseled by some other person or by the Internet. Disgusting."

Mozilo's response touched off a debate on such websites as (http://loanworkout.org), where about three dozen comments were logged in less than two days.

One, for example, defended Bailey and borrowers, saying Mozilo's response was "a perfect example of the 'help' they can expect to receive when contacting their lenders".

...more...

I guess Countrywide made a unique document for every loan - never used "fill in the blank" contracts :crazy:

the fact that each of the millions of dollars he was given, each had it's own unique serial number.

is to see the marks ripped-off disgruntled customers, employees, etc. actually ORGANISING resistance.

Here here.:applause:

http://www.financialnews-us.com/?page=ushome&contentid=2450714697


A multi-trillion dollar coalition of investors, including US pension schemes Calpers and Calstrs, is pressuring the US Senate to set binding targets for the reduction of the country's carbon dioxide emissions.

snip:
The investor group, organized by Ceres and the Investor Network on Climate Risk, announced their action at a climate change conference held yesterday at the US Chamber of Commerce in Washington.

Other signatories to the letter include the fund management group chaired by former US vice president Al Gore, Generation Investment Management; as well as Mike Johnston, executive vice president of US fund managers the Capital Group, who signed in a personal capacity only.

The letter also called upon the US Securities and Exchange Commission, the US market regulator, to set out a list of disclosures that US companies should make to investors on the risks to their business from climate change.

http://www.financialnews-us.com/?page=ushome&contentid=2350715110

short article:

US public pension schemes were warned by a Federal Reserve vice chairman that three-fourths of them are underfunded—making promised payouts to members difficult—as pressure to invest in risky assets is on the rise.

snip:
Kohn said in prepared remarks: “With exposures like those, public pension systems should maintain formal risk-management procedures that are independent of the selection and evaluation of managers and that are carefully designed to minimize conflicts of interest that can weaken the risk-management function.”

In addition, Kohn urged the pension schemes to be more transparent about their future liabilities and to standardize how they disclose their funding status. And a pension scheme should disclose the impact of its asset allocation on the volatility of its returns, he added.

Kohn added that pension schemes would be wise to also disclose “how their funding rations and cash flow might be affected by various outcomes in the financial markets,” which will help them determine how much risk they should take.

:donut: and lurkers. I was talking yesterday about what we as people and as a society value. And while a have been talking with my daughter, we also began discussing the very sad news about Ted Kennedy. It is most tragic what has happened, but I know that he will face this obstacle as he has face other obstacles in his life, with courage, determination, and good humour. He can do it no other way-that is just how he is.

And as the well wishes pour in, one thing stands in stark contrast to many GOP politicians....with the occasional exception of Ronald Reagan, few GOP presidents or politicians have truly been beloved by the people. Republicans just don't get it-try as they might. They may be respected and maybe even admire, like Eisenhower, but never held in the same way as Roosevelt or Kennedy (of course I give Johnson more of the credit for the legislation-but Johnson was as cuddly as a West Texas rattler but had a big heart).

And again, I think it is because it is where you put your heart. Dems tend to pass legislation that uplifts people and gives their lives a small measure of comfort and gives their children a fighting chance to better their lives. The GOP seems to care for business and the well to do, and as of late only the mega corporations and the uber wealthy. The laws they pass only seem to increase the suffering of the people.

So I say, we will continue to name airports after those GOP guys until there are no more. But we will continue to place the names and face of those held highest in our hearts on coins, and on our mountains. We will keep the eternal flames burning and we will send our children to schools named after them and hope for better days. And the GOP will be left to scratch their heads and wonder why they don't elicit the same response.

Happy hunting and watch out for the bears.

http://news.bbc.co.uk/2/hi/business/7410501.stm

The number of high-flying investment bankers moving from the US to Asia is set to increase, experts have said, as a result of the credit crunch.

A senior Credit Suisse executive is the latest in a string of "dealmakers" to relocate from New York to Hong Kong.

Big takeover deals are scarce in the US and Europe as the credit squeeze has made it hard for firms to source funds.

