STOCK MARKET WATCH, Wednesday May 6

Source: du

STOCK MARKET WATCH, Wednesday May 6, 2009

Bush Administration Officials Under Indictment = 2
Financial Sector Officials Under Indictment = 0
Financial Sector Officials In Prison = 2

AT THE CLOSING BELL ON May 5, 2009

Dow... 8,410.65 -16.09 (-0.19%)
Nasdaq... 1,754.12 -9.44 (-0.54%)
S&P 500... 903.80 -3.44 (-0.38%)
Gold future... 904.30 +2.10 (+0.23%)
30-Year Bond 4.05% -0.01 (-0.30%)
10-Yr Bond... 3.16% UNCH (UNCH)

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

Market Conditions During Trading Hours

GOLD, EURO, YEN, Loonie and Silver

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Read more: du

"Green Shoots" Sprouting in Global Markets
by Gary Dorsch

An eight week long upturn in European, Japanese, US and emerging stock markets since March 10th has sparked a wave of optimistic commentaries in the financial media that the worst bear market since the 1930’s has finally come to a merciful end, and the rocky road to recovery lies ahead. Since hitting a 12-year low on March 6th the key global benchmark, the S&P 500 Index, has rebounded by +34%, while the KBW Index measuring 24 US banks doubled off its lows.

The stunning rebound from March 6-20th was only the fifth time since 1929 that the S&P 500 Index has run up by more than +20% in 14 days or less. The rebound has been dubbed the “Green Shoots” Rally, signaling the initial stages of a recovery in the battered global economy. Most importantly, under heavy political pressure from the Fed and Congress, FASB altered rule #157 to allow American bankers to value toxic assets at their own discretionary judgment.

The switch-back to “mark-to-make-believe” accounting is an expedient scheme that allows the banking elite to conceal their losses and use the same obscure and discredited models to inflate their balance sheets. The recent spate of better-than-expected earnings reports by US banking giants Goldman Sachs, JP-Morgan, Citigroup, Bank of America, and Wells Fargo is a testament, not to the strengthening of the real economy, but rather due to accounting gimmickry.

....

On April 23rd, IMF chief Dominique Strauss-Kahn sounded some strong words of caution, which were ignored in the marketplace. “Despite some red lights and green lights, our belief is the financial crisis is far from over. There are still long months of economic distress in front of us,” Kahn warned. The IMF predicted on April 21st, that worldwide financial institutions could suffer $4 trillion in losses from the global credit crisis. “Historically, wherever recessions are preceded by financial crises they are more severe and longer lasting,” warned IMF Chief Economist Olivier Blanchard, “there would be no rapid recovery from the current economic crisis.”

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

08:15 ADP Employment Change Apr
Briefing.com -620K
Consensus -643K
Prior -742K

10:30 Crude Inventories 05/01
Briefing.com NA
Consensus NA
Prior +4053K

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

http://www.reuters.com/article/bondsNews/idUSN0565125420090506

Select seasonally adjusted historical data from Mortgage Bankers Association's (MBA) weekly
mortgage application survey:
               WEEK  4-WEEK  4-WEEK  WEEK            WEEK          30-YEAR      1-YEAR
WEEK     MARKET   CHG   MOVING   CHG  PURCHASE CHG   REFINANCE  CHG  MTG CONTRACT ARM CONTRACT
ENDING   INDEX    (PCT)   AVG    (PCT) INDEX   (PCT)   INDEX   (PCT)  RATE (PCT)  RATE (PCT)
======   =====    ===== ======== ==== ======== ===== =========  =====  =======    =====
05/01/09   979.7  +2.0  1,056.4   -6.0   264.3  +5.0    5,169.3  +1.2     4.79     6.36
04/24/09   960.6 -18.1  1,124,2   -4.9   251.6  -0.6    5,108.2 -21.9     4.62     6.23
04/17/09 1,172.2  +5.3  1,182.6   +0.3   253.0  -4.2    6,540.7  +7.7     4.73     6.19
04/10/09 1,113.2 -11.0  1,179.4   +5.3   264.1 -11.3    6,071.7 -10.9     4.70     6.21
04/03/09 1,250.6  +4.7  1,120.3  +13.3   297.7 +11.1    6,813.5  +3.2     4.73     6.23
03/27/09 1,194.4  +3.0    988.5  +16.0   268.0  +0.1    6,600.1  +3.7     4.61     6.20
03/20/09 1,159.4  +32.2   852.4  +13.9   267.8  +4.2    6,363.2  +41.5    4.63     6.22
03/13/09   876.9  +21.2   748.4   +0.1   257.1  +1.5    4,497.6  +29.6    4.89     6.20
03/06/09   723.4  +11.3   748.0   +4.3   253.3  +7.1    3,470.7  +13.3    4.96     6.21
02/27/09   649.7  -12.6   717.3   -4.8   236.4  -5.6    3,063.4  -15.3    5.14     6.13
02/20/09   743.5  -15.1   753.7   +0.4   250.5  -2.6    3.618.0  -19.1    5.07     6.13
02/13/09   875.3  +45.7   750.9   -9.6   257.3  +9.1    4,472.9  +64.3    4.99     6.10
02/06/09   600.6  -24.5   830.9  -20.0   235.9  -9.8    2,722.7  -30.3    5.19     6.22
01/30/09   795.4   +8.6 1,039.3   -9.2   261.4 -11.2    3,906.3  +15.8    5.28     6.09
01/23/09   732.1  -38.8 1,099.0  -10.5   294.3  -2.9    3,373.9  -48.0    5.22     5.96
01/16/09 1,195.3   -9.8 1,227.4   -1.0   303.1  +2.5    6,491.8  -12.4    5.24     5.89
01/09/09 1,324.8  +15.8 1,239.9  +10.8   295.8 -14.1    7,414.1  +25.6    4.89     5.89
01/02/09 1,143.8   -8.2 1,119.1   +7.9   344.2  +7.3    5,904.5  -12.3    5.07     5.90
12/26/08 1,245.7    0.0 1,037.6  +10.3   320.9  +1.4    6,733.8   -0.4    5.03     6.15
12/19/08 1,245.4  +48.0   940.6  +28.8   316.5  +10.6   6,758.6  +62.6    5.04     6.36
12/12/08   841.4   +2.9   730.3  +17.9   286.1   -4.5   4,156.0   +6.5    5.18     6.63
12/05/08   817.7   -4.7   619.6  +17.8   299.6  -17.0   3,901.9   +2.6    5.44     6.76*
11/28/08   857.7 +112.1   521.4  +29.7   361.1  +38.0   3,802.8 +203.3    5.47     6.61
11/21/08   404.4   +1.5   402.0   -4.3   261.6   +5.3   1,254.0   -2.1    5.99     6.87
11/14/08   398.6   -6.2   420.1   -0.6   248.5  -12.6   1,281.2   +2.6    6.16     6.80
11/07/08   425.0  +11.9   422.4   -3.7   284.4   +9.0   1,248.4  +16.1    6.24     6.77
10/31/08   379.9  -20.3   438.5   -4.7   260.9  -13.9   1,075.4  -27.8    6.47     6.86
10/24/08   476.7  +16.8   459.9   +1.2   303.1   +8.5   1,489.4  +28.5    6.26     6.90
10/17/08   408.1  -16.6   NA      -9.2   279.3  -10.9   1,158.8  -23.5    6.28     6.97
10/10/08   489.3   +5.1   500.4   -7.9   313.5   -0.3   1,514.2  +12.5    6.47     6.67
10/03/08   465.5   +2.2   543.5   -1.4   314.5   +3.2   1,345.8   +0.9    5.99     6.60
09/26/08   455.4  -23.0   551.2   +0.1   304.8  -10.9   1,333.9  -34.7    6.07     6.60
09/19/08   591.4  -10.6   550.6   +8.4   342.2  -10.0   2,043.4  -11.2    6.08     6.51
09/12/08   661.7  +33.4   508.2  +13.5   380.4   +2.4   2,300.0  +88.1    5.82     6.58
09/05/08   496.2   +9.5   447.6   +4.1   371.5   +6.4   1,222.9  +15.4    6.06     6.70
08/29/08   453.1   +7.5   430.0   +1.2   349.0  +10.5   1,059.7   +2.1    6.39     6.81
08/22/08   421.6   +0.5   424.9  +0.05   315.9   +0.6   1,038.0   +0.3    6.44     6.81
08/15/08   419.3   -1.5   424.7   -4.0   314.0   -0.4   1,034.5   -3.7    6.47     6.75
08/08/08   425.9   -1.5   442.2   -5.2   315.2    0.0   1,074.6   -4.2    6.57     6.84
08/01/08   432.6   +2.8   466.3   -4.2   315.2   +1.8   1,121.8   +4.4    6.41     6.80
07/25/08   420.8  -14.1   486.5   -2.8   309.5   -7.8   1,074.4  -22.9    6.46     6.93
07/18/08   489.6   -6.2   500.7   +1.4   335.6   -6.7   1,392.7   -5.6    6.59     6.95
07/11/08   522.2   +1.7   493.7   +0.7   359.7   -1.7   1,474.9   +6.9    6.22     6.97
07/04/08   513.4   +7.5   489.7   -2.3   365.8   +6.7   1,379.3   +8.7    6.43     7.04
06/27/08   477.7   +3.6   501.1   -1.2   342.8   +2.8   1,269.2   +4.7    6.33     6.93
06/20/08   461.3   -9.3   507.3   -6.1   333.4   -7.4   1,212.2  -12.1    6.39     6.88
06/13/08   508.4   -8.7   540.3   -5.0   360.2   -4.3   1,378.6  -15.0    6.57     7.04
06/06/08   557.1  +10.9   568.6   -2.8   376.2  +12.8   1,622.1   +8.4    6.24     6.73
05/30/08   502.3  -15.3   597.9   -6.0   333.6   -5.4   1,496.1  -25.7    6.17     6.80
05/23/08   593.3   -4.6   636.2   +1.0   352.7   +0.1   2,013.5   -8.9    5.96     6.92
05/16/08   621.6   -7.8   629.6   -0.6   352.5   -6.9   2,210.5   -8.7    5.90     6.71
05/09/08   674.4   +2.9   633.6   -2.7   378.5   -0.7   2,422.1   +6.5    5.82     6.60
05/02/08   655.4  +15.6   650.8   -2.6   381.3  +12.1   2,273.8  +19.3    5.91     6.77
04/25/08   567.0  -11.1   668.4   -4.3   340.1   -4.8   1,905.2  -16.7    6.01     6.86
04/18/08   637.6  -14.2   698.7  -10.5   357.3   -6.4   2,286.3  -20.2    6.04     6.93
04/11/08   743.4   +2.5   780.8   +3.0   381.6   -0.8   2,866.0   +5.2    5.74     7.02
04/04/08   725.6   +5.4   758.0   +1.8   384.7   +8.1   2,724.7   +3.4    5.78     7.06
03/28/08   688.3  -28.7   744.5   +0.11  356.0  -11.8   2,636.0  -38.1    5.75     7.00
03/21/08   965.9  +48.1   743.6  +11.3   403.7  +10.6   4,255.2  +82.2    5.74     7.02
03/14/08   652.0   -2.9   668.4   -6.0   365.0   -1.0   2,335.0   -4.6    5.98     6.99
03/07/08   671.7   -1.9   711.1  -12.1   368.8   +1.6   2,448.2   -4.7    6.37     6.72
02/29/08   684.9   +3.0   809.1  -11.0   363.1   +1.4   2,569.0   +4.5    5.98     5.83
02/22/08   665.1  -19.2   909.5   -9.7   358.2   +0.2   2,458.9  -30.4    6.27     5.84
02/15/08   822.8  -22.6 1,007.0   -3.8   357.6  -11.5   3,533.8  -27.9    6.09     5.72
02/08/08 1,063.5   -2.1 1,046.6   +3.9   403.9   -0.3   4,901.5   -3.0    5.72     5.72
02/01/08 1,086.6   +3.0 1,007.4  +10.4   405.3  +12.0   5,054.0   -1.0    5.61     5.62
01/25/08 1,054.9   +7.5   912.2  +16.7   362.0  -17.7   5,103.6  +22.1    5.60     5.70
01/18/08   981.5   +8.3   782.0  +13.7   439.9   -4.6   4,178.2  +16.9    5.49     5.51
01/11/08   906.4  +28.4   687.5  +10.1   461.2  +11.4   3,575.5  +43.4    5.62     5.77
01/04/08   706.0  +32.2   624.4   -4.1   414.0  +14.7   2,494.2  +53.9    5.73     6.04
 *Most data revised in week