01. AMR says capacity changes will result in workforce cuts
9:41 AM ET, May 21, 2008

02. AMR cites record fuel prices, economic concerns, competition
9:40 AM ET, May 21, 2008

03. AMR introduces $15 fee for first checked bag
9:40 AM ET, May 21, 2008

04. AMR to cut mainline domestic capacity 11-12% in Q4
9:39 AM ET, May 21, 2008

05. AMR says to retire at least 75 mainline, regional aircraft
9:39 AM ET, May 21, 2008

06. AMR announces reductions to 2008 domestic flight schedule
9:38 AM ET, May 21, 2008

things that make you go "hmmmmmm......"

http://www.reuters.com/article/bondsNews/idUSL2186274720080521?sp=true

JERUSALEM, May 21 (Reuters) - Israel's Bank Hapoalim (POLI.TA: Quote, Profile, Research) said on Wednesday it had sold its entire U.S. mortgage-backed securities portfolio, closing the book on a lingering problem that has badly hurt its share price and management credibility.

Hapoalim sold the portfolio to U.S. investment fund Pimco for $2.55 billion, and would record a loss of $870 million, of which $710 million had previously been reported as a decline in value last month.

Hapoalim said it had received a number of offers to sell its portfolio, and the deal was a non-financed cash transaction carried out via Deutsche Bank.

The deal came as a relief to investors who had been battering the bank's shares since late 2007 when the problems first surfaced and prompted Hapoalim to announce writedowns due to declines in its U.S. structured investment vehicle holdings (SIVs).

Shares in Hapoalim, Israel's largest bank in terms of assets, were up 4.1 percent at 16.15 shekels by 1255 GMT, above a 52-week low of 12.15 shekels in mid-May but below a high of 21 shekels in November.

"This move shuts the door on what has been a disappointing six months for Hapoalim," Joseph Wolf, an analyst at Lehman Brothers, wrote in a report. "It should also go to restoring management credibility."

...more...

FORT WORTH, Texas — American Airlines pilots and flight attendants are taking their protest against management to the shareholders who own the company.

Hundreds of airline workers took part in a union-organized protest Wednesday outside the hall where shareholders of AMR Corp. were scheduled to meet.

The unions are unhappy because there's been little progress in negotiations for new contracts, while several hundred managers up to the CEO got stock-based bonuses last month.

The flight attendants union is calling on the airline's top officials to resign for accepting the stock, which the company considers part of executive pay. The pilots union blames management for the grounding of about 3,300 flights last month after federal regulators forced the company to redo electrical wiring on many planes.

more....

http://www.chron.com/disp/story.mpl/ap/business/5794059.html

Natives seem to be getting restless.

Earlier this decade, city officials in Hagerstown, Md., started making the case to build a longer runway at their airport to lure service by regional jets, instead of the turboprop planes that provided its only flights.


Times Topics: Airlines and AirplanesSeveral years and $61.4 million later, the city opened its concrete welcome mat, a new 7,000 foot runway, last November — two months after the airport lost scheduled air service altogether.

Despite its costly investment, a dogged marketing effort by local officials and even help from Congress, the airport has had no luck attracting a new carrier, as the industry struggles under soaring fuel prices.

“Could we pick a worse time to go out and get commercial service? Probably not,” said Carolyn Motz, director of the Hagerstown Regional Airport, which had 10 daily flights a decade ago.

more....

http://www.nytimes.com/2008/05/21/business/21air.html?_r=1&hp&oref=slogin

primarily for that purpose.

they glossed over. A poor example perhaps but it is a problem for other small regional airports.

Lewis S. Ranieri, a pioneer of the mortgage bond industry, spent the last few years warning anyone who would listen that the housing market was about to collapse.

But the Franklin Bank Corporation, a small Texas thrift institution that Mr. Ranieri founded and oversaw as chairman, appears to have ignored his admonitions.

On Tuesday, Franklin said it would restate its earnings after an internal investigation found that it had failed to book losses and made other “accounting errors” in its portfolio of home mortgages. It also said that Anthony J. Nocella would step down as chief executive, though he would remain on the bank’s executive committee. The Securities and Exchange Commission is investigating.

Franklin’s share price slid below $1 on the news, and analysts believe that the company, whose shares traded in the $20 range as recently as 18 months ago, could be put up for sale soon.

http://www.nytimes.com/2008/05/21/business/21banks.html?adxnnl=1&ref=business&adxnnlx=1211382293-plAIV0RQZqJ5PqNJL31tZQ

Let's see how far this goes....

the Senate takes up the issue of extending unemployment insurance (UI) benefits this week, a new report shows the UI funds of several states are not solvent enough to weather a recession.

With the Bush economy in freefall, more workers are being forced to apply for jobless benefits. In fact, as the number of U.S. workers filing first-time claims for benefits rose last week, the total receiving benefits climbed to the highest level in more than four years.

On top of that, some 200,000 jobless workers a month exhaust their UI benefits without finding new jobs, and about 3.5 million unemployed workers will lose jobless benefits this year.

The report, Unemployment Insurance Financing: Examining State Trust Funds Facing Recession, by the National Employment Law Project (NELP), finds that overall, state UI solvency is worse now than it was prior to the 2001 recession. Overall, current state UI reserves are only about half the levels recommended prior to a recession. Click here to download the report.

http://blog.aflcio.org/2008/05/20/report-unemployment-insurance-system-faces-funding-crisis/

If the unemployment is so low....why are we having this problem? Tansy, you have me doing it now :spray:

SAN FRANCISCO — A few years ago, drums of used french fry grease were of interest only to a small network of underground biofuel brewers, who would use the slimy oil in their souped-up antique Mercedes-Benzes.

Now, restaurants from Berkeley, Calif., to Sedgwick, Kan., are reporting thefts of old cooking oil worth thousands of dollars by rustlers who are refining it into barrels of biofuel in backyard stills.

"It's like a war zone going on right now over grease," said David Levenson, who owns a grease hauling business in San Francisco's Mission District. "We're seeing more and more people stealing grease because it lets them stay away from the pump, but it's hurting our bottom line."

Levenson, who converted the engine in his '83 Mercedes to run on straight canola oil, has built up contracts to collect the liquid leftovers from 400 restaurants in the last two years.

Last week when his pump truck arrived at Thee Parkside, a dive bar known for its chili-cheese fries, his driver found someone had already helped himself to their barrel of yellow oil.

Grease is transformed into fuel through a chemical process called transesterification, which removes glycerin and adds methanol to the oil, leaving a thinner product that can power a diesel engine.


more....


http://www.chron.com/disp/story.mpl/business/5793314.html


Tis is getting a bit desperate. But the up side-recycling is looking good.

http://money.cnn.com/2008/05/21/news/economy/olderworkers/index.htm


Another reason we need affordable universal healthcare -- companies won't hire older workers for fear of higher medical costs.

131.40 2.42 1.88%
I predicted 135 a barrel by friday last week looks like it may come true hmm How about 145 by the end of next week:scared: :scared: :shrug:

That's what people/repigs keep telling me as they get subpoenaed, indicted, charged and jailed. Funny how repigs confuse "hate" with justice.

Thanks for the link to this site. I'm headed there right now.


Tansy Gold, unemployed and uninsured and un-401k'ed

Highlights

Current:



30-day and 90-day vs.greenback:



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




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

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

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

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

2008-04-09 Wednesday, April 9 0.981162 USD
2008-04-10 Thursday, April 10 0.982511 USD
2008-04-11 Friday, April 11 0.978857 USD
2008-04-14 Monday, April 14 0.97972 USD
2008-04-15 Tuesday, April 15 0.982222 USD
2008-04-16 Wednesday, April 16 0.997904 USD
2008-04-17 Thursday, April 17 0.989413 USD
2008-04-18 Friday, April 18 0.99167 USD
2008-04-21 Monday, April 21 0.993443 USD
2008-04-22 Tuesday, April 22 0.996711 USD
2008-04-23 Wednesday, April 23 0.980969 USD
2008-04-24 Thursday, April 24 0.987069 USD
2008-04-25 Friday, April 25 0.983961 USD
2008-04-28 Monday, April 28 0.984446 USD
2008-04-29 Tuesday, April 29 0.987362 USD
2008-04-30 Wednesday, April 30 0.990884 USD
2008-05-01 Thursday, May 1 0.981643 USD
2008-05-02 Friday, May 2 0.982125 USD
2008-05-05 Monday, May 5 0.987654 USD
2008-05-06 Tuesday, May 6 0.996413 USD
2008-05-07 Wednesday, May 7 0.998004 USD
2008-05-08 Thursday, May 8 0.985319 USD
2008-05-09 Friday, May 9 0.993838 USD
2008-05-12 Monday, May 12 0.996314 USD
2008-05-13 Tuesday, May 13 1.0004 USD
2008-05-14 Wednesday, May 14 0.998203 USD
2008-05-15 Thursday, May 15 1.0004 USD
2008-05-16 Friday, May 16 1.00341 USD
2008-05-19 Monday, May 19 1.00867 USD
2008-05-20 Tuesday, May 20 1.00725 USD