...more...

It may have gone up - but look at the drop last week!

03. U.S. April ADP employment down 491,000
8:16 AM ET, May 06, 2009

SINGAPORE – Oil prices rose above $54 a barrel Wednesday in Asia as comments by the U.S. central bank chief stoked investor optimism that economic growth and crude demand may pick up by the end of the year.

Benchmark crude for June delivery was up 36 cents to $54.20 a barrel by late afternoon in Singapore, in electronic trading on the New York Mercantile Exchange. The contract Tuesday fell 63 cents to settle at $53.84.

Federal Reserve Chairman Ben Bernanke gave his most optimistic prediction yet Tuesday about the end of the U.S. recession, saying he expects the economy to start growing again this year.

....

Traders will be watching the weekly petroleum inventory data for the week ended May 1 from the Energy Information Agency on Wednesday. Analysts expect a build of 2.2 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

....

In other Nymex trading, gasoline for June delivery rose 1.54 cents to $1.59 a gallon and heating oil gained 1.05 to $1.44 a gallon. Natural gas for June delivery was steady at $3.62 per 1,000 cubic feet.

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

This was over at TAE yesterday: Record inventories of crude oil are building up around the world threatening to swamp storage space and belying optimism in the markets about an imminent economic recovery. Rotterdam, Europe's biggest port, is running out of room for more oil, US reserves are at a 19-year record and tankers are being used as floating storage off Britain's south coast, even though OPEC is reducing production. "From a commodities point of view, world trade is appalling and the demand is just not there," said Ahmad Abdallah, commodities analyst at Gavekal, the economics consultancy. "All inventories are rising – they are bursting at their seams."

It will be interesting to see how today's report will pan out. I remember stories of when oil prices were down, some were leasing tankers for use as storage until prices went up. But then again, it is difficult to believe any of the numbers that are being reported nowadays.

Thanks for all you do with SMW and have good day.

Oil drops to $1 after killing economic optimism with previous price rise

Gas had jumped a dime from the day before. I could barely drive. Tears of happiness were blinding my vision.

of the right still spewing the "supply and demand" story to the masses? If s&d were true, gas would be a buck a gallon.

Nurses would have been making more money since the 1990's and I would be making in the high 5 low 6 figures now(so I could afford a decent house)...

Today is School Nurse Appreciation Day. That Proclamation from the Governor and Superintendent all those congratulatory e-mails clogging my box won't make up for the fact that Nurses were dropped from the incentive pay bonus schools get for improved performances (we only got a token amount 2% of what teachers got-but it was a nice gesture and made us feel part of the team). In other words-there is no incentive pay for us at all-no matter what you do or how hard they work you.

Early retirement here I come!!!!!! And I am not the only school nurse planning an early retirement. One of my buds and nursing pals left 2 weeks ago. Sixteen years and 6 weeks short of the end of school and she said she had had enough. Walked off and tended her notice on a Friday after the Principal threatened her. They had no Nurse Monday 2 weeks ago and now we have swine flu to watch out for and we have another school with out a Nurse.