Current values

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

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     1.0154 1.0176 1.0141 1.0168 +0.0087 +0.86% 
CD.M08 Jun 2008 1.0157 1.0170 1.0135 1.0160 +0.0084 +0.83% 
CD.U08 Sep 2008 1.0081 1.0081 1.0065 1.0070 -0.0005 -0.05% 
CD.Z08 Dec 2008 0.9780 0.9780 0.9780 1.0068 -0.0009 -0.09% 
CD.H09 Mar 2009 0.9757 0.9757        1.0072 -0.0009 -0.09% 
CD.M09 Jun 2009 0.9995 0.9995        1.0074 -0.0010 -0.10% 
CD.U09 Sep 2009 0.9780 0.9780 0.9780 1.0076 -0.0011 -0.11%  

Other combinations: (http://quotes.ino.com/exchanges/?c=currencies)

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.M08 Jun 2008 0.9479 0.9479 0.9479 0.9479 +0.0050 +0.53%   
EURO/BRITISH POUND (NYBOT:GB)
GB.M08.E Jun 2008 (E) 0.79480 0.79710 0.79480 0.79645 -0.00125 -0.16%    
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.M08.E Jun 2008 (E) 161.30 162.53 161.30 162.53 +0.64 +0.40%     
EURO/US$ (SMALL) (NYBOT:EO)
EO.M08.E Jun 2008 (E) 1.57120 1.57500 1.57120 1.57350 +0.00975 +0.62%   

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

The June Canadian Dollar was sharply higher overnight as it extends this month's rally. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near-term. If June extends this week's rally, March's high crossing at 102.38 is the next upside target. Closes below the 20-day moving average crossing at 99.35 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 101.80. Second resistance is March's high crossing at 102.38. First support is the 10-day moving average crossing at 99.93. Second support is the 20-day moving average crossing at 99.36.


Analysis

I was running late for work so I got to hear the extended version of the drivein economics guy. He was going on about the TSX hitying 15,000 and saying "it's just a number, it's just a psychological milestone...everybody settle down" which apparently isn't working.

I was at the dump yesterday getting rid of renovation scrap and was talking to the guy who directs traffic and he was saying it's just crazy. Everybody's renovating. Everybody's buying new appliances and TV's and dropping their old ones off to be recycled. It's a madhouse compared to a few years ago.

I'm a (very) amateur pianist and found this amazing...

http://www.youtube.com/watch?v=eYXvUSSH0ow

(Sorry for the intrusion on the Stock Market thread, but music is about the only thing keeping me going these days....)

...now back to our regularly scheduled programming

that was amazing!

thank you

:toast:

(and now - back to the regularly scheduled programming)

In my youth I was advised by a wonderful lady in my Wiltshire village to forget about playing piano or strings but to concentrate on woodwind or brass.

So I did at least learn to handle the tin whistle some years later while spending some time in the West of Ireland (Co. Clare).

Thanks for the video!

Dow 12,629.77 Down 198.91 (1.55%)
Nasdaq 2,454.65 Down 37.61 (1.51%)
S&P 500 1,395.95 Down 17.45 (1.23%)
10-Yr Bond 3.793% Up 0.017
NYSE Volume 2,825,864,750
Nasdaq Volume 1,493,132,875

2:30 pm : The major indices are posting a loss of more than 1%. Market participants are concerned over the negative FOMC meeting minutes, with the Fed cutting its growth forecast and raising its inflation expectations. Several FOMC members said that it was unlikely that they will ease policy in the near term, even if the economy sees a contraction.

Airlines are taking an absolute beating, with the Amex Airline Index falling 11% to its lowest level ever. All 14 airlines that make up the Amex Airline Index are posting a loss, with AMR Corp (AMR 6.13, -2.07) down 25% and UAL corp (UAUA 8.77, -2.79) down 24%. The losses were spurred by the world's largest carrier by fleet size, AMR, announcing it was cutting capacity and jobs due to record crude prices and the slowing U.S. economy.