The sad but funny thing-Principal called Health Services and demanded they send a substitute Nurse there (like they could order on off the shelf from WalMart-boy were we laughing our ass's off)...there is now such thing and they are going to have to deal with their 2 diabetic students-no other Nurses are willing to take the liability or work with that principal.

Isn't that how it always works? :shrug:

Gas prices are spiking once again - just in time for the Memorial Day weekend!
In SE FL, up .10 this week alone - .20 in two weeks.
I read about a oil trader in today's WSJ who's crying about the bonus caps. The pig owns a castle in Germany - presumably to douse the torch and pichfork crowd from with his boiled ill-gotten gains. Money for nothing.

can the oil pigs get swine flu?

up $0.40/gal to $2.35/gal. Only $2.19 in Ormond Beach area. That's where I'm staying thru next week and commuting to Lake Mary (just north of Orlando) until I find an apt. staying w/my Dad at his timeshare. :-)

WASHINGTON/NEW YORK (Reuters) – Bank of America Corp has been deemed to need as much as $34 billion in additional capital, according to the results of a government stress test, a source familiar with the results told Reuters late on Tuesday.

....

It may also unnerve investors who had hoped the results of the stress tests on Bank of America and 18 other banks might show the industry was in less dire condition than had been feared. Shares of major U.S. banks have nearly doubled since bottoming out in early March.

....

Many analysts have speculated that other banking companies that may need more capital, either because they do not have enough tangible common equity or are experiencing rising loan losses, include Citigroup Inc, Wells Fargo & Co, Fifth Third Bancorp, GMAC LLC, KeyCorp, Regions Financial Corp and SunTrust Banks Inc.

http://news.yahoo.com/s/nm/20090506/bs_nm/us_bankofamerica

can't they? (see Post #1)

I mean, they just decide they need $34Bn more, so they say well, these CDOs, SIVs, MBSes should eventually someday be worth $34Bn more than we've got 'em on the books for, so there ya go.


TG

He said that I needed 15 billion dollars.

Who's kickin' in?

But, I'll add you to my list.

I can kick in $1.68 but the stale cheese doodle is all mine.

during a 12 hour shift.....It's not a pretty site. Try reaching across the table and see if your appendage is still in tact. Fudd would do so at his own peril.

Love it!

asking us to consider opening an account with them. Are they marketing every household? They'd probably be better just saving on the fancy mailing and try to pass as your friendly local bank.

I'm sure it's just a local marketing campaign, but I know the first thing I thought of were the reports that they were so in need of equity. Past performance might be indicative of future foolishness, that's my hunch.

Soooo . . . needing more bailout money is a good thing?

And it's only 12:30 ET.

(editied to add time)

Bank of America +16%
Citigroup +14%
AIG +6%
Goldman Sachs +2%
JPMorgan Chase +5%
American Express +2%

How does Bank of America get bad news and go up 16%? I used to think of that as a good return for a year. JPMorgan and AmEx got good news.


Meanwhile:

GM -11%
Ford +7%
Fiat -2%

They need the capital because they are insolvent--they have no assets, only liabilities. They are basically out of business.

Any capital they raise will barely cover their current losses, with nothing left over for the future, which means they would shortly be insolvent again.

What Geithner needs to do is put these sick banks out of their misery and ours. The banks must be euthanized, their executives shit-canned, and their customers made whole.

Members of the House will experience some déjà vu this week as they vote again on legislation to crack down on mortgage lending abuses in hopes of preventing a repeat of the subprime crisis that helped bring the entire U.S. economy to its knees.

And, again, consumer advocates believe the legislation doesn’t go far enough.

....

A major concern for consumer groups is that, while the bill makes certain lending practices illegal, the consequences are not very harsh. If at any point a homeowner notifies the lender or others who have taken over a loan (known as assignees) that it appears to violate the law, the loan holder has 90 days to bring it up to snuff. If the lender fixes the problem within that time, it would face no penalty.

But it would be hard for consumers to figure out whether they have a bad loan, especially without a lawyer, consumer groups complain, so there’s still an incentive for lenders to gamble that they won’t get caught.

....

It can take years to get legislation passed by Congress, so it’s not surprising that the mortgage reform bill is making its second appearance on the House floor. Supporters say the latest legislation is even tougher than the predatory mortgage lending measure the House passed in 2007; that effort died because the Senate did not take up similar legislation.

http://news.yahoo.com/s/politico/20090506/pl_politico/22135

The just say no party and a few Democratic Senators who didn't like the idea of cram-downs stopped the last attempt at providing help for mortgage payers. Mortgage problems were at the root of this financial crisis. I've always said the TARP bailout approached the problem from the wrong end.

I can understand, though, the view of a lazy government (Bush ideology). It actually takes less effort to throw hundreds of billions at a few big banks than to selectively pass out tens of billions to individual mortgage payers. The tens of billions would more efficiently address the underlying causes of the big banks' problems, the glut in the housing market, foreclosures, and declining home prices. That is, more efficient from a money point of view. But it would require a lot more work from people in government. The original TARP plan was just going to be Paulson writing a handful of enormous checks. Adding a veneer of oversight also added a few person-hours of work (two, two-and-a-half hours one Thursday afternoon). But that's nothing compared to reviewing millions of mortgages and deciding millions of times who deserves help and who doesn't.

"So what if TARP costs ten times as much? We can spend more time on vacation at ranches with no cattle."

Addressing the future mortgage problems--Alt As and Option Arms--must get done, or we have to go through another TARP-like exercise.

I hope Obama learned from the last attempt and lobbies the Senate to make this work.

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

It's not whether he learned anything or not.

It's whether he will continue to listen to the fat cats and their protectors in congress AS WELL AS the assinine idiots on DU who are so morally outraged at the idea of some poor schlub getting a break on her/his mortgage.

I could go on, but my blood pressure is already too high due to excrutiating sciatica.



TG

Next, you'll be looking to increase Social Security payments!

I know your type!

I appreciate it.



Tansy Gold, who is so unaccustomed to compliments that she has to practice her polite response or she'll forget how to react when given one

You are the second friend I have in excruciating pain. You better not die on us!

Sending soothing, peaceful thoughts your way.

It's time for some Reality to leak into the System. I wonder if the retirement of Souter is what is making the PTB more frantic yet.

WASHINGTON (Reuters) – The United States must tackle systemically important financial firms deemed too big to fail through tighter oversight and higher capital buffers, according to remarks by a top Federal Reserve official obtained by Reuters on Tuesday.

Minneapolis Federal Reserve Bank President Gary Stern said in testimony prepared for delivery to the Senate Banking Committee on Wednesday that the United States must ramp up supervision to spot problems early.

....

He also recommended making banks raise capital levels during economic downturns, and said policy-makers should review tools that create capital when firms need it most.

However, Stern did not support the argument that solving too big too fail meant making financial firms smaller.

http://news.yahoo.com/s/nm/20090506/bs_nm/us_usa_fed_stern_regulation

---

Stern gets the dope slap of the day. If your entire plan rests on the notion of monitoring mega-banks for malfeasance then the plan does not consider what happens when monitors fail at their jobs.

I got an "A" in logic way back when (easy class for computer nerds, but the philosophy students really struggled). I ate up the Knights and Knaves problems. Piece of cake. As an expert logician, I can assure you THAT MAKES NO FRAKKIN' SENSE!

I have been hoping Obama's plan is he wants to stabilize the economy, get it on the road to recovery, and then whack the big banks with a sledge hammer, so the smaller pieces can actually respond to market forces the way Adam Smith intended.

Even with smaller pieces they need to add more regulation to set boundaries on crazy behavior and make banking boring again.

Now, how's that for a bumper sticker?

preferably a blindsided shot with a helmet to the gut, sticking 'em hard enough to cause a fumble.

LONDON (Reuters) – World stocks steadied around the previous day's near four-month high on Wednesday while the yen jumped as concerns over the health of Bank of America offset the impact of strong results from BNP Paribas.

....

That offset positive news from French bank BNP Paribas (BNPP.PA), which reported higher-than-expected first-quarter profits, and prompted investors to pause after the main MSCI world equity index (.MIWD00000PUS) rallied more than 30 percent since mid-March.

....

The FTSEurofirst 300 index (.FTEU3) was slightly higher on the day while emerging stocks (.MSCIEF) rose 0.6 percent.

http://news.yahoo.com/s/nm/20090506/bs_nm/us_markets_global

NEW YORK (Reuters) – Home values in the United States extended their fall in the first quarter, with more than one in five homeowners now owing more on their mortgages than their homes are worth, real estate website Zillow.com said on Wednesday.

U.S. home values posted a year-over-year decline of 14.2 percent to a Zillow Home Value Index of $182,378, resulting in a total 21.8 percent drop since the market peaked in 2006, according to Zillow's first-quarter Real Estate Market Reports, which encompass 161 metropolitan areas and cover the value changes in all homes, not just homes that have recently sold.

U.S. homes lost $704 billion in value during the first quarter and have depreciated $3.8 trillion in the past 12 months, according to analysis of the reports.

http://news.yahoo.com/s/nm/20090506/ts_nm/us_usa_economy_housing

Those statistics are mind-boggling.

May 6 (Bloomberg) -- Chrysler LLC dissident lenders have until 10 a.m. today to reveal their identities after a bankruptcy judge rejected claims that their safety was at risk because of anger over the automaker’s bankruptcy.

U.S. Bankruptcy Judge Arthur Gonzalez in New York forced the group to file a list of its members publicly, denying their request to reveal their identities only to the bankruptcy court. Gonzalez said yesterday the lenders have no evidence that keeping their identities private would help protect them. The group seeks to block an auction of most company assets to an entity managed by Fiat SpA, an outcome Chrysler said would force it to liquidate, costing thousands of jobs.

....

Hedge funds have been denied bids to keep their identities confidential in other cases, amid concerns about whether short- term trading interests or credit default swaps give them conflicts of interest in bankruptcy proceedings. Gonzalez compared his ruling to a 2007 decision from U.S. Bankruptcy Court Judge Allan Gropper, who forced a group of hedge funds that invested in Northwest Airlines Corp. to fully disclose the size of its members’ stakes in the carrier.

....

Hamilton also questioned whether the group may have had an incentive to force Chrysler into bankruptcy because it owns credit-default swaps, which insure them against a default on Chrysler’s debt.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aphXssvhdeg8&refer=news

"We agreed I shouldn't score too high, though, or no one would believe it."

Editing period expired before I noticed.

:eyes:

Damn, now I'm gonna have to ERASE! Have you ever TRIED to ERASE Crayon?!?! Any idea how DIFFICULT it is?!?!

That's gonna leave a MARK on my otherwise nice neat PAPER!

:gad:

I mean, if you have a CDS and you know the borrower might default, so you go ahead and push them out the window, isn't that kinda like setting your own car on fire so you can collect the insurance on it? Most insurance policies have clauses that nullify the contract if the insured deliberately causes the loss.


Tansy Gold, who listens to questionable insurance claims all. day. long...........

REAL insurance companies have to pay off on claims, so they find ways not to do so.

ZOMBIE insurance companies -- the ones who write CDS policies -- HAVE no money, so they get the TAXPAYERS to give them money to pay off on claims.


duh. silly me




oh yeah. :sarcasm:

The Boston Globe and its largest union reached tentative agreement on wage and benefit cuts early Wednesday morning, apparently ending for now The New York Times Company’s threat to shut down New England’s largest newspaper.

A Globe spokesman, Robert Powers, released a statement saying, “We have completed negotiations with the Guild but have agreed not to release any details until the leadership speaks with Guild members on Thursday, May 7.”

....

The union had responded with a combination of a 3.5 percent pay cut, benefit cuts, unpaid furloughs, the elimination of retirement contributions, a longer work week and other give-backs that it said were worth more than $10 million a year, but had strongly resisted giving ground on job security.

The company said last month that it would shut down The Globe unless the unions made wage and benefit concessions worth $20 million a year, and gave up job guarantees. The company has said that the paper will lose $85 million this year, battered by the worst advertising downturn since the Depression.

http://www.nytimes.com/2009/05/07/business/media/07paper.html?hp

From Naked Capitalism

I really should be past being surprised at misconduct in the securities industry, but when it extends to supposed regulators, it is a clear sign that the entire system is hopelessly beyond redemption.

The case example is FINRA. Some excerpts from its website:


.....

According to Dan Solin, FINRA sold them (auction rate securities) six months before the auction rate securities market froze. Since the market had been experiencing rising levels of dealer inventory, it is quite probable that FINRA knew of imminent problems (why did it cease holding ARS altogether rather than merely lightening up?) As Solin tells us:



more at link...

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

Last trade 84.087 Change -0.070 (-0.09%)

US Dollar Rises on Australian Economic Data, Stress Test Rumors

http://www.dailyfx.com/story/special_report/special_reports/US_Dollar_Rises_on_Australian_1241584980546.html

The US Dollar advanced in overnight trading as stock markets retreated when seemingly positive Australian Retail Sales and Trade Balance was revealed to mask a dour outlook on consumer sentiment while rumors spread that Bank of America is the most undercapitalized of the 19 lending institutions undergoing stress tests.

Key Overnight Developments

• UK Consumer Confidence Tops Forecasts But Outlook Remains Bleak
• Australian Dollar Plunges Despite Improved Retail Sales, Trade Balance
• Rumors Hint Stress Tests to Show Bank of America Needs Most Capital


Critical Levels



The Euro slipped -0.6% against the US Dollar, reaching as low as 1.3247. The British Pound followed suit, shedding 0.7% to test below the 1.50 level once again.

Asia Session Highlights



UK Consumer Confidence unexpectedly surged to register at 50 in April from 41 in the previous month according to the Nationwide Building Society (economists had forecast a reading at 42). Details of the survey reveal that while 80% of respondents would characterize the current environment as “bad”, in line with the average result over the previous 6 months, the spread between those expecting worse and those expecting better economic conditions in the future shrank to just 6%, the smallest margin at least since September. Further, the number of respondents that reckon economic conditions will remain the same in the immediate future surpassed that of those expecting the worst is still ahead for the first time in at least 7 months. On balance, this is not as good as it sounds: the status quo is far from rosy considering the UK economy shrank at an annual pace of -4.1% in the first quarter and is forecast to shed -4.4% in the three months through June. Ominously enough, the data revealed that a 68% of respondents see insufficient available jobs today and 62% expect this to remain the case going forward. The jobless rate is seen topping 8% in 2009 and reaching as high as 9.4% in 2010.

The Australian Dollar tumbled against its US counterpart, testing as low as 0.7337, despite seemingly positive surprises in March economic data. Retail Sales surged 2.2% from the previous month, four times more than economists expected, while the Trade Balance surplus printed at A$2.5 billion versus forecasts calling for a A$1.7 billion result. The details of the reports reveal a far grimmer reality than the headline figures would suggest. The jump in retail activity in and of itself likely owed to fiscal stimulus: the government has provided every Australian with A$950 in cash handouts since March. The breakdown in spending patterns is quite telling: department store and apparel sales raced higher, adding 13.2% and 6.4% from the previous month; meanwhile, discretionary spending (food, eating out) as well as bigger-ticket items (household goods) remained conspicuously tame. This suggests that Australians chose to spend their stimulus money to stock up on relatively more durable essentials (like clothing) but eschewed larger purchases and optional expenses, hinting that the handouts were seen as a one-off income boost, reflecting expectations of lower spending power in the months ahead and painting a bleak picture of consumer sentiment. The outlook on consumption was made even darker considering the improvement in trade figures came as imports fell on weak demand for foreign-made products rather than robust overseas sales. Indeed, inbound shipments shrank -0.38% in the year to March, the first contraction in 5 years. The fact that this happened even as the local currency advanced, boosting Australian’s purchasing power, makes things all the more negative.