Crude is now up 3.4% to $133.38 per barrel.DJ30 -190.77 NASDAQ -36.17 SP500 -16.15 NASDAQ Dec/Adv/Vol 1877/926/1.45 bln NYSE Dec/Adv/Vol 2020/1060/843 mln

2:05 pm : The major indices fall to their worst levels of the session, and then extend their losses on the just released April 30 FOMC meeting minutes.

At its April 30 meeting the FOMC decided to cut the fed funds rate by 25 basis points to 2.00%, in what it called a "close call." The Fed expects unemployment will "increase significantly," raising its 2008 forecast to 5.6% from 5.25%. In addition, many officials forecast negative GDP growth in the first half, and the Fed cut its 2008 GDP growth forecast to between 0.3% and 1.2% from between 1.3% and 2.0%. However, inflation risks have increased, with the Fed raising its core-inflation forecast to between 2.2% and 2.4% from between 2.0% and 2.2%. Dallas Fed President Fisher and Philadelphia Fed President Plosser dissented against the rate cut on inflation concerns.

Meanwhile, crude oil continues to break records, climbing 2.9% to a new all-time high of $132.70 per barrel.DJ30 -132.88 NASDAQ -17.91 SP500 -9.41 NASDAQ Dec/Adv/Vol 1483/1315/1.20 bln NYSE Dec/Adv/Vol 1576/1458/715 mln

1:30 pm : The broader market is extending its downturn as declining issues outnumber advancers in the S&P 500. In turn, the majority of the major economic sectors continue to trade with losses.

At midweek, the best performing economic sectors have been energy, health care, and utilities. Week-to-date, energy is up 3.0%, health care is up 0.6%, and the utilities sector is up 2.3%. They are also the only three sectors trading in positive territory today, up 1.1%, 0.2%, and 0.8%, respectively.DJ30 -91.68 NASDAQ -7.76 SP500 -4.90 NASDAQ Dec/Adv/Vol 1420/1357/1.10 bln NYSE Dec/Adv/Vol 1541/1496/657 mln

1:00 pm : The S&P 500 briefly climbs into positive territory after a broad-based increase in buying interest, but then retreats to the unchanged mark. Financials remain weak with a 1.2% decline.

Moody's (MCO 38.24, -5.66), a credit rating agency, is posting its largest one day percent decline since 1999 after the Financial Times reported the company may have improperly given Aaa ratings to complex debt. The article states that Moody's knew in early 2007 that coding errors in the company's computer models caused the improper ratings. Credit agencies have already been under fire for rating subprime debt with Aaa ratings.DJ30 -51.62 NASDAQ +2.68 SP500 +0.14 NASDAQ Dec/Adv/Vol 1252/1488/996 mln NYSE Dec/Adv/Vol 1367/1653/596 mln

12:30 pm : The major indices continue to post modest losses with six of the ten economic sectors trading lower. The financial sector (-1.3%) has fallen to a session low, but its weakness is being offset by a 1.0% gain in energy stocks due to the spike in crude prices.

Meanwhile, small-cap and mid-cap stocks are outperforming on a relative basis. The Russel 2000 is up 0.4%, and the S&P 400 is up 0.1%.DJ30 -64.97 NASDAQ -2.04 SP500 -1.58 NASDAQ Dec/Adv/Vol 1345/1376/891 mln NYSE Dec/Adv/Vol 1438/1558/537 mln

12:00 pm : The stock market is posting a loss for the second straight day after a spike in crude prices keeps buyers on the sidelines. Losses are modest, with the S&P 500 down only 0.1%.

The Energy Information Administration announced that crude inventory levels for the week ended May 17 fell 5.32 million barrels, marking the first decline after four consecutive weeks of inventory builds. Analysts expected stockpiles to increase by 300,000 barrels.

As a result, crude oil prices spiked from the unchanged mark to a gain of 2.4% at $132.08 per barrel, marking an all-time high. Crude prices are up 16% in May, the largest monthly percent advance in nearly four years.

On that note, the Amex Airline Index (-7.0%) is getting pummeled this session, hitting a 52-week low. AMR Corp (AMR 6.83, -1.37), which operates American Airlines, announced it is cutting its 2008 domestic capacity by 11% to 12%. The company said the airline industry is not built to withstand oil prices at $125 per barrel, especially when the economy is weak. Shares of AMR are down 77% from their 52-week high.