...more...

Mixed Overnight Data and More Stress Test Speculation Weighs on Sentiment

http://www.dailyfx.com/story/bio2/Mixed_Overnight_Data_and_More_1241606654903.html

A lower equity close on Tuesday, followed by some mixed data overnight has struck a chord with investors as safe haven currencies once again generate some bids heading into the US session. Market participants are also starting to cue in on the upcoming stress test results, with rumors that US banks will need far more capital than anticipated acting as an additional weight on risk appetite. Bank of America has been heard needing to bump up its capital base by $34B, while $10B has been the number floating around for Citigroup. Meanwhile, Paribas has not helped the situation after saying that it will need to post additional writedowns. In the UK, the BRC shop price index and the Halifax house price index were weaker than expected, while UK services PMI and Nationwide consumer confidence were much better. NIESR was also on the wires with a downbeat report, after slashing growth forecasts and stating that the recent tax rises announced in the Budget would not be enough to restore balance until 2017-18. In the Eurozone, retail sales were much weaker than expected, coming in at -0.6% after the markets had been looking for a 0.1% rise. However, services PMI in the Eurozone and Germany did manage to come in better than expected. EU lobby BusinessEurope was in the news putting pressure on the ECB to lower rates and act on non-standard policy measures, while Germany’s Landesbanken has been told by S&P that its ratings will be downgraded. Swiss central banker Jordan has followed up with earlier Hildebrand comments after reaffirming the SNB’s commitment to use all means necessary to act against the Swissy rise against the Euro. Despite stronger overnight data, talk from China’s central bank of a stable economy and a potential breakdown in the Chinalco-Rio Tinto deal, Aussie has been a relative underperformer on the day after shining in previous days. The currency has however been highly correlated to US equity performance and with futures tracking lower, the price action can be justified. Looking ahead to the North American session, US mortgage applications are due at 11:00GMT, followed by ADP employment numbers (-645k) at 12:15GMT. In Canada, Ivey PMI (40.8 expected) is set to be released at 14:00GMT. On the official circuit, Fed Stern speaks before the Senate Banking Committee at 13:30GMT, while Fed Yellen is scheduled later in the day at 21:30GMT. US equity futures point to a lower open and commodities are marginally bid.

...more...

01. Wells Fargo needs $15 bln in new capital: report
12:02 PM ET, May 06, 2009

(A tiny rise in debt, the rest, most of the total, was FICA stuff.)

= Held by the Public + Intragovernmental(FICA)
= 6,927,691,087,258.88 + 4,292,278,895,754.81
UP 68,750,275.89 + UP 11,825,040,437.25

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 306-Million person America.
If every American, man, woman and child puts in $3.26 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.79, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 14 seconds we net gain a another American, so at the end of the workday of this report, there should be 306,288,772 people in America.
http://www.census.gov/population/www/popclockus.html
Currently, each of these American's owe $36,632..
A family of three owes $109,896.. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 21 reports in the last 30 to 31 days.
The average for the last 21 reports is 3,495,388,129.35.
The average for the last 30 days would be 2,446,771,690.54.
The average for the last 31 days would be 2,367,843,571.49.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 72 reports in 104 days of Obama's part of FY2009 averaging 0.10B$ per report, 0.15B$/day so far.
There were 147 reports in 216 days of FY2009 averaging 8.13B$ per report, 5.53B$/day.

PROJECTION:
There are 1,357 days remaining in this Obama 1st term.
By that time the debt could be between 13.1 and 18.7T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
05/04/2009 11,219,969,983,013.69 BHO (UP 593,092,934,100.61 so far since Obama took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 1,195,245,086,101.20 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
04/13/2009 +000,309,440,014.97 ------------******** Mon
04/14/2009 +000,167,862,523.71 ------------********
04/15/2009 +044,205,591,028.33 ------------**********
04/17/2009 -038,696,374,097.81 -
04/20/2009 +000,193,620,436.16 ------------******** Mon
04/21/2009 -000,363,758,089.93 ---
04/22/2009 +000,051,738,680.14 ------------*******
04/23/2009 -012,857,484,009.95 -
04/24/2009 -000,133,239,400.23 ---
04/27/2009 +000,285,896,492.06 ------------******** Mon
04/28/2009 +000,154,949,620.57 ------------********
04/29/2009 -034,727,762,120.64 -
04/30/2009 +079,347,503,951.43 ------------**********
05/01/2009 -003,202,605,992.57 --
05/04/2009 +000,068,750,275.89 ------------******* Mon

34,804,129,312.13 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $1,555,338,179,754.62 in last 228 days.
That's 1,555B$ in 228 days.
More than any year ever, including last year, and it's 153% of that highest year ever only in 228 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 228 DAYS NOT 365.

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

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3861680&mesg_id=3861745

(A tiny rise in debt, the rest, most of the total was FICA stuff, like yesterday.)

= Held by the Public + Intragovernmental(FICA)
= 6,927,814,023,783.68 + 4,299,650,348,057.80
UP 122,936,524.80 + UP 7,371,452,302.99

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 306-Million person America.
If every American, man, woman and child puts in $3.26 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.79, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 14 seconds we net gain a another American, so at the end of the workday of this report, there should be 306,294,943 people in America.
http://www.census.gov/population/www/popclockus.html
Currently, each of these American's owe $36,655.73.
A family of three owes $109,967.19. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 22 reports in the last 30 to 32 days.
The average for the last 22 reports is 3,677,160,888.37.
The average for the last 30 days would be 2,696,584,651.47.
The average for the last 32 days would be 2,528,048,110.75.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 73 reports in 105 days of Obama's part of FY2009 averaging 0.10B$ per report, 0.16B$/day so far.
There were 148 reports in 217 days of FY2009 averaging 8.13B$ per report, 5.54B$/day.

PROJECTION:
There are 1,356 days remaining in this Obama 1st term.
By that time the debt could be between 13.1 and 18.7T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
05/05/2009 11,227,464,371,841.48 BHO (UP 600,587,322,928.40 so far since Obama took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 1,202,739,474,929.00 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
04/14/2009 +000,167,862,523.71 ------------********
04/15/2009 +044,205,591,028.33 ------------**********
04/17/2009 -038,696,374,097.81 -
04/20/2009 +000,193,620,436.16 ------------******** Mon
04/21/2009 -000,363,758,089.93 ---
04/22/2009 +000,051,738,680.14 ------------*******
04/23/2009 -012,857,484,009.95 -
04/24/2009 -000,133,239,400.23 ---
04/27/2009 +000,285,896,492.06 ------------******** Mon
04/28/2009 +000,154,949,620.57 ------------********
04/29/2009 -034,727,762,120.64 -
04/30/2009 +079,347,503,951.43 ------------**********
05/01/2009 -003,202,605,992.57 --
05/04/2009 +000,068,750,275.89 ------------******* Mon
05/05/2009 +000,122,936,524.80 ------------********

34,617,625,821.96 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $1,562,832,568,582.41 in last 229 days.
That's 1,563B$ in 229 days.
More than any year ever, including last year, and it's 154% of that highest year ever only in 229 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 229 DAYS NOT 365.

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

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3863526&mesg_id=3863615

All the bank robbers put together in a typical year take about $75 million. The robber banks have taken us for 10,000 times that amount since last September.

(many of the commenters (so far 192) on the article provide good links to other artices..and it seems to be getting a lot of play on the web) Thanks for the post UIA's it verifies much of what we here have been suspecting. :hi:
------------

Episode 4. 'Goldman Conspiracy' is manipulating stock market
"Something smells fishy in the market. And the aroma seems to be coming from Goldman Sachs," says John Crudele in the New York Post. Stocks prices soaring. "So, who's moving the market?" Not the little guy. "Professional traders, with Goldman Sachs leading the way." NYSE numbers show "Goldman did twice the number of so-called big program trades during the week of April 13," over a billion shares, creating "a historic rally despite the fact that the economy continues to be in serious trouble." Then he tells us why: Because the "Goldman Conspiracy" is using TARP and Fed money, churning the markets. They are "gambling with taxpayer money."

the Big Cheeses are starting to smell of sweat from trying to defeat gravity, economics, and human nature of all us little people. Their gyrations and undermining and deception levels are ever-growing.

If I thought that these stress tests would pull the rug out from under their unstable fantasy world, I'd be glad. But that wasn't the point of those "stress tests", was it?

The results must have been worse than abysmal. Will Bernanke, Geithner, et al. face reality at last, and BoA and Citibank be liquidated in an orderly fashion? And if they are, will Goldman Sachs be far behind?

It looks like AIG has been hung out to dry, twisting in the wind.

And Hugin, if you're asking, I'd say local conditions of the Michigan economy just hit -20. And some insane person raised gasoline prices 20 cents this morning.

This is not going to end well, we all knew that. But I think it will end sooner than the Big Guys thought it would. We'll be lucky to make it to summer at this rate.

The irish in me wonders if the bigcheeses are scaring the b'jaysus out of you?
-- Seriously though, I read you posts a lot Demeter and I always appreciate your insight. Who are the big guys you're referring to? Geithner and Bernanke, or the heads of the moribund banks, or our man Obama?

And when you say your scared, what do you see looming when/if the white flag is raised on City Bank BoA etc?

and the palaces they built on sand are all being buried in their own waste.

The Big Banks and Financiers are the most scared. I don't think Fear has hit in Congress or the White House, yet. Any GOPpers still in office are too challenged to realize they are decomposing, not just dead.

Geithner is probably comatose by now. Bernanke is was and will ever be clueless. He doesn't understand why all his research doesn't work.

Paulson is busy expatriating himself, I suspect.

It will make great history. But it sure is hell to try to live through.

I kinda figure Paulson still has his fingers in the pie, somewhere. I don't think he's disappeared, more likely quietly working with Geithner to ensure our monies are transferred to the elites as quickly as possible, before the crash.

He's getting out of Dodge. This baby's gonna blow.

They're all looking out for Goldman Sachs, current and former. Not until ALL the money is looted from us to them, then Paulson will be gone. Probably anyone connected with Goldman Sachs will be hiding from the pitchforks.

The PTB are the people who own Obama, Geitner, Bernanke, and on and on.

Big money goes into putting these people into powerful positions, and the rich just keep getting richer, the middle class just keeps sliding into oblivion, and nothing much changes except a little around the edges.

It doesn't have to be a conspiracy. Just oligarchs looking out for their own best interests, and having the means to do it.

He sure fooled a lot of people. Although, I don't think it made any difference whether we elected Obama or Hillary or McCain. I'm still glad it wasn't McCain that was elected.

It's better than McCain :banghead:

It's better than McCain :banghead:

It's better than McCain :banghead:

It's better than McCain :banghead:

If not a fractured skull.

Nobody to date has yanked on his leash, trying to get him to do something he refuses to do---but I think that day will be coming shortly. Then we get to see who exactly we elected: a free man, or a slave.

He says that moment is coming when "the leash is yanked harder." And he says it will be the test of his Presidency, and probably for us...

It's mainly in the Senate (and it's composition) where the problems are...

The Senators who represent the State I reside in both voted 'aye'... For which I am very glad.

But, I was shocked to see the 'nay' votes from people such as Byrd! What was up with that?

I have been in ad-hoc conferences all week since that vote... With my typical liberal/progressive associates and... GET THIS! The cream of the usually so-republican-we-are-unable-to-communicate people nearby. Not only that, they have been seeking ME out! :crazy: These are the people who actually attended Teaparty Rallies.

From what I gather, THAT VOTE very loudly and clearly identified where the conflict-of-interests of the US Senate lay. And, everyone 'Gets IT!' ... Both people who identify themselves as Democrats and Republicans say it's the whole damn Senate that is corrupt. Bought off by the money/status-quo lobby and they have no interest (or they have lost touch) with the needs of their own average constituents. (us)

Now, back to President Obama... My mind is still not certain about his intent on this matter. But, I am certain that if this Bill had made it out of Congress, He would have signed it. It was pretty obvious that it wasn't going to happen and he wasn't pushing for it to happen.

So, We're left with that as an unknown.

for the White House, at least in modern times. Meaning, there's more money to be made and more power to be exercised as a "mere" Senator than as potus. While we have had several senators elevated indirectly (via VP first), JFK was the last one prior to Obama.

Personally, and I may get flamed for this, I think Obama is extremely vulnerable. He has caved to his puppet masters on too many issues and they are probably very secure in their sense of ownership. I suspect it would be very, very difficult for him to show any independence at this point. His administration is chock full o' moles (probably chock full o' nuts, too) and handlers and controllers, and he has not stood up to the opposition. Instead, he has courted them, and they know it. He has handed them far too much ammunition.

Worst of all, however, is that he has frittered away much of his political capital. booosh squandered his on big catastrophes like Iraq. Obama is letting his trickle away in a whole bunch of slow leaks: giving away more and more and more money to the banks without accountability, reneging on other promises, etc., etc., etc. I suspect many of the progressives who were behind him on 11/3 have pulled back their support. I certainly have.

In courting the elusive butterfly of bipartisanship, he may have lost something far more solid and sustainable -- his own base. His margin of victory wasn't so resounding that he can afford to do that. And his courtship hasn't won him a single thing; if anything, it has emboldened /sic/ the enemy -- the wingnut obstructionists who will demand someone to the right of Attila the Hun to replace Souter and/or a major stockholder in KBR for FEMA director.

I once told someone very very close to me that I don't give my trust easily. And if I have given my trust only to see it betrayed, I am a thousand times more reluctant to give it again. If my trust is to be earned the first time, betrayed it will have to be earned over and over and over and over again -- and even then it may never be fully restored. I put my trust in Barack Obama. With reservations, yes, but nonetheless I trusted him at least to be honest. He has broken that trust, and instead of attempting to rebuild it, he has betrayed it over and over and over again.

While not impossible, I would certainly say at this time that it's pretty damned improbably that I will ever trust him again. Ever.


Tansy Gold

Things have not gone as ideally as I hoped. The bank bailouts are ten times more expensive than what I think the alternative should have been. Obama should have fought harder for jobs and mortgage relief. He hasn't opened the door to war crimes prosecutions. But less than four months in, there are signs of improvement, certainly more than we could have expected from McCain/Palin.

I do not for a moment believe you would really vote for Sarah Palin in '12. And I do not believe you will withhold your vote for Obama's re-election and risk Sarah Palin (or whatever dumber dumbass the GOP can find) winning in 2012 and making things so much worse. And you know it could be worse. You remember when the retarded guy was President? (Apologies to all retarded people. I know, I know, you're all smarter than Bush.)

In 2000, I damn near voted for Nader. When I got into the booth, I just couldn't pull the trigger, and voted for Gore.

From now on, somebody has to EARN my vote. It doesn't come automatically any more.

When my Democratic Party voted to keep funding the Iraq war, I resigned from my DEC in protest. After several more outrages by Pelosi and Reid, the last straw was the FISA bill, and I switched to "No Party Affiliation".

Obama had better quit playing chess, and start kick boxing soon.

My Democratic friends made fun of me, and my Republican friends thanked me.

I agreed with Ralph Nader on almost every issue. But he gave us 8 years of President Bush.

the elections are a stupid joke so they install whoever they want, so i'm not really sure there is as much concern for the base as there once was in politics.

DO NOT put that on the menu.