Earnings reports have been mostly better than expected, but the market's response has been mixed. Hewlett-Packard (HPQ 45.49, -0.97), Intuit (INTU 28.35, +1.14), Analog Devices (ADI 33.60, -1.15) and BJ's Wholesale (BJ 37.90, -0.95) all topped their respective earnings estimates. Of note, Hewlett-Packard had already preannounced its earnings.

In corporate news, Time Warner (TWX 16.35, +0.20) has agreed on a complete split with Time Warner Cable (TWC 31.11, +0.89). The deal will involve a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.

Market participants await the 2:00 ET release of the April 30 FOMC meeting minutes. The Fed cut the fed funds rate by 25 basis points at the meeting, although two members dissented, preferring no change.DJ30 -56.67 NASDAQ -3.52 SP500 -1.20 NASDAQ Dec/Adv/Vol 1311/1371/812 mln NYSE Dec/Adv/Vol 1375/1589/486 mln

11:30 am : The major indices are on the rise, but remain in the red. Losses are modest.

The financial sector is underperforming again this session with a loss of 1.0%, after falling more than 2% on Tuesday. Specialized finance is down 3.3% and investment banks & brokerages is down 2.1%. Student lender SLM Corp. (SLM 22.22, +1.44) is bucking the negative trend, on hopes that the lender will get more favorable terms from the government.

Crude prices continued to rally, hitting as high as $132.08 per barrel, before easing a bit to $131.46.DJ30 -66.79 NASDAQ -3.90 SP500 -1.72 NASDAQ Dec/Adv/Vol 1346/1294/692 mln NYSE Dec/Adv/Vol 1427/1513/416 mln

/... http://finance.yahoo.com/marketupdate/overview

Dow 12,611.45 217.23 (1.69%)
Nasdaq 2,450.25 42.01 (1.69%)
S&P 500 1,393.42 19.98 (1.41%)
10-Yr Bond 3.788% 0.012

NYSE Volume 2,978,302,250
Nasdaq Volume 1,602,755,375

New tipping-point in the global systemic crisis: When the illusion that the crisis is under control fades away…
- Public announcement GEAB N°25 (May 16, 2008) -

GEAB N°25 is available! June/July 2008 – New tipping-point in the global systemic crisis: When the illusion that the crisis is under control fades away…

Sorcerer's apprentices are doomed to repeat the same mistakes on and on. In 2007, the authorities' and large financial institutions' attempt to conceal the subprime crisis (1) (which had already started hitting hard on the markets in February-March 2007) resulted in a severe and sustainable shock in summer 2007. Well, in the coming weeks we will experience a “remake” of the same scenario, i.e. a serious aggravation of the January-March 2008 financial crisis at the beginning of summer 2008.

In this 25th issue of the Global Europe Anticipation Bulletin, our team therefore decided to describe five of the seven trends currently at work and soon to result in this new tipping-point of the global systemic crisis (the last two trends – Europe and Asia - will be analysed in GEAB N°26):

Real estate: A bottomless pit
Global financial bubble: Inflation only is progressing
US economy: Recession settles down
US public deficits: The big return
Dollar: The rebound that does not exist
Europe: Decoupling confirmed – The heart of Euroland resists / UK enters recession
Asia: Severe slowdown ahead

We also formulate a complete series of strategic and operational recommendations aimed at preparing oneself to the upcoming Summer-2008 shock (on subscription).

In this public announcement, we also wish to explain in what way this new operation of « euphorisation » in fact will contribute to worsen the upcoming shock.

Indeed, despite all the signs indicating that the crisis is going on (bank losses and continued process of financial asset depreciation (2), proliferation of medium-size bank failures in the US in particular (3), increasing weakness of large insurance companies (4), steady collapse of housing prices (5), contamination to real economy and non-US economies (6), pursuance of the US currency fall (7), economic slowdown in Europe (8),...), financial authorities, large banks and the international media have undertaken to profess that the crisis was under control. Powerless as they are in real-life, these sorcerers' apprentices have come to resort to a « psychological weapon » to curb the crisis. The global systemic crisis still has long to live, having nothing to do with this virtual reality where central bankers, private bankers and financial media seem to be operating. Of course large banks took advantage of today's general “euphoria” and managed to share past and future (even greater (9)) losses by launching vast operations of recapitalisation (10).

...

This time however, contrary to last year, operators are unwilling to be fooled. According to LEAP/E2020, this is a major psychological factor, one that will contribute to emphasize the impact of the crisis once the mirage of a crisis-under-control fades away at the beginning of this summer 2008.

Indeed, the global financial system, and in particular its US pillar, is currently staking its all (though our team is not so sure the system is fully aware of it). But the credibility of the Fed and of large banks is extremely low today (not mentioning political authorities'). Operators (whether they are individuals, simple savers or sovereign funds) are suspicious and beginning to wonder if they are not being manipulated. If, as our researchers believe, they realise in a few weeks that indeed they were being manipulated and that the crisis is far from being under control but on the contrary is reemerging even bigger, then real panic movements will swoop down upon financial markets. When it comes to mass-psychology, nothing is worse than the collective feeling of having been fooled on purpose.

Here is a simple illustration that will speak to all those of you who know that banks « hold » the vast masses of investors because of the confidence savers have in their capacity to manage their investments: imagine what would be the consequences of a sudden savers' refusal to keep on letting banks manage their savings as they want, and their insisting upon switching their portfolio into less risky investments! Such a move could provoke a 20 percent drop on global financial places in just a few days. This nightmare probably haunts central banks in general, and the US Federal Reserve and the Bank of England in particular (whose economies are closely linked to stock market behaviours). Paradoxically, it is by refusing to face the direct consequences of the financial crisis that they are paving the way to an even greater shock.

Indeed, contrary to what they say (and maybe to what they really believe), there is no bottom to the pit that can stop the fall; or rather, there might be a bottom but its getting deeper day after day (11). Ironically, those who in the past years used to say that there was no limit to profit and benefit increases, are now trapped in a process where the bottom gets always deeper, where losses keep increasing endlessly as reference asset prices fall always lower, and where the only things that go always higher are energy and food prices. But isn't irony one of the only identifiable features of History?

The tragic part is the billions of people now struggling to buy their food because of soaring inflation in food commodities; or the dozens of millions of people who bought houses in the US, UK or Spain these years and find themselves with endlessly devaluating assets; or the dozens of millions of employees, individual entrepreneurs and government staff about to lose their job.

/more... http://leap2020.eu/GEAB-N-25-is-available!-June-July-2008-New-tipping-point-in-the-global-systemic-crisis-When-the-illusion-that-the-crisis_a1691.html?PHPSESSID=1b35f747f8c8cdee7b8beb462c7de388

edited to add emphasis.

When the masses realize they've been manipulated, they will panic, not only with financial, but also to stockpile groceries and other necessities. This will be so much worse than a winter blizzard warning in the Midwest, when people panic and clear out the grocery stores.

I'm a great believer in the (often terrible) power of mass psychology.

:-(

well-heeled pigs who brought on this catastrophe, the distribute the "money" to some of the victims of this catastrophe ---- all before anyone catches on. Pluck a hundred million or so from Mozillo and pay off some mortgages of those who were suckered in by Mozillo. Siphon some from Merrill and Goldman and whoever else is fucking over the world economy and siphon it back into infrastructure and health care and schools.

In reality, though, I expect to see more of this sort of thing as times get rough and people become desperate.

I was telling a friend this morning in a conversation about all the people who are losing their homes to foreclosure: "It's bad enough that there are people who never had a chance before, who were suckered into deals they couldn't really afford and didn't have the experience or knowledge to know they were being suckered. But what we're seeing now is the upward creep of the systemic failure. People who had solid incomes and solid equity in homes they bought eight, ten, fifteen years ago are also being hit by this. Retirees who are getting notices that their pensions are being cut -- what do they do? Go out and get a job that results in their social security being cut? How do you downsize when there's no one to buy the house you already downsized to?"

Tansy Gold, angry and bitter and getting more so by the minute.

http://money.cnn.com/2008/05/21/news/economy/fed_minutes/index.htm?postversion=2008052115

http://www.reuters.com/article/bondsNews/idUSBNG16850120080521

May 21 (Reuters) - Keefe, Bruyette & Woods analyst Frederick Cannon said he expects a consumer-led recession extending through the fall of 2008, followed by a period of slow growth as U.S. consumers repair their personal balance sheets.