5/5/09 Democracy Now
William Greider: “Come Home, America: The Rise and Fall (and Redeeming Promise) of Our Country”

The Nation‘s national affairs correspondent William Greider on the roots of the economic crisis, how US militarism is making the country less safe, Wall Street’s inflated power, the role of the Federal Reserve, and the future of healthcare reform. “My belief is, and I feel it strongly, is that we are just at the beginning of a really long, hard passage in which Americans, like it or not, have to adjust to these new realities,” says Greider.

transcript
http://www.democracynow.org/2009/5/5/william_greider_come_home_america_the


balantz posted videos
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x308068

http://www.marketwatch.com/news/story/bank-america-reportedly-may-sell/story.aspx?guid={912E61E6-FB7F-4898-80A9-0149229351AF}&siteid=yahoomy

Bank of America Corp. may sell part of its nearly 17% stake in China Construction Bank Corp. (0939.HK) this week, the Financial Times reported Tuesday, citing people familiar with the matter. The sources said Bank of America is weighing whether to to sell CBCs shares immediately or hold them for a few weeks, saying the decision depends on whether Washington will require the bank to raise new capital. The company is free to divest about a third of its CBC stake Thursday when a "lock-in" period ends. Bank of America said it plans to be a long-term CBC shareholder.

http://news.yahoo.com/s/nm/20090506/bs_nm/us_gm_shares_5

DETROIT (Reuters) – General Motors Corp (GM.N) on Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.

The unusual plan, which was detailed in a filing with U.S. securities regulators, would only need the approval of the U.S. Treasury to proceed since the U.S. government would be the majority shareholder of a new GM, the company said.

The flood of new stock issuance that could be unleashed has been widely expected by analysts who have long warned that GM's shares could be worthless whether the company restructures out of court or in bankruptcy.

The debt-for-equity exchanges detailed in the filing with the Securities and Exchange Commission would leave GM's stock investors with just 1 percent of the equity in a restructured automaker, ending a long run when the Dow component was seen as a bellwether for the strength of the broader U.S. economy.

GM shares closed on Tuesday at $1.85 on the New York Stock Exchange. The stock would be worth just over 1 cent if the first phase of GM's restructuring moves forward as described.

has been printing money they made up out of thin air. Why shouldn't GM follow suit and make up shares of stock out of thin air?

GM stock down almost 11% this morning.

http://news.yahoo.com/s/nm/20090505/bs_nm/us_reservefund_sec_9

NEW YORK/WASHINGTON (Reuters) – The father of the money market mutual fund -- investor Bruce Bent -- was charged with fraud by U.S. regulators on Tuesday over accusations he deceived investors into believing his flagship fund was safe before it "broke the buck" last year.

The civil charges against the veteran money manager, his son and their investment company come eight months after the Reserve Primary Fund, loaded with Lehman Brothers debt, halted redemptions after the investment bank declared bankruptcy, sparking a run on money-market funds.

The fund's net asset value fell below $1 after Lehman's bankruptcy last September, meaning that investors who thought their funds were safe had lost money.

The fund is being liquidated and its collapse has spurred numerous lawsuits. Its demise has been a stunning turn for Bent, who regulators called "the public face" of the fund and "a longtime advocate of the safety and stability of money market funds."

'Cause they can only sue the corporation for his lying, cheating, and fraud. He is absolved from any personal responsibility for his corporate actions made in the name of the corporation because it wasn't really him, it was the CORPORATION that made him do it.

Charged but not indicted? So he doesn't go up on the scoreboard yet? When this all shakes out, will their be any financial executives NOT up on the scoreboard? As far as I can tell, they all lied to their shareholders and the SEC, saying, "Things are fine. We're making lots of money. Look over there! A monkey. Look at the silly monkey!"

http://news.yahoo.com/s/ap/20090505/ap_on_go_pr_wh/us_obama_taxes_41

President Barack Obama promised sternly on Monday to crack down on companies "that ship jobs overseas" and duck U.S. taxes with offshore havens. It won't be easy. Democrats have been fighting — and losing — this battle since John F. Kennedy made a similar proposal in 1961. Obama's proposal to close tax loopholes was a reliable applause line during the presidential campaign, but it got a lukewarm response Monday from Capitol Hill.

Sen. Max Baucus of Montana, the Democratic chairman of the Senate Finance Committee, said the plan needed further study, even though similar ideas have been around for years.

The president's plan would limit the ability of U.S. companies to defer paying U.S. taxes on overseas profits. At the same time, Obama would step up efforts to go after evaders who abuse offshore tax shelters.

Obama said his plan would raise $210 billion over the next 10 years, though no tax increases would go into effect until 2011. That's an average of $21 billion a year, less than a 2 percent nick in a federal budget deficit that is projected to hit $1.2 trillion in 2010.

Lost revenue isn't the only problem, Obama says. He contends the current system gives companies an incentive to invest overseas rather than creating jobs in the U.S.

"It's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, N.Y.," Obama said Monday.

The business community argues the deferral system helps them compete against foreign companies that pay taxes only in the countries where they generate profits.

The bottom line?

"Nobody should miss the fact that this is about revenue," said Raymond Wiacek, head of the tax practice at the law firm Jones Day. "These companies have the money, and the U.S. government needs the money."

Obama also proposed a package of disclosure and enforcement measures designed to make it harder for financial institutions to help wealthy individuals evade taxes in overseas accounts. Obama said the government is hiring nearly 800 new IRS agents to enforce the tax code.

"I want to see our companies remain the most competitive in the world," Obama said at a White House announcement. "But the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens."

Obama's plan would impose billions of dollars in new taxes on many of the nation's largest corporations, including Google, General Electric, Hewlett-Packard, Intel and Johnson & Johnson, tax experts said. But it falls well short of the broad overhaul of the tax system that will probably have to wait until at least next year — after Congress deals with health care and energy.

In exchange for the increased taxes some companies would have to pay, Obama agreed to make permanent a research tax credit that would provide firms about $75 billion in breaks over the next 10 years. The credit currently is to expire at the end of the year.

Obama has widespread support in Congress to crack down on tax evaders who illegally hide assets in tax havens. But he faces stiff opposition — even within his own party — to increasing taxes on the legal transactions of U.S. multinational companies.

"To the extent the president continues on the road of cracking down on tax abuse, he can count on my support," said Sen. Chuck Grassley of Iowa, the top Republican on the Senate Finance Committee. "But if he's using tax shelters as a stalking horse to raise taxes on corporations at the cost of U.S. jobs, he'll lose me."

A coalition of business groups has already stepped up lobbying efforts to kill attempts to increase taxes on overseas profits, saying it would make American companies less competitive.

"We're talking about American jobs at American companies and their ability to compete overseas," said John J. Castellani, president of the Business Roundtable.

At issue is the way the U.S. taxes the overseas profits of American companies. Under current law, American corporations with subsidiaries in foreign countries can defer paying U.S. taxes on the profits of those subsidiaries until the money is transferred back to this country.

If companies leave the money overseas, where corporate tax rates in most countries are lower than in the U.S., they can avoid American taxes on those profits indefinitely. If the money is brought to the U.S., corporations can subtract foreign taxes already paid.

The U.S. has a top corporate income tax rate of 35 percent, which is among the highest in the developed world. However, most corporate income is taxed at much lower rates because of deductions and credits.

In 2004, large corporations paid an average effective tax rate of 25.2 percent on domestic income, according to a Government Accountability Office report last year. For foreign income, the effective U.S. tax rate was about 4 percent, the report said. That figure does not include taxes paid to foreign countries.

Obama's plan would:

_Prevent companies from writing off domestic expenses that help generate profits abroad — until those profits are returned to the U.S. and subjected to American taxes. For instance, administrative tasks performed in New York for a London office would not be tax deductible in the United States.

_Prohibit companies from receiving foreign tax credits on income that is not subject to U.S. taxes.

_End a provision that lets U.S. companies legally shift income from one foreign subsidiary to another, making the taxes they owe to the United States "disappear."

Former President Kennedy failed to end the tax deferral system in 1961, despite telling Congress the U.S. could no longer afford it. The system also survived overhaul efforts in the 1970s and 1980s.