Cannon said the brokerage's economic baseline calls for a moderate recession in 2008, adding that the small rise in Gross Domestic Product in the first quarter of 2008 has only reinforced its moderate recession forecast.

He said the outlook remains somewhat more cautious than the consensus of economists, although less so than when the brokerage first called for a recession in December.

"The reason for our cautious outlook is the combination of weakening leading economic indicators and the increasing tightening of consumer credit by the banks and financial institutions under coverage," Cannon said in a research note.

He believes rising unemployment, higher food and energy costs and declining house prices will cause U.S. consumers to retrench and repair personal balance sheets for the rest of the year with a focus on cutting their spending and continued de-leveraging.

...more...

It's your fault you can't continue to pay more for less!

Dow 12,601.19 Down 227.49 (1.77%)
Nasdaq 2,448.27 Down 43.99 (1.77%)
S&P 500 1,390.71 Down 22.69 (1.61%)
10-Yr Bond 3.822% Up 0.046
NYSE Volume 4,485,264,000
Nasdaq Volume 2,170,392,000

16:30 ET
Stocks Fall On FOMC Minutes
Dow -227.49 at 12601.19, Nasdaq -43.99 at 2448.27, S&P -22.69 at 1390.71

On Wednesday, the stock market posted a steep loss for the second straight session. A lowered economic outlook at the Fed and a spike in crude prices weighed on sentiment.

The FOMC released the minutes from its April 30 meeting around 2:00 ET, which sent stocks tumbling. The Fed noted its decision to cut rates by 25 basis points was a "close call", given the current inflation risks. The Fed expects 2008 real GDP growth of between 0.3% and 1.2%, which is down about one percent from their previous forecast. The 2008 inflation outlook was increased, as was the unemployment rate forecast. Several FOMC members said that it was unlikely that it would be appropriate to ease monetary policy in the near term, even if the economy sees a contraction given the current inflation environment.

The release of the minutes spurred the majority of Wednesday's selling interest, with the S&P 500 going from a 0.3% loss to a 1.6% decline on the release. However, market sentiment was already on shaky ground prior to the release, as buyers were showing hesitation in the face of record high crude prices.

The Energy Information Administration announced a substantial and unexpected decrease in crude inventories. Analyst had forecast a modest build in stockpiles. Crude rallied on the news, gaining 3.75% to $133.82 per barrel, marking a new all-time high.

On a related note, the Amex Airline Index plunged 12% to its lowest level since its 1994 inception. AMR Corp (AMR 6.22, -1.98), which operates American Airlines, spurred the decline after announcing a plan to cut its 2008 domestic capacity by 11% to 12%. The struggling airline is going to start charging $15 for each checked bag. The company said the airline industry is not built to withstand oil prices at $125 per barrel, especially when the economy is weak. This session's spike in crude prices compounded selling interest within Airline stocks.

Weakness was not limited to just oil sensitive stocks, with 89% of S&P 500 components posting a loss, and all ten of the economic sectors settling in negative territory. Financials (-2.6%) and materials (-3.1%) had the steepest declines, while defensive-oriented utilities (-0.1%) and healthcare (-0.6%) outperformed on a relative basis.

On a brighter note, Time Warner (TWX 16.24, +0.09) and Time Warner Cable (TWC 31.27, +1.05) posted a decent gain on news that the two companies have agreed to completely separate. The deal will involve a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.

The Dow Jones has fallen 3.3% during the last two sessions, its largest two-day drop in since the Bear Stearns (BSC 9.35, -0.26) bailout. However, it is still up 8.3% from its March 17 low.

They over in GD:Primaries humping all the Hillary-haters? I know, all this hate will eat me up. One question though: why am I happier every single day knowing that a (D) will finally be president and (D)s will rule Congress and (D)s will finally start to regulate all the corruption that's run rampant for years now?

Maybe all this optimism will eat me up, yeh that's the ticket!

134 a barrel on aftermarket trading also wholesale gas is at 3.41 a jug good god :scared:if it keeps this up we won't make it to next christmas oh talking about christmas good luck walmart lol it should be a record this year not. :rofl:

And my muscles tighten as I anticipate impact.

Julie--wincing cause this is gonna hurt