Rep. Charles Rangel, chairman of the tax-writing House Ways and Means Committee, proposed a similar measure to limit the deductions of U.S. multinationals in 2007. But Rangel, a Democrat from New York, tied his proposal to lowering the overall corporate tax rate.

On Monday, he welcomed Obama's plan.

"For too long, our tax laws have rewarded companies that invest and keep their money overseas and turned a blind eye to the use of tax havens by the wealthy," Rangel said.

http://www.marketwatch.com/news/story/banks-may-need-more-capital/story.aspx?guid={D020B53F-4B75-461D-8629-AB36D0C4E69A}&siteid=yahoomy

LOS ANGELES (MarketWatch) -- The U.S. government may order an estimated 10 banks to boost their capital levels, but beleaguered insurer American International Group Inc. won't need further help from Washington, according to media reports Monday, all citing unnamed sources.

U.S. officials are expected to direct about 10 of the 19 banks undergoing government stress tests to boost their capital, a move they hope will quell fears about the solvency of the financial sector, The Wall Street Journal reported Monday.

The exact number of banks affected remains under discussion, the report said, though possible candidates for capital-raising could include Wells Fargo & Co. and several regional banks, the report said, citing sources familiar with the matter.

At one point, officials believed as many as 14 banks would need to raise more funds to create a stronger buffer against future losses, the report said, but that number has fallen in recent days.

If multiple banks are being directed to boost their capital, that could make the process seem less daunting than if the government singled out a few companies as weak, the report said.

Meanwhile, several banks are expected to have shown themselves to hold enough capital to weather a worsening economy, including Goldman Sachs Group Inc. (GS
Goldman Sachs Group Inc, on the other hand, is likely to post first-quarter results Thursday that will be strong enough to avoid triggering a new capital injection from the U.S. government, Bloomberg News reported Monday, citing people familiar with the matter.

The insurer will report results better than the record $61.7 billion fourth-quarter loss it posted in March, the report said without specifying what those results will be. End of Story

"The insurer will report results better than the record $61.7 billion fourth-quarter loss it posted in March"

Well, I would frickn' well hope so!

Too bad it's all Taxpayer dough. :eyes:

PHIMG posted this video, appx 5 minutes


"HR-676 is really the policy that will stop this nonsense debate that goes on in Congress all the time. Its just disgusting what goes on in the presidential campaign....with all the other candidates. They try to spin that they are for universal healthcare. But what they are really for is for the for-profit system to remain in control. So you can continue to pay premiums co-payments and deductibles, with the option of the for insurance companies not to cover you, and if you can't afford the premiums co-payments and deductibles, it's ok the government will subsidize you. Well whop-tee-do. Then you get more of your tax dollars going into the the for profit system, it doesn't put caps on that, it doesn't keep the expenses down, it raises it up, and again we start to bankrupt goverment. These are policies for people who don't want to see government working for people. I wan't to see a government that represents people."
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x308308

direct link to video
http://www.youtube.com/watch?v=allQtB3sHVA

She'd make a great First Lady!

http://online.wsj.com/article/SB10001424052970204475004574127340600605478.html

And these are supposed to be the less risky investments, except for funds with Treasury Bills, if your plan has that option. Unfortunately, I have heard many T-bill funds are closed to new investors.

Bad news.

http://online.wsj.com/article/SB124148012581385199.html

So has anyone heard if there are freeze withdrawals on IRAs?

I've posted quite a bit about securities lending on previous SMW threads. Here is a scary article that talks about the problems with defined contributions plans (401(k)) and the defined benefit pension plans.

http://www.pionline.com/article/20090209/PRINTSUB/302099976

a financial nightmare

I'm glad that a group of people here get it. I hope you can all weather the coming storm.

I thank all of you for all your info and wisdom.

All the best,
antigop

hang in there and here (SMW) with us!

UIA

:grouphug:

We want you to weather the storm, too....

You've quietly contributed huge amounts to this Thread over time.

I can think of many instances where you've actually scooped many things which ultimately became prominent issues.

401(k) investment... Pension Investment Corruption... and more.

And, I've read every one!

I'll miss your Insights... :/

Appreciate all these articles about pensions and 401(k)s. Come back soon.

Dayton put down a quarter of the $950,000 purchase price when he bought his house in Newport Beach, Calif., in 2004. He was making $500,000 a year with his drywall company and he expected home values to keep rising.

Then the mortgage market collapsed, new construction stopped and builders no longer needed his services. Dayton, 43, went into default four months ago because he couldn’t afford payments on the three-bedroom home, located within a block of the Pacific Ocean. He hopes his lender will agree to sell the seven-year-old house for less than he owes to avoid a foreclosure.

“It’s just wait and see right now,” Dayton said.

Borrowers such as Dayton, whose 2004 compensation was almost 10 times the median U.S. household income, are becoming trapped by the same issue facing the poorest subprime homeowners: falling home prices erase equity and make it impossible to sell or refinance without losing money.

The number of U.S. homes valued at more than $729,750, the jumbo-loan limit in the most affluent areas, entering the foreclosure process jumped 127 percent during the first 10 weeks of this year from the same period of 2008, data compiled by RealtyTrac Inc. of Irvine, Calif., show. The rate rose 72 percent for homes valued at less than $417,000 and 78 percent for all homes, RealtyTrac said.

“It’s the trickle-up effect,” said David Adamo, chief executive officer of Luxury Mortgage Corp., a home-loan bank in Stamford, Conn. “Just like homeowners in smaller homes, these homeowners anticipated being able to refinance mortgages to continue making payments and at a future date sell for a gain and put it toward their next home. That strategy backfired when the market for jumbo mortgages dried up.”

more....

http://www.chron.com/disp/story.mpl/business/6410188.html

This thing risks contaminating even good markets and I am afraid that is what we will see more of this. This is how innocent people get hurt in a depression and I believe the poor with subprime credit were ripped off just as much as the well to do. We need cram downs to rectify the problem.

Stocks mostly rise on hopes of easing unemployment--AP

NEW YORK (AP) -- Investors found another reason to buy up stocks Wednesday after a report indicated job losses might be slowing.

Most stocks rose after the ADP National Employment Report, an unofficial gauge of the labor market, said that private sector employment fell by 491,000 last month, a huge improvement from the 708,000 jobs lost in March. The ADP report said unemployment is likely to rise for several more months, but at a slower rate.

The news was a reassuring sign ahead of the Labor Department's Friday report on job losses, and offered another sign that the economy's slide could be moderating.

http://finance.yahoo.com/news/Stocks-mostly-rise-on-hopes-apf-15151348.html?sec=topStories&pos=main&asset=&ccode=

I believe someone predicted on SMW just yesterday that the job loss figures would be lower than in January, and predicted euphoria if job losses were ONLY half a million. Oh, wait, that was me. (Pat, pat, pat. (That was the sound of me patting myself on the back.))

Official numbers from the Bureau of Labor Statistics come out Friday at 8:30 EDT.

is that ANYONE thinks this is an improvement:wtf:

Seems like a farcical explanation to me... I would think it would be some useful sector up.

from Barrons website: http://online.barrons.com/article/SB124145092602483625.html?ru=yahoo&mod=yahoobarrons

this headline caught my eye: "Small-Bank Consolidation Wave Coming"

Unfortunately, it's a subscription only site. From that headline, it appears someone thinks banks are too small.

As a logical outsider, I concede this line of reasoning: Small banks are allowed to fail. If you want to survive in the banking industry, you need to consolidate until your corporation is "too big to fail." Then you can count on a government bailout when you run your operation incompetently. You can still get fat bonuses, too. You have to run a small bank competently. That's hard work. And if you fail, your stock options become worthless. So extreme size is a sort of "incompetence insurance."

how is that possible? In the reality-based world?

Check out the VOLUMES on BoA and Citi, mindboggling.
http://www.tijd.be/beurzen/330015505

:shrug:

Who was Goldman Sachs buying today? And how many CDS do they have